Lauren and Bill Elward of Castle Ink
Bill and Lauren Elward were held up as examples for having started a business “without quitting your day job”.
The article in Time reflects on “how to start a business without quitting your day job”, and interviews a number of people “who pulled it off”, including Castle Ink’s founders Bill and Lauren Elward. The Elwards both “held demanding full-time jobs” when starting Castle Ink as an online business retailing remanufactured cartridges and refill kits.
In 2005, both were working in other careers, with Bill Elward a web analyst and marketer and Lauren Elward an English teacher. Both were “avid recyclers” and “wanted to build a business that tapped into that passion, but they weren’t willing to give up the security of steady paycheques”. Working on the business “at night and on weekends”, the Elwards invested $5,000 (€4,531) of savings into the Castle Ink website, and by 2007, Lauren quit her job while on maternity leave as “cash flow [started] picking up”.
Time stated that “thanks to some smart decisions to outsource tasks”, including order fulfillment, content development and social media”, Lauren can “run the business in just a couple of hours a day” while caring for their two children, aged six and eight, while Bill, who works for a finance company, “puts in about five hours a week on weekends or on the train ride home from work”.
This approach to business “has paid off”, with Castle Ink pushing past $1 million (€906,290) in revenue in 2012, and “even with the market for its cartridges [being] softer today”, the company still brings in around $250,000 (€226,572) to $500,000 (€453,145) each year in revenue. In turn, the pair can enjoy the “stability and benefits” from Bill’s job, including “health benefits” and a salary.
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The magazine also pointed out that “many would-be entrepreneurs fantasise about telling their bosses to shove it”, though they “don’t always quit their day job right away”, as only around 38 percent of start-ups under a year old (with five employees or less) have founders that “live on what they earn from the business”. In turn, 54 percent “support themselves with another job” in the first year of business, while after two to five years 51 percent then make enough to bring in “their main income”, while 44 percent are “still relying on a day job”.
Among the advice the article gives to those considering such a move are being “careful not to jeopardise [your] current job”, as it’s “not easy to start a business while remaining employed elsewhere”. Being aware of signing agreements “that prevent you from moonlighting” or any non-compete contracts are two key areas, and “mak[ing] the most of business travel”, turning an employer “into a client” and saving “what you earn” are other tips given to “launch a successful business” while still working for another company.