Should I quit my job?
 

I've been working full time and doing business on the side for two years now. I make $50K a year as a sales engineer in a high tech security company which is a lot for a 23 year old guy in Israel.

Doing business, I haven't made much money. I have actually been rolling a lot of cash but the bottom line has been close to zero most of the time.

I kind of figured that at some point my business will pickup and I'll quit my job, incorporate and do it full time. Lately I've been thinking that it may never happen if I don't focus all my time on developing business - my job is very demanding and I also try to have a social life... So I only spend 6-7 hours a week doing business.

I have developed an idea which I believe will be very successful. I've already done a "proof of concept" for it which prooved the business model the idea is based on is valid. I don't think I can get it started though without devoting all my attention to it.

I have enough savings to quit my job and start this new venture to last me four months (Gonna have to put in about $20K for the new business). According to the plan, the busisness should be come profitable after three months.

I don't know what to do!

What was your business by the way? Wanna invest on this industry?

dont quit your job until you make enough money (long period of time) in online business to live better as you would doing your normal job.
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It's mainstream. I do more mainstream than adult these days.

I share the same opinion, you shouldn't leave your steady job until things are "rolling" with your project...you never know how it will turn out :2 cents:

Not what I wanted to hear :(

I could always get back to work if the business world isn't treating me well. Albeit not without taking a huge ego hit, and probably never returning to the business world again.

keep your job until online is stable, and that is nearly impossible because shit changes fast.

I agree with the others. I wouldn't quit my job untill I was very stable and made enough money in my online business. I'm just too protective like that.

Different people tolerate different levels of risk...

You should definitely see if you can handle the risk of building a new business. You still need to realize this is a RISKY thing so you could talk to the people who employ you currently and ask for a 6 month leave or something like that. That way you have a backup plan if things dont work out.

You're very young so this is a good time to take more chances.

what others say, plus devote more hours a week to your business if you can.
if you want to succeed forget about everything else and focus on your goals

I say fuck it! Anybody who's ever made it made it through the belief in their ideas, not the amount of money in their pocket

If you don't take risks in your own ideas you won't get anywhere. You said it yourself, you can't invest 100% effort in your plan and you never will be able to unless you quit.

You need adversity, right now you're too comfortable for your own good. When you quit and have no money then you'll take you ideas seriously

Its a tough one, seems to me you have a nice life as it is with your job earning $50K a year. Of course, thats peanuts compared to what you "potentially" could earn should things go well for you in this business.

No on can really answer this question except yourself. Its down to what you choose.

Although, if you do quit and do this full time or mainstream anyway, and it doesn't work out...whats the chances of you getting your old job or one similair back? If its good, then why not give it a go? All you'll loose is money and time. If you can go back to your old job and earn good money then it could be worth a shot.

I can always get back to work if things don't work out. That's not a problem, I have a fairly high demand profession and a month doesn't go by where I don't receive a job offer.

But I'm afraid that if I fail and go back to work I'll never take the same risk again... plus I fear for my ego. Obviously, if I wait a couple of years I'll have more savings, more experience and more chances of success. Then again, I'll also be two years older, and may lose some of my drive.

If you are secure with your idea, go for it :thumbsup

Do what makes you happy and the $$ will come

Noam, I know this sounds stupid but look as failing being a good thing. You need to know how to fail in order to know how to succeed.

Dont quit it yet.

Your direction should ultimately stem from your goals. If your goals are simple in that you simply want to create a sideline to bolster your earnings then you've got an opportunity to take your time and build your business slowly. If your goal is to create a large business that will not only support you but others too, you may very well have to eliminate distractions and put your all into this right now and go for broke.

Some people believe that you can't find success in anything until you've full invested yourself in something.

Personally, I'd wait. If you really want to turn your money around quick invest in stocks. Statistically it's less risky than starting a business with your capital.

My goals... are big and audacious. It's not just about money. If $100,000,000 magically appeared in my bank account, that would not be enough. My goal is self-fulfillment. Ever since I was a kid I believed in my abilities. I took for granted that I will succeed in anything I set out to do. And so far, that assumption pretty much held up.

Naturally, I feel somewhat wasted at work. I'm not challenged, and I don't have to put any special effort to do my job very well and get noticed. I just cruise through the days, knowing that I will get promoted at roughly the same time no matter what I do - no matter how well I do my job, being 23 keeps me from getting an executive promotion. And honestly, an executive position isn't even all that appealing to me.

The 6 or 7 hours a week I spend doing business are the only ones where I truely feel challenged, and it's a real high for me. The only thing that compares is the moment I step on the grass in the park to start my morning jogs - But that's just endorphins drugging the shit out of me.

michael dell surely lacked this advice.

Staying safe is just that staying safe .. as long as your working and only giving your new venture a few hours a week, the new venture will never fly.

If you believe in your work and strongly believe that you can make it happen then take 4 months off for this new venture .. all you have to loss is the possibility of success. Keeping you're job and doing both almost always guarentees failure

if your a good engineer you can always get another "job" ... Good luck

I'd echo the same as a lot of the others.

First, I'd pay off all debts.. car, credit cards, etc. Anything that is a big ticket item leaving you with nothing more than living expenses.. rent, food, utilities, etc. I'd also try and save up as much as you can for the 'just in case' fund.

