Go to Work or be an Entrepreneur?

[youngmoneyblog]

so.. here's the scenario.

You're a young bootstrappin entrepreneur with nearly no savings because you've invested all your money into a relatively young business you started 6 months ago. Fortunately, you know your industry and your business has done pretty well, and nearly paid off all of its initial startup cost in these 6 months.

During this time, you stumbled upon a job opportunity that will pay you nearly double what other companies are offering, setting you on track to earn 6-figures (guranteed) by the time you're 30. The company is growing, rapidly. And their business structure encourages independent, entrepreneurial thinking... something you've developed/enjoyed.

So... what do you do?

Continue with your business and see where it goes... or take the high paying job with guranteed salary?

[Sam Barona]

If you can do both, do it. I started my first business after I left the military and was working as a money broker in London. The money was good and I enjoyed the daily challenges, but wanted to run my own internet business (1994).

I patented two technologies, having little knowledge of the industry (with a lot of help from tech-savvy friends) and then recruited developers to create working models of the technologies. In 1996 I left my job and secured another doing marketing for an internet consulatncy, which I left in 1999 to set up my business. In 2001 I bought out my previous employers after securing £28M in funding (nearly US $60M).

Of course, there was no fairy tale ending for me; I got shafted by my own friends and sold the technologies to competitors, which just about covered outstanding advertsing and salary bills.

What I am trying to say is that it can be done, you can do both if you manage yor projects and finance closely and your time even closer.

Good luck

Sam

[akula]

There’s two parameters for making the decision

rational: from a rational point of view, there's hardly any rational reason to justify staying in a startup. Financially, it doesn't make sense. As an entrepreneur, you're working for a smaller salary, and investing all your earnings into one, unlisted company - contrary to any rational principles of sound investment strategy.

irrational: staying in a startup, can give you the sort of feelings that you can't get anywhere else. often, people push the lifestyle argument saying that startups offer a better lifestyle - but this is objectively untrue in most cases (unless you're a surfing instructor or something). but, as long as the startup makes you feel special, that's a good reason to reject the job offer

overall: unless you're ok with being irrational (as I am ), I'd suggest accepting the job offer - as I would if I wasn't such an entrepreneurial nutcase

try this litmus test: if your i-banker/VP at 27 classmates ask you "why are you doing this start-up" and you don't say things like "I'm gonna make millions", but admit that "I'm just an adrenalin junkie, and I like stress" - then, you're OK with being irrational and entrepreneurship is your kind of gig

[AndrewB]

If you can do both for awhile then do so. From what I've learned dealing with Primerica is that no matter how sure you are of being able to go without the "security" of a J-O-B, it is always earlier than you are really ready for.

Try and juggle both, you'll be able to see what the other side is like and if the Corporate World really interests you then you already have a foot in the door. What you will have is less stress doing the J-O-B due to your business bringing in income.

Just a word of advice to people who are seduced by the Corporate road to six-figure incomes. Usually people end up spending twenty or more grand more than their income and have to work like dogs to stay where they are.

Remember, life begins when you earn over $250,000 p.a. Anything less is chump change.

A.

[NeeJam]

Why not do both? Focus on your firstly job and develop your business part-time therefore if it goes pear shaped you've got your job to fall back on and on the other end of the spectrum if it is really successful then you can leave your job and focus on your business as your full-time venture.

[Label Ceo]

do both just incase you need the extra money

[JaytheCreative]

Exactly, due both. The employer who made u the offer will respect and honour ur side business ESPECIALLY since they are looking for entrepreneur-minded individuals!

A noticeably growing thing with employers is their willingness to allow their employees to have side businesses (typically as long as it does not compete against the employing company).

Otherwise, if u can't do both due to time constraints and whatever else, then, it comes down to your personality and values.

Do you value the journey as an entrepreneur more than being employed? Or do you simply value high income? If u simply just value high income over the entrepeneurial lifestyle of high risks and from-scratch self-made income, then DEFINITELY take the job.

However, if u value the lifestyle and all that comes along with being an entrepreneur, then keep doing what u do best .

