If you haven’t yet launched your new business, I have some advice for you.
It’s actually not my advice. As I’m a little conflicted about it. Let me explain.
The advice is to start your new business as a project. What that means is that you don’t quit your day job. You don’t raise capital. You don’t focus 100% of your effort on it.
Rather, you work on it as much as you can in your spare time until it either becomes something, or it doesn’t.
The advice comes from Bambi Francisco, the co-founder and CEO of Vator.tv who I spoke with earlier this week. It’s not only her advice having founded a company, but the advice given to her by Mark Pincus.
Pincus is the serial entrepreneur who founded Tribe in 2003 and sold it to Cisco Systems in 2007, and is now the founder and CEO of Zynga, a large social gaming company. You can watch Francisco’s brief but informative interview of Pincus here.
So, the point is to start your new business as a project. Obviously, this depends on your choice of business. If it’s a restaurant, there’s not much of a project to be had. But if it’s software, for example, you can start developing it and see if you are able to start creating features that people want.
And once you can prove that the project is developing into a viable business, you create a real company for it.
This “project” concept also reared its head when I recently spoke with Eytan Elbaz, co-founder of Oingo, the company which later would be purchased by Google and renamed as Google AdSense.
Elbaz and his co-founders were developing their novel software while still holding full-time jobs. After a little while, they were able to develop a working prototype. And then, Elbaz showed it to an angel investor (who interestingly was a client of his at his current job). It was only upon the angel investor writing them a check that they decided to leave their full-time jobs and really launch the company.
So why am I conflicted about this advice? Well, there’s definitely something to be said for the entrepreneur that is so passionate about their business that they’re willing to fully launch it from the get go.
To leave the comfort of their current job and take all the risk. In these cases, I like that the entrepreneur can’t blame their current job for limiting their time. They fully immerse themselves in their business, and give it their best possible shot. And in many cases, this total commitment is what drives success.
The key here is probably that everyone’s situation is different. The young entrepreneur might have an advantage in that it may be easier to leave their current position and jump 100% into their business. Conversely, the older entrepreneur with the family and mortgage may be less able to shoulder the risk of foregoing their current salary.
The choice is yours – take the leap fully or partially. Each can result in success.
The only choice that I truly hate is doing nothing. Too many people sit with great ideas in their heads but fail to act on them. And then, when someone else successfully executes on their idea, they say, “Hey, that was my idea.”
To them I unfortunately say, “Who cares – it’s the entrepreneur’s willingness to commit and execute on the idea that really matters!”