Is it crazy to quit a 6+ figure salaried job to do a startup right now?
Is it crazy to quit a 6+ figure salaried job to do a startup right now? Is my new year's resolution misguided? Was thinking about pulling the trigger tomorrow.
I for one like the timing: First, most blue chips are now completely focused on their core business. Perfect times to try to quietly take the lead on wide open niche or emerging markets. Moreover, lots of smart people are leaving their employers (voluntarily or otherwise) or are just tired of seeing their company going down the drain. Perfect times to hire bright people for cheap.
That's why I don't think your timing is wrong at all. That is, if your project does not require massive initial funding, because I do have some doubts about funding in the current environment. I usually don't bother to see VCs before breaking even and being able to show 7 figures in sales or revenue. Just arriving around there on the current project, so this month should be the start of the VC pitching circus. We shall see...
All in all, there is no absolutely good or bad timing: it may be the layoff business or the cost-cutting industry right now, but there is always some growth sector worth exploring. It is always the right time to start something whose time has come.
Go for it. Work hard. Have fun. ...and let us know how it turns out. :)
If you're relying on external funding in the near future it might be hard.
If you've got the cash to fund it yourself, then there is a case that it's a great time to start a business.
If you can afford to take 3-4 years to give yourself some runway, and you're willing to do that, then absolutely, go for it.
A few months ago I was in the same position as you, was procrastinating about quitting, and ended up getting made redundant as a complete suprise. Personally I haven't looked back. Nothing is guaranteed, you need to personally decide more which you will regret most: quitting now, taking the risk and going for it, or waiting till till later when the economy might be better, but then you're personal circumstances might have changed. At the end of the day - it has to be your decision, but if you do genuinely have 3-4 years of cash, then go for it!
Up here in Canada... well, a very wise entrepreneur in Toronto once told me: "Up here they ask you how many times you've succeeded. Down there they ask you how many times you've failed", and I think there's truth to it.
Anyways, just something that struck me.
People with 6-figure salaries and 3-4 years runway tend to be calculated risk takers. They don't jump in unless it looks like there's a decent probably of success. That doesn't mean they won't take any risks, just that they want the odds to be in their favor.
All that said, I'd say go for it. You can always get another job, and 3-4 years means you won't be in dire financial straights when you're looking. Starting your own company often uncovers other opportunities that wouldn't otherwise be there if you just sat in a secure day job, too.
I'm not saying this to be mean (plenty of startups fail), but your startup did fail. Your experience isn't exactly a knockout blow to the argument that anyone hesitating to jump in even though they have 3-4 years of runway might be too risk-averse to be successful with their own company.
You seem quite willing to deem someone not ready or not in a position to give advice. Also, before you make a bold claim about someone's character it would be helpful if you read their previous comments.
Opinions were asked for, I gave mine, someone disagreed with me, and I disagreed with their reasoning. Nobody's feelings should be hurt, grow up.
I just thought it was kind of odd that you'd suggest someone might not have enough risk appetite for a startup, and then when someone else replies that most entrepreneurs take calculated risks, point out that they failed. Failure is a part of risk. All those folks who did take the risk of starting a startup...well, most of them failed. Does that make them unqualified to give startup advice? Kinda contradictory, given your original point.
Here's another bold opinion: if some jackass like me can persuade him not to do a startup by pointing out that startups aren't for the risk-averse, then he probably shouldn't be doing a startup.
To be honest, the ideal would have been to keep the six figure job and use it to fund us, but Midway games was/is going down like a sinking ship.
Although if you build something impressive enough it's worth it. Even if things don't pan out, you can use the experience to find a better job.
Do your due diligence. Don't jump ship for a fleeting idea or some trend-hopping weakling of a concept. Make sure you're fully aware of the risks and have a realistic assessment of the potential rewards.
The difference between a crazy decision and a bold one is a matter of reasoning. It could be the case that a startup offers you the best rewards, not all of which might be financial.
The most important question to ask yourself is: what do I have to lose? I didn't own a house or a car. I didn't have a wife and/or kids to support. So the answer for me was very little. Honestly assess what could go wrong and who will be impacted. But I have a feeling you've already done that.
I think it depends what you're doing. I had a quick look at your bio and if what you are planning is the air-compressed scooter then I think this could be a very interesting project and you'd probably regret not doing it. I'm sure you've already done your market research! :) From your bio I don't think you'd have any problems in getting another job if it came down to it.
He's even more bullish on the Valley. "We have this leverage finance bubble like we had in the '20s, and there's an argument that we're headed to something comparable to the '30s," he says. "Where was the best place to be in the '30s? Probably Los Angeles. It was the hub of new media and technology, with the radio and the airplane. Silicon Valley is the L.A. of the 1930s.
7 figure: yes.
If I could go back and make one change over the last 10 years, it would be to have stayed where I was and outsourced more. Once, for example, I was sure that I had enough for a couple years with staff. I went through it much faster than I thought. Remember that it will not go at all like you're imagining, no matter how good your business plan is, and that no company ever went under with money in the bank.
I'm struggling with the same choice, but I have neither a nor b.
The hunt continues.
If you can answer that, then your course of action should be clear.
either way, its not crazy. its just a question of what your personal situation and values.
-Norm Brodsky http://www.inc.com/magazine/19991001/13574.html
So go do it, but don't jump in with wide-eyed optimism without planning exactly what you want and need to do (but of course be prepared to change the plan)