All My Time to Small Business vs. Part-Time Job

[Jes]

I'm 23 years old. Until I'm 25, I'm fortunate enough to not have to pay for food, shelter, and health insurance (thanks, Gov. Corzine!). I also have enough savings to start a small business, which I consider a VERY important step in my long-term career plan. But I'm not sure how I should invest my time: all of it toward starting the business (considering I don't have any expenses for the next two years), or part of it toward a part-time job to for more investment capital. Any thoughts as to which would be the wiser move in the long run?

[Shamou]

I believe that only an accountant with all the info and data could answer that question...

However, I know that in the town I live in, there are some free help for young entrepreneurs... they will help you to develop a whole plan for your business...

...and there are also organizations where retired professionals and businessman will act as mentors... free of charge...

I would certainly look into that if I were you...

With the little info that you gave here... I don't think anyone could give you a valid educated suggestion...

Best of luck to you...

.

[Jes]

To clarify a bit ...

There are people, especially in the PD world, who believe their time is more valuable than whatever their employer pays to do his/her work. In other words, an hour invested into profiting from your purpose > (is greater than) $7.25 or $72.50 for helping increase someone else's profits. Steve touches on this briefly here: http://www.stevepavlina.com/blog/200...ver-get-a-job/.

While I mostly agree with this, I'm slightly concerned that my business's growth may be slowed down by a lack of consistent investment resources. For example, if my product sells well, vendors may request much more inventory from me before I even get paid by my distributor. That can be a nightmare scenario, as I won't be able to afford to have more product manufactured until I get paid. By that time, the market will be over it. It'll be too late.

But then again, that may never happen. The business might grow just at the right pace. Or maybe even too slowly. It's hard enough for me to get into the habit of being a professional at home. If I picked up a part-time job, I might get too distracted to do all the other work. And it's a LOT of work. I'd also be lucky to find a job that pays even $12/hr. Realistically, I might have to settle for minimum wage ($7.25 USD). Is that kind of money worth it?

Or should I tough it out while I still have the opportunity?

[Shamou]

If your business expand very rapidly you should have no problem in getting a line of credit from the bank and solve that cash flow problem...

.

[munish]

Originally Posted by Jes

To clarify a bit ...

There are people, especially in the PD world, who believe their time is more valuable than whatever their employer pays to do his/her work. In other words, an hour invested into profiting from your purpose > (is greater than) $7.25 or $72.50 for helping increase someone else's profits. Steve touches on this briefly here: http://www.stevepavlina.com/blog/200...ver-get-a-job/.

While I mostly agree with this, I'm slightly concerned that my business's growth may be slowed down by a lack of consistent investment resources. For example, if my product sells well, vendors may request much more inventory from me before I even get paid by my distributor. That can be a nightmare scenario, as I won't be able to afford to have more product manufactured until I get paid. By that time, the market will be over it. It'll be too late.

But then again, that may never happen. The business might grow just at the right pace. Or maybe even too slowly. It's hard enough for me to get into the habit of being a professional at home. If I picked up a part-time job, I might get too distracted to do all the other work. And it's a LOT of work. I'd also be lucky to find a job that pays even $12/hr. Realistically, I might have to settle for minimum wage ($7.25 USD). Is that kind of money worth it?

Or should I tough it out while I still have the opportunity?

I think we need to make mistakes and learn.There is no perfect answer for this.

[John Wesley]

Try and find a part time job that is related to your business in some way or will help you develop your entrepreneurial skills. This way you'll get the best of both worlds.

[Mayo]

Develop a business where you don't have to buy products...

Use only your brain and time to develop a business, i have now (it was in plan for about 6 months, i procrastinated lot trying to find perfect programming environment for it and i found it... but i still don't know how to use it right..

Your time does not cost you nothing, you could spend watching tellie, or side kicking extra learning material , or go out having lots of fun.. your time is leverage.. you could not get nothing in returns for it in the beginning of business venture, but later.. who knows... maybe it will be worth 10,000 $US for every hour you invested..

Best of Luck,
Patrick

[1000feet]

I understand why you would be concerned about this, but some companies make an excellent business out of having more customers than inventory. A smooth growth can give you something that's profitable from the beginning; even if it's not a huge profit that's not a bad thing. If you really are going into a new market where you have a chance to become the leader by growing fast, you'll probably need to borrow money or get outside capital.

This is a great example of the differences: Strategy Letter I: Ben and Jerry's vs. Amazon - Joel on Software (not my site, I just re-read it last week and thought it would apply here).

People make mistakes in both directions; some companies set up lots of infrastructure and barely managed to get a few customers, while others (a tiny fraction) have no idea how fast their idea will take off. In the end, the best thing you can do is think through each possible outcome, so once you start you won't be caught by surprise and wonder what to do while you lose money.

[Brutha]

What kind of small business do you want to start?

[Mayo]

I think he does not have a clear idea about that.. that is why he is in doubt...

[Jes]

Originally Posted by Brutha

What kind of small business do you want to start?

A record company. In regards to that Ben & Jerry's v. Amazon thing, I'm definitely going for Ben & Jerry's.

[Mayo]

Originally Posted by Jes

A record company. In regards to that Ben & Jerry's v. Amazon thing, I'm definitely going for Ben & Jerry's.

Record store or indie "record company"?

Generally record companies are really for B&J type of making business, only later when you have substantial cash flow & profit can you start to grab more and more market, you must use a lot of guerrilla marketing both online and offline...

Best of Luck!

[Sam988]

I feel your pain Jes... im on the same situation, but im still studying how businesses work and all that.

If you get to open a company let us know