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Oct 19 2012
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Worth Reading 10/19/2012

Another busy week is in the books for the Dingman Center in the midst of MBA finals week (midterms for everyone else). Today was also the first Pitch Dingman Competition of the year and competition was fierce!  Congratulations are due to Diagnostic anSERs for winning both the $2000 grand prize and the $250 people’s choice award! Props also to imagine(x) took home the $500 second prize, and a big congratulations to all of our competitors, Lb of Cure, Procity, and AquaSwitch for giving some amazing pitches!

As always, here are some worthwhile articles to read over a much deserved weekend!

As always, we start off with this week’s Business Rx column from the Washington Post, this week’s column features YaSabe, an internet search business geared towards Hispanics in the US.

For small businesses, learning how to leverage social media is a great way to take advantage of the network effects of technology. Steve Johnson, Chief Revenue Officer of Hootsuite, shares his perspective on effective social media strategies. This article from Mashable also explains how small businesses can best utilize LinkedIn to recruit top talent,

This post from Dingman Center Board Member Glen Hellman’s blog examines the difference between leadership and management. Which side do you fall into?  Be sure to follow Glen’s blog for more of his insights!

The great thing about Pitch Dingman is that you can come in with an idea, and leave with a plan. This article from Entrepreneur articulates the virtues of finding someone to bounce those ideas out of. If you have an idea, come into the Dingman Center on Fridays to find your collaborators!

Finally, a recent Dow Jones report claims that venture-backed companies with women in their c-suite are more likely to succeed, in fact powerful women sit behind many of today’s most promising startups! Could this mean great things for the Dingman Center with managing director Elana Fine at the helm?

Until next week!

Oct 12 2012
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Worth Reading 10/12/2012

It was a big week for entrepreneurship at the University of Maryland as MTech held its annual UMD Startup Bootcamp today, and the Dingman Center was proud to be a partner organization.  Congratulations to Eric Rosenberg of Route Rider for winning the pitch competition!

As always, here are a few choice articles from the week that we’d like to share with all of you!

In case you missed it, here’s our official press release announcing that the 2013 Cupid’s Cup will be a national competition!  Watch out for more details in November!

Eric Ries, author of The Lean Startup, spoke on a panel this week at the George Mason University Arlington Campus.  Here’s a great recap of the event.

Speaking of lean startups, rapid prototyping is fast becoming a great way for companies to test their products in the market without having to pay for an entire production run.  Inc. magazine gives a good overview on how 3d printing can help get your company off the ground!

Fortify.VC held its second annual pitch competition this week, Distilled Intelligence 2.0.  For those of you who missed it, here’s the recap from In the Capital.

Finally, do you want to find more people to follow on twitter? Here are Tech Cocktail’s top 7 startup  tweets of the week.  Maybe we can start doing a similar feature on this blog as well!

That’s it for this week.  Have a great weekend!

Oct 05 2012
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Worth Reading 10/5/2012

It’s another busy Friday at the Dingman Center with today’s very special Pitch Dingman session, hosted in partnership with the Center for Social Value Creation, featuring Social Entrepreneur-in-Residence Darius Graham, Co-founder of the DC Social Innovation Project, who is here to give advice to our more socially minded student entrepreneurs.  If you’ve been playing around with a social venture idea, don’t miss out on this opportunity on the first Friday of each month!

On to some of the articles that we found “worth reading” from the week!

In case you missed it, here’s Monday’s Business Rx Column from the Washington Post featuring Managing Director Elana Fine’s advice to Brain Sentry.

It’s a great time to be an entrepreneur in Maryland. Get caught up on the latest on Maryland’s push for entrepreneurship with the Baltimore Business Journal’s article on the Maryland Venture Fund.

Let’s face it, startup offices are pretty cool, and for a lot of startups, the company culture begins with the place where their employees work. Inc. Magazine offers some insights on good office design concepts and cautions against falling into the trap of “form over function.”

Creativity is fuel for an entrepreneur’s brain. Need a boost of creativity? Don Peppers of Fast Company offers some suggestions on how to add a little creativity to your daily routine.

