This post goes against most every theory this forum promotes!

**humandraydel** · 05-04-2007, 03:49 AM

It's certainly not a terrible idea. My concern is not so much that it won't work, but that you aren't giving it enough time. A couple of months to get a start up business making a decent profit is not really enough time. If I were you I would accept the job. Then I'd work 20 hours per week on your business. After even just 1-2 months of this you should have a better idea of if it's going to take off and how quickly. Just my opinion, of course!

**project15** · 05-04-2007, 04:08 AM

Originally posted by humandraydel View Post

It's certainly not a terrible idea. My concern is not so much that it won't work, but that you aren't giving it enough time. A couple of months to get a start up business making a decent profit is not really enough time. If I were you I would accept the job. Then I'd work 20 hours per week on your business. After even just 1-2 months of this you should have a better idea of if it's going to take off and how quickly. Just my opinion, of course!

I was thinking the same thing. Many people work 12 hour days at their regular jobs, why can't you work 8 hours at the paying job and then come home and work on the program? You can always give nights and weekends to software since it doesn't matter what hours you work on it as long as it gets done. If it's only until July30th, that's easily do-able.

Other than that, this sounds like a great business plan and I wish you luck (since I'd like to do something like that)

**tinapbeana** · 05-04-2007, 04:25 AM

greedy4chips, i'm rooting for you to make your dream whatever it is you want it to be

with that said, when the time comes to *&^@# or get off the pot in july, you might want to consider getting a part time job that offers benefits rather than leaving the project for a full time job for benefits. or, talk to you employer about a possible 'leave of absense'. if you're valuable enough to them, they might just be able to do it.

either way, feel free to get back in touch with me if you want or need to!

**Joan.of.the.Arch** · 05-04-2007, 06:39 AM

Personally, I am pretty risk averse, yet your risks do not sound very big to me. $2000-5000 to start a business is very little. And I assume you are getting that 0% for an extended period? The biggest risk here might be the loss of health insurance for how many people--at least four? However, given that you are going to make a product for use in healthcare, I sure hope you have liability insurance on your product's function, the physical portions of it, and the support you will give users. When you first posted about this, I figured that someowould advise you about liability insurance, but it appears that they may not have.

My husband had a few programs he sold a about 15 years ago. The first was sold through a catalogue of a company that sells various office products. He personally did free telephone support for buyers. Guess who started calling for support? The US Air Force, who had not legitimately even bought the product. This was his first evidence that his product was being pirated. You'll want to watch for that and prevent it to the extent possible.

The second program was picked up by an international company which even paid for the patent lawyer and application. However, innocent as we were in those kind of matters, we now suspect that the company contracted with him to supress his program so that it would not compete with another similar program (but which would run different hardware of similar function) that they might develop. It was in the hardware that this company was most likely to make their real money. So they had interest in having the software in their pocket that would run the competing hardware (though actually they sold both types of hardware---they just needed flexibility to ultimately go with the more sellable one.) Also, taking my husbands program into contract prevented any competitors from picking it up. This is akin to the companies who rush to patent every little thing they possibly can, so that they can possibly gain interest in/prevent future products others would develop using the component ideas that are patented.

A third product just never went beyond a few local users. His was first to released similar products within weeks of my husband's. In reality, they were probably developing theirs at the same time my husband was developing his. And they certainly had bigger promotional budgets to reach the potential users. This product was specific to a certain industry, as yours is.

In the end, very little money was made by any of these products. Good luck, though.

**fairy74** · 05-04-2007, 08:40 AM

Another suggestion is to go talk to your local Small Business Association. When I was thinking about opening my own firm a few years ago (still toying with the idea), they had very, very helpful suggestions. Also I second the keeping a part-time job, if even just to keep benefits. Be aware that any short term health insurance policy you get is likely to be super high deductible and super low benefits, which is fine if no one has a huge health crisis, but might set you back a long ways if anything really goes wrong...Good luck and best wishes...just another thought, could you work part-time (and keep your foot in the door) with the potential employer?

**Ima saver** · 05-04-2007, 09:16 AM

I worry mostly about the health insurance. How about if your wife keeps working for a few more months until you see how your business goes.?

