Episode•October 31, 2023•14 min

Why You Shouldn't Rush Into Full-Time Entrepreneurship | Ep. 275

Are you thinking of quitting your job to become an entrepreneur? Don’t do it without proper financial planning! Hear from Tiffany, a former full-time employee who quit in 2019 after two years of working her business, Money Talk with Tiff, while also working a 9-to-5. Tiffany will share insights on balancing full-time work and starting a business, as well as how to finance everything when you decide to take the leap. She’ll dive into the repercussions of quitting your job too soon and provide advice on using your current income to invest in your business for more financial stability. Learn what it takes to truly build a successful entrepreneur career with Tiffany today! Every Tuesday, Tiffany answers one of your submitted questions. To submit a question for an upcoming episode, visit here: https://www.moneytalkwitht.com/asktiffany If you need help talking through your entrepreneurship pivot, I would be happy to help! Be sure to book a consultation to see how I can help: https://academy.moneytalkwitht.com/15-minute-consultation Connect with Tiffany Visit our site: https://moneytalkwitht.com Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Don't quit your job until your side hustle income nearly matches your full-time salary
Tiffany worked her 9-to-5 for two full years (2017-2019) while building Money Talk with Tiff before transitioning
The steady paycheck removes financial stress and allows creative experimentation without fear of missing bills
Having "runway" enables better decision-making during the critical early stages of business building
2
Use your full-time job income as startup capital for your business
Tiffany funded her website, podcast launch, team building, and customer acquisition with her salary
This approach prevents having to cash out retirement accounts or drain savings when launching
Research shows many entrepreneurs face financial hardship from jumping too early without preparation
3
Entrepreneurship is not an escape hatch from a bad job
Using entrepreneurship to flee workplace issues often leads to greater stress and difficulty
If your current employer doesn't support side pursuits, consider finding a new job first rather than quitting outright
Some companies actively encourage entrepreneurship through employee resource groups (ERGs)
4
Full-time entrepreneurship means working harder, not having more free time
The myth of "more time" is debunked—Tiffany reports working significantly harder as a full-time entrepreneur
Variable income requires budgeting skills and planning for inconsistent monthly revenue
Benefits like health insurance and 401(k) matches must be replaced, which is often more expensive independently
5
Build your business as an "and" not an "or"—you can do both
There's nothing wrong with maintaining a full-time job while pursuing entrepreneurial ventures
Many millionaires built wealth through steady employment and retirement contributions, not just business ownership
If your job conflicts with your business idea, explore new employment that allows side pursuits rather than abandoning income

Intro

In this Tiffany's Take episode, Tiffany addresses the common debate about when to quit a full-time job to pursue entrepreneurship, sharing her personal journey and cautioning against rushing the transition.
Tiffany Grant is a financial coach, former HR professional, and host of the Money Talk with Tiff podcast. She transitioned to full-time entrepreneurship in 2019 after building her business for two years alongside her corporate job. She is currently pursuing a PhD in social work, researching Black entrepreneurs and financial wellness.

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– The Core Advice: Don't Quit Yet

Tiffany opens with her direct recommendation: if you're working full-time and want to start a business, don't quit immediately. Instead, start the business as a side hustle first and validate it with real customers and revenue.

Don't quit right now. Make sure that you have started the business... and you are making a good living for yourself.
– Tiffany

She emphasizes that quitting means leaving behind a steady paycheck, which provides mental clarity and reduces stress when making business decisions.

– Tiffany's Two-Year Transition Journey

Tiffany shares her personal timeline: she started Money Talk with Tiff as a blog in 2017 while working full-time, didn't transition to full-time entrepreneurship until 2019. During those two years, she used her salary to fund website development, podcast production, team building, and customer acquisition.

When it became a point where my side hustle income was almost to matching my full-time income, that's when I decided to make the switch.
– Tiffany

She notes that many listeners assume she's always been a full-time entrepreneur, but the journey involved two years of dual work.

– The Problem with Using Entrepreneurship as an Escape

Tiffany warns against quitting a disliked job to pursue entrepreneurship as an escape. She notes that entrepreneurship is inherently difficult, and adding financial stress from lack of preparation compounds the challenge.

When people use entrepreneurship as an escape... then it is a very difficult road. Now, I'm not saying that it's not possible. You can absolutely do it. But I will say it's a little more comfortable when you have that runway.
– Tiffany

She encourages listeners to find employers who support side pursuits rather than forcing a false choice between employment and entrepreneurship.

– Research Context: Black Entrepreneurs and Financial Wellness

Tiffany reveals she's pursuing a PhD in social work with research focused on Black entrepreneurs and financial wellness. Her research examines why many entrepreneurs cash out retirement accounts or drain savings when launching businesses.

She shares that she personally had to cash out retirement and dip into savings during her first entrepreneurial attempt, which ultimately failed. This experience informs her current advice about preparation and runway.

– Practical Checklist Before Quitting

Tiffany provides actionable steps for those determined to transition:

Know how to budget with variable income
Have income replacement ready before leaving
Account for lost benefits (health insurance, 401k matches)
Research marketplace healthcare costs—often more expensive than employer plans

A lot of the millionaires that I know made their money from working a full-time job and putting it in their retirement. So having those 401k matches and things of that nature... I'm building my retirement again, but it's not nearly as fast as it was when I was working full-time.
– Tiffany

She also debunks the "more time" myth, noting she works harder as a full-time entrepreneur than she did in corporate.

– Final Encouragement and Resources

Tiffany closes by normalizing the "and" approach—working full-time while building a business is valid and often smarter. She reminds listeners that if their current employer doesn't support side pursuits, finding a new job may be preferable to quitting outright.

She directs listeners to her budgeting resources in the show notes and encourages submitting questions via moneytalkwitht.com/asktiffany or social media DMs.

Resources

Topics

Entrepreneurship Side HustleCareer TransitionFinancial PlanningPersonal FinanceBusiness Launch StrategyWork-Life BalanceEmployee BenefitsVariable Income BudgetingBlack Entrepreneurs