How to Start a Business Without Quitting Your Day Job
Check your employment restrictions., Outline your goals., Avoid creating a conflict., Save for your business., Create a business plan.
Step-by-Step Guide
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Step 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?” -
Step 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. , 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.
Find a product that pivots away from your day job. , 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., 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. -
Step 3: Avoid creating a conflict.
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Step 4: Save for your business.
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Step 5: Create a business plan.
Detailed Guide
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?”
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. , 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.
Find a product that pivots away from your day job. , 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., 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.
About the Author
Theresa Hart
Professional writer focused on creating easy-to-follow home improvement tutorials.
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