Some have doubted our advice that you should hold on to your day job and start something on the side. They argue building a business requires such persistent effort that you need to devote all your time to it to do it right.
And it’s true that building a business requires plenty of time and effort. But the idea that you need to quit your job to do it right is misguided. If you quit your job, you shift everything. You don’t gain time, you lose it. You put a shot clock on your business. You box yourself into a position where you have to profit immediately or the whole thing goes under. You’ve got to make it work now or give up forever.
Hanging on to your day job gives you a longer period of time to build your idea. It lets you give a sustained effort over time. There’s no get rich quick option. You build it slowly, one day at a time.
Yes, you need to find time to do both your side business and your normal gig. But there’s always enough time if you spend it right. Instead of watching TV or playing Grand Theft Auto, work on your idea. Instead of going to bed at 10, go to bed at 11. We’re not talking about all-nighters or 16 hour days – we’re talking about squeezing out a few extra hours a week. That’s enough time to get something going and then keep giving it gas.
Let your side business evolve into a full-time business naturally. Go for organic growth. Start as a side project. Build it slowly. Keep putting time into it. As pickup of your project grows, then you can justify devoting more resources to it. Eventually, if everything goes according to plan, you’ll be able to quit your job and devote all your time to it (if that’s what you want). But doing so right out of the gate is putting the cart before the horse.
Think how evolution happens in nature. There aren’t huge leaps. Things incrementally change. That’s the model to shoot for.
Ron Gejman
on 25 Jun 09Well… http://en.wikipedia.org/wiki/Punctuated_equilibrium
Phil Nelson
on 25 Jun 09Some people need the shot clock, and need to idea that they either need to do this right this time or give up for good. It can be quite freeing, I assure you.
Jacob
on 25 Jun 09After 3 years of doing this, I’m not moving to full-time indie.
But you’re right, moving slowly let me grow to some good extent to know that it’s possible to succeed.
Shawn Craver
on 25 Jun 09Great advice, and what I’ve been doing for the last 6 months or so. Had I tried quitting my day job, and going full time with my software business, it probably would have had about a 3 month “shot clock” on it. And I doubt I could have been profitable enough by then to keep going. Although it does suck sitting in a cube all day, knowing that once I can sustain myself on my business income I will no longer need to.
Andy
on 25 Jun 09My advice would be to try go part time with the day job, and devote two or three days a week full-time to your sideline. Trying to squeeze it in at the end of a full days work is just a recipe for poor quality work that you’ll have to re-do at a later date.
I agree with turning off the TV or XBox and doing [b]anything[/b] more productive though !
Joseph Sak
on 25 Jun 09@Matt
This article really encouraged me, because I’ve been on this trail for the last 2 or 3 months now, with my roommate. We just found studio space to use as an office and things are starting to turn very real for us. But we’re keeping our day jobs until our side ventures can pay the bills.
Mitch Cohen
on 25 Jun 09It all depends on the situation.
When I was 23, I quit my “real job” cold turkey to start my business. I’d planned and prepared, but wanted the clean break. I was single and living the low-expense life, so the risks were low. Everything worked out quite well, and after 17 years I’m still doing the same thing.
As I plan to evolve my business into something very different, I can’t take the same risks. Family, mortgage, etc. But at the same time, I’m already my own boss so I have the flexibility to manage the shift on my own terms. So this time I’m doing the slow evolution thing.
A different approach given different circumstances.
LKM
on 25 Jun 09You can always figure out how much money you actually need, scale down your main job to a lower percentage (say, 60% or 80%) and then work on your other projects in your new spare time. Additional advantage: If it doesn’t work out, you can scale up your main job again.
Marc Hughes
on 25 Jun 09That’s how I’m doing it, as a part-time thing.
But one important point to note. Start a business because you LOVE working on it. Then, finding time is easy. If you’re not raking in the dough right away, that’s ok because you love doing the work.
[email protected]
on 25 Jun 09I am taking the path you suggest and believe it makes the most sense for what I have in mind.
I feel less pressure witht his approach. Due to my perception of less pressure I believe I have modified and refinded much of what I am working on in positive ways.
Jeff Mackey
on 25 Jun 09Good advice.
Reminds me of the talk from Gary Vaynerchuk last fall, “quit watching f*&%#ing LOST and work on your idea!”
Finding the motivation to work on your idea after being at work all day and then putting the kids to bed is the tough part. Having the passion is a big part of the solution.
Jens Alfke
on 25 Jun 09I’m really surprised you didn’t mention any of the legal implications of this! If you’re a salaried (exempt) employee in a technical field, then before starting any sort of side project, check your employment contract — you know, that boring paperwork you signed on your first day on the job.