**Elgin526** · 05-04-2007, 10:02 AM

Originally posted by Ima saver View Post

I worry mostly about the health insurance. How about if your wife keeps working for a few more months until you see how your business goes.?

I was about to say the same thing. I understand wanting a SAH parent, but as the saying goes "timeing is everything"! When it comes to health insurance, I feel people shouldn't play around. Why not have her work until the company takes off (or not) and you see where you're at? Plus the guaranteed paycheck will be nice, too. It sounds like it would only be for a few more months, can you hold out that long with her working?

**poundwise** · 05-04-2007, 10:49 AM

I wasn't aware that this forum promoted any particular theory. In fact, I have seen many disputes regarding credit cards, debt, credit scores, paying for education, etc.

I would say, though it is my perception, that this forum is about the open exchange of ideas among people who want to succeed. Not necessarily about promoting one way or another to do so.

So, even though I wouldn't necessarily proceed as you are - more power to ya!

And best wishes.

**greedy4chips** · 05-04-2007, 12:11 PM

Thank you all for your responses! I couldn't wait any longer to see how people would react to the post.

My wife and I have discussed this to great length and believe we are able to easily get through until July 30th. What I did not mention was I am currently collecting $3955/month in long-term disability and that will continue (minus any earnings from a job). Am I taking advantage of long-term disability? Not at all, because our company intends to pay me the same wage as my employer would have if I would have started to work for them instead. So it is basically a wash. The company wished me the best of luck with the project and if things don't work out they would love to have me! The HR person who was part of the interview process said they scored me higher than any other candidate at their company based on many factors. I believe her because she has resigned since my interview and was completely honest with me on the phone this morning. She also told me that they did not think it would be long before I would leave the company either and that they offered me $10,000 more than any other starting employee in that position ever received just to hopefully get me in.

July 30th is the target date of our sink or swim because if we cannot sell this product to one buyer by then, it is obvious our product cannot be as good as everyone in the industry believes. Our product is a no brainer purchase for the medical industry just as UPC barcoding was to the retail industry. How could any retailer say no to upgrading the cash registers to barcode readers when you consider all of its benefits from inventory to checking out customers quicker (not necessarily more accurately) to changing the price on the shelves from the old sticker gun method. Retailers had to purchase the product just from a cost savings perspective. It was such an efficient upgrade from sticker guns.

The future in retail is going to be the RFID tags which operate on a Radio Frequency and can be read by a scanner without that scanner actually needing to see the RFID tag. Theoretically you will have your cart of groceries and you will push it through a reader and instantly your order will be calculated...no more cashier people who cannot even count back your change. You will either enter cash or CC into a machine which will give you proper change or bill your CC. Many self-checkout systems take your money this way currently. RFID tags are even used during shipping of inventory. A forklift driver backs off a semi with a pallet of widgets with RFID on the packages and the system automatically reads in that there was 10,000 widgets on that pallet and adds it to inventory. That pallet could also contain 10,000 different items with different codes and it would still work just as quickly. The only reason RFID isn't everywhere is simply the cost of making the labels is too steep, for now.

Originally posted by poundwise View Post

I wasn't aware that this forum promoted any particular theory. In fact, I have seen many disputes regarding credit cards, debt, credit scores, paying for education, etc.

I would say, though it is my perception, that this forum is about the open exchange of ideas among people who want to succeed. Not necessarily about promoting one way or another to do so.

So, even though I wouldn't necessarily proceed as you are - more power to ya!

And best wishes.

You're right the forum does not promote any particular theory. It does however promote having finances in order by various means. I am not sure I have ever seen a post suggesting quitting a job before starting it and have your spouse also quit her job and give up the only paid health insurance we will have.

The newly formed company will pay our health insurance premiums just as another company would, which actually means we are paying our own since we are funding the business via 0% CCs...DOH! I could tap into our home's equity, but why pay the interest if you don't have to.

Trust me when I say we have bounced the concept off of many people with far greater experience than us and this is the quickest route to take to get up and running.

When our business plan takes shape we can always approach a bank about a business loan, but again why pay the interest if we do not need to. We have a couple very successful business owners (multi-million dollar businesses) who have offered to help in any way they can including members of their staff from financing to shipping if need be.

