Part-time entrepreneurship is no vacation

Filed in archive Bootstrapper Resources on August 27, 2007

From Cristian Dorobantescu's posts about the challenges and rewards of part-time entrepreneurship, it should be clear that this path is no trip to the beach.

So as part of the "seaside reflections" series let's look at why any sane person would pick this option to start a business.

1. Your boss is the one with the money. Some bootstrappers, like Denise Aday founder of Aday VA Solutions, had the luxury of some savings from a previous job to live on in the months leading up to the startup of her one woman virtual assistant company. Most bootstrappers do not. Fortunately, the boss at your current job has lots of money. Let him/her bankroll startup while you work on the company in your spare time.

2. A paycheck is the best earning projection. It's easy to fudge on projected earnings and what you really need to live when you're eager to start your company. You can live on cheese sandwiches for the next five years and sleep in your car. But a regular paycheck gives you an exact mark to shoot for. It's not really a revenue projection. More of a revenue yardstick. If you can't make enough to support yourself after quitting your job and still have a little bit left over to reinvest, you do not have a realistic full-time business model.

3. It helps to stay in the game. This one is a little bit hard to quantify, but particularly if you happen to be working in a field requiring some of the same skills you'll be using in your startup, there are lessons to be learned and applied to your business you probably won't acquire sitting at home while you get your company up and running.

4. Relationships can stretch beyond the current gig. When Cristian Dorobantescu started his software and web design company Energybyte early clients came as referrals through a previous employer thanks to the good relations he kept there.

5. One man's employer is another man's customer. I know this has been mentioned countless times by folks with a lot more experienced than I have, but it is even possible that someday your current employer may become a customer of your new venture since as an employee you are uniquely poised to understand their needs.