The contract very likely includes a clause that signs over all rights to any ‘inventions’ you come up with, no matter when or where. It’s not enough that you do your side project at home, on evenings and weekends, with your own equipment. You may still have implicitly given your employer the rights to it.
California, and some other states, have laws that limit a company’s ability to do this. Unfortunately the limitations are very, uh, limited: in California, the employer can still claim ownership of anything that’s related to the its “current or future business or research”. A vague statement that corporate lawyers would push as far as possible.
Lest you think I’m being paranoid, I ran headlong into this myself 15 years ago when I wrote the Stickies app for the Mac. Despite writing it at home on weekends, I did not have the rights to it, and my employer (Apple) got it for free. I know at least one other engineer who got in trouble over a shareware app he wrote in his spare time and was forced by his employer to take it down.
In my experience, the only time you can successfully exempt your projects from these agreements is when you start your job. There will usually be a blank in the paperwork where you can identify existing inventions of yours that you don’t want the employer to take ownership of. Write down summaries of your projects there; no one will bat an eye.
Paul
on 25 Jun 09Very good post, interesting stuff… but too bad you didn’t really address the following… how do you know when it’s time to make the move? Also, my experience is that no matter how you put it, the moonlighting will always impact your main job which is really not fair to your current employer.
ML
on 25 Jun 09before starting any sort of side project, check your employment contract
Good point, this is assuming you’re not facing legal restrictions.
how do you know when it’s time to make the move?
A variety of factors, but I’d say the top one is when you’ve got enough (sustainable) income coming in to justify leaving your day gig.
Fred
on 25 Jun 09The nice part is that when an idea is good and people are receptive to it, it can just take off. Getting to that idea, developing it and launching is really really tough.
dave
on 25 Jun 09The problem with 37signals posts like these is that they are presented as universal truths. Tn the reality is that this bit of advice is just something that happened to work for you this time and may or may not work for you again, or for anyone else ever.
The corollary to this post would be “Don’t screw around doing something half-assed as a part time thing. If you’re serious about it, quit your job and jump in with both feet. The threat of impending financial doom will force you to take action.”
The reason the majority of businesses fail is because they aren’t real businesses. They’re half-businesses/hobbies that languish in never-neverland in perpetuity until the owner gets bored or something kills it off.
andrew k.
on 25 Jun 09I have been working on a side project while working full time for the last year – we will have beta launch next month which has enabled me to fully bootstrap the effort through launch and beyond. LKM’s suggestion is a good one and one I am plannning for.
Des Traynor
on 25 Jun 09Patience and Hard Work it what takes, basically ;)
J
on 25 Jun 09The problem with 37signals posts like these is that they are presented as universal truths.
I don’t think that’s a problem with the post, it’s a problem with you. Reasonable people know nothing applies in all cases. They don’t need to be told “it depends” before every idea or suggestion.
Paul
on 25 Jun 09I attended a Building of Basecamp workshop years ago. That gave me the confidence boost to finish and launch my side project. Around three years later, it’s now making almost a million dollars a year.
However, I found working on it as a side project only worked up until a point. It gave me the time to figure out if it was viable, but when I really wanted to grow the business, I had to quit my “day job” and take some risk – it wasn’t going to grow fast enough with just part time hours.
So, I’d recommend starting as a side project, but taking the leap as soon as you see that it’s starting to work out. That gives you the added push to really grow the business.
Hasan Luongo
on 25 Jun 09we’ve been doing the side project/day job shuffle for about a year and in fact it has worked quite well. we do however put in not a few extra hours a week but real blocks 9-12:30 at least 5 days a week and that has not been easy. while blindly quitting the day job right off the bat can be a foolish move, at some point when there is some traction it becomes extremely hard to stay focused and energized on the day job, and all the time your spending there is taking away from growing your biz. its a challenge for sure.
Mark
on 25 Jun 09I think different rules apply to different situations, but in general I agree with the premise of what Matt says with regard to going slowly and building momentum organically over time.
Whether this is continuing to work full time and spend an hour a day on your side project or being able to reduce hours at your “day job” and having more extra time (like Andy said above).
FredS
on 25 Jun 09Can one post go by without someone coming in and posting something negative? J nailed it. If you don’t like the ideas being presented – go somewhere else. Please.
Brad
on 25 Jun 09Fully agree. Been doing this the last year and a half, working on a new text editor. Hoping to debut by the end of the summer. Thanks for the ongoing inspiration!
Aaron Post
on 25 Jun 09Wow, perfect timing for this. I quite my job to get my new company off the ground only to find that I had to go get some freelance work to sustain things for awhile.
Every situation is different, but having some income from the new venture first certainly does make it easier to make the leap. Once you see the opportunity to make a living at it, that is when the jump should be made and not a day before.
