I quit

I am was working for a very good company and making a good paycheck. The economy is slowing down (aka recession), the housing market sucks, I am losing money on my rental properties, my ARM loans will go up in a year or 2, what should I do? What would a rational person do? What else? I quit.

Some probably think, I am either stupid or crazy. The funny thing is that I actually liked the company I worked for and I was making enough money to pay my bills. But I had to do it. I have several ideas and want to dedicate all my time to them. I want to be 100% committed to them and not work on them on evenings and week nights. I have been wanting to do this for a while but the time was never right (and I didn’t have the guts).

Two things happened last week that triggered this seemingly irrational decision. I was reading the 4 hour work week and a few things caught my attention:

  • The time is never right
  • Imagine the worst case scenario and ask “is it that bad?”
  • Taking a risk is a lot less frightening than the thought of it – the though of skydiving is a lot scarier than actually doing it.

Risk
Creative Commons License photo credit: Mr. Jacobsen

After thinking about the worst case scenario i.e. losing my houses, my job, be completely broke, etc… I realized, it wasn’t that bad. It’s also highly unlikely. So I got to work and emailed and a bunch of friends asking to raise capital for my idea. The second thing happened, the response was overwhelming. It was over $100k of possible investment. Wow!!!

Then I talked to a friend and he gave me a good advice and basically told me not to take money until I absolutely needed it. So, I decided, for now, I will finance my ideas with my credit cards, loans, credit lines and so on. When I get to a beta or at a point when I really need the money then I will start looking for investors. Plus, I didn’t want to deal with investors, paperwork and all that headache.

I am sure you want to know what the ideas are. Well, stay tuned, I will be blogging about them very shortly and will try to post regular progress here.

P6020044
Creative Commons License photo credit: Ingy The Wingy

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0 thoughts on “I quit

  1. Congratulations! And thanks for sharing the experience. I left my job at IBM last year and remember the same feeling. What tipped me over the edge was also the realisation that the time is never right and sometimes you just need to act without thinking too much.More than half a year later, with success still far from assured, I can say for certain that it was one of the best decisions I ever made.Good luck, and keep us updated :-)Amir NathooWebMynd

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  2. Hi Emad, came across your post just now. Free Advice (usually given free but has a lot of value): DON'T USE YOUR CREDIT CARD TO START A BUSINESS. Basic business logic if you do the maths…. don't just take it from me, read other startup founders like Paul Graham (http://paulgraham.com/boss.html – read the footnotes) to see what I mean.

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  3. Thanks's awesome… do it up!My only advisement: easy with the credit cards. I made a big bet on a business when I was younger and the thing flopped. Wouldn't have been a big deal with any other financing vehicle (e.g., money from FF&F), but it turned into a nightmare I've since lived to regret. It was a learning experience, but I don't know that I'm better for it.

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  4. Congratulations! And thanks for sharing the experience.

    I left my job at IBM last year and remember the same feeling. What tipped me over the edge was also the realisation that the time is never right and sometimes you just need to act without thinking too much.

    More than half a year later, with success still far from assured, I can say for certain that it was one of the best decisions I ever made.

    Good luck, and keep us updated 🙂

    Amir Nathoo
    WebMynd

    Like

  5. Hi Emad, came across your post just now. Free Advice (usually given free but has a lot of value): DON’T USE YOUR CREDIT CARD TO START A BUSINESS. Basic business logic if you do the maths…. don’t just take it from me, read other startup founders like Paul Graham (http://paulgraham.com/boss.html – read the footnotes) to see what I mean.

    Like

  6. Thanks’s awesome… do it up!

    My only advisement: easy with the credit cards. I made a big bet on a business when I was younger and the thing flopped. Wouldn’t have been a big deal with any other financing vehicle (e.g., money from FF&F), but it turned into a nightmare I’ve since lived to regret. It was a learning experience, but I don’t know that I’m better for it.

    Like

  7. From one entrepreneur to another:You are not stupid, and there is no longer a reasonable definition for crazy, so I'll avoid using that. Four years ago I had a three year old and a new baby, and had $37 left in my checking account. I moved my family and bought a half-million dollar home on a no-doc fixed rate loan just knowing that I would make it through. There were times I longed for the paycheck, but I NEVER longed for the job back. Things are fine now, and will be the same for you. You are: intelligent, in tune with your market, hard working, driven, and loyal. All that being said, your chances for success are very good.And, all that being said, credit card companies could care less about WHO you are and WHAT you do with the money. They just want it back (with substantial interest and late payment penalties.) They will take it back at all costs. They have ZERO compassion and ZERO conscience. I have never faced the wrath of a credit card company, but I know those who have. Avoid credit card debt like the plague. Leverage yourself in other ways and find some angel investors who feel the same way about you that I do.Good luck – I'll be watching closely!

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  8. From one entrepreneur to another:

    You are not stupid, and there is no longer a reasonable definition for crazy, so I’ll avoid using that. Four years ago I had a three year old and a new baby, and had $37 left in my checking account. I moved my family and bought a half-million dollar home on a no-doc fixed rate loan just knowing that I would make it through. There were times I longed for the paycheck, but I NEVER longed for the job back. Things are fine now, and will be the same for you.

    You are: intelligent, in tune with your market, hard working, driven, and loyal. All that being said, your chances for success are very good.

    And, all that being said, credit card companies could care less about WHO you are and WHAT you do with the money. They just want it back (with substantial interest and late payment penalties.) They will take it back at all costs. They have ZERO compassion and ZERO conscience. I have never faced the wrath of a credit card company, but I know those who have. Avoid credit card debt like the plague. Leverage yourself in other ways and find some angel investors who feel the same way about you that I do.

    Good luck – I’ll be watching closely!

    Like

  9. I was in the same boat. I liked my job and the company I worked for but I was about to be homeless. So I quit. I figured if I was going to have to sleep in the streets at least I would not have to go to work in the morning. I started running my company and have been happy for doing so. When you are rich you wont need to worry about the credit card bills.

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  10. Good for you and best of luck. I think you made the right decision. Use the credit cards only if you have to. Paying anywhere from 10%-30% interest is not a good idea. Raise the friends and family round as a convertible note that converts into equity at a 20% discount into the next round.

    Like

  11. I was in the same boat. I liked my job and the company I worked for but I was about to be homeless. So I quit. I figured if I was going to have to sleep in the streets at least I would not have to go to work in the morning. I started running my company and have been happy for doing so. When you are rich you wont need to worry about the credit card bills.

    Like

  12. Good for you and best of luck. I think you made the right decision. Use the credit cards only if you have to. Paying anywhere from 10%-30% interest is not a good idea. Raise the friends and family round as a convertible note that converts into equity at a 20% discount into the next round.

    Like

  13. I quit, too! I'm financing using 0% interest credit cards to get free cash. But I'm making sure to make the minimum payments on time and plan to pay off the credit cards so I don't get dinged. I left a great job at Oracle – but no regrets. Keep us posted on your adventure!

    Like

  14. I quit, too!

    I’m financing using 0% interest credit cards to get free cash. But I’m making sure to make the minimum payments on time and plan to pay off the credit cards so I don’t get dinged.

    I left a great job at Oracle – but no regrets. Keep us posted on your adventure!

    Like

  15. Best wishes in your plunge.

    Like you I also hope to break the cord of employement and pursue my ventures in a shrinking economy full time. I’ll keep track of your progress

    Like

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