Launching a new business is one of the most exciting and challenging ventures in life. Not only does it create the prospect of working at a business you truly love, it also teases the promise of financial security if everything goes well. Unfortunately, it can be very difficult to save enough money to start out from a position of financial security, so many aspiring entrepreneurs wonder if they can launch their business while still being employed by their current employer.
Examine your employment contract.
The first thing you must do before you begin your journey to business ownership is to check your current employment contract. Many employers are particularly careful about prohibiting their employees from starting their own businesses while still employed, as this can create a serious conflict of interest. Naturally, you're more likely to prioritise your own business over that of your employer, which can lead to decreased productivity and other issues in the workplace.
Additionally, there may be serious financial penalties for breach of contract, as well as the possibility of litigation, so be absolutely certain that you're in the clear before you invest too much of your time and money in your new enterprise.
Choose your structure carefully.
Most businesses don't start out by making a profit. This can be caused by a range of things, but primarily the issue is that of startup costs and the need to build a client or customer base before making a profit.
If you structure your new business as a sole trader, you'll be able to offset any business costs against the rest of your personal income. This can be a huge help during the initial stages of launching your business, and depending on your circumstances it may even entitle you to a tax refund.
Be realistic about your time.
Starting your own business can be incredibly time-intensive, and doing so while you're also holding down another job means that you're likely to have very little free time for the rest of your personal life. Be realistic about how much time you can dedicate to the business without driving yourself up the wall, and keep in mind that you may have to maintain that pace for quite some time in order to establish the business successfully.
When to go all in.
If all goes well and the business is generating sufficient profits to maintain your lifestyle, eventually the time will come when you have to separate yourself from your current employment and invest all the time and energy you have into your own business. This is a difficult and disconcerting time, because the safety net of your current job will be removed and you'll be out on your own.
Of course, this is also part of what makes having your own business worthwhile, so don't be afraid to take the plunge when the time comes. There will probably be a bit of an adjustment period financially as you transition into working for your own business, but choosing the right moment will keep the process smooth. Just make sure that you have carefully planned the right moment, and you'll be on your way to a new level of personal and financial freedom!
Examine your employment contract.
The first thing you must do before you begin your journey to business ownership is to check your current employment contract. Many employers are particularly careful about prohibiting their employees from starting their own businesses while still employed, as this can create a serious conflict of interest. Naturally, you're more likely to prioritise your own business over that of your employer, which can lead to decreased productivity and other issues in the workplace.
Additionally, there may be serious financial penalties for breach of contract, as well as the possibility of litigation, so be absolutely certain that you're in the clear before you invest too much of your time and money in your new enterprise.
Choose your structure carefully.
Most businesses don't start out by making a profit. This can be caused by a range of things, but primarily the issue is that of startup costs and the need to build a client or customer base before making a profit.
If you structure your new business as a sole trader, you'll be able to offset any business costs against the rest of your personal income. This can be a huge help during the initial stages of launching your business, and depending on your circumstances it may even entitle you to a tax refund.
Be realistic about your time.
Starting your own business can be incredibly time-intensive, and doing so while you're also holding down another job means that you're likely to have very little free time for the rest of your personal life. Be realistic about how much time you can dedicate to the business without driving yourself up the wall, and keep in mind that you may have to maintain that pace for quite some time in order to establish the business successfully.
When to go all in.
If all goes well and the business is generating sufficient profits to maintain your lifestyle, eventually the time will come when you have to separate yourself from your current employment and invest all the time and energy you have into your own business. This is a difficult and disconcerting time, because the safety net of your current job will be removed and you'll be out on your own.
Of course, this is also part of what makes having your own business worthwhile, so don't be afraid to take the plunge when the time comes. There will probably be a bit of an adjustment period financially as you transition into working for your own business, but choosing the right moment will keep the process smooth. Just make sure that you have carefully planned the right moment, and you'll be on your way to a new level of personal and financial freedom!
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