Thanks.
BS
on 25 Jun 09I really like this advice, but I think this advice can also apply to someone who is already “on his or her own” but may be trying to transition from client work income to product-based income.
I believe this is actually what 37s did with Basecamp, as they kept working on clients until they had a product that produced enough income to no longer have to do client work.
Client work is starting to grate on my nerves lately… so I’ve slowly been building a web based software product (“on the side”) that will hopefully take off… and I am using Getting Real as a blue print :)
Fernando
on 25 Jun 09Timming is everything…
I was minutes a go talking to my boss to change my full-time job to something like freelance job. For me it’s pretty risk, I have an apartment to pay and all that stuff.
All I want is more time to dedicated to my project.
But, what maked me move towards this change was my passion about the project. I really believe in it.
I suggest the book ‘The Art of Start’ from Guy Kawasaki in case that you need some guidance. It’s a great book. (Getting Real is great too :-) )
Dan
on 25 Jun 09After reading this I would agree and disagree. Although it is a “smart” move to keep things stable, stability sometimes develops into a false feeling of comfort and ultimately the drive is stifled.
To tell people to grow organically and take it slow and not to quit your “day job”, is dangerous. That is an overall blanket statement that in all reality could go either way. You could make money or not.
The more important thing to talk about here is drive, execution, and perseverance. These are the qualities that get things done. These are the things that customers are looking for. Thus, whether you have a time table or not…whether you money is going to run out in three months or not…having these three characteristics help you achieve the goal that you are looking for.
To me personally, to keep the day job, when you know there is something else that you love to do, that is a cop out. A means of saying I believe in myself…but not really.
Kat
on 25 Jun 09Another option: Work on the side project in your afterhours, scale back your expenses, bank the savings, then quit when you’ve got a product ready for marketplace testing. A lot of companies don’t produce reliable revenue at first so having a cushion can help.
As with anything, ask for help and surround yourself with smart people who will champion your idea and support you through the inevitable setbacks.
MattjDrake
on 25 Jun 09I tend to take these 37Signals posts with a grain of salt – yeah sure it makes sense to play it safe, but some people just need to put all their chips on the table and dive in to get things done.
That being said – if you want to go out on your own but really have a problem taking the leap just get started on your thing in your free time makes sense at first. The first goal may be to prove to yourself with cash-flow or VC funding that the idea has enough merit to warrant your full-time attention. If it doesn’t work you have the rest of your life to work or do consulting.
I took the middle ground myself – I got my business started and once I got started i reduced my day job hours all the way down to 50% time and then quit shortly after as soon as I had enough cash-flow to pay the bills.
markd
on 25 Jun 09This has worked well for me, and it’s especially true for smaller projects like mine that might make me some side money, but will most likely not replace a full time job anytime soon.
Also, consider finding work somewhere small and casual (maybe take a lower rate for the benefit), and come to the understanding with your employer that you may borrow an hour or two here or there. If you’re willing to give the hour back now and then, I think a lot of companies would be open to this. Or, I’m just really lucky !
Jeff Judge
on 25 Jun 09Agreed re: @Phil Nelson – some people need the stress to push them harder. I don’t think you can say either approach is the right way to go – it depends on your personal situation. I’ve personally always fallen back on the thought that I could always get a job if needed to. Quitting my job and putting everything I had into making it happen was the best approach for me personally.
D
on 26 Jun 09GREAT advice. That’s what I did. It grew slowly. Now 10 years later this side project is kicking butt! (Been full time two years now). Recognize that version 1.0 will just simply suck. There’s no way around it—you don’t know as much at the beginning as you’ll know a few years in and after getting a few hundred feedback emails.
Geoff
on 26 Jun 09@ML and Jens “Good point, this is assuming you’re not facing legal restrictions.”
The moral implications are always more important than the legal ones. Thoreau said (something like), “It is not wise to cultivate a respect for the law, so much as for the right.”
Consider the flip side of the situation: How would you feel if your employer started outsourcing a component of your job to a contractor without telling you about it? Of course, they won’t fire you unless it turns out that their side project is successful.
Before getting serious about a side career, ask yourself, “How would the person signing my paycheck (or the co-workers that count on me to help them do their jobs) feel about this? Better yet, ask them how they’d feel.
Your job is a relationship. Treat it like a relationship. Respect the people involved and act toward them as you would want them to act toward you. If you both agree to an “open” relationship, then plow forward with a clear conscience.
@Kat gives great advice: “As with anything, ask for help and surround yourself with smart people who will champion your idea and support you through the inevitable setbacks.”
If you respect your job, there is a good chance that these supportive people will include your boss and your colleagues.
