Most entrepreneurs don't have the luxury of quitting a reliable "day job" one day and launching a full-scale money-making business venture the next. The majority of long-term success stories involve a gradual transition from working for someone else, to working exclusively for yourself. There are a lot of benefits to this approach a steady paycheck, health benefits and retirement fund, to name a few. There are also some potential pitfalls to be aware of. Here are some things to consider:
Don't cheat your current employer
If you're working a 9-to-5 job while trying to launch a business, it can be tempting to try and sneak in a few quick e-mail responses, phone calls or online research here and there. Those little cheats can add up, however, and you could find yourself without a job, or even worse, with a reputation for having a poor work ethic. Both can seriously impede your entrepreneurial pursuits.
On the other hand, if you are completely unavailable to potential customers, vendors and investors during normal business hours, that negatively impacts your fledgling business. Consider these legitimate approaches to fair play:
* Establish a Web site and e-mail address as one of your first business start-up priorities. Have a "FAQ" section on the site that answers the most commonly-asked questions about your company; invite potential customers to correspond with you by e-mail; make yourself available by phone or in person during designated after-hours times; have an automated response system set up on your e-mail system that lets people know their message was received, and will be responded to in a timely manner. Some other time savers:
* Utilize a virtual answering service that can promptly and professionally answer your designated business phone number and deliver the messages to you via text or e-mail.
* Use every bit of your company break time and lunch time to return calls, answer e-mails and make contacts in person or electronically.
Let your employer know what you're up to
Many entrepreneurs are afraid that if they let their employer know they're trying to launch a business they'll be fired on the spot. While that is a legitimate concern in today's economic environment, you could face even stiffer legal issues if you conduct business on the sly. Try these approaches:
* Read through your employment contract and employee handbook and make sure you understand your rights and obligations as an employee. In rare cases, businesses have sued former employees-turned-entrepreneurs for intellectual property rights, claiming the employee developed an idea, concept or service while still employed by them.
* Go to your supervisor and explain that you're involved in a side interest that may or may turn a profit in the future, and ask for a letter of understanding to be drawn up that protects you both. In short, the letter should outline that you will not use company time, property or materials to conduct a side business, and in return, if your business becomes profitable and you leave, the company has no claims to the fruits of your labor.
Be practical about use of existing benefits
When you sense you're nearing a point where you can quit your day job and work exclusively for yourself, consider all of your options. Do you have unused vacation or sick time you can use up? Does your company offer an unpaid leave of absence that would allow you a few weeks to work full-time at your own business before completely severing ties? If you're eligible for profit sharing or a bonus, time your departure in such a way that you get all of the financial compensation owed to you.
Last but not least, make sure you leave your old company on good terms. They can become great referrals, and sometimes, even become clients!
Dave Archer is chief executive officer of Nevada's Center for Entrepreneurship and Technology. Contact him through www.NCET.org.
