I want to quit my job and start a business. Where do I start?

I would like to congratulate you for having a vision and desire to quit your job and start your own business.

Here’s the thing.

Research shows that starting a side-business or side-gig while still having a full-time job is the best pathway to success in the long-run.

In a 2014 research, Should I Quit My Day Job? A Hybrid Path To Entrepreneurship, Raffiee and Feng examined how workers could reduce the risks and uncertainty associated with their entrepreneurial activity by embarking on “hybrid entrepreneurship”. This is the process of starting a business while still retaining a day-job in an existing organisation.

What they discovered will be relevant to you as you decide on your next steps.

Researchers found that “hybrid entrepreneurs” who subsequently enter full-time self-employment or entrepreneurship after quitting their day-job have much higher rates of success relative to individuals who enter full-time self-employment directly from paid employment.

This survival advantage is driven primarily by the learning and development effect that takes place during “hybrid entrepreneurship”.

What’s important to note is that the risk of failure will be decreased or mitigated for individuals with prior entrepreneurial experience gained while in full-time employment doing part-time entrepreneurship.

In another 2014 research, Multiple Job Holding, Skill Diversification, and Mobility, Panos, Pouliakas, and Zangelidis investigated the interrelated dynamics of dual job holding, human capital, occupational choice, and mobility.

They found that individuals are using multiple jobs holding as a conduit for obtaining new skills and expertise and as a stepping-stone to new careers and self-employment.

From the evidence gathered by the researchers, individuals doing a side job or business other than their primary occupation are more likely to switch to a new primary job in the following year. That new job is likely to be different from their current primary employment.

The study also found that self-employed contract work can also be used as economic security and for upward mobility.

Another report reframed independent contracting work as potentially the largest job training resource in the economy. Skill and income diversification were undertaken through part-time side-business work help people gain valuable experience, skills, and knowledge. They can also smooth their transition to higher-paying occupations.

The report also said that mixing side work and traditional employment work could smooth income volatility, which is a growing problem in modern-day workplaces.

What do all of these findings tell us?

1. Employees should embark on part-time “hybrid entrepreneurship” while still retaining a day-job if they want to successfully change or transition their career to a better one, improve their prospects of promotion and income security, be self-employed, or even starting their own business as a freelancer or entrepreneur.
2. Gaining knowledge, skills, and expertise during the “hybrid entrepreneurship” phase will increase the likelihood of your success. Knowledge can reduce the risk of failure. It’s an effective risk mitigating strategy.
3. “Hybrid entrepreneurship” will appeal more to risk-averse workers who just want to try-before-they-buy. If they do not like entrepreneurship as it may not suit their personality and lifestyle, they can try other things without the fear of losing their job and income.

So, where do you ideally start?

Acquire the necessary knowledge, skill, and expertise by starting and running a side-business while you still have your job.

Learn as much as you can.

Make mistakes. Learn the lessons.

Take the risk. Know yourself and your limits.

Identify your skills gaps. Close or bridge any skills gaps by doing free online courses, seeking out mentors, and networking.

We do not plan to fail but fail to plan the path to our success.

Map out your path by developing a strategy and plan. Execute that strategy ruthlessly.

Only when your income from your side-business consistently matches your current salary or wage, you can safely quit your job and go full-time.

On the other hand, if you are a risk-taker and can’t wait to quit your job now to get started immediately, then go for it. But do remember that research has shown that your likelihood of success will be much lower if you don’t take the side-business pathway.