Have you heard of crowdfunding? Platforms like Kickstarter and IndieGoGo are fast becoming the go-to place for entrepreneurs of all forms (business owners, product developers, artists, etc.) to seek capital for their projects. Tech Cocktail offers a few tips on how to approach this brave new world.

And finally, some cool things to watch and listen to. Lincoln Wallen, new CTO for Dreamworks Animation, talks about why each new Dreamworks movie is like a startup.  Also here is a very interesting recording of a young Steve Jobs in 1983 giving a TED talks like prediction of the future of good design in computing.

Until next week!

Sep 17 2012
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Dingman Jumpstart Recap: 50+ Students Participate in Entrepreneurship Bootcamp

Over 50 aspiring entrepreneurs, including students from the University of Maryland, The Guanghua School of Management at Peking University, and local professionals, took part in this year’s Dingman Jumpstart, which ran from August 20 – 24, 2012. Dingman Jumpstart participants underwent an intense series of workshops and seminars covering a variety of topics including, how to craft a perfect pitch, build a solid business model, understand startup revenue and cost structures, and navigate the legal landscape of the startup world. Participants also had the opportunity to form teams and work on new or existing business ideas culminating in a live investor pitch to a panel of expert judges from The Dingman Center’s community network. The weeklong event was a huge success with several teams being identified as potential seed funding opportunities for the Dingman Center’s E-Fund.

For those who missed this amazing opportunity, here are just some of the key takeaways from the 2012 Dingman Jumpstart sessions:

  • “When the time comes to pivot, it’s important understand where your company’s strength is really in and what you do right.”
    – John LaPides, Dingman Center EIR, on Business Model Patterns
  • “Identify the pain point, and then identify the person who can and will pay to relieve that pain point.”
    – Elana Fine, Dingman Center Managing Director, on Marketing Channels
  • “Technology is only a small component of the solution.  Solutions take an ecosystem in order to add sustainable value.”
    – Elana Fine on Marketing Channels
  • “Investors don’t bet on the horse (the company), they bet on the jockey (the entrepreneur).”
     – Sam Medile, Dingman Center Board Member, on Entrepreneurial Selling
  • “The sources of a company’s competitive advantage is how close their product is to being ‘perfect, free, and now’ or how it can ‘work harder longer.’”
    – Dr. Bob Baum, Professor Emeritus, on Organizing to Compete
  • “It is crucial to present a ‘fully baked’ idea to investors (Practice! Formulate! Iterate!).”
     – Swaroop Kolli & Pradeep Suthram, 2012 MBA Graduates, on How to Pitch
  • “The ultimate tragedy is to see a business succeed, then fail through their success.”
    – Mark Walsh, Dingman Center Board of Advisor Chairman, on The Art of Storytelling

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The Dingman Center would like to thank all of the speakers, advisors, and judges who helped make Dingman Jumpstart a success. The Dingman Center encourage this year’s participants to stay connected and apply for the EnTERPreneur Academy to grow your venture from idea to launch.

Interested in participating in next year’s Dingman Jumpstart?  Keep your eyes open for information next spring.  Learn more at: http://ter.ps/jumpstart

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Sep 12 2012
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The End of an MBA’s Summer in the Start-up Nation

Israel is a start-up nation! The statistics say it all. Israel has the highest density of startups and these startups attract an enormous amount of venture capital – more venture capital per person than anywhere else in the world. And when it comes to R&D, no other country can compete.

When I lived in Tel Aviv, often times I’d forget that I was living in a country where a good part of it was covered by desolate deserts. What I encountered daily were people who were creative, driven, and who never took “no” for an answer. These characteristics – or chutzpah as some people may call it – have no doubt contributed to Israel’s spectacular economic success. One day over a coffee break, a co-worker at Medtronic and I discussed the economic downturn that the United States was facing and how it has affected people’s lives and the way people do business. We inevitably compared it with Israel’s economic situation  At the end of the conversation, the co-worker simply said, “Israel faces many challenges. It is small and lacks resources. However, that forced us to become more resourceful at solving our problems.”

