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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.
- Skeletor 18y agoThe startup would be a two person company me and a friend are co-founding.
- otoburb 18y agoYou're lucky that: a) You have enough runway to do this; b) You have a co-founder. I'm struggling with the same choice, but I have neither a nor b.
- rogercosseboom 18y agoUgh I'm in the same boat- come up with any ideas on finding a co-founder?
- otoburb 18y agoPatience, and actively seeking people out. I have no problem now asking people what their entrepreneurial dreams or ideas are. More often than not, people are willing to share ideas, but stall on commitment of any kind (even part-time). The hunt continues.
- rodmaz 18y agoMake sure your founder is also really committed to it. I had one co-founder who kept his daily-job, was married and then, after some months, gave up when we had deadlines and much harder work was required. Talk to him now about vesting plan and make sure he is for the long haul. Good luck!
- oscardelben 18y agoIf you have the market, the money (to survive and pay your bills) and something that people needs, you should go with it. Maybe you could start doing it part time.
- adamt 18y agoI think it depends if you can fund it yourself. 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.
- Skeletor 18y agoYes, me and my co-founder will be bootstrapping for at least the first year. But our plans are to become cash flow positive in 6 months. I can probably survive for 3-4 years with no job, my partner at least 1 year.
- DanielBMarkham 18y agoI've moved in and out of high-paying consulting jobs and startup work a few times. 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.
- adamt 18y agoIn that case you are well placed to give it a shot. There are few certainties in life, but you are not in a bad position. 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!
- cmos 18y agoThat's a great runway.. you have enough time to fail a couple of times!
- potatolicious 18y agoThe above comment is inspiring to me - and I think epitomizes why Americans have been so wildly successful in the tech realm. 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.
- reyu 18y agoIt's so easy to rationalize not doing it but actually, sooner is always better than later when it comes to making yourself happier - life is short and unpredictable and what we think of as security is often a big joke at our own expense.
- Skeletor 18y agoMy thoughts exactly, this is what I truly believe. It is only Fear Uncertainty and Doubt that make me worry about it.
- reyu 18y agoI was in your position two years ago but in my case I had a serious health problem. I was scared shitless. I didn't want to give up my job because I needed the health insurance. But my job was making my health worse. I quit and second guessed myself for a long time afterwards. But two years later I am fighting fit again. Thinking back, my only question is, why did I wait so long to do what was in my best interest? Most people who knew me thought I had the best job in the world. But I was miserable. For several years (!) I listened to them instead of myself and made my health even worse. Complete and utter irrationality combined with a lack of self-confidence. In the end I only did it because I had to, not because I am a shining example of courage. I really thought I was throwing everything away and yet I was so wrong. Let my stupidity be your guide. Oh, and the company went under after I quit. So much for throwing away my security. The question is really much simpler than you think.
- shiranaihito 18y agoIf it's not too personal, would you mind telling us how the job made your health worse?
- gcheong 18y ago"Fear, I've come to believe, keeps more people from starting businesses than any other single factor. You hear about other obstacles--lack of money, inadequate support, bad advice--but they pale in comparison with the fear most people have that their new venture will fail." -Norm Brodsky http://www.inc.com/magazine/19991001/13574.html http://www.inc.com/magazine/19991001/13574.html
- ynd 18y agoIf your current job makes you happy, then I think it's crazy, given the 6 figure salary.
- hedgehog 18y agoIf the business is right go for it. I recommend a minimum of two years of personal runway.
- utsmokingaces 18y agoTake some vacation time to work on the startup and see how it goes.
- noodle 18y agoit depends on the state of your startup. can you get it to cash flow positive before you have to quit your job? etc.. either way, its not crazy. its just a question of what your personal situation and values.
- alnayyir 18y agoDepends on your savings.
- swombat 18y agoIs it possible to build a proof of concept in your spare time? If so, that might be better than outright quitting. Then again, it depends on what kind of person you are. For some, having the fear of failure makes them more motivated...
- DaniFong 18y agoMy cofounder did it. We shall see :-/ 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.
- koraybalci 18y agoI would ask my self, if my startup fails, can I find a similar job again? If so, why think about it?..
- BigCanOfTuna 18y ago"We rarely regret the things we do in life, we almost always regret what we don't do in life." - my next door neighbor...he said this to me when I told him I was quiting my job to work on a personal project that was certain to fail. It doesn't matter how the project turned out, but he was right.
- delano 18y agoWilson?
- lunaru 18y agoIt's always been crazy to quit your job for a startup. But craziness and brilliance are only separated by success.
- jacobbijani 18y agoThat's pretty blind advice. There's a lot of factors that go into success. One of them is timing.
