Do You Want to be Your Own Boss – Start a Side Business While Keeping Your Job
The best way to eventually become your own boss is to start a side business. This will allow you to build an additional income on your way to become self-employed. While you still have the safety and security of your day job.
Keep your job income
What’s more, is that starting a side business while keeping your job not only cushions your income. It also creates career-changing opportunities you wouldn’t have normally stumbled upon at your full-time job. Many side businesses have led to new jobs, surprisingly useful relationships, and lifelong friends.
Limited time available
However, building a side business to profitability with a limited time outside of your job is never easy. It takes serious prioritization. A psychological life shift is necessary becoming more willing and highly creative and determined on a daily basis.
If you want to be an entrepreneur, there are many reasons you should start small with building your side business. Start by building it customer-by-customer from the ground up. For one, the prospect of making more money on top of your regular pay is a powerful incentive. A long-time hobby can also motivate you to grow a business around things you love.
Focus on your passion
A strong drive to starting a side business while keeping your job as a steppingstone toward financial freedom is important. Your side business can also allow you to focus on what you’re most passionate about. Especially if you don’t get that satisfaction from your full-time work. It can give you the flexibility (and extra savings) to travel the world. Care for the environment, or pursue other causes in a more meaningful way.
Most entrepreneurs start while having a job
A large number of people have started a side business while keeping their job. This relates to freelancing, consulting, and online presence while having regular employment. According to a study by LinkedIn, more than 431,941 professionals in the U.S. are already freelancing on the side of their day jobs.
Nine of ten business fail
Most people will tell you, they have dreams of becoming an entrepreneur, the other side of this picture is not as thrilling. To put it bluntly, the vast majority (nine out of ten) of new businesses are doomed to fail.
I have learned the lessons already
I’ve been there several times. I learned the hard lessons, turned things around a few times, and eventually found the right formula. This is my passion to help you avoid my biggest mistakes. Part of becoming successful as an entrepreneur means starting small and growing with your customers. That’s where the side business comes into play.
If you’re planning to start a side business while keeping your job, here are 10 things you can think about before starting. And the beauty is, while you keep your day job and the only source of dependable income.
10 Things You Can Think About When you Start a Side Business While Keeping your Job
1. You need psychological endurance
Businessman and philanthropist Tony Robbins recently shared that he believes, “business success is 80 % psychology and 20 % mechanics.” What he means is that even a great product or service won’t take you far if you lack the perseverance, determination and genuine interest in helping your future customers solve meaningful problems. So, before you start a side business (or any business for that matter), you need to ask yourself how badly you want to succeed. If you’re just toying with a business idea and entertaining the notion of striking it rich, don’t expect success to happen overnight or that you’ll make it past the finish line.
Remember, your side business will begin taking many hours each week away from precious moments you’d otherwise be spending with friends, family and elsewhere. A side business also requires extraordinary effort to succeed, given that the majority of your time each day goes to your full-time job. Make a serious self-assessment about whether or not this is something you’re willing to make sacrifices in order to achieve. If you are willing to sacrifice, develop a system of positive triggers and routines to help support your self-discipline and exert all your extra effort to grow your side business, then you have the psychological foundation to build a successful business.
2. Identify Your Skills and Areas of Interest
Never enter a battle ill-equipped for the challenges you’ll be facing. In order to experience quick results, you must back your side business with relevant skills, experience or industry knowledge. After all, business success happens only when the right skills meet the right interest areas. As billionaire investor Mark Cuban recently shared, your business will succeed only if it’s, “something you love to do and something you’re good at.”
For example, many musicians monetize their skills by offering online guitar, violin or piano lessons. On the other hand, some creatives also have profitable freelance side businesses as graphic artists or digital storytellers. If you lack key skills that relate to your interests or the side business you want to create, there’s no better time than the present to learn them.
3. Validate Your Side Business with One Paying Customer
Your side business idea may seem incredibly awesome and disruptive to you, but that’s not necessarily how your potential customers will see it. More likely than not, they’ll ignore it like the vast majority of “brilliant ideas” that have been produced and unleashed given the sheer number of daily distractions and advertisements that we’re exposed to.
The real reason you need to validate your side business idea with a paying customer before getting too far into the business is to make sure you’re not creating a solution to a problem that doesn’t really exist. The “lack of market need” has been cited in an extensive CB Insights study as the top cause of Startup failures. So be warned, there’s a good chance you’re nurturing an idea that not enough people will find value in. And if nobody wants your product or service, the resources (time, energy, effort) you invest in building it will just go down the drain.
To prevent this from happening, be sure to validate whether your product or service will gain traction in the real world. You can do that with objective feedback from potential customers and asking them to join a waiting list, pre-purchase your solution or hire you as a service provider. Quickly abandon ideas that aren’t getting a positive response and consider more feasible opportunities.
