IT Services Side Hustle

A bootstrap strategy for starting an IT services company with minimal risk by maintaining employment while building the business on the side.

Key Points:

• Initial Capital Structure:

  • Used $30,000 from 401k
  • Secured $70,000 in credit card limits
  • Total available capital: ~$100,000

• Risk Mitigation Strategy:

  • Kept existing job while starting the business
  • Worked on business 6-9am and 6pm-midnight
  • Weekends dedicated to the business
  • Maintained income stream for living expenses
  • Waited for business to be cash flow positive before quitting

• Time Management:

  • Leveraged 168 hours in a week
  • Employer needs 40 hours
  • Used additional 40-50 hours for business
  • Focused on staying "just above firing level" at day job
  • No attempt to be employee of the year

• Exit Strategy Protection:

  • If business failed:
    • Could return to previous employer
    • Option for personal bankruptcy to clear debts
    • Degree provided backup for new job search
  • Waited 9 months until having clients and revenue before resigning

• Key Success Factor:

  • Business was already cash flow positive before leaving job
  • Had established pipeline of clients
  • Minimized risk through parallel approach