Making the Leap: From Architecture Firms to Knowledge Management Software Founder

Chris Parsons of Knowledge Architecture talks about how to minimize the financial risk when you leave salaried work, and why you don't need to be a big risk-taker to be a successful business owner. 

In our fourth episode of “Making the Leap to Entrepreneurship,” EIX’s Cathy Buday interviews Christopher Parsons, founder of Knowledge Architecture, a firm that develops solutions for the architecture, engineering and construction industry.  Parsons founded his business after eight years of salaried work, and he said that observing a 60-year-old crying at work after learning he was being laid off had a big impact on him.  

"There's a risk in entrepreneurship," he says, "but there's a greater risk working for someone else. Good entrepreneurs are highly attuned to risk but they look into de-risking as much as possible...Before making the leap, check the winds, and make sure you have wings and a backup parachute that works."

Parsons talks about how he prepared to pull the plug and the steps he took to minimize the risks. For example, he lived frugally so he could cut back to part-time while he developed plans for Knowledge Architecture; his old company gave him contract work when he launched; and he hired people who were willing to forgo immediate financial awards for a longer-term payoff. 

He also debunks a few myths – including that getting venture capital should be the Holy Grail for founders.