4. Differentiate Yourself from Competitors
Unless you’ve built a totally new product or service that’s a class in and of itself, chances are you’ll be positioning your side business against other established players catering to the same target audience. Competition is an inevitable part of doing business. In just about any niche, competitors will try to outperform your product or service, steal as many of your customers as they can and look for opportunities to innovate past you.
To prevent this from happening, all you need to do is secure your value propositions with a serious competitive advantage. Your competitive edge can be anything that differentiates your business from that of your competitors. This can range from smart (or low) pricing, aggressive sales tactics, higher profit margins, unmatched customer service, best-in-class features, strategic relationships, intellectual property, customer experience and other specific factors that clearly differentiate your brand from the competition. Your competitive advantage is what makes customers choose you, and continue coming back for more.
One thing we have learned that customer experience is the ultimate advantage in today’s business world.
5. Define Clear Goals
It’s commendable to dream big. But when it comes to actually make your side business a success, you will get absolutely nowhere by aiming for the end zone straight from the start. In order to make your larger goals happen, you need to start with small, incremental goals. After bringing on one satisfied customer, it’s time to get your second. Then your third, fourth, fifth and so on.
If you begin by aiming for 1,000 customers instead of just one, you’ll get too overwhelmed with everything that needs to be in place before handling that many customers. In my experience, having practical goals that are attainable on a daily, weekly and monthly basis helps you develop positive habits and train yourself for success. One good framework to use when formulating goals is the SMART Goals Criteria. Developed by management icon Peter Drucker, SMART is the acronym for Specific, Measurable, Achievable, Relevant, and Time-bound.
6. Set Milestones That’ll Force You to Launch
A good, viable side business idea should be launched, monetized and repeated. Don’t obsess over trying to build the perfect solution when you don’t yet know what exactly your customers will resonate with most. Otherwise, you’ll just waste precious time, trapped in a constant dream state. To help you beat the inaction, draw up a simple action plan that lays out key milestones and deadlines that’ll guide you from start all the way to launch date. Stick to your deadlines, tell friends and family about them, hold yourself accountable and don’t allow yourself to make excuses. Then perform the actions needed to move from one milestone to the next. Again, never aim for perfection because it will bog you down and prevent you from ever launching anything.
7. Delegate Work Outside of Your Expertise
By now, you know your strengths. You can’t be good at everything all the time and you shouldn’t want to be. The reality of starting a side business while keeping your job is that you’re going to have weaknesses. That means some of the skills necessary to run your side business must be found elsewhere. This will free up your time to continue doing only what you’re best at within your business.
For example, you might be good at accounting and management, but your graphic design skills will easily turn off your audience instead of getting them glued to your message. To fix this, do the things you are good at and work to outsource everything else.
I recommend not even trying to learn new skills in the immediate term unless they strongly relate to what you’re interested in and the needs of your business. Outsourcing your weaknesses is a more effective and easily implemented alternative. It’s also more affordable in the long run as the value of your time increases significantly.
The key strengths of an entrepreneur are to see the opportunity, to create a solution, monetise the solution and sell it to prospective customers.
8. Ask for Real Customer Feedback
Without feedback from your earliest customers, you’ll expose your side business to the serious risk of failure. You may be planning to build a product that doesn’t do the best possible job of solving your customer’s problems.
Without objective external feedback, you’ will unlike execute the plan well. Invest considerable time, money, and effort in the process. Make a habit of internalizing sometimes harsh feedback and you’ll force yourself to continually improve your solution as you progress.
9. Keep Your Job as Long as Possible
Obviously, you shouldn’t work on your side business during company time. Nor should you use company resources to advance your own pursuits. Not only is it unethical, but it’s likely a violation of your employment agreement.
Make it a point to honour every term in your employment contract. Consistently deliver excellent performance at your job even while having your side business picks up momentum. Compromising your quality of work and reputation in the office should be prevented. This will prevent you from partnering with your old employers once you go have your own business.
10. Create a Sustainable Flow of Customers
My advice is to never leave your day job until your side business is providing you with a sustainable, growing cash flow. This should exceed at least 75 % of what your job pays you. Most entrepreneurs have a healthy appetite for risk. Prevent yourself from plunging into anything without having a decent chance of success.
Moreover, have at least six months’ worth of savings for both personal and business purposes. This will protect you in the likely event that your business doesn’t grow as quickly as expected.
Remember that having exited customers that show interest is a good indicator Thus translating them into revenue in the early stages of your side business is your clearest indicator of future success. If you have a family to support, restrain the urge to immediately quit even more so.
Achieving Success When You Start a Side Business While Keeping Your Job
So far, the data still shows that most new businesses have a pretty low chance of achieving success. However, that shouldn’t deter you from pursuing more meaningful self-employed work.
The best time to build a business is when you have a full-time job that covers all of your living expenses. Think of your regular employment as hedging against the risks you’re taking as you test the viability of your side business.
Otherwise leave a comment below, about your experience on this journey so far.