It is the sage advice of many business experts that when starting the business, starting part-time is usually the best way to go. Even though you may be raring to go, starting part-time has many advantages.
The first obvious advantage is for people who already have an existing source of income from a job. You can be more comfortable about starting your business knowing that you still have a job and a source of income. Your family will also likely feel more comfortable about such an arrangement.
Disadvantages Of Starting A Business Part Time
- However, working part-time is not always possible. What if your customers need your attention during hours when you are unavailable? This could lead to frustration and loss of business even before you have managed to take the business full-time.
- Also working at a job and taking care of a business at the same time can get strenuous, which can have negative repercussions on your personal life.
- Burnout is a big risk of running a business part-time because you so overwork yourself that you are left with very little resources to do anything else.
- You quickly reach the point where you are tired of doing both the things.
- Your business might need more attention to be success than you are able to give. In which case you will very likely quit before giving your venture a fighting chance that it deserved.
All these are problems of starting a part-time business to which they are many possible solutions. Look at the following few tips.
- You need to exercise excellent time management skills, self disciplined and need additional support from family and friends.
- You need to be committed enough to come back from your day job and be ready to give those extra hours to your business.
- Your business will need the attention and hard work during the initial stages. Having a job elsewhere should not be an excuse of why you do not give your business its due attention.
- Lay the groundwork. You can start making preparations for going full-time in your part time. That way you can ready to go full throttle when the time comes.
What Are The Market and Economic Conditions Like
Before starting any business, emphasis should be on investigating and researching the business idea completely. This itself will give you a fair idea of whether to go into business full-time or part-time. Do not get caught up in your eagerness and ignore the practical side of business.
- Do a reality check of demand and supply. If your primary and secondary research shows you a great untapped demand for your product or service, you can definitely consider going for it full time, provided you can manage the finances to start up and support the business in its nascent stages.
- Investigate the competition present in your industry, the state of economy in your area, and the availability of potential customers.
- Carefully outline your business strategies and goals in a carefully drafted business plan. You should always conduct extensive research, make projections and set goals for yourself based on these findings.
- A business plan gives you a great insight into the short-term as well as long-term potential of your business. Do not ignore writing a business plan even if you’re starting part-time. It is also pivotal in getting money for your business from any kind of investors, even if they are daily and friends.
How Much You Can Afford To Put Into A Business
It goes without saying that the amount of money you have will impact the choice for a part-time or a full-time business. Here some scenarios.
You have the money but you do not want to risk the financial stability of your family by putting it all into the business.
You can start the business slow, you can work it up to a point where it begins to show a profit and gradually invest more in it. When you are confident of the growth potential of the business you can take a loan or invest more from your own resources.
You do not have the money and do not want to put yourself under the burden of debt by borrowing from external resources.
You can start the business part time and once with whatever financial resources you have the business begins to show financial returns and you can be more certain of your ability to repay the money that you borrow, you can approach external investors.
You do not have the money and you cannot find external borrowers and investors to invest in your business.
The downturn in the economy will not help in finding investors who have enough faith to invest money in new businesses. Wait for better market conditions or start the business on your own resources. Look for investments when your startup proves to be initially successful.
How To Know Its Time To Go Full-Time
Most businesses have the ability to grow. Most businesses also have the ability to be started small. The biggest names in business such as Amazon.com started as one room operations.
If you are starting full time, its equally important to know when to commit yourself full-time?
“The rule of the thumb, according to certain experts, is that when your business starts pulling in 30% of your current income, it is safe to make the transition to a full-time business.”
Most of the entrepreneurs will be able to turn this figure into a larger income when they have the extra daytime hours that they can now get to the full-time business.
Consider putting money aside when you have a full-time job. You can supplement your income with this extra saving when you start the business full-time.
Another Way to starting a business full time is to take a part-time job. You can work at your full-time business but use the evening or at night job to supplement your income. This can make your schedule a little rigorous but it also means more financial security and a more hearty attempt at making your business succeed. You can decide to work a few hours every evening or on weekends, as per your needs.
There is no denying the fact that starting a business is going to have an impact on your family life. In the long run, in most circumstances, starting out your own business will have good repercussions for your family and loved ones.
However, when starting out, things can get a little difficult. It is a great idea to discuss your plans with them, take their fears and problems into consideration and see how you can work things out.
It is important to muster the support of your family before you started because the odds are that you’re going to need it.
You can reach decisions about the changes that are going to occur due to the business startup and even make decisions on things like sharing duties and chores around the house. You can set rules in order to balance your business and family life better such as no work on weekends etc.
It is also an excellent idea to rope in your family into running the business during its inception stages, if thats possible. It will be a great support for you. For example, you spouse can attend to the business calls during the hours you are working on your other job.
Tips For Starting A Part Time Business
Managing a full-time job along with a part-time business is not the easiest thing to do. However, with a few know-hows you can manage to do this just fine. Here are some common tips to help you manage your part-time business better.
- Involve your family whenever possible – It is commonly accepted that when you start a part-time business, you will be working with limited resources. Involving your family in your part-time business will lessen the burden and allow you to spend more time with your family.
- Be ready to sacrifice personal time – Although not many of you will anticipate it, you have to sacrifice a lot of personal and leisure time in order to take care of the business. You should be ready to give up time you devote to hobbies, reading, watching TV and even going out with friends and family.
- Stay motivated – Staying motivated helps accomplish things. If you are motivated enough you will not mind the long hours, the extra work and things you have to sacrifice.
- Stay focused – Whenever you are juggling with full-time job with a part-time business, be sure to focus on the job at hand. If you are in your office focus on your job and when you come back attention to your part-time business. Time management is going to be an essential quality you will have to display like a pro.
- Make use of all available time – Whether it is the lunch hour, early-morning or commuting time, make use of every available minute to accomplish more.
- Do not misuse office property and time – When at work, use your time their to your job well. Do not use office resources to make business phone calls or the office computer and printer to process your business paperwork.
- Be Honest – It is usually a good idea to be upfront about your part time business commitment with your bosses. If it does not interfere with your job, they will not mind.