5 Reasons to Hold onto Your Job while Starting a Business

Starting a small business, while still working in the current job may be a viable approach for many would-be entrepreneurs. When we talk to our friends, colleagues and aspiring businessmen, who are still working in their jobs, they express frustration over their employers. They want to start their own business and be their own boss. They want to have control over what they can do and how. The current economic uncertainty and resulting job insecurity has made their desire to start a business even stronger.
However, when we ask why they have not followed up on that desire and dived into small business they come up with variety of reasons. One of the primary reasons cited is the loss of steady, guaranteed income and uncertainty inherent in the small business. Many of them express desire to test the waters and start a business on a part-time basis. If it is successful they can leave their day job and jump full-time in their business.
While it is not an ideal solution, in our mind, starting a business while still working on the current job presents an opportunity they otherwise would not have. Below we have highlighted some of reasons given to us by would-be entrepreneurs why they would want to keep their current job; while working to build their own business.

1. Start up cost
   This is one of the primary reasons why people want to keep their jobs. When you are just starting the business the cash flow from it may not be sufficient to cover your personal expenses. In fact, you may need to inject substantial amount of money into the business in the early stage. Having a day job keeps the cash coming to cover those personal expenses and be able to put into the business.
2. Have a fall back plan
   Let’s face it. Starting your own business is inherently risky. There are no guarantees that the business will succeed. We have come across many examples of failed businesses where people have lost money and hard-earned savings. By keeping their jobs people can go back to it if things don’t work out with the business.
3. Need for Health Insurance
   We feel sad that this has to be the reason for people to not want to leave their jobs to pursue their dreams. Particularly, in the country like ours, where we spend so much money on health care this should not be the case. However, the fact is it prevents many people from leaving their jobs because of the health coverage provided by their current employer. If they go and buy the insurance on their own; not only do they have to pay significantly higher for the insurance; but the coverage may not be comparable to what they would be getting from their job.
4. Test the waters
   While some people are born to do business; others are not so sure. They may not understand all the challenges posed by small business. They want to see for themselves what it takes to start and operate a business before going all in. Keeping the current job provides them the ability to do so.
5. Have supplemental income
   For many people the income coming from business may not be sufficient to cover their expenses even after the business has reached past the start up phase. They want to keep the supplemental income coming while still continuing to build the business. These people operate business on a part-time basis so that the income from it supplemented with their current job income is sufficient to meet personal needs. We do not advise to continue operating in this mode for too long for the reasons we will explore in subsequent posts.

What do you think? What are your reasons for not jumping in if you have not already done so?