1. Why set up a part-time business?
You might want to launch your business part-time - at least initially - to achieve personal goals such as:
- monetising a hobby - to benefit financially from something you are doing anyway
- achieving a work/life balance - to accommodate family and other commitments
- testing a business idea - to evidence that there is demand for your idea, that you can attract enough customers to sustain you working full-time in the business, and to check whether you will enjoy working for yourself.
Also, your personal finances may mean a part-time business is the only practical option.
When starting a business you often have some upfront costs. You will also need enough savings to cover your living expenses until you generate enough income to pay yourself a salary. This may be several months, or longer.
By launching part-time, you could potentially stay in paid work and have the security of a regular income until the business is up and running.
2. Businesses that may be harder to run part-time
Working on your business part-time is more difficult if you are:
- aiming for rapid growth
- launching an innovative product or service
- seeking rapid funding from investors.
Achieving growth and staying ahead of the competition takes a lot of time. Investors will expect to see a return within set timescales and usually require your attention and motivation to be fully focused on the business to minimise their risk.
3. Continuing your current employment
If you continue in paid work when you're running your part-time business, your employment contract may require you to tell your employer. You will also need to be honest if your new venture is likely to compete directly or indirectly with your employer, which would create a conflict of interest.
If they are happy for you to continue, you must be careful about separating your personal business activities from those of your employer, this includes your employer’s:
- time - taking phone calls or sending emails during work hours that relate to your own business, may breach your employment contract.
- property - making use of your employer's supplies, materials or intellectual property could be a disciplinary matter.
If you discuss your plans with your employer, they could become a source of encouragement or work.
4. Getting started
Even if you are only starting your business part-time, you will still have many of the same decisions as someone launching full-time.
- Are you ready to start up? To decide if starting up is right for you, reflect on why you want to take this step and whether your idea and business model are likely to be viable.
- Which legal structure? You will need to decide the legal structure for your business - for example, setting up as a sole trader or a limited company.
- Where will you