This wasn't the case for Patrick McGinnis. In his book, “The 10% Entrepreneur: Live Your Startup Dream Without Quitting Your Day Job” (Portfolio, 2016), the venture capitalist and former Wall Streeter explains why and how he started his business while still employed full-time.
Business News Daily talked to McGinnis, the founder of investment and advisory firm Dirigo Advisors, about the costs and benefits of part-time entrepreneurship.
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BND: So what is a 10 percent entrepreneur?
McGinnis: A 10 percent entrepreneur is somebody who dedicates at least 10 percent of his or her time and, if possible, 10 percent of his or her money to invest in, advise and start new ventures.
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BND: Why would somebody want to be a 10 percent entrepreneur as opposed to a 100 percent entrepreneur?
McGinnis: Full-time entrepreneurship is great, but it's not for everybody. It's risky, [especially] if you have a mortgage and kids, or if you're somebody who's just not a risk-taker. Being a 10 percent entrepreneur allows you to be entrepreneurial, but on your own terms and matching your own risk profile. Plus, statistics say it works. A study by [the] University of Wisconsin-Madisonshowed that people who engage in a venture on a part-time basis are 33 percent less likely to fail than people who just quit their jobs and do a startup full time.
BND: You'd think 100 percent entrepreneurs would be more successful. What is it about 10 percent?
McGinnis: With 10 percent [entrepreneurship], you have the luxury of time to see if something works. If you are a full-time entrepreneur, it's a one-shot deal. You don't have the flexibility to experiment, try different things, and figure out if something works and get the right business model before jumping in full time.
BND: What about the downside? Is it more difficult? Does it take more investment of your time to keep your job and be a 10 percent entrepreneur?
McGinnis: It's a matter of mind-set. The critical thing is to pick projects that fit with your life. If you have limited time, you are probably better off getting involved as an investor or advisor, investing either cash or some of your time in exchange for an ownership stake. If you're successful and your business starts to take off, you're going to get to the point where you need to bring in a partner to help you, or consider whether you want to go full time as an entrepreneur.
One person I interviewed [for my book] is a full-time lawyer who started a company that makes bracelets that play school fight songs. He works long hours, but this is his fun time. He says it's not just a job, it's a passion.
Curated from Business News Daily
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