Final answer:
It is crucial to understand your company's moonlighting policy to avoid conflicts of interest when transitioning to launch a startup. With founders knowing the potential of their startups best, clarity in policies aids in balancing obligations and attracting early-stage investors like angel investors and venture capitalists.
Step-by-step explanation:
It is important to be absolutely clear about your company's moonlighting policy before considering a transitional period for launching your business to avoid conflicts of interest. Understanding the moonlighting policy ensures that there is no breach of contract or compromise in commitment to your current employer while you are preparing to launch your own startup.
Since any young startup is inherently a risk and often begins as little more than an idea on paper, balancing the obligations of your existing job while investing time and resources into the startup requires clear boundaries. Founders typically have better knowledge about the potential of their company, and significant personal investment often signifies a strong belief in the business's prospects.
Moreover, early financial support often comes from angel investors and venture capitalists, who provide more than just capital; they also offer valuable advice and personal knowledge of the founders and their business plans, which can be crucial for overcoming information asymmetries and driving the startup towards success.