Dear Asad: Should I quit my job to pursue my father's business?

Dear Asad,

I have completed an MBA and work in the pharmaceutical industry. I belong to a middle-class family and I bear the expenses of my family from my salary. I will be getting married in six months’ time.

The reason I am writing to you is that my father has his own business. He’s had this business ever since his youth and has never worked as a salaried person. His business has never done that well and according to him, the reason is his lack of hard work and interest to develop it.

I believe there is a lot of potential in his business and if I take over from him, I can grow it manyfold and start earning quite well from it.

The problem is that to get involved with the business I will have to give up my job as I won’t have time to do both. I have tried giving time to the business after my work hours but it has not been sufficient. The business needs a lot more time.

I want to resign from my job and look after the business full time but my family is discouraging me from taking this step because my salary funds all the household expenses. I also wonder if it’s wise to take this chance at this point in my life when I am about to begin married life in the next few months.

I am confused. I don’t know what to do. What do you suggest?

 

Business Guy!

 

Dear Business Guy,

The best option would be to save some money – financial buffer of one to two years – quit your job, and then start the new business afresh. This will ensure that you have an emergency fund to tide you over the slow days. It will also allow you to spend quality time with your newly married wife.

Because stepping out as an entrepreneur is risky and staying with your current job is safe, many potential entrepreneurs consider the idea of starting their own business while maintaining their full-time jobs. This approach doesn’t work for everyone, as it has some critical limitations, but it also has some key appeals.

First, and most important, is the security factor. Leaving your current full-time job to start your own business can be risky. You will be abandoning your post, investing your own capital and potentially running on zero income for the foreseeable future. If your business collapses or fails to generate any meaningful momentum, you will be low on cash and without a job. The last thing you need while trying to grow your own business is the added stress of unpaid bills stacking up or draining your savings account without a clear path to earning it back.

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On the bright side, a study on management found that 'hybrid entrepreneurs,' or individuals who start their business while working another full time job, are a third less likely to fail than those who jump in without the safety net of employment. With that being said, starting a company while working a 9-5 is not easy. The route of starting your business on the side while still working as a full-time employee elsewhere is difficult, but doable.

Tip: It is not impossible to start a business and do a job simultaneously but it requires a lot of determination, resilience and hard work. Plus the emotional support of your family especially from your wife after you get married. She will be expecting you to spend time with her and be there for you to both understand each other better.

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If you do decide to go ahead and try to juggle both job and business together then please keep the following in mind.

1) Be patient!
It will take time for your business to begin gaining traction. Few businesses turn a profit in their first few years of operation. Unless your small business becomes an overnight success, you will likely need to keep working your day job in order to meet your personal expenses. Recognise that you are in it for the long haul and that growing your business will take time and patience.

Tip: Your day job is also a good safety net in case your business does not pan out. Less than a third of all startups are profitable three to five years after their founding and more than half have closed.

2) Outline your goals!
As you are making plans for your business, it is important that you evaluate your long-term goals. Having a good idea of what your long-term goals are will help you get a better idea of what you will need to invest in your business in terms of time and money.
For example, if you want to quit your full-time job, you need to think about how long you will need to continue working there before you have enough money to branch off on your own. Also ask yourself if you really want your second business to be your full-time career or if it's something you would rather do on the side as a passion project?

3) Practice time management!

Because you will be working two jobs, you will need to budget your time wisely and set aside free time for managing your business. This will likely mean working on the weekends and at night when you get home from your job. In order to meet this demand, try designating a specific amount of time each day to your business.

Tip: Decide what's important, consult with your family and, then create a target list of all the responsibilities and activities you will be reducing or eliminating to make time for your business.

4) Do save your side income!
Set aside cash reserves from the income your startup creates that can sustain you when and if you decide to leave your full-time job. On top of that, be sure to put into place clear spending and budgetary guidelines for your side business to make sure you are not spending beyond your means. Saving or investing all of the profits from your side business will help you build a safety net for potential lean times in the future once you no longer have your day job.

5) Don't feel pressured to leave your day job as your business starts to gain traction!
New businesses go through life cycles, and some early wins do not necessarily mean you have a sustainable enterprise. You should validate your business model with real, paying customers and then go through a period of several months with consistent growth in your customer base. Your side income needs to get above that which your necessary expenses will require, before considering quitting your day job to focus full-time on your new business.

All the best!

Asad

 

Asad is a counsellor, life coach, inspirational speaker and a personal-development expert. He advises on social, personal and emotional issues. You can send him your questions for this weekly column at [e-mail] with “Ask Asad” mentioned in the subject line and provide as many details as possible.

Note: The opinions expressed in this article are those of the author and do not necessarily reflect the views of The Express Tribune.