Many entrepreneurs are currently worker bees in a “day job.”  Working for another boss is still the norm, but would-be entrepreneurs have the type of personality that desire to be their own boss.  However, should an entrepreneur quit a day job to completely invest into a new business?

 

It is common for many entrepreneurs to continue working a full time job while developing and growing their own business.  An entrepreneurial venture does not always provide an income at first, and with a mortgage and kids, the regular income from a day job is important to maintain. 

 

However, some entrepreneurs argue that without devoting a full time effort into growing their business, it will not get off the ground.  Particularly with a new business, you need to invest much time and effort into marketing, growing contacts, and making sales.  With no money to hire extra help, an entrepreneur must take charge of all the duties him or herself.  Sometimes the reward to exerting full effort in a business venture is the realization of a regular income much quicker than a part time endeavor.

 

The real question to whether an entrepreneur should or should not quit a day job depends fully on the circumstances of the individual.  Some things should be considered:

 

Do you have large financial obligations?

 

Many entrepreneurs are married with families and a mortgage, not to mention all the credit card bills that have financed much of his or her entrepreneurial efforts.  If this is the case, a regular income from a day job may be essential.

 

Are you looking for venture capital financing?

 

Sometimes a venture capital firm does not want to support a business when the entrepreneur is not working at it full time.  It may show that the entrepreneur is not confident in the success of the business.

 

However, with the help of VC financing, it is possible for the entrepreneur to devote full time into the startup business.  In any case, an entrepreneur should disclose the reasons to a venture capital firm for not quitting a day job.  People do understand that financial obligations must be met.

 

Do you have adequate savings?

 

For anyone quitting a regular full time job, it is usually recommended to have savings to support minimally three to six months of no income.  Many young entrepreneurs are able to drastically reduce their expenses while endeavoring to build a new business and can live off of little savings.  Another possibility for a confident investor is to cash in on stock options or other investments to help pay bills during the transition from full time job to full time entrepreneur.

 

Ultimately, the confident entrepreneur will find a way to succeed.  Whether it may be from living paycheck to paycheck while a business grows, or living cheaply while devoting full attention to a business venture, the entrepreneur who will succeed will be the one who weighs these options carefully.

 

 

 

 

Tags: angel investors, Find funding, startup business, startup funding, vc, vc funding, venture capital, Venture Capitalist

This entry was posted on Wednesday, January 28th, 2009 at 6:34 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.