Is it better to quit your job to run your startup? ...study says NO!
In a study at the University of Wisconsin, Jasmine Feng and Joseph Raffiee found that Hybrid Entrepreneurs, people that continued to work a paying job after founding their organization, were statistically more successful. (http://www.inc.com/jessica-stillman/should-you-quit-your-day-job-study-says-no.html)
"We examined businesses' survival times from the date the founder is full-time self-employed (i.e., the date the founder leaves his or her day job), and found that companies initially founded with a hybrid model were 33 percent more likely to survive than companies whose founders were full-time entrepreneurs at the time of founding."
Some hybrid entrepreneurs include the founders of Warby Parker, Steve Wozniak a co-founder at Apple, and Pierre Omidyar from eBay.
This goes against the notion that successful entrepreneurs are high risk takers. It actually said just the opposite, that people that are cautious are actually more likely to succeed in business.
I have met countless entrepreneurs that left everything to invest 100% into their business idea and seeing the toll that it takes on them. They become desperate to make sales and push their idea with a biased view that the original idea has to succeed. They oftentimes lose perspective, objectivity, and become desperate not just with their business but in their relationships, sales, and the way they run their business. From a marketing perspective, the one question I ask potential entrepreneurs is how are they going to pay for their advertising?
On the other hand, if a person has a part-time job or full-time job with a side business, then they are able to take their time with their business to give the business model enough time and flexibility to mature. Furthermore, they are able to make sales with the right perspective and without reeking of desperation. Finally, they can form a more effective online marketing strategy by having a budget that they can invest in paid advertising to sell the product faster or at least be able to find out that the market is not interested in their product or service, in which case they can adjust or scrap the entire business plan and start over in a new direction.
Remember that time you had an idea and somebody told you that if you were really serious, you would do it full-time? Ever meet somebody at said the reason why their business can't take off is because they are too busy? These are more examples of limiting beliefs created from assumptions rather than reality. How many people out there had amazing ideas but were held behind due to somebody else's limiting beliefs?
Thinking about starting a business? It has never been easier with online tactics and techniques that make creating and advertising your business faster and cheaper.