Jeff Self
on 26 Jun 09I had a side business a couple of years ago. I found I was more productive if I went to bed by 9 or 9:30 and got up around 3:30 or 4am. Sounds crazy, but my brain was refreshed in the early morning compared to trying to do some coding at 10:30 at night.
I need to start doing this again. I’ve got some new ideas floating around in my head and I never seem to get around to working on them at night. Maybe next week I start waking up early again.
Matt Morse
on 26 Jun 09This post has attracted a lot of comments hasn’t it?
I totally agree with it as I’ve seen it from both sides. A few years ago (quite a few years now!), I quit my day job out right to start my own web design business and, although it lasted for nearly 3 years, I got myself into a world of pain debt-wise, trying to keep things afloat. In the end I had to give in and go back to full time employment.
Now, I’m starting again, or rather I have been for the last 8 months but I’m doing it completely differently. I’m not thinking “design agency”, instead I’m keeping it small, just me, a solo freelancer and I’m doing the softly, softly approach – keeping the day job, building the freelance career on the side.
I completely disagree with those that say this is a “half-hearted” effort and that I can’t be “totally committed”, as that isn’t the case at all. I love doing what I’m doing and I will make the step to full time as soon as possible, but circumstance and the previous experience of financial risk have kept me grounded.
braindumps
on 26 Jun 09Always be happy.testking
Jason J. Gullickson
on 26 Jun 09It’s nice to see this side of the story.
Allot of the classic success stories we’re taught (at least in the U.S.A.) worked this way, Edison, Einstein, etc. I don’t think that’s a coincidence.
I know from my personal experience that when I had a reasonable amount of time to take on a risky project I didn’t, I wasted the time. It was only after I had allot going on that I had the motivation to improve my work by starting something new. So far it’s working out for the best.
BJS
on 26 Jun 09@Jeff Self… there is an interesting article similar to what you are talking about with your brain being refreshed here… http://www.dustincurtis.com/sleep.html
I found some of Dustin Curtis’ thoughts on sleep fascinating.
Pete Bowen
on 26 Jun 09I’ve done it both ways.
I’d recommend the keep the job and start quietly route. I found it much harder to be creative and focused when panicking about where the next month’s mortgage payment is coming from.
The second time round I negotiated and hourly rate employment contract (I was a civil engineer) and slowly scaled back on the day job until the side business was able to sustain the family. Much less stressful.
NatalieMac
on 26 Jun 09I think this is a great way to go about starting a business. Not everybody can afford to take the risk of being unemployed and hoping you can turn a profit quickly enough to support yourself.
I’ve been moonlighting for nearly 6 years now. I’ve been very careful with any documents my employers have requested I sign regarding my ability to take on work outside the company, and I think that the raises, promotions, and accolades I’ve received at my day jobs during the past 6 years speak for themselves. You’d be hard-pressed to prove my moonlighting was any sort of detriment to my day job.
If you really love the work and it’s the right business fit for you, than it doesn’t really feel like ‘work’. I’m aiming to quit my day job by the end of this year, and my business will be immediately profitable and able to support me. I only know that because I’ve devoted so much time, attention, and planning to it.
Just be patient – it doesn’t always happen as quickly as you want it to, but it’s definitely worth it. I’ve learned a lot, and having a steady paycheck let me make some mistakes that might have cost me my business if I had to rely on it as a soul source of income. I’m now smarter, wiser, and totally confident that I can take the next step and make it a success.
diarmuid ryan
on 29 Jun 09It is indeed worth keeping ideas on back burner while sloggin away at the nine to five until such time that one can spin a profit, but once this happens it is certainly time to make the bold move and hand in notice
Dave!
on 29 Jun 09@Geoff “The moral implications are always more important than the legal ones.”
Oh, were that only the reality. The reality is that some employers, esp. large ones, don’t care as much about the relationship as they do owning your output. In those situations, even your boss might be cool about it, but there could just as easily be a corporate lawyer down the hall ready to make sure that the company owns your work; esp. if it’s good and valuable.
Of course the moral implications are important, but ignore the legal ones at your own peril.
Anton
on 30 Jun 09I don’t think this is as straight forward though. Yes, putting a clock on your new business can kill it, but not having enough motivation to persist in it over any hurdles can kill it too – and having a day job can provide you with just enough security to drop the new idea as soon as any difficulties arise with it.
Probably the end decision should depend on the character of the person. If they are organized enough to continue being serious and stubborn in a side project they are doing a couple of nights per week – then your advice will be great for them. Yet others may need to kick themselves slightly (or strongly) to do something about their lives – and quitting a day job to fully dedicate themselves to a new project may be just the kick they need.
Still, this is a very good article, gives good food for thought. Thank you for sharing this.
This discussion is closed.