What my co-worker said was consistent with what I observed. While I was in Israel, I rented a car so I could travel to other cities for sightseeing. Gas was very expensive, at least more expensive than what I was used to in the States – nearly $8 per gallon.   What stood out from all the many gas stations on the sides of the road were stations called Better Place. They are battery-swapping stations for electric cars.  Instead of waiting hours for an electric car to be charged, it only takes five minutes to change a battery. Just as electric cars were born out of the desperate need to wean away from oil, Better Place was founded on the idea that easy and simple battery replacement would convince more people to drive electric cars.  In Israel, whenever there is a need, there are entrepreneurs working on solutions.

Another Israeli technology that I found very useful was the iPhone app Waze (www.waze.com) – a community-based GPS traffic and navigation app. Before I headed out in my car, I would turn to Waze to get driving directions in English and, more importantly, to find out which streets were congested. I would rely on Waze to find the best route based on traffic patterns, to warn about road hazards (including speed cameras), and even to find the cheapest gas stations – all based on user-generated content. The idea for Waze originated when its founder was dissatisfied with traditional GPS devices that did not have the ability to characterize real time conditions. So a software engineer became an entrepreneur when he took actions to overcome the problem with a better invention.

A lot people have asked me about how I liked my trip in Israel. I have told many that I’d love to go visit again. This summer, I completed a course in Technology Commercialization at the Technion, had an amazing internship with Medtronic, and tasted some of the best food in Israel. Above all, it was an eye opening experience.

Allen Lu received his B.S. in Chemical Engineering and M.S. in Biomedical Engineering from the University of California, Los Angeles.  He completed his academic research training at the National Institutes of Health and Harvard Medical School and worked as an assay development scientist with Meso Scale Diagnostics.  At Smith, Allen is completing his MBA with a focus in Finance and Business Development.  He was recently in Israel as a Global Technology Entrepreneurship Fellow at the Technion and a business development intern at Medtronic WTC.

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Aug 22 2012
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Business Rx Entrepreneur Q&A with Elana Fine – Part 2

Elana Fine, Managing Director of the Dingman Center recently participated in a live chat with the Washington Post’s Capital Business magazine for their Business Rx column answering questions from regional entrepreneurs on improving or starting a business. This post features some of the questions from the live chat. Follow the Dingman Center’s Facebook Page and Twitter Page for information on the next live chat and other Dingman Center news and events.

Q: A lot of buzz has been going around on the lean start-up methodology being applied in technology and other industries. How can first-time young entrepreneurs get their hands on training and implementing such methodology to their business ideas?
A: The best way to learn about the process is to talk with start-ups to understand how they determined their minimum viable product and how they determined when & how to iterate. As you start your business “leanly,” you have to also think about the decision points to iterate less and grow more.

Q: How can entrepreneurs get more involved in the local community? I would like to interact with our start-ups on an informal basis, but don’t know where to turn.
A: The D.C. tech community is thriving, with plenty of options for entrepreneurs looking to get connected. Organizations such as D.C. Tech Meetup and Foster.ly are providing great forums for entrepreneurs to meet. There are also new incubators such as The Fort and Acceleprise that bring in mentors to help with their companies.

Q: I have an idea for a specific niche service market to build an online/mobile business and I need to develop potential revenue projections. While I am realistic I still want to be optimistic for a 3-5 year time frame. Could you provide some advice for a framework?
A: The best frameworks is a bottoms-up approach — identify your revenue streams and growth assumptions for each stream, then show how they grow over time. For example, if you are going to win two customers in month one, six customers in month eight and 20 customers in year two — the projections should reflect that growth and revenue expectations per customer (or user, etc.) over time. Top down, taking a large market and making assumptions about a percentage of that market you can capture usually leads to significantly inflated projections and doesn’t show advisers or investors that you have given thought to how you will methodically grow your business. It is also important to think about the bottom line — what are expenses associated with generating that revenue? To quote one of my favorite lines from our investors this year, “Is the juice worth the squeeze?”

Q: I am launching a new mobile app and I will need additional capital (maybe $250,000) to help complete the next stage of development. I think angel investors might be the right fit, but what is the best way to approach them and get their attention?
A: In the current environment, the best way to get funded for a mobile app is to show that you have traction with users. Get a minimally viable product out there and show that you can reach your users and understand their needs. There are so many apps in the marketplace that it is hard to convince investors that you can break through the noise.

