“I quit”, these are golden words that you dream of telling your employer so you can go out and start your own thing.
But according to a new study published in The Academy of Management Journal, if you jump ship too early, you could be setting yourself up for failure.
Professors Joseph Raffiee and Jie Feng at the University of Wisconsin-Madison found that “hybrid” entrepreneurs, those who maintain their regular gig and while launching their new ventures in stages, are less likely to fail than those who jump in sans safety net.
If you’re not convinced, starting your business while you’re still employed would allow to enjoy the best of both worlds. A stable, dependable source of income will give you much more confidence in testing the waters with a new business that usually has a high likelihood of failure in the first year.
As you proceed to take baby steps to achieving a booming business, ensure to take note of the following advice:
- Save: Save cash you’re earning from your side hustle. This will sustain you when you decide to dive into your business entirely. Also it may help cover further investments you may need to grow your side hustle over time. To do this be sure to put into place clear spending and budgetary guidelines for your side business to make sure you’re not spending beyond your means.
- Time is money:If you’re going to handle both your day job and side hustle, you’re going to need to organize your time. Decide what’s really important create a target list of all the responsibilities and activities you’ll be reducing or eliminating in order to make time for your business.
- Get a Co-founder; Startups are tough, and they are even tougher when you try to do them alone. Having a good cofounder increases your chances of success. Cofounders add to your company’s skills, and help reduce on time.
- Don’t take advantage of company property to capitalize on your side business; for example, using corporate computers or email systems to send any emails related to your side business.There should be no affiliation between your business and the company which you work for.
- Choose the Right Business; Starting a business is like a marriage. Try to start a company in a sector you’re comfortable with, that you can see growth. If that’s not possible, think about a “try before you buy” arrangement where you “test things out” during your night and weekend work.
- Don’t feel pressured to leave your day job as your business starts to gain traction; New businesses go through life cycles and some early wins do not necessarily mean you have a sustainable enterprise.
- Once Your Business is Stable, don’t be afraid to leave your full time job; if its making profit that will enable you to live comfortably, then don’t remain stuck in your 9-5 job. Venture out, and continue to grow your business.