If you’re thinking of starting a business, you may be wondering if you should quit your job and go “all in” on this new company, putting all of your time, energy and money into making it succeed, or if you’d be smarter to start it on the side. Doing so does mean you’ll have less time to give to the company and growth will be slower, but you don’t have to change your entire life.
Either option can work. It all depends on your situation. That said, many experts strongly support starting a small business on the side, with little risk, to see how it can grow.
It takes less to get started
The main benefit is that it takes less money to get started, and keeping your job means that, even if the business doesn’t work out, you have financial stability. You know that you can pay the mortgage, support your family and live a comfortable life. If the business becomes successful, you can scale up your involvement in the future, once you know it’s going to work.
But will it hold you back?
The downside, naturally, is that keeping your job could hold you back. You’re less invested in the company, both financially and emotionally. You only have a limited number of hours every week, and spending 40+ at your day job leaves very few for your own business. If your business does not thrive, will you always wonder what would have happened if there had been no Plan B?
No matter what path you choose, you must know all of the proper legal steps to take as you get started out on the right footing. Getting things right today can save a lot of problems down the road.