I am back...The company I quit just called and had me on speaker phone with the HR director, the Senior Software Engineer I was going to work under, and 2 other executives. They just wanted to see if there was anything they could offer me to work there versus attempting this business venture. I declined professionally. I also stated my reasons why I could not try to do both jobs at the same time and how I would not be giving them the 100% they deserve! I would be distracted and not have my heart in the job. It was at this point in the conversation (about 15 minutes into it) that the vice president introduced himself and said that he is so impressed with me at this point I have a job whenever I want and not to hessitate to call them or ask for advice from them. He remembers their company when it was just himself and a couple owners and said he is wishing me the best of luck! He also stated that he wants me in a position where I am not a programmer, because that is a waste of my other abilities I demonstrated during this call and interview process.

Wow what a vote of confidence to reassure me that I am viable candidate with them and if not with them then another company.

**Elgin526** · 05-08-2007, 07:59 AM

Originally posted by greedy4chips View Post

I am back...The company I quit just called and had me on speaker phone with the HR director, the Senior Software Engineer I was going to work under, and 2 other executives. They just wanted to see if there was anything they could offer me to work there versus attempting this business venture. I declined professionally. I also stated my reasons why I could not try to do both jobs at the same time and how I would not be giving them the 100% they deserve! I would be distracted and not have my heart in the job. It was at this point in the conversation (about 15 minutes into it) that the vice president introduced himself and said that he is so impressed with me at this point I have a job whenever I want and not to hessitate to call them or ask for advice from them. He remembers their company when it was just himself and a couple owners and said he is wishing me the best of luck! He also stated that he wants me in a position where I am not a programmer, because that is a waste of my other abilities I demonstrated during this call and interview process.

Wow what a vote of confidence to reassure me that I am viable candidate with them and if not with them then another company.

That's great, but I still wouldn't bank on them taking you back. You could call them looking for a job in 6 months to find that they aren't doing as well as they were, and can't afford to re-hire you, or who knows what other senario they could come up with to keep from taking you back.

Anyway, it looks like you're set on trying this out. I wish you the best of luck!

**scfr** · 05-08-2007, 10:01 AM

Since you are going to go ahead and do this, my advice would be to do whatever is necessary to make sure you can focus your energies fully on your business.

Take care of your health to avoid illness; you can't afford any down time now. Eat well, get the proper amount of exercise & rest, wash your hands, etc, etc.

Enjoy the family you already have; don't even think of expanding it ... In other words, do not skimp on birth control!!!

Sounds like you are well-prepared to handle the technical end of your business. Do you know what you need to about the "business end": licensing your business, bookkeeping, and paying all of your taxes (federal, state, county, and city)? If not, learn ... fast! Perhaps your wife could help out with this? Invest a bit of time now to make sure all of these things are handled properly, so that an audit does not become a major time drain in the future.

**corns** · 05-08-2007, 05:34 PM

Good luck. It takes great courage to walk away from a secure paying environment into one risky and unknown environment. And I admire that. Successful entrepreneurs take risks. And I think you've capped the risk very well (ie. impressing your future employer, thereby being offered a job which you could take whenever you need to) and the rewards is huge.

**b4freedom** · 05-09-2007, 08:14 AM

Originally posted by greedy4chips View Post

PS Perhaps I should start a Blog to track my success or failure. It could be my personal memoirs to write "How to get rich like this idiot did!" or "How stupid people get poor quickly!" both titles are copyrighted as of the date of this post.

Your an idiot. Period.

Start the blog. Please do. Tell me what it is. I want to watch you crash and burn like this idiot: iamfacingforclosure.com

You dream big but your plan lacks a lot. You also put a date on your failure. Lets assume that you've got the best program in the world, it takes time to adopt and implement new programs. This requires shifts in business logic, etc. I would give yourself more time for success.

Some good advice: Take the job, work hard, save up your investment money, work on the program, sell it on the side, do it part time until you get a few clients. When you're making more money from the side business then you are at your real job, quit the real job and do the business full time.

Good luck! Please create a blog!

**creditcardfree** · 05-09-2007, 03:57 PM

I definitely question the time limit you've given yourself. Maybe that is just the date you reevaluate? I do wish you great success and find that I envy your courage. Sounds like you have a great product...otherwise I would be talking you out of it. Either that or you are just great in sales!!

This post goes against most every theory this forum promotes!