The Why
Entrepreneurship Takes Time
While the allure of starting your own business is strong, it’s essential to recognize that entrepreneurial ambitions often take a long time to come to fruition, if they succeed at all. Building a successful business requires time, effort, and resilience. By maintaining a job while working on your side hustle, you can sustain yourself financially while giving your entrepreneurial venture the time it needs to grow.
Diversify Income Like a Portfolio
When you invest, the one stock you should not buy is the company you work in – doing so concentrates your wealth risk in one company, so you cannot enjoy the only free lunch in the world – diversification. Even in the process of generating income streams, having diversity makes you more resilient and less prone to financial disaster. As always, greater resilience and less panic in seeking out a job usually helps to optimise for a better job as you can pick and choose among offers.
Gone are the days when a job with a stable company guaranteed lifelong security. Layoffs, restructuring, and industry disruptions are common. Hence, it is prudent not to rely solely on your job for financial stability. Diversifying your income streams by starting a side hustle can provide a safety net and mitigate the risk of unexpected job loss.
Some advocate for diving headfirst into entrepreneurship. However, consider the portfolio method for careers—similar to how investors diversify their investments to spread risk. By maintaining a job and a side hustle simultaneously, you create a diversified career portfolio. This approach increases your chances of success and ensures you have multiple avenues for income.
Maximize Your Chances to Try and Fail
Using the fair ground games metaphor for startups, instead of buying one dart, throwing it, and having to leave the fair, it is far optimal to buy multiple darts. This way, you have several chances to hit the target – each time gaining experience so your next shot is closer to the mark. Working a job while pursuing your side hustle allows you to take more shots at success without risking everything on a single throw.
How to do this
Leverage Limited Work Hours
If you have a job with limited hours or flexible work arrangements, take advantage of this time to start your own venture. Use your evenings, weekends, or any free time to work on your side hustle. This strategy enables you to make progress on your entrepreneurial goals without sacrificing your primary source of income.
Scaling Up Slowly
Venture capitalists (VCs) often prefer rapid scaling, but this approach isn’t for everyone. If you’re okay with not scaling up immediately and prefer a more measured growth rate, a job hustle can work well. It allows you to build your business at a comfortable pace without the pressure of meeting aggressive growth targets set by VCs.
Bootstrap
Not everyone has the drive to change the world with a product, but many desire a standard of living above what a typical salaried position can offer – which only capital appreciation can provide. By bootstrapping your business while maintaining a job, you can gradually increase your income and achieve financial stability. In many cases, bootstrapping a $2 million business can be a greater success than a VC-backed business valued at $10 million.
Risk Management
Be Wary of Intellectual Property Clauses
When starting a side hustle, be mindful of any intellectual property clauses in your employment contract. Some companies have strict policies that could claim ownership of anything you create while employed by them. Review your contract carefully and consider seeking legal advice to ensure your side hustle remains solely yours.
Mum’s the Word
You don’t have to tell anyone about your side hustle. The tighter your lips, the more you can push the envelope and the fatter your wallet. It will be hard to face your colleagues day in and day out, and think about all the fun stuff you are building. Keep that self-discipline, there’s no need to make yourself a target.
Leave a Reply