A conversation that often comes up with my coaching clients who are early-stage founders of companies revolves around their anxiety of whether or not they should quit their day job. The dilemma is between missing out on income immediately or missing out on potential growth in the future.
The strongest argument for quitting is the ability to devote full attention to the new enterprise. The rationale is that by focusing on the new enterprise, founders can accelerate the growth of the startup and raise funds to replace their income. In addition, founders see quitting their job as a strong validation for feeling like, and being seen as, entrepreneurs. At other times, they are worried about what investors prefer. There is also the perceived or real pressure on some to quit if a co-founder is in a different job or financial situation. In coaching we explore individual options and drivers. Generally, though, I encourage clients not to view this as a zero-sum decision.
Like them, I urge you also to avoid thinking about progress or time in linear terms. It is not likely that being present 24/7 will accelerate processes like application development, data collection, waiting for outcomes, setting up crucial meetings, or scheduling based on key industry dates. Adding anxiety over income to that can drain you of energy and focus. If you like your job, try to balance it with your new venture: think of it as freelance work or a side hustle for now. During the pandemic, WFH allows for flexibility to balance job and startup; you can also try to work out a formal arrangement with your current employer. Most importantly, though, if you don’t like your job, don’t conflate a burning desire to leave your job with wanting to focus on the startup.
Sometimes, you might feel direct or indirect pressure from a cofounder who is free from a job. This is a significant and sensitive issue to resolve at the outset, especially emotionally. In finding a resolution, remember that time is not a key metric for knowledge work; your domain knowledge, skills, ability to stay directed and focused, and your particular connections and experiences are.
Investors, meanwhile, want to invest in the value of your idea and in milestones that increase the likelihood of success. High salaries to replace your corporate or academic job are not typically in the startup playbook because investors want the funds directed toward product design, key team hires, proof of concept, and acquiring early users or customers. Your day job is not necessarily in conflict with these goals. If anything, the prestige from your title or employer could be sunshine for your startup.
Consider also that some of the most notable entrepreneurs today run multiple projects and lead multiple companies: you are an entrepreneur because you too are resourceful and hard working. Considering leaving your job is a privilege: think about successful entrepreneurs who managed without this privilege. Trust that when the moment is right, you’ll know with more certainty that you’re ready for a change. Until then, be confident in your bandwidth and don’t assume exclusivity to a single job is expected or needed.
I offer limited spots for coaching to founders at this seed level on a comfortable sliding scale. Please contact me if you are searching for a coach to help you navigate these kinds of personal and business challenges.