Q: What is the line between a hobby and a business? Is there a financial threshold that one must cross before having to deal with becoming a formal business? For example, if a friend knows I have my own personal Web site and offers to pay me to set one up for him, have I started a business?
A: I’m certainly not an accountant or tax specialist, but if someone pays you for a good or service you have provided, that is technically a business. A hobby would be if you liked to set up Web sites for friends for free.

Q: I’d like to start an interior design business. I believe in my talent, but I don’t exactly have a portfolio full of projects that I can show to potential clients since I am fairly new at this. What is the best way to get my foot in the door and start establishing myself?
A: Would you like to start at my house? All kidding aside, figure out what kind of projects you can do in your spare time for family and friends for free, and use that to start your portfolio. Even if it is a small room here and there, you can create the “before” and “after” shots to convince others of your talents.

Q: I’ve been working as a solo consultant to nonprofits. I’ve been courted by a consulting firm, which is attractive because they would handle billing, provide a training system for me to use with clients instead, and will help market me. On another level, I have some concerns: I would still have to get my own clients, they want exclusivity (so I can’t serve other clients on my own, without giving them a cut), and a non-compete clause (I’m prohibited from pursuing their clients if I leave, but they get a portion of my earnings for a year after I leave — because they have trained me). What advice do you have on weighing whether to remain solo or join a firm?
A: This is a really tough question and really depends on how important it is for you to have control over your company. You may be able to generate more business by being able to leverage other infrastructure, but you do lose independence and flexibility when you join with others. It sounds like you could probably continue with being a sole contractor and find other outsourced service providers to handle billing and training, without signing on with another firm.

Elana Fine was appointed Managing Director of the Dingman Center in July 2012, after joining the team in 2010 as Director of Venture Investments. As Managing Director, Elana’s primary focus is leading the Dingman Center in support of its mission and strategic plan. Key responsibilities include oversight of our student venture incubator, Dingman Center Angels investor network, business competitions, and technology commercialization efforts.

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Aug 22 2012
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Business Rx Entrepreneur Q&A with Elana Fine – Part 2

Elana Fine, Managing Director of the Dingman Center recently participated in a live chat with the Washington Post’s Capital Business magazine for their Business Rx column answering questions from regional entrepreneurs on improving or starting a business. This post features some of the questions from the live chat. Follow the Dingman Center’s Facebook Page and Twitter Page for information on the next live chat and other Dingman Center news and events.

Q: A lot of buzz has been going around on the lean start-up methodology being applied in technology and other industries. How can first-time young entrepreneurs get their hands on training and implementing such methodology to their business ideas?
A: The best way to learn about the process is to talk with start-ups to understand how they determined their minimum viable product and how they determined when & how to iterate. As you start your business “leanly,” you have to also think about the decision points to iterate less and grow more.

Q: How can entrepreneurs get more involved in the local community? I would like to interact with our start-ups on an informal basis, but don’t know where to turn.
A: The D.C. tech community is thriving, with plenty of options for entrepreneurs looking to get connected. Organizations such as D.C. Tech Meetup and Foster.ly are providing great forums for entrepreneurs to meet. There are also new incubators such as The Fort and Acceleprise that bring in mentors to help with their companies.

Q: I have an idea for a specific niche service market to build an online/mobile business and I need to develop potential revenue projections. While I am realistic I still want to be optimistic for a 3-5 year time frame. Could you provide some advice for a framework?
A: The best frameworks is a bottoms-up approach — identify your revenue streams and growth assumptions for each stream, then show how they grow over time. For example, if you are going to win two customers in month one, six customers in month eight and 20 customers in year two — the projections should reflect that growth and revenue expectations per customer (or user, etc.) over time. Top down, taking a large market and making assumptions about a percentage of that market you can capture usually leads to significantly inflated projections and doesn’t show advisers or investors that you have given thought to how you will methodically grow your business. It is also important to think about the bottom line — what are expenses associated with generating that revenue? To quote one of my favorite lines from our investors this year, “Is the juice worth the squeeze?”