Also, seriously think about the Pros and Cons of both. For example, Ur employer says you have the opportunity to make high 6 figures by the age of 30....but they said u have the "opportunity"...which could mean that u may or may not make that in the alloted time...if even u stay with the company or not for whatever reasons.

Also, doing business start-ups has high risks for middleclass entrepreneurs who don't have deep pockets filled with cash and assets. So, the struggles, and risks are all out there for u. A salaried job is more secure. But, then again, jobs aren't completely stable.

I advise you do research company profiles whenever getting important offers or even before the interview. Why? Not only can u impress ur employer with insight on the company's mission etc., but it is safer for u to see how stable the company is. I always ask myself, "okay they are willing to pay me, but for how long, and do I have room to grow with them in the long-run?"

Keep in mind, also, that experts say people change jobs on an average of 3 to 5 years (or so I've heard).

Congrats on the offer, and ur achievements! Good luck in whatever choices u make! I can safely assume there is a reason why an employer is willing to give u a healthy salary

[akula]

Remember, life begins when you earn over $250,000 p.a. Anything less is chump change.

Life begins when you make a decision for it to begin

At 250k, the only thing that begins is more tax problems

[weightpro]

I would say do both. Time management is the key for you to be able to do it.

[AndrewB]

At 250k, the only thing that begins is more tax problems

To truly live without problems and enjoy yourself, then that life begins at $250K. And if you own your own business, the tax is a lot easier to work around.

A.

[SlideRiceFC]

As someone who has recently gone back to work after struggling for months with a startup I have to say by all means go back to work and still work on your startup if you can. For the first month of going back to work I almost didn't touch my project at all because my time management got all screwed up. Hopefully by next month I'll be back on budget with my living expenses and able to spend more time working on my project. It takes money to start a business and if you're struggling to keep a roof over your head then it's a safe bet there is no money to grow your business. Even if your time is now more limited at least you can rest at night knowing tomorrow is another day you can squeeze more work in and move forward. If you run yourself into the ground or rack up debt trying to get something off the ground you're only moving backwards.

[akula]

To truly live without problems and enjoy yourself, then that life begins at $250K. And if you own your own business, the tax is a lot easier to work around.

andrew, the only time any has ever had "a life without problems enjoying yourself", is when they're six feet under

snap out of the day dream

take the blue pill, neo

[partypimp]

I agree:

Time management is the key. I work with both and leave a lot of my normal business responsibilities to the managers. Being a business owner, you have to also manage the managers and then that can be hard. If you can find a manager/partner who shares the same drive and determination as you, your business can run as you want it and you can have a normal 9-5 job.

I also think that business ideas/contacts can come from normal work circles too. For example, my old boss used to run a very highly successful ecommerce site with his wife, he got me invloved in that and i made a few thousand from just a few hundred invested.

[AndrewB]

andrew, the only time any has ever had "a life without problems enjoying yourself", is when they're six feet under

snap out of the day dream

take the blue pill, neo

Akula, as much as I respect your right to say your opinion I think it is only polite to point out that I've spoken to a wide variety of people who earn six figures in income (and indeed a lovely gentlemen who is in mid-seven figure income) and every one of them has said the same thing. In today's society you can't ever really enjoy life until your income has reached $250,000 a year minimum. Once you break that ceiling you are able to enjoy life as much as you want, do whatever it is you want and know that you never have to worry about financial restraints. Thus, your stress levels are drastically lowered, your life enjoyment levels are through the roof and you can do nothing but celebrate if that's what you wish to do.

It's possible to have the dream of financial freedom and a stress free life if you know where to look.

A.

[tutorNEXT]

I agree with the $250K statement. Just earning low six-figure income doesn't get you far in terms of enjoying your life and fulfilling al your responsibilities. I recently left my six-figure job to start my own venture because I had that entrepreneurial itch and because I strongly believe in the idea - so now I agree even strongly with the idea of having $250K income pa to survive happily, otherwise you are always making compromises and always postponing buying decisions...as I am doing now