Can You Start Your New Company as a Part Time Business?
Starting your new company as a part time business is a good route to take, unless you are one of the many unintentional entrepreneurs who have lost a job and need a new opportunity quickly. Launching the new venture in your spare time allows you the luxury of:
- Starting on a shoe-string.
- Determining if you like the new business. You many have your heart set on a particular business, but as you get into it, it many not be all it seems. Perhaps you may find you want to keep your job and keep your new venture as a part time business opportunity at which you make extra money part time?
- Learning the basics of running a business.
- Learning the basics of the specific business you are going into.
- Starting a part time business as an "insurance policy" in case you lose your day job. If you are worried about losing your job or worried about what you would do to earn money if you lost your job, then a substantial part time business can be a great stress reliever and sleep aid. It could be part time data entry work, part time online data entry, part time engineering, part time day trading, part time accounting or a host of many other part time opportunities. Best yet, depending on your age, it could be a business that you carry over into retirement.
- Learning from your mistakes before you have everything on the line.
- Giving the business an opportunity to grow and be noticed, particularly if it is an online business.
- Continuing to get an income from your day job so that you are not forced to take money out of the business prematurely.
- Continuing to get your employer’s health insurance.
Consult a Lawyer before Making a Move
A few notes of caution:
- If you plan to start a business before leaving your current employment, see a lawyer to determine if you have any legal exposure from your soon to be old employer. There are many part time business ideas that can be molded into a fabulous full time business opportunity. If you are a teacher and plan to start a tutoring business full time, there probably is no problem. But if you are a management consultant and you are starting a management consulting business while working for another management consultant, you need legal advice. Naturally, if you are a management consultant and will start a scuba diving business, there probably is little if any exposure, unless you are doing the scuba diving business during hours when you should we working for the other guy. While it is true that any of us can do anything we like in our spare time (within legal limits, of course), there are activities that can raise eyebrows and perhaps lawsuits with your old employer.
- If you are new to running your own business, we strongly recommend that you respect the rule that "What you don’t know, you don’t know." By that we mean that there are many aspects of running a small business that you do not know. In fact, you do not even know that you do not know. Respect your ignorance and give yourself time to learn, if you can. While you can get "trail by fire" learning experience, that usually costs a lot of money and time. Both can be saved by giving yourself a period to in which to learn.
- Starting an online business takes time. You may be a wiz at turning out web pages, but it takes time, agonizing time, to get found by the search engines, for example. What a great thing if you can get your online part time business up and running in the morning, evening and weekends and make money from your old job while the search engines slowly turn to find your new business.
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