It’s very common for entrepreneurs to run their side business while working a full-time job. Some operate side businesses to supplement their income, while others keep their jobs for financial stability while working towards their business launch. But, managing this process can be difficult. You must be fair and dedicated to your employer and work hard to ensure that your own business succeeds. Here are seven things to consider to help you navigate this situation successfully.
1. Does Your Job Allow It?
Generally, most employees can run side businesses as long as they don’t interfere with their jobs. However, it’s always best to check your employment contract. Some include clauses that prevent employees from running their own businesses.
The safest course of action is to consult a lawyer. Show them your workplace agreements, HR manuals, and employment contracts to determine if your side business breaks any of your employment clauses.
2. Don’t Compete with Your Employer
Running a business in direct competition with your employer creates a conflict of interest. If this was the case, the only course of action is for you to resign. However, there are some grey areas when it comes to competition since it’s not always easy to tell.
For Example
Let’s say your employer runs a full-service marketing consulting firm that works with large companies. For your small business, you offer marketing consulting services to self-employed individuals. Are you competing against your employer?
Arguably, you could say that you’re offering somewhat similar services. But you’re working with very different client bases and, therefore, aren’t competing for clients.
What’s the right course of action? It varies. Speak to a lawyer to determine if you would have legal liability. Legal consultations might be pricey, but they’re cheaper than the potential consequences.
3. Do You Have the Time?
The commitment needed to run a side business varies by industry. People who run them typically devote a couple of hours to their business each workday. They often spend a part, or most, of their weekends working as well. This demanding schedule may leave limited time for other things.
Running a side business may not be an option if you have a job requiring more than eight working hours a day or if you have significant responsibilities outside of that. Consider your schedule and lifestyle before taking on another big responsibility.
4. Run Your Business Outside of Company Hours
Company hours should be spent doing your job. Running your business should be done on your own time. If you have to handle an urgent matter relating to your business during work hours, do so during your breaks. Keep these interruptions to a minimum, and step outside your office as a precaution. The following section discusses why this point is important.
5. Don’t Use Your Employer’s Office or Equipment
Your employer’s office is their place of business, not yours. You shouldn’t work on your business on their premises for ethical and practical reasons. Many employees sign agreements that state that all work and intellectual property developed at their job belongs to their employer. These are common in many professions and often apply even if work is done after hours.
You want to avoid working on something revolutionary only to give your employer the legal right to own it. Work from home, coffee shops, or hotel lobbies, but never from your employer’s office.
6. Know When to Call it Quits
If you want to commit to your business venture full-time, consider when it might be best to quit your job. It’s the fair thing to do once you can’t give your employer proper time and attention.
If you can, grow your business while working and try to replace some or all of your work income. For more information on the transition, take a look at our article, Are You Ready to Quit Your Job and Work in Your Startup Full Time?
7. Resign Professionally
When the time comes to move to your startup full-time, remember to resign professionally. Thank your employer for the opportunity, and speak fondly of your co-workers. Your supervisor and colleagues should remain important contacts throughout your career.
Starting your small business is an exciting time. It’s probably something you’ve wanted to do for a while, so it can be easy to neglect the job that’s paying your living expenses in the meantime. But it’s important not to burn your bridges. You never know who will make that next referral to your business.
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