In 2008, Patrick McGinnis was climbing the ranks at AIG on Wall Street, following the conventional path to success. Then the Great Recession hit: AIG accepted a government bailout, his division faced sale, and the bonus scandal dominated headlines. Suddenly, his resume bore the stigma of AIG.
He diversified strategically.
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Drawing on this experience, McGinnis launched small investments that flourished, inspiring his philosophy outlined in The 10% Entrepreneur: Live Your Startup Dream Without Quitting Your Day Job. As a seasoned investor and author, he shares insights on easing into business ownership.
Most people view entrepreneurship as all-or-nothing. Why is that misguided?
The plummeting cost of technology and global connectivity have transformed opportunities for aspiring entrepreneurs. Today, launching and managing a business—tech-driven or not—requires just a laptop, internet, and smartphone. This enables part-time ventures alongside your day job, letting you scale commitment to your resources, interests, and passions.
Why start with 10% effort instead of going all-in?
A side hustle mitigates full-time entrepreneurship's risks. Test ideas, refine models, and pivot from failures without financial peril. Validate success before committing fully, minimizing overall risk.
Related: To Start Over Successfully, You Need These 5 Traits
What should aspiring 10% entrepreneurs prepare for?
The main trade-off: slower progress since your side business gets partial time. Yet startups typically take seven years from launch to exit—rarely overnight successes. Extending the timeline by months or years is a smart risk-reduction strategy.
How do you balance this without conflicting with your employer?
Prioritize your day job—it's the foundation funding your 10%. Maintain clear boundaries with integrity. With over 30% of Americans running side hustles, blurred lines are common, but ethical separation is essential.
What ventures suit the 10% approach best?
I've advised 10% entrepreneurs across real estate, tech, restaurants, fashion, and more. Ideal ones build gradually, need minimal upfront capital, and leverage tech like smartphones and social media. Avoid asset-heavy sectors requiring big funding.
Related: 9 Entrepreneurial Lessons You Never Learned in School
This article originally appeared in the June 2017 issue of SUCCESS magazine.
