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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To not want to leave a stable job for this?

26 replies

Magicra84 · 01/12/2020 14:08

I'm in a decent paid job, don't particularly enjoy it but it pays the bills and I give it my all. It's not in the industry I wish to work in, jobs in that industry are very unstable at the minute and few and far between so me and a couple of friends have decided to set up our own business in that area, set up and paid for by a sponsor (a local businessman they both know). Now, friend one has told me that they can only get funding from the businessman which would cover just four months wages for each of us. We would have to rely on the business doing well for wages past that. I think it's very risky and I am reluctant to leave my job for it which friend one wasn't too happy at. I have said in the past that I'll leave for 12 months guaranteed wages but just four months I feel is too risky. Aibu?

OP posts:
DynamoKev · 01/12/2020 14:11

YANBU

Anxioustoddler · 01/12/2020 14:12

Depends how much you want it. You have to take risks to get places in life but if you couldn’t afford to live without the wage then I agree it’s probably not a good idea

FestiveChristmasLights · 01/12/2020 14:12

Depends. Can you afford to not have wages coming in after four months?

Changethetoner · 01/12/2020 14:15

How many new business start-ups make a profit in the first year, let alone the first 6 months?

New businesses are not eligible for government help in the Pandemic, because they don't have 3years of audited accounts, so you are extremely vulnerable should things go wrong.

There's a saying that you shouldn't go into business with friends or family - think carefully how it will/might alter your relationship with your friend.

Original poster
Magicra84 · 01/12/2020 14:15

I definitely cannot live without wages. I have no savings and currently live month to month so it would be a massive risk.

OP posts:
Anxioustoddler · 01/12/2020 14:19

Definitely don’t then, and ‘a couple of friends’ sounds a terrible idea, with 3 of you, you will only make 1/3 of the profit. New businesses usually take atleast a year to make a profit and even then you’re not going to see much of it. Can’t you just stay in your job and do this on the side and reduce your share?

Thisisworsethananticpated · 01/12/2020 14:21

Don’t , you can afford to
Also business with friends can be toxic and dysfunctional

Before any major steps why not focus on saving and spending less so you have a security buffer

Thisisworsethananticpated · 01/12/2020 14:22

Can’t ! Not can 🤦‍♀️

Timeforabiscuit · 01/12/2020 14:26

I wouldn't quit my job, but I would be tempted to give a half day of expertise per week for free/nominal amount if I had the capacity. Or amplify their reach on social media and be a cheerleader. If they get into a steady state it might be a more realistic prospect.

Stompythedinosaur · 01/12/2020 16:09

You are not in a situation to set up alone if you don't have leeway to manage the potential drop in income.

FirstOfficerDouglas · 01/12/2020 17:29

Terrible idea. There is no way you can be sure you will be generating enough income to pay several sets of wages. And then what happens? Who decides whether to sell up, give up or soldier on?

You are asking for trouble, honestly.

VettiyaIruken · 01/12/2020 17:31

God no. Most start ups fail.
No way should you risk it if you're living hand to mouth and a true friend shouldn't ask you to. Are they going to pay your bills if it goes tits up? No.

topcat2014 · 01/12/2020 17:42

What line of work is it?

Working with friends is hard

Skysblue · 01/12/2020 18:21

Most businesses make a loss in the first year

Most startups fail

Most people who work in ‘cool’ exciting jobs (filming, acting, etc) had family money available to them so that they could afford to take a risk. Doesn’t sound like you can afford to take that kinda risk so don’t. I certainly wouldn’t.

Is there anyway you can work part time for the business on weekends/evenings?

Hoppinggreen · 01/12/2020 18:23

Business with friends, one of whom is already getting arsey with you
You need a guaranteed wage
Local businessman as a backer
Sounds like a recipe for disaster

shropshire11 · 01/12/2020 18:28

Without personal savings to fall back on, your experience of working for yourself will be full of fear. The consequences of failure would be very serious. I would advise you to wait, build up a financial cushion, and then consider it.

BaskingMad · 01/12/2020 18:34

So the business is currently unstable industry- if it’s unstable for established companies then it might be even harder for new ones.

No government support for new businesses as pointed out upthread.

No financial safety net.

Friends are already getting emotional and upset about you considering options.

I woudn’t. Opportunities will still be there after pandemic. The risk is too high.

TheYearOfSmallThings · 01/12/2020 18:38

YANBU.

You are already not on the same page as your friend - I wonder if her situation is different (doesn't have a stable job to lose, or has a partner with a solid wage, or has savings to tide her over)?

whittingtonmum · 01/12/2020 18:41

I wouldn't do it. You can't afford it.

WeddingGrump · 01/12/2020 18:59

You would be absolutely barmy to leave a permanent job for that at the moment. Four months' pay would leave you likely unemployed in spring 2021, post Brexit, and with furlough ending in March. The office of budgetry responsibility (ie the government's own body for financial oversight) is forecasting the unemployment rate will peak then, running at 7.5% in the mid case scenario and as high as 11% in the worst. You would have no access to government grants, because the business would be a new one, you have no savings to fall back on, there will be immense competition for jobs and to make it worse many of the stop gap roles in retail and hospitality which people rely on to tide them over during periods of unemployment will no longer exist because of the number of businesses currently and soon to be folding.

I'm not against following your dreams, but would literally be the worst time in a generation for you to try it. (And that's quite apart from the pitfalls of going into business with stroppy friends.)

BonnieDundee · 01/12/2020 19:39

YANBU. I'd not leave a stable job for any job atm

VikingsandDragons · 01/12/2020 19:44

No. I run my own company and I know a lot of people who do, it very rarely works between friends, and even more rarely are you still friends after 2 years. You need to have a watertight plan of who is responsible for what, and in this instance exactly how you're going to get to profitable to support 3 people in a staggeringly short amount of time. I established my company knowing it couldn't pay me for a few years, and that was the sacrifice it took to get going, I thought it would take about £5k of my money as well to start, took over £80k. I had the resources to make that possible, and now it does very well, but if I had gone into it trying to support 3 people it would have never got to profitable.

Viviennemary · 01/12/2020 19:47

YANNNBU. It would be madness to accept such a deal in this economic climate.

VestaTilley · 01/12/2020 19:51

YANBU, don’t do it.

smalalalalalala · 01/12/2020 20:01

It doesn't start right, does it?

Could you work on new project on ttp of regular job?