I also would not do it until I saw something more consistant in the online portion. If you are always making the same, or some level of stability. Other than that, I agree wth the others.

:pimp

I think a lot depends on the job market in Israel. There are a number of US cities where SEs in the data security field are a dime a dozen and I have friends that have spent 16 months looking for good jobs. In other cities they're still spending less then 6 weeks.

That said, when I left my data security job it took me 4 months to become profitable and that was 4.5 years ago :)

id say take your chances. you are 23 y.o. not 53... wtf you can always start again! take your chances! :thumbsup

Without risk the chance for great rewards are small, but there is a difference between risk that is unavoidable, and risk that you simply havent thought about.

I would map out every part of your strategy, not just the business concept, but also of your life, right now you have a 1 month buffer if things go south, maybe spend a little more time planning how to integrate your business idea into your life and you can find the perfect middle ground, maybe the initial stages dont require as much attention as the later stages or vice-versa, giving you time to continue making money from your steady job, maybe you can cut back in your social life to focus on this new business, I dunno, maybe these arent possibilities, but when you approach a large decision like this, I think its best to have thought out all of the angles and to have more than just strategy A or B, make 3 or 4 routes, that can be taken at different times depending on certain results.

As they say, its risky, but you can spread the risk. Don't put all eggs in one basket. If one project fails, you should still be able to survive off the others.

the question is can you work all week alone on this thing for a long time
and get it running?

dont want to set you off but you need to be ready.

bare in mind , there are always 10 people who think of the same idea around the world.

what distinguishes one from the other is:
who went for it and realized theory into practice

that will serve your ego right lol

Keep your job until your other one makes more then your current job

keep your job 'cuz the other one will never make more if you aren't devoting yourself to it.

If that's the case and you know you can get another job, go for it. The only thing I question is quiting to do something "new". I think you would be better off if you did what you already know works and put your full effort into that until you are profitable.

I honestly don't think it's wise to give up known income on something that's un-tested. I'd build up what you already have and then try the new stuff. Also I wouldn't quit your other job untill you had a few $k coming in montly from the net.

You're young and can afford to take loss and recover.

You'll never make it in the part time business unless you jump in both feet.

Cut all expenses for a bit and save a few bucks so you know you'll eat. Make this as short as possible. Yeah you use alot of money, but if you keep putting off the jump it will never happen.

You have a passion! Follow it! Go for it! Just fucking do it, there will always be haters and those that say you can't or you don't have enough money.

You're not gonna be happy with yourself unless you follow your passion!

I'm assuming from your post that you are currently single and have no dependancies other than yourself and if that is the case, that's a good thing - now is the time to take these kinds of risks. I know exactly what you're going through - I've been there myself.

A couple things you said jumped out at me and if you could clarify, it'll be easier to give you a more informed opinion.

You said that you're currently doing business but that it's not very successful - breaking even at best - but you then go on to say that you've developed an idea and believe that you can make it successful and profitable. Is what you're currently doing and what you'd like to be doing 2 different products/services?

You go on to say that you have enough savings to last you 4 months if you quit your job and that you believe that you can make this new endeavor profitable in 3 months - but you didn't finish that sentence, and not so much for people here - you need to finish that sentence in your own mind...

I believe I can be profitable in 3 months IF - and you need to know what those IF's are and how you are going to make them happen. Giving yourself only 1 month buffer in money is really pushing it and if you're wanting to take this shot in life - you're not giving yourself an honest run at it because of the money factor. That said, you can overcome that depending on how you plan on doing things.

Follow me through this little scenario....

Let's say your idea is to haul apples to customers in nearby villages that are cut off from you by a densely overgrown jungle.



This is your current plan:

I need to quit my job and focus solely on this new business. I need to build a bucket to carry the apples in, and clear paths through the jungle so I can get to the other villages. Once there, I can find customers who will buy my apples. It'll take me 2 months to build the bucket and build the trails so that'll give me 1 month to find paying customers before I run out of savings.


The scenario I'd suggest is this:

Hire someone to build your bucket and the trails while you continue to work. It's still going to take 2 months to build these things but you've continued to work your current job but at the end of those 2 months, you should still have 3 months of savings - minus I month to pay the guys to do those things for you.

During the time that the guys are building the bucket and trails, you're spending your time writing to the people in neighboring villages to promote your new service and lining up the customers you'll need.

So at the end of 2 months - with a brand new bucket in hand and freshly cut trails to walk on, you're carrying apples to actual customers and have 3 months of savings in the bank.

NOW you have 3 months in savings to BUILD your business rather than START your business.

I've tried outsourcing, but it didn't hold water. My project requires a specific set of skills I have developed during the years. The cost of outsourcing would simply be too great, and would require an enormous investment in training on my part - probably one bigger than the amount of time it would take to do it myself.

Also, the project already includes a great amount of outsourcing - which is why it's gonna require most of my savings. But the work I have to put in myself is still great, and partly because I have to manage the outsourcing.

Also, your example isn't quite accurate, because the project is composed with tasks which I have performed in the past and know that I can do them well - and how long it takes to do them. I also performed a little proof of concept so I have a some high validation of my business plan.

My last risk assessment produced this list of three major threats:

• Falling behind engineering schedule and running out of money
• Extreme change in search engine behavior
• Significant decline in PPC prices

don't quit just yet