Q: I am launching a new mobile app and I will need additional capital (maybe $250,000) to help complete the next stage of development. I think angel investors might be the right fit, but what is the best way to approach them and get their attention?
A: In the current environment, the best way to get funded for a mobile app is to show that you have traction with users. Get a minimally viable product out there and show that you can reach your users and understand their needs. There are so many apps in the marketplace that it is hard to convince investors that you can break through the noise.

Q: What is the line between a hobby and a business? Is there a financial threshold that one must cross before having to deal with becoming a formal business? For example, if a friend knows I have my own personal Web site and offers to pay me to set one up for him, have I started a business?
A: I’m certainly not an accountant or tax specialist, but if someone pays you for a good or service you have provided, that is technically a business. A hobby would be if you liked to set up Web sites for friends for free.

Q: I’d like to start an interior design business. I believe in my talent, but I don’t exactly have a portfolio full of projects that I can show to potential clients since I am fairly new at this. What is the best way to get my foot in the door and start establishing myself?
A: Would you like to start at my house? All kidding aside, figure out what kind of projects you can do in your spare time for family and friends for free, and use that to start your portfolio. Even if it is a small room here and there, you can create the “before” and “after” shots to convince others of your talents.

Q: I’ve been working as a solo consultant to nonprofits. I’ve been courted by a consulting firm, which is attractive because they would handle billing, provide a training system for me to use with clients instead, and will help market me. On another level, I have some concerns: I would still have to get my own clients, they want exclusivity (so I can’t serve other clients on my own, without giving them a cut), and a non-compete clause (I’m prohibited from pursuing their clients if I leave, but they get a portion of my earnings for a year after I leave — because they have trained me). What advice do you have on weighing whether to remain solo or join a firm?
A: This is a really tough question and really depends on how important it is for you to have control over your company. You may be able to generate more business by being able to leverage other infrastructure, but you do lose independence and flexibility when you join with others. It sounds like you could probably continue with being a sole contractor and find other outsourced service providers to handle billing and training, without signing on with another firm.

Elana Fine was appointed Managing Director of the Dingman Center in July 2012, after joining the team in 2010 as Director of Venture Investments. As Managing Director, Elana’s primary focus is leading the Dingman Center in support of its mission and strategic plan. Key responsibilities include oversight of our student venture incubator, Dingman Center Angels investor network, business competitions, and technology commercialization efforts.

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Aug 13 2012
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Startup Success, Uncategorized

Startup Success: SpydrSafe

The Startup Success series features interviews with regional entrepreneurs who received funding from the Dingman Center Angels investor network. Click HERE to see a full list of companies that presented and received funding from the Dingman Center Angels during the 2011-2012 year.

SpydrSafe’s mobile security platform, SpydrSafe Mobile DLP™, prevents corporate data breaches from employee-owned devices (BYOD) by providing enterprise IT departments with the tools necessary to safeguard corporate data. SpydrSafe Mobile DLP™  delivers app-level protection for all data on Android smartphones or tablets. Keep reading for an interview with SpydrSafe CEO Michael Pratt.

How did you get the idea for your business?
Myself and my co-founder, Kevin Sapp, both worked in the mobile security/mobility space for 6 years or so before founding SpydrSafe. We kept abreast of how the market was developing and the needs that were unmet and SpydrSafe’s genesis came out of that process.

Why a startup?
Why not?  We’re addressing a “new market” with unmet needs – startups are a natural way to do this.

What phase is the company in?
We’re still early and pre-revenue, albeit we plan to “cure” that by releasing our first product in the market on October 1, 2012.

As a startup, what are some of the greatest challenges you face?
If you’ve been in the startup world as long as Kevin and I have been, the over-riding challenge is always funding. It’s a long, continuous process for a startup. The other challenge is “biting your tongue” when an energetic, but not-so-knowledgeable VC who doesn’t understand the space, or have portfolio companies in the space, and in many cases doesn’t do early stage deals (why are we having this meeting again?) spends most of their time telling me all the reasons why what I’m doing won’t work.

What was the Dingman Center Angels review process like?
To be brutally honest it was a bit tedious – and I still don’t understand why startup companies have to pay to present at these various venues. But at the end of the day, it’s just part of how the game is played. As someone once told me, you have to kiss a lot of frogs to find the prince.

