Why Going All-In on Your Start-Up Might Not Be the Best Idea

Entrepreneurs who give up their day jobs in stages are 33% less likely to fail in their start-ups than those who leave their jobs precipitously to run their new businesses full-time, according to a study of thousands of Americans by Joseph Raffiee and Jie Feng of the University of Wisconsin-Madison. The staged approach, which allows entrepreneurs to gain important knowledge about their new businesses while phasing out their paying jobs, has become much easier with the rise of digital technologies that reduce the cost and time commitments of starting new companies, the authors say.