Giving up your job to launch a new business might be a little overwhelming. After all, you will need a steady income to pay for your mortgage/rent, bills, and groceries. Rather than quitting your current career, you could always launch a new venture in your spare time.
Firstly, it’s important to launch a business you feel passionate about. For example, you shouldn’t run a dog walking business if you don’t love animals. Pick a venture that will make you want to get to work as soon as you return home from your job. For instance, you could make your own crafts to sell online, or you could launch a part-time catering company if you are passionate about cooking. Whatever it is you decide to do, make sure it is something you love.
To give your company the best possible chance of success, you must write a business plan. This will require you to sit down to write realistic goals, so consider how much time you have available. You’ll also need to set financial projections to ensure you don’t go over budget, and have yearly goals as well as goals you want to achieve in five years’ time.
Don’t forget to think about how you’ll run your business. For example, if you are running an e-commerce website, drop shipping can be a great way to lower your overheads and reduce financial pressure, as you’ll only order from your dropshipping suppliers once a customer does, and they will ship the product directly from their warehouse to your customer’s address.
Are you afraid that you don’t know how you’ll manage essential business functions, such as accounting, marketing, and administration? You could always outsource your operations to professional freelancers. Alternatively, you could ask your friends or family members for help if they have experience in a field. So, you can run a profitable part-time business without having to hire any employees.
While some employers might be happy for their staff to run their own business outside of the workplace, others might prefer their staff to work exclusively for their brand. It is important to review your employment contract before starting a part-time business, as you might be in breach of contract if you launch a business in the same sector.
While you might view your business as a small side hustle, the government will view it as a business. Even if you have yet to earn a profit, you must register your business as a sole proprietorship, partnership, corporation, or limited liability company. You will also need to apply for a business registration number from the IRS to pay business tax.
Once tax season arrives, you will want to have all your financial information at your fingertips. Ensure you don’t make one mistake by keeping a record of your income and expenses. You can do so with a spreadsheet, an online accounting system, or a manual system. Genuine expenses (such as utilities and computer equipment) could also help to lower your tax bill, so keep every receipt for proof of purchase.