- deleted 18y ago[deleted]
- johnswamps 18y agoI don't think that's what he's saying. I interpreted it as "If your startup turns out to be a success, then it was a brilliant move. If it doesn't, it was a crazy move"
- siong1987 18y agoIt is even crazier if your 6-figure salary starts with 9 instead of 1.
- marketer 18y agoI would advise on getting some traction before quitting your job. It can be arbitrary - a few thousand users or uniques/month. If the idea is good you should be able to manage that. 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.
- Devilboy 18y agoDo the startup but keep your dayjob. Work 80 hours per week. It's the American way!
- ntoll 18y agoI'm doing exactly that right now. Fortes fortuna adiuvat (fortune favours the brave)! Best of luck... :-)
- CalmQuiet 18y agoLots of costs, risks, benefits... to be weighed. And certainly a lot of them are NOT about salary and security. It's worth taking a look at Scott Shane's January 2008 “Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By” - or at least the discussions at Amazon reviews: http://www.amazon.com/isbn/dp/0300113315 http://www.amazon.com/isbn/dp/0300113315 It is a huge leap, and this will help you ask a lot of questions about whether you are suited for the startup world, temperamentally as well as otherwise.
- fallentimes 18y agoI quit my job to do a startup the day I was promoted. It was awkward/hilarious. I haven't looked back since. 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.
- cabalamat 18y agoOnly you can answer that question, depending on: What do you want out of life? How much savings do you have? Can you work on the startup in the evenings while keeping your job? How risk-adverse are you?
- mhartl 18y agoA lot depends on your level of savings and your spending habits. How long can you live on your savings at your current spending level? If the answer is "not long", are you in a position to cut back on spending to give yourself a longer runway? If you can't count on your saving for at least six months to a year, staying at your job is probably the wiser course of action.
- rms 18y ago6 figure: no. 7 figure: yes.
- hs 18y agogolden handcuff
- mattmaroon 18y agoWhat about 6.5 figure?
- natch 18y agoYes, because your severance pay might be worth waiting for. Find out what they've given others. Two weeks? Not worth it. Two months? Maybe.
- anotherjesse 18y agoI don't think you get severance if you quit.
- natch 18y agoWell his question was "is it crazy to quit" and my answer was (conditionally) "yes" so I think you missed something.
- daniel-cussen 18y agoYou might be asking the wrong crowd. I think it's a bad idea. I'd invest in a couple startups and/or work with them part-time.
- schoudha 18y agoInterestingly, Kevin Rose recommends keeping your job. He also recommends outsourcing development though :/
- zitterbewegung 18y agoIs it madness? No, prices for everything are down because of the recession. Now might be a good time to do a startup. The other side is that it will be difficult getting VC funding.
- staunch 18y agoIf you're going to be a competitor of mine I really think the best choice is to keep your day job.
- gcheong 18y agoDo let us know what happens. Either way - good luck!
- astrodust 18y agoThe only thing crazy about quitting your job for a startup is if the startup itself is too crazy to ever work. 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.
- mattmaroon 18y agoThe only possible answer one could give without much more information is "it depends". Any response other than that is mere exposition of the responder's natural bias.
- david927 18y agoI would definitely consider outsourcing. You have to be prepared to spend some time finding the right people, giving test projects, etc. But if you do it right, you can find amazing people for very good rates. I've done it for my own projects and it worked out really well. 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.
- inovica 18y agoHi there 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.
- Skeletor 18y agoWho is working on a compressed air scooter?
- DabAsteroid 18y agohttp://news.ycombinator.com/user?id=DaniFong http://news.ycombinator.com/user?id=DaniFong http://www.google.com/search?q=danifong+scooter http://www.google.com/search?q=danifong+scooter http://lightsaildesigns.com http://lightsaildesigns.com
- jaspertheghost 18y agoI believe in what Peter Thiel said: 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.
- umjames 18y agoIs it possible to keep the 6+ figure job and fund your business with your salary? Then, if it doesn't work you haven't really lost anything. If it does, then you can quit. You'll also be able to start now instead of saving up cash and going through it as slow as possible.
- sl956 18y agoOf course it is crazy. So what? I did it 7 months ago. Leaved what had become a 350 people company to start a new project. Back to square one. Not a single regret. 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. :)
- markessien 18y agoIt's only crazy if your startup is a web based todo list.
- icey 18y agoIf someone came to you with this idea and asked you to invest your entire annual salary into it, would you do it? If you can answer that, then your course of action should be clear.
- deleted 18y ago[deleted]
- Skeletor 18y agoI gave my two weeks notice and am staying on one last week before I resign. I hope to start posting incredibly arrogant startup advice based on my successful venture a few months from now.