When should the founders quit a job with another company and devote full time energies to the new company?
Conflicting pressures shape the answer to this question. From a personal cash flow point of view, retain your day job for as long as you can keep the salary, health benefits and other compensation flowing. It shortens the period during which you have to survive without cash flow. On the other hand, several factors make it advantageous to quit your day job and devote full-time energies to your new company. These factors include the following: · Intellectual Property Ownership. Your employer may have a claim to ownership of any intellectual property you create while you are still employed, even if you create it after normal working hours. Have your lawyer check your agreements with your employer and advise you about what you can do and how to do it. · Investors. Many investors will not invest until you demonstrate full-time commitment to the company by quitting your old job. They don’t want to fund your hobby. Investors are also concerned about intellectual property claims by employers.
