Tiago Nunes Engineer for life

July 7th, 2020

Which one comes first, you quit from your job or you start your own business?

Should I start work in my business before I quit my job?

Your opinion will be helpfull

kaderjan Founder/CEO @UpFounders

July 7th, 2020

Depends on your financial situation, if you need your income from your job to fund your business, don't quit until your business picks up!

Dr. Rob Elkington Ph.D. Founder and CEO: Global Leadership Initiatives globalleader.ca

July 7th, 2020

Hi Tiago,

This is an important question that involves many factors and considerations!

Here are some factors:

  1. Do I have sufficient start-up capital or savings to last me twelve months to get my business running.
  2. How attractive is my business in the industry (here look at Porter's five forces).
  3. How strong is my network? Do I have connections substantial enough to support sales from the outset?
  4. Am I a known brand?
  5. What is the strength and financial capacity of my co-founders?
  6. What agreements do we have in place with respect to profit sharing (and loss sharing?)
  7. What do my cash-flow (realistic and conservative) projections highlight with respect to buoyancy over the next twelve months?

Here are some considerations:

  1. How is my personal risk tolerance?
  2. How is my partner's risk tolerance?
  3. Will lack of liquidity hamper business capacity?
  4. Will reduced time due to employment hamper business capacity?

No one can answer the question of whether or not you should continue to work while building your start-up since so much depends on the factors and considerations around that very important decision. I encourage you to err on the side of caution - start slow to go fast, and be aware of the current economic environment!

Good luck!

Matt Mansour Technical CoFounder

Last updated on July 7th, 2020

Keep your job until you have some MRR or funding from your business.

Unless you can easily get another job.

Micah Stevens Software/Hardware Engineer

July 7th, 2020

The first time I did both for a year or so until business picked up enough I could dedicate 100% of my time. The tradeoff was I had less time for business development while I was doing both, so my ramp up was probably slower than it could of been, but I had to pay the bills.

Since then I've been able to plan ahead and make the switch with just a little crossover, maybe a month. My goal has been to use my previous products to sponsor the development of later products, so from the beginning I take a percentage of revenue and put it in a 'war chest' so to speak.

It can be hard at first though. Depends on where you're at and the amount of risk you can take on.

Dennis Callanan Chapter Chairman at Rhode Island SCORE Chapter

July 7th, 2020

Tiago, As a Certified Business Mentor for SCORE we always tell our start up clients "Don't quit your day job"! While this is our organizations mantra the client most of the time is in the embryonic stage of starting their business. We encourage every client to do a self financial analysis on the monthly income they require for supporting themselves and family. This income number then becomes a target goal of hitting before they will be ready to quit their "day job" and dive 100% into their new business. This is a data based decision tool. Wishing you the best on your exciting journey! Dennis

Benjamin Van As Benjamin Van As - Advisory prof & Founder

July 9th, 2020

With the current economy, it is going to be extra hard starting a business. If you can, start it on the side and enjoy the benefit of having a fixed income until the business can sustain you. But if you have proof you have cornered an undiscovered niche and can start printing money, then jump in. Before you do, make sure you have sufficient funds for a 6-12 months personal run (over and above what the business might need)

Keith O'Brien Husb./Father, fmr Marine Corps Capt., Motivated.

July 7th, 2020

Strongly suggest keeping your day job until you get some traction. You can operate on 4 hours of sleep a night for longer than you think ; )

Jett T. Angel investor, startup advisor, entrepreneur, ideator, engineer, published author, producer, ...

July 7th, 2020

That really depends on the resources you have. Most likely the answer will be to continue your current job until your own business gets funding or generates enough revenue to make the switch.

Ema Chuku Product Developer. Founder.

July 7th, 2020

Unless you’ve made up your mind on the possibility of sleeping on the street as worst case scenario, then go ahead and quit your job to start a biz.

otherwise, keep every income generating means you have start and work on your biz on the side.. If anything cut down your sleep and social times.. When things start picking up with your new biz then don’t hesitate to quit your job.

Make a smart choice. Entrepreneurship is overrated.

LanVy Nguyen Founder & Managing Director at Fashion4Freedom

July 7th, 2020

The answer to your question depends on: A: How much your current job provides in terms of take-home and savings B: your cashflow requirements to live C: your cashflow to upstart D: Any savings you might have for your upstart If: D > (B+C)*6 then it's likely safe for you to quit If: (D+A) ~ (B+C)*6, then you should not consider quitting too hastily, but this also depends on your risk-tolerance level If: (D+A) < (B+C)*6 then you might want to consider whether to upstart at all with grave assessment of how good your idea really is. Most upstart founders claim to have quit their jobs. The reality is that most founders were already being pushed out or saw a limited future in their jobs; therefore, the decision to leave a dead-end job was an easy one. All these are personal gray areas you have to be honest with yourself when assessing whether to quit.