Hey guys and girls,
I'm writing here because I need advice from experienced entrepreneurs for a crucial decision. Let me just come straight to the point:
I left my old job 3 months ago to create my own business (shot #4 this time). Because of the risks and consequences of the Corona Virus and the impending economic meltdown, I'm now faced with the question:
Should I go back to my old employer to reduce the risks of both Corona and the economic crisis or should I go all in now with my business?
The details:
- I have four-figures saved + very low monthly costs (no debt)
- I can live off my savings for about 26 months and still have 1500€ as an emergency fund (but only if there are absolutely no additional costs. )
- start-up costs are not considered (I'll need to learn some skills in the beginning so this isn't absolutely crucial right now)
However, now there are considerable new risks that I didn't calculate for:
- If there are large medical bills, possible high food prices, etc. I might lose a lot of savings and therefore time. This might force me to get more money. Likelihood: 5/10
- If I would need to earn more money, I might not find a job anymore (my old employer might go bankrupt + everyone else will need jobs too). Likelihood: 7/10
- If things go south I might have no more safety net, because both of my parents are likely to lose their jobs soon. Likelihood 7/10
- Additionally, there might be new reoccurring costs that I might have to take over (medical bills, allowance for parents, etc.)
To sum up the situation:
I might lose the money I have. Quite soon I might have no access to more money and I might also have no safety net to catch me.
This means two things:
#1 These are ideal conditions for an All-In.
#2 The risks are far greater than before. If it doesn't work I might have to file for bankruptcy or worse.
(unlimited upside, possibly unlimited downside)
However, going back into employment has its own risks:
- I have a tendency to really like comfort, so I might just work on my job and not on my business
- I might just stay in my old job after the risks would be lower again
- I might never have this opportunity again for whatever reason (now I wish I was more serious when I was 18 so I would be in a better situation now. Who knows what happens when I'm 25 (in 4 years)).
My options:
#1 Go all in with the business.
#2 Go full time back to my old employer while also working full time on my business.
#3 Go half time to my old employer and work full time on my business.
Are there other options I don't see?
Am I over- or underrating any risks?
Did I forget any other important risks?
I appreciate every sound opinion. Thank you for helping me get a new perspective on this topic.
Greeting from Spain
I'm writing here because I need advice from experienced entrepreneurs for a crucial decision. Let me just come straight to the point:
I left my old job 3 months ago to create my own business (shot #4 this time). Because of the risks and consequences of the Corona Virus and the impending economic meltdown, I'm now faced with the question:
Should I go back to my old employer to reduce the risks of both Corona and the economic crisis or should I go all in now with my business?
The details:
- I have four-figures saved + very low monthly costs (no debt)
- I can live off my savings for about 26 months and still have 1500€ as an emergency fund (but only if there are absolutely no additional costs. )
- start-up costs are not considered (I'll need to learn some skills in the beginning so this isn't absolutely crucial right now)
However, now there are considerable new risks that I didn't calculate for:
- If there are large medical bills, possible high food prices, etc. I might lose a lot of savings and therefore time. This might force me to get more money. Likelihood: 5/10
- If I would need to earn more money, I might not find a job anymore (my old employer might go bankrupt + everyone else will need jobs too). Likelihood: 7/10
- If things go south I might have no more safety net, because both of my parents are likely to lose their jobs soon. Likelihood 7/10
- Additionally, there might be new reoccurring costs that I might have to take over (medical bills, allowance for parents, etc.)
To sum up the situation:
I might lose the money I have. Quite soon I might have no access to more money and I might also have no safety net to catch me.
This means two things:
#1 These are ideal conditions for an All-In.
#2 The risks are far greater than before. If it doesn't work I might have to file for bankruptcy or worse.
(unlimited upside, possibly unlimited downside)
However, going back into employment has its own risks:
- I have a tendency to really like comfort, so I might just work on my job and not on my business
- I might just stay in my old job after the risks would be lower again
- I might never have this opportunity again for whatever reason (now I wish I was more serious when I was 18 so I would be in a better situation now. Who knows what happens when I'm 25 (in 4 years)).
My options:
#1 Go all in with the business.
#2 Go full time back to my old employer while also working full time on my business.
#3 Go half time to my old employer and work full time on my business.
Are there other options I don't see?
Am I over- or underrating any risks?
Did I forget any other important risks?
I appreciate every sound opinion. Thank you for helping me get a new perspective on this topic.
Greeting from Spain
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