Take the leap to start a business when you’ve got yourself covered. The promise of financial security is up there, but at the core of it: pioneers are generating new business ideas. What does an entrepreneur do? Motivated by building something, leaving a mark and taking charge of our own destiny. So can you start working on your innovative business ideas while still tethered to your day job? Let’s take a look.
Yes! Use The Job To Your Advantage
“Work bloody hard, and find a way to enrol your day job/company so you create shared value at every stage of both your small business ideas journeys,” suggests Anna Reeves, CEO and Exec Producer for online series That Startup Show.
Maybe you’re at the office while you’re reading this. Look around the floor and think laterally for a moment… What are the qualities of an entrepreneur, what does an entrepreneur do?
- Idea generators might have online business ideas that look to solve problems that they understand intimately. Your office is a great source of inspiration (and friendly colleagues can make for great testers).
- The meaningful new connections you make while on the job — within your company and externally — might just reveal your future co-founder with complementary entrepreneurial characteristics. Possibly even future clients. Seek to expand your business relationships and avoid burning bridges.
- Take advantage of business travel. Both the business partners you meet with and the travel time you can devote to your own projects.
- At work, you’re constantly exposed to new developments in a variety of systems and processes that expand your experience. Especially in areas like marketing, finance and team management.
Note! Be sure to check your staff contract for what claim your day job may have on any intellectual property you create under its employment, outside of hours.
Your App Is A Product, Not A Company (Yet)
Explains Bosco Tan, co-founder of the popular budget app, Pocketbook: “A product can make some money in bursts, but rarely enough to quit the day job. A company, meanwhile, is something that is sustaining.”
“This distinction is super important for any first-time entrepreneur to understand; the foresight needs to be a vision to create a company out of the initial amazing app product.”
Your Job Is A Safety Net
Let’s face it, it’s nice to be able to eat. “Until you start making money for your startup, each day off work is a day with less cash. No cash and it’s game over,” says Djordje Dikic, co-founder of Palette — a hardware gadget dubbed the ‘Shazam for colour’ that went through the University of Melbourne’s Accelerator Program.
“Automate a daily cash summary to keep yourself accountable and focused and your startup capital in order. That latte you just bought? It cost you $4, and 15 minutes of your time. Was it worth it? Focus on cash above all things.”
“Don’t quit your day job until you have poured as much of your own investment in cash and time into developing your concept through to proofing stage,” adds Brandon Evertz, CEO of Big Review TV — a Sydney-based app and video review site with more than 11,000 members.
So long as you can avoid burnout (which is a legitimate concern), staying at work longer reduces your risk and allows you to fail fast, pivot, recover and try again if things don’t work out. This is also when you can save money for a runway to live on once you cut the safety net.
Do Or Do Not. There Is No Try.
Just ask Yoda. Some call it the ‘no plan B approach’.
“Maybe you’re able to mentally quit your job and your employer will keep paying you to just show up while your heart and brain are working full-time on your startup, but that’s not sustainable for long. No smart investor is going to commit to what you’re doing by writing a cheque until you can show that investor that you’ve made a bigger commitment yourself.”
“Work out a way to save up enough money to live on instant ramen noodles for a year, then graciously and with respect give your employer notice of your resignation (you don’t want to burn that bridge if you can possibly avoid it) then put a post-it note on your bathroom mirror with the number of days you have left before you run out of time (and money). Update that post-it each morning while you brush your teeth.”
“Shit is now real. Go forth and do.”
Just ask Jane Lu, the 28 year old CEO of ShowPo — a Sydney-based online women’s fashion retailer that now turns over more than $10 million a year. She founded the businesses using her credit card, while living at home — and pretending to her parents that she was still going to work every day after quitting her KPMG cadetship.
“I just got so sick of being stuck in that boring grey cubicle,” she told Business Insider. “There is no prescribed way to achieving success. Go against the grain and follow your gut. I’m a good example of ‘if I can do this anyone can.”
Beware of the Sharks
Just be sure to choose your partners carefully. For instance, look to include some sort of penalty in your development contact if they don’t deliver on time — or to the quality you’ve previously agreed.
“Also be very cautious of the corporate advisors you come across,” cautions Brandon from Big Review TV.
“There are shark infested waters out there and ethics don’t seem to matter! NDA’s are all well and good, but do your background research very, very thoroughly and do due diligence on any advisor you come across or are referred to. You want to see absolute proof (references and first hand feedback) that they can deliver what they promise.”
“Unusual advice, but essential and we’ve learned the hard way!”
