Start a Business Without Quitting Your Day Job

In today’s economic climate, it is easier than ever to become an entrepreneur in your free time and start a small or home based business without quitting your day job. If you are considering starting a business in your spare time, you first need to begin planning for your enterprise by looking at your resources and developing a business plan. Once founded, you will need to build your business by balancing your work obligations while seeking out new clients and customers. Finally, you will need to manage the difficulties of working two jobs properly by developing a good work/life balance and relying on your support network. With a little preparation and good time management, you can create successful business that allows you to keep your day job and meet your personal obligations.

Steps

Figuring Out the Logistics

1. Check your employment restrictions. Before you dive into your second business, you should make sure that you are not breaking any non-compete or moonlighting agreements. Even if you don’t have a contract, be sure to check the policies of your employer. Check with your HR department and review your contract and the company’s policies to make sure that you will not be fired for starting a business in your spare time. If you are unclear on the legal obligations of your job, you may want to talk to a lawyer before moving forward with your business.
   • Ask your lawyer or HR representative questions like “Can I moonlight under my current contract?” or “Is it possible for me to start a part-time job from home?”
2. Outline your goals. As you are making plans for your business, it is important that you evaluate your long-term goals. You will need to determine if you intend to stick with your current job, and keep your business as a part-time project, or if you want to develop your business to the point that you can quit your job. Having a good idea of what your long-term goals are will help you get a better idea of what you will need to invest in your business in terms of time and money.
   • For example, if you want to quit your full-time job, you need to think about how long you will need to continue working there before you have enough money to branch off on your own.
   • Ask yourself if you really want your second business to be your full-time career or if it's something you'd rather do on the side as a passion project?
   • Determine what kind of business you want to be in. Is it an extension of a longtime hobby, something else you are both interested in and qualified for, or is it a market opportunity you have discovered? If you are not excited about the business and enjoy it, it will be harder to succeed.
3. Avoid creating a conflict. In order to avoid friction with your employer, try to create a business that does not directly compete with it. Avoid any possibility of a conflict of interest, or you may be sued by your employer, lose your job, or even end up tarnishing your reputation in your industry. For example, if you work for a financial consulting firm, you should avoid moonlighting as a financial consultant. Your employers will likely frown on you competing with them for clients.
   • Try to create a business that will not compete with your current employer. Develop a Product that pivots away from your day job.
4. Save for your business. Because starting a new business can be expensive, you will need to find a way to increase your savings. You can start by evaluating your finances and then creating a budget for your business. Try to save enough money to meet your business’s expenses for an extended period. Depending on the type of business you intend to start, the amount of money you will need upfront can range from $2,000 to $50,000.
   • Consider working with an accountant to get a better idea of what assets you have and how long it will take to get your business operational.
   • You should save enough money to support yourself and meet your business expenses for at least one to two years.
   • You may want to consider requesting start-up financing from friends and family either in loans or equity ownership. However, keep in mind that there is a potential for damage to the relationship if your business fails.
   • If possible, don't take profits out of your business at first. Try to invest these back into the business in order to grow it.
5. Create a business plan. Once you have your finances in order, you should develop a written business plan. Think of it as a detailed outline of what your business is and how you intend to run it. Be sure to include things like a description of your business, an evaluation of the competition, all financial analysis, and a marketing plan.
   • For example, if you are starting a part-time DJ business, you will need to know things like how much all of your equipment will cost, what you can expect to get paid for each gig, and how you plan on promoting your business.
   • Creating a business plan will help your enterprise look more professional and allow you to lay out a clear path for your business.
   • Having a written business plan is helpful to vendors and lenders.

Building Your Business

1. Practice time management. Because you will be working two jobs, you will need to budget your time wisely and set aside free time for managing your business. This will likely mean working on the weekends and at night when you get home from your job. In order to meet this demand, try designating a specific amount of time each day to your business.
   • Avoid working on your business while at your day job. Employers tend to frown on this and it may get you fired. Even working on your business during your lunch break may be considered a conflict of interest. Consider hiring someone to handle the workload while you are at your other job.
2. Keep detailed financial records. Detailed financial records are important for gauging the health of your business. Although it can be easy to let these slide while working two jobs, you need to Keep Track of Your Personal Finances. Without proper money management, you may find yourself deeply in debt.
   • Keep all receipts and financial statements related to your business.
   • Use a money management program like QuickBooks, Xero, or one of the many free alternatives to manage your money. If you have the resources, you can also consider hiring an accountant to help you stay on top of your finances.
3. Network for both jobs. Consider utilizing the connections that you have made in your day job to forward the interests of your business. You may have professional connections that will help grow your small business. If you think that there is the potential for a business connection, contact these people during your free time and meet with them about your side business. These people may become valuable partners to your growing business.
   • Use social media to network with potential clients, customers and partners.
   • If you are at a networking function for your day job, avoid pitching your side business. Your employer will likely frown on that.
   • Be aware that there may be conflicts if your employer's connections would also benefit your side business, especially if the extended relationship negatively affects your employer's business.
4. Turn your employer into a client. If you intend to quit your day job, you may be able to turn your current employer into a client. Depending on the type of business you run, your employer may be interested in hiring you as a consultant or independent contractor for their business. Your employer may also be interested in purchasing your product or your business outright.
   • Try to find places in which you can create a symbiotic relationship between your employer and your business. Utilize connections with your colleagues and your knowledge of the company to promote your interests.

Managing Two Jobs

1. Rely on your support system. Because working two jobs will be a taxing and stressful venture, you will need the help of a strong support system. Turn to your friends and family when you feel like giving up on your business. Ask people for help if you are struggling to balance everything. A strong support system will go a long ways towards sustaining you and your business during difficult times.
   • Let your friends and family know ahead of time that your new business will take up a lot of your time.
2. Develop a self-care routine. In order to maintain your health and manage your stress levels, it is important that your start a good self-care routine. Although the responsibilities of working two jobs may make this more difficult, you need to make the time to exercise and do the things that you enjoy. You also need to create and adhere to a consistent sleep schedule. These things will help you stay physically and mentally sharp.
   • Try to get at least 30 minutes of moderate exercise a day. Do things like taking a walk or going for quick job.
   • Try to get at least 8 hours of sleep a night. You should also try to go to bed and get up at the same times each day.
3. Create good boundaries. Because you may initially run your side business from your home, it is important that you keep strict personal/professional boundaries. Do not spend all of your free time at home working on your side business. Instead, make sure that you do the things that you enjoy and spend some time with your family. You will be burned out quickly if you spend all of your free time on your business.
   • Consider working on your business outside of your home. Go to a local coffee shop or café to work on any business related materials. This will ensure that your home does not become your office and you maintain proper boundaries.
4. Be patient. It will take time for your business to begin gaining traction. Few businesses turn a profit in their first few years of operation. Unless your small business becomes an overnight success, you will likely need to keep working your day job in order to meet your personal expenses. Recognize that you are in it for the long haul and that growing your business will take time and patience.
   • Your day job is also a good safety net in case your business does not pan out. Less than a third of all startups are profitable three to five years after their founding and more than half have closed.

References

See also

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