Why Leaving a Stable Job for a Business Venture Might Be the Right Move

In the world of entrepreneurship, the path to success is rarely straightforward. Many fail not due to a lack of vision or potential, but rather, due to the assumption that the game of business is easier than it often is. This article explores the decision of leaving a stable job to pursue a business venture, using a personal journey as an example.

The Risk: Business versus Job

The fear of failure often keeps people stuck in their current jobs. However, statistics show that most businesses fail within the first few years. One key reason for this failure is the misconception that starting a business is more straightforward than working a traditional job. The solutions lie in a careful evaluation of the viability and potential returns of a business idea.

For individuals like myself, who find themselves at a crossroads, it's essential to consider the asymmetrical risk-reward ratio. The idea is that the potential losses or negative outcomes (in this case, the failure of a business) are less severe compared to the opportunities for massive gains. This concept aligns closely with Nassim Taleb's Antifragile, which explains how systems can benefit from being exposed to risks that can strengthen them.

Personal Decision and Initial Steps

In my experience, the decision to leave a stable job was influenced by several factors. In March 2014, I was working as the New Business Manager at a thriving company that was expanding and growing rapidly. My flatmate, passionate about a side project, convinced me to join him in something that I initially thought was a risky endeavor.

The Side Hustle concept was intriguing. My flatmate was working on a service company, RightHello, that would provide B2B leads for people like me. We agreed that the compensation would be around 80% of my previous income, with a potential stock option vesting over 24 months. Additionally, my compensation structure was designed such that I wouldn't earn a commission for every deal during the first year, minimizing financial risk.

Personal and Professional Context

Exiting my job was not based on blind leap. Here's why: Financial Stability: Although the salary was reduced, the potential upside due to stock options was substantial, ranging from 0 to millions.Personal Responsibilities: At the time, I had no significant personal responsibilities, which allowed me to take greater risks.Education and Savings: I had just finished paying for my studies, so the pay cut did not significantly impact my living standards.

Evaluating the Upsides and Downwards

The potential downside of leaving the job was not just financial. However, the upside that went beyond financial gain was substantial. Firstly, the new business offered a wealth of opportunities to learn and grow, as the company was expanding rapidly. Secondly, the failure of the venture within a year could still provide invaluable experience and connections, enhancing my market value.

Considering these factors, I formulated two scenarios:Success: Becoming a sales director in a successful business, with connections and Learning from the process and gaining valuable experience and connections.

Results and Lessons Learned

While the venture faced challenges, it has brought more success than I anticipated. Today, we have acquired 170 clients from 17 countries and have grown to a team of 28 people. The experience has been invaluable, providing me with a training course equivalent to one year, and greatly increasing my market value.

The decision to leave a stable job is not one to be taken lightly. However, when evaluated carefully, it can lead to substantial growth and success. As this article illustrates, the right move can turn a risky venture into a success story.