Should you quit your job if it's preventing you to focus on your startup?
I'm currently 24 and I've always looked forward to starting a business on my own.
After dabbling in multiple adventures, I got myself working in a day job as a software developer 1 year ago as I was just starting my career and needed enough runway to bootstrap businesses full time
I got lucky as the pandemic forced my employer to make remote work as an option for us. So I began living at my parents' place to keep my burn rate low and to save as much money as possible
After researching problems and validating it with potential customers, I began building Famewall in Feb 22 while having a full time job
I was able to get a paying customer which motivated me to work on growing the product. I also had a few other ideas that I wanted to test & validate.
While all was going well, my boss has begun calling employees back to office. Being a solopreneur, I've become accustomed to working remotely for over 1.5 years now as it gives me a lot of flexibility to take charge of my time.
The thought of having to slog at a 9-5 job where you aren't supposed to do anything else during that time, sounds quite scary for a founder as our minds are naturally drawn to our business wherein we'd want to run experiments when we have a lot of creativity.
Now I am at crossroads where I feel like wanting to quit my job just to have focused attention toward my business ventures while on the other hand, I'm thinking of making the move when my startup is ramen profitable
At the moment I have runway for 1.5 years if I restrict myself from consuming much
Curious to know your thoughts since you guys might have come across this juncture at some point in your lives ? How would you approach this?
Unless you have a really cushy runway (at least 2 years) or your business/startup is already bringing in ramen-profitable money, I'd say it's not a good decision.
Otherwise money stress will get distract you just as much, if not more, than having a day job.
It's scientifically proven that poverty and financial woes can reduce IQ by 2 standard deviations.
Personally, I've never been able to make either work for me.
Having a day job = My startup progress slows to a crawl
Not having a day job = My mind keeps getting distracted by financial worries
I felt like I was fighting a war on 2 fronts with either option, where the latter felt like jumping off a cliff and building a parachute on the way down.
What eventually rescued me was unemployment income during Covid in 2020, which I used to pay for my bills while I worked full-time on my SaaS business.
By 2021, my startup was already paying for my living expenses, savings, etc.
If you can put yourself in that position, where you have money coming in passively (e.g. unemployment, spouse, parents, etc.), that's probably best.
In fact, I'm not even sure "runway" is the best strategy psychologically, because there's no urgency whatsoever to succeed at your startup when you're just drawing money from a large nest egg -- I've read many stories here on Indie Hackers where people burn through 2-3 years' worth of savings with little to show for their efforts.
Freelancing is pretty much the same as having a day job. Again you'll be fighting a war on 2 fronts, and that's really far from ideal. Context-switching is a productivity killer.
There's really no easy answer to this, which is why it's quite rare to find a solo founder living off SaaS/software income full-time.
That was deep & insightful, Jay. Thanks for sharing.
This is so true. I've been on both sides as I was unemployed back in 2020 and bootstrapped while on a day job during 2021
Curious if you quit your job before the covid crisis and plunged full time into your product?
I was laid off during Covid lockdown (March 2020), which in hindsight was a true blessing, as it finally gave me the kick in the backside to focus my full-time attention on my product.
When I was laid off, my product was already revenue-generating, so I knew that if I put in more time and effort, I'll see growth, and I was right.
It helped tremendously as, for many months, the US government gave us a good amount to stay in during the lockdown (I received $3.6k/mo for a few months, then later $2.5k/mo throughout 2020), so for the first time in my life I was able to work on my SaaS business full-time without money worries.
When that unemployment income ran out, I was already more than ramen-profitable, so this was perfect timing.
I hate to say it, but I owe the US government a lot for helping me bootstrap my business and live my dream.
This is such an awesome journey. Glad that you made it mate :)
Oh cool! I was in a very similar position a couple months ago.
Except, the company I worked for was bought by a private equity firm and they let half of the dev team go. So, I didn’t really need to make the decision. I had 2 years of runway saved up at the time.
I would always recommend this goal if you can make it. Being cashflow positive is always great for peace of mind.
I would recommend either negotiating or just trying it. You have a strong negotiating position if you’re willing and able to walk away. There’s also the possibility that it’s not as bad as you think it is (if it is, you can just walk away).
You’ve already worked for a year, so you can always find another job. The first one is the hardest.
That’s a valuable lesson to learn and you’ll need to stand by that. Two other points—you can always do a little freelancing on the side and your parents probably won’t let you starve.
So, explore your options first. You may find a middle ground that works for you and your employer, or you may start your journey! You’re in a great spot. You have options. Pick the one that works best for you.
And then update me on what you ended up doing 😄 I’m not profitable yet, but I’ve really enjoyed it.
Two other tips if you do your own thing. First, take a week off—you’ve earned it—then really dig in. Also, as your hobby is becoming your job, you should probably pick up a new hobby.
Thanks for such a detailed suggestion buddy :) Loved how you put it.
So you quit your job at that time? How did it go for you in those 2 years of runway?
I've also been looking at freelancing options but wouldn't that also consume time especially when you're given fixed deadlines while you're also building your own startup?
Will be interesting to hear your story :)
Haha sure mate, I've already been taking time off this week doing random research.
With one of the higher salaries, I was on the cutting block and was let go. I just decided to spend time on my own projects for a bit to try it and see how it goes, rather than finding another job. It’s only been two months, so I’m just coding away right now 😄 trying to make it to MVP, get feedback, and iterate. I’m in it for the long haul. Even if it fails, I’ll have a killer portfolio piece.
I freelanced and timeboxed it to three days a week for a while to help transition and build the runway. I liked the balance, but you can’t let freelancing just eat up all your time. Sometimes, if you’re going to dig in on your product, you might as well just spend all your focus on it. Up to personal preference and finances really.
Cool makes sense.
Wish you the best mate :)
Would love to connect on Twitter/Reddit if you're active over there?
Thank you! :)
Eventually 😅 I made accounts under the same username, but I’m not active yet