-The Earning Student

If your work and finances allows it, try taking a break. A few months is enough to build a prototype and see if it takes off. Maybe the idea isn’t good, but you walk away with valuable experience. If I had to trade lost salary for the lessons I’ve learned, I’d do it every time. You don’t learn the complete process of shipping a product when you’re a cog in the machine. I’ve learned a tremendous amount about GTM and customer relationships. Whatever happens, it’s knowledge I’ll bring to my next endeavor.

As you’ve pointed out on many occasions, it’s difficult to start a company. It takes a lot of time, effort, dedication, resources and that’s just the tip of the iceberg. I ran my own small business for a little over two years and just had to give up on it. Which was an incredibly difficult and trying decision. It was nothing big (5 part-time employees), but it was something that I’d worked very hard on.

I recently started working with another startup, Viralogy, and am extremely excited about doing work with them, but at the end of the day, they don’t pay - Microsoft does. I greatly enjoy the work I do at Microsoft (Xbox) and after a year, contrary to GeekMBA360’s statement, I don’t think I’m unproductive. However, the issue is that Microsoft is an extremely big company and I have an extremely specific role in the Xbox business. If I want to work on a press release or help out with the creative direction of a marketing campaign, or give advice on a game’s development — that’s just not part of my job description. For me, one of the biggest joys of my own startup (and what I’m doing at Viralogy) is having input that is valued on all levels. I can help brainstorm for a new way to analyze social media while at the same time helping to build the Viralogy brand an business and while writing a blog on social media tactics.

So to me, it comes down to the need to 1) do something interesting in an industry that I’m passionate about, that is important to my financial stability while at the same time, 2) working on something where at age 24 I can have a creative say and input on the direction of an exciting new business.

Do I regret not being able to spend 60 hours a week working on Viralogy instead of spending only 20 and the other 40 working at Microsoft? Maybe. But then a) I wouldn’t be able to work in another industry I’m passionate about (gaming) and b) I wouldn’t be able to pay my rent. So while I envy the people who drop everything to start their own company, and that may one day be the case for me, I believe I’ve found a pretty happy medium for myself. If Viralogy manages to get funded, I would be happy to drop everything and take a 50% pay cut in salary from Microsoft to make a go for it (I might only get one shot). Unfortunately, right now I can’t take a 100% pay cut without any promise of future salary.

To geekmba360 - some lack the courage to jump, some lack the financial resources, and some are waiting for the right opportunity. It shouldn’t be surprising for people to work in an industry/role that they’re passionate about, where they’re making a decent salary to not want to leave. And for those who are really hoping to get out - my advice? Start saving up so that you really can take a big pay cut (or no pay at all) if you find the right opening for a startup.

At the end of the day, it’s risk vs. reward. My parents taught me not only to take risks, but to think analytically. If you’re looking at a startup idea with a maximum value of a million dollars (sale, salary split for 5 years) and you have to drop a $50,000 or $100,000 a year job to do it, what’s your risk? Foregone wages. Your reward is your expected value multiplied by its probability. Considering 80%+ of businesses fail within the first year and far fewer will reach critical success, it takes either an incredible idea with a high potential reward (could you sell your company 5-10 years later for 100 million, or earn 10 million in sales each year if it’s a hit?) or high probability of success (40% likely to be successful instead of 10%). Unfortunately people starting their own businesses are rarely able to think objectively about their own ideas (I’m a victim of this).

However, if you’re unsure about what to do but still want to be able to work hard on a startup while still earning a salary, I will say I’m very happy with what I’m currently doing - moonlighting at a startup. It might not be the easiest path for your sanity and it might cause you to work longer hours, but it’s working well so far for me as I’m without regrets, and has been a great way for me to hedge my bets.

Andy, sorry for writing a novel in your comments section, but this post really spoke to me.

Don’t mean to trash Microsoft employees, but one thing I don’t understand is the number of Microsoft employees who were extremely unhappy at work, but at the same time told everyone that Microsoft was the greatest place in the world.

I’m fairly new to the Seattle area. When I was living in the silicon valley, if you stay in a large company for 7, 8 or 9 years, people is going to start questioning why you stayed put for so long.

In Seattle, it’s surprising to me to meet so many people who worked at Microsoft for a very long time. Clearly, they’re not productive any more. They didn’t like what they’re doing. But, they simply don’t have the courage to jump. And they seems to feel that no other place is more prestigious than the Microsoft brand name.

I simply didn’t get it.