Are you thinking of quitting your job to start a business?
Have you asked other people for advice?
If so, chances are many will say they think you’re crazy.
Be a Full-Time Entrepreneur Right From The Start
Many people will tell you they think it’s too risky, that you’ll never make it, that 90 percent of new businesses fail in their first year, and that “you”ll be back”.
Any positive advice you do get is likely to be of the risk-avoiding kind.
For example: “Stay in your day job and set up and run the business in your spare time. Then when it’s running and earning you a good living, quit your day job and run your business full time”.
On the face of it this seems to be sound and sensible advice, agreed?
On the face of it, the part-time approach sounds like a wonderful solution.
It keeps the risk low, it means you still have an income and it enables you to get your business started, running smoothly and earning revenue before you switch over to running it full time.
The trouble is, this idea is seriously flawed.
Are You Creating a Business or Pursuing a Hobby?
To see why this is flawed, ask yourself this question. Are you aiming to create a viable business or are you pursuing a hobby interest as a sideline?
If the latter, then you can – and should – stay in your full time job and run your business solely in your free time and at weekends.
But if you are serious about creating a viable future for yourself – for breaking out and making yourself independent from paid employment, then you need to take the matter seriously right from the start. You need to dedicate yourself fully to this project.
Prepare Part-Time – But Run Your Business Full-Time
What you can do whilst still employed is to do some preparation.
Research, gather information, decide what kind of business you will start – and why.
At the same time you can also be building up your savings. You’ll need at least some capital to start a business. How much depends of course upon what kind of business you want to create for yourself.
If it’ s a more traditional “bricks and mortar” enterprise, then you will need more capital than someone starting an online e-commerce business, or a freelance consultancy working solely on clients premises.
But once you’ve got these resources together, you must then make the switch from full-time employment to full-time business owner.
Here’s Why You Must Run Your Business Full-Time And Not Part-Time
- Firstly: sweat equity. You’ll need to spend a great deal of your own time on starting the business and building it up in the early stages. This so called “sweat equity” is important in most start-ups. If you’re trying to hold down a full-time job at the same time, then it will be difficult to find this necessary sweat equity.
- Secondly, it firmly expresses your intention. Quitting your full-time job and concentrating full-time on your new business is a firm expression of your intention. It states that you’re now a full-time business operator -and not a full-time employee with a little hobby business on the side. You are not”half-in, half-out”. There are psychological benefits to redefining yourself immediately as a full-time entrepreneur. It says a firm goodbye to your old “employee attitude” and lifestyle and opens up the way for a new outlook on your life.
- Thirdly, keeping your business quiet just doesn’t work. According to the small print of many employment contracts, employers can often prohibit their staff from running businesses in their spare time. This can even be cited as grounds for dismissal. Even though you will be becoming your own boss, you do not want and should not have this potential humiliation hanging over you. Make sure YOU decide when YOU quit. You do not want to have to creep around trying to keep the whole thing quiet. An entrepreneur cannot do this. Publicity is vital for business. A business kept in the closet cannot function!
- Fourthly, dedication. The bulk of your time, energy and effort should be dedicated to your business and not to an outside activity or other person’s business which has no connection with your business and does not do anything to further it. Your loyalty from now on must be to your own business – and not someone else’s.
If You Need Cash In The Short Term – Get a Part-Time Job
If you need cash to help pay your bills and meet your living expenses whilst you’re in the start-up phase of your business, you can take a part-time job.
In this way you keep your resources – time, effort, energy, focus and commitment fully available to dedicate to your business.
Your Motto Should Be: “Full-Time Business – Part-Time Job”
You should stick to the motto: “Full-time business – part-time job” and not the other way round.
Be a full-time entrepreneur right from the start.
If you follow this rule you’ll be giving yourself the best chance of success with your new venture.