What do you think about the current state of the entrepreneurial community in Washington DC and Baltimore?
As someone who has visited both coasts and spoken to VC’s in both locations, I’d say that DC/Baltimore is trying very hard to become known as “Silicon Valley East” but they have a very long way to go to get there. It’s more than just one or two “homeruns” that make a region (e.g., AOL – too many years ago now; and Living Social). It’s an attitude and an understanding that what’s important in an entrepreneurial endeavor is the idea (it has to be large enough to be interesting to them) and the team (seasoned, enthusiastic, focused).  What is NOT important is ARPU (average revenue per user), but it’s almost always the first question we hear. So, the “entrepreneurial community” in this region is really a “later stage” environment. I guess it’s less risky than startups/early stage companies but as long as the collective mindset in this region is “we like to see traction before we invest”, it will never be Silicon Valley East.

What advice would you give student entrepreneurs who want to start their own business?
Focus, focus, focus.

Michael Pratt has sixteen years of startup experience with six years in the mobility field. He has held C-level positions with companies including CardStar (acquired by Constant Contact in 2012), Trust Digital (acquired by McAfee in 2010) and Galt Associates (acquired by Cerner Corporation in 2006)

Connect with SpydrSafe on Facebook, Twitter, and LinkedIn

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Aug 01 2012
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Starting Up Your Startup

By Glen Hellman, Dingman Center board member and angel investor from his blog Forward Thinking

Creating a startup is often compared to building an airplane in real-time while in flight. It isn’t easy. There are so many things that can go wrong; so many different ways to make it work or sink that ship.

In my experience, there are 3 critical attributes common in great companies that will not only improve the odds of making a safe landing, but make it more enjoyable and profitable. The first two involve developing a strong foundation and the third involves setting a destination.

1. Value Axis
Pick your value axis. According to Michael Treacy and Fred Wiesema in their book The Discipline of Market Leaders, companies compete on 3 axes.  Think about the following three companies that basically sell the same product yet they all compete and deliver that product on a different axis. The axes are:

  • Operational Excellence – You can buy sneakers at Wal-Mart, and they compete for your business based on a well-oiled logistical system that insures they have the right product at the right price in the right place at the right time. Customers know they will find the products they want at a good price and expect few surprises during the shopping experience.
  • Product Leadership – Hanging your hat on innovation. You can buy those same sneakers at Amazon.com, not leave your home, and have them delivered. Amazon, started as a book seller, branched out to virtually competing against almost all brick-and-mortar operations and has evolved into a premiere technology innovator where retail is only a small part of their overall product offering.
  • Customer Intimacy – Knowing and taking care of your customer like no one else. When you buy your sneakers at Nordstrom, you know that the sales person will take good care of you and even if you bring the product back a year later without a receipt they will accept the return.

Companies need to compete adequately in all three axes yet you can’t be best in all three. You’ve got to pick the axis in which you will hang your hat.

2. Core Values
What are the 3 or 5? Hire people who personify them. Review and reward people who adhere to them. It’s easier to create a culture from the start so think about those core values and be intentional about creating a culture around them (See: 5 Signs Your Core Values Are Rotten to the Core).

Some Core Values to Think About:

  • Teamwork
  • Respect
  • Persistence
  • Customer Centric
  • Integrity
  • Results
  • Fun
  • Innovative
  • Work Hard/Play Hard
  • What Ever It Takes
  • Creative
  • Loyalty
  • Decisive
  • Independent
  • Community

3. Pick a Destination
Now that you know who you are and what you stand for, it’s time to pick what you want to be when you grow up? Are you building for a quick flip? Do you want to sell, go IPO, create something that is disruptive, change the world, have an impact?  What’s your time frame? What’s your number? What’s your target?

It’s important to have a target to judge your progress, create goals, and drive the organization (more on this in Three If’s From a Maybe: Just-In-Time Strategic Planning).

Summary
Your destination, the understanding of the target combined with your value axis and core values creates an environment for your team to work independently, be creative, for your company to be nimble and excel.

Spending more time on foundation and target will free up your time from developing rules, procedures, and micro management.

Do you have a clear vision of these 3 operating imperatives? What are you waiting for? Go do it. Get them done.

Glen Hellman helps exceptional entrepreneurs figure out what to do and gets them to do it. He’s an angel investor, serial entrepreneur, and has worked for venture capitalists as a turn-around specialist. He’s a principal at Driven Forward, board member at The University of Maryland’s Dingman Center for Entrepreneurship, a Vistage coach and a mentor at the Founder Institute which is a good excuse but not the reason he is such a horrible hockey player.

Connect with Glen on Twitter on LinkedIn

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Jul 19 2012
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The Scrupulous Entrepreneur: When do I leave my job to pursue my startup?

Written by Jason Shrensky, Dingman Center Angel in Residence

Often the question is posed: When do I leave my job to pursue my startup?  If you read the technology press, the answer seems to be “right away!” “Follow your dream!” is the advice of some successful entrepreneurs. To paraphrase others: “I couldn’t sleep at night just thinking about the opportunity. I quit my job the next day. You should do the same.” Of course, this flippant advice is offered in hindsight, often in the afterglow of a financial windfall. The scrupulous entrepreneur will answer this question for him or herself only after taking into account two big considerations.

The first consideration in deciding whether to leave your job to pursue your startup is family impact. How would you characterize the entrepreneurs quoted above if you knew that when they quit their day jobs to pursue their startups they had no plan to make sure that their kids had health insurance? Stupid? Reckless? Irresponsible? Would you want to invest in an entrepreneur that made such a choice?

One of the great unheralded traits of good entrepreneurs is the ability to get a business up and running without bankrupting themselves and hurting their families. To state the obvious, creating a self-sustaining business is hard. An absolute given is that the cost in terms of the entrepreneur’s time commitment is high and taxing not only to the entrepreneur but to the entrepreneur’s family.

Assuming that the entrepreneur and his or her family agree to assume the ramifications of the great time commitment involved, a second conversation that has to occur concerns the financial commitment. Leaving one’s job to pursue a startup will require financial belt-tightening by the entrepreneur and his or her family. Nonetheless, if there is buy-in from the entrepreneur’s family, a drop in discretionary spending and luxuries is easy to endure with the long-term goal of a successful venture in focus.

Thus, the lesson of the scrupulous entrepreneur who is considering family impact before pursuing a startup full time is that a) discomfort is okay, b) recklessness is not okay, and c) buy-in is required. (If you are 22 years old, single, and living with your parents, you’re good to go.)

But even after overcoming the first consideration, scrupulous entrepreneurs won’t rush to resign. The great first act of scrupulous entrepreneurs is staying employed as long as they can in order to “fund their hobby.” If they can manage getting their startups off the ground while fulfilling the duties of their day jobs, they will do it. (If working on their startups while employed would somehow be considered more unethical than conducting a search for a new job while employed, they will resign.)

It may seem like your day job is weighing you down and preventing you from moving as fast as you want on your startup. But, often the alternative is to quit your job and raise angel money. You are likely to find that raising angel money is just as time consuming yet less rewarding than your day job. If you have the right perspective, you should see your current employer as your first angel investor with the bonus that you don’t give up equity in your startup. Your paycheck is a sure thing; angel money is not.

Obviously, a separate email address and mobile phone are key tools for maintaining your double life. But don’t discount your vacation days. Use them judiciously. No trips to the beach. Vacation days are important for attending meetings and industry conferences relevant to your startup or cashing out when you eventually leave your employer.

In conclusion, leading a double life is hard, but many times it’s either necessary or simply the prudent choice. Scrupulous entrepreneurs value their families and fight on all fronts for advantages for their startups. They also don’t get any sleep. If you are a scrupulous entrepreneur, you won’t either.

Jason Shrensky is a local entrepreneur and angel investor who joined the Dingman Center team as an Angel in Residence in 2011. In addition to actively investing in early-stage companies, he splits his time between two startups that he recently co-founded: ÜberOffices and ComplexInterests. ÜberOffices provides co-working office space in the DC Metro area predominantly for early-stage technology and media companies. At ComplexInterests, Jason is working on developing a unique enterprise software package targeted at accounting, law, and financial services firms.

Connect with Jason on LinkedIn, Twitter, and Google+

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