Erick Schonfeld at Business 2.0 has a rather fabulous article about how you can start and maintain a business without quitting the day job.
His points:
1. Use Your Salary as Funding
2. Turn Common Complaints Into a Business Plan
3. Make Your Boss a Beta Tester
4. Take Advantage of Your Company’s Reputation
5. Convert Your Employer Into a Business Partner
Of course, We’ve done all of the above certainly with respect to my day job.
An important part of it is realising that i reduces the costs of starting up. This means you can go longer and further without angel investment which, for the entrepreneur, is useful. It enables you to hold onto much desired equity meaning that if someone offers you investment, you’re not losing quite as much. ???100 000 is a lot of money to a startup company with ???134 in the bank and not much more than a dream to go on. ???400 000 is not as much if you know you have ???500 000 in revenue every year. Angel investment never comes to those who really need it after all. Nothing excites investors more than knowing that someone else is pitching in for a slice of the pie.
It’s a human failing isn’t it? We have a natural urge to herd – that’s one of the reasons why you see the internet plagued with Mac versus PC arguments. And you’ll see the same sort of debate on audio forums regarding who uses what. We need people to help justify our decisions by encouraging them to invest the same way we did.
Anyway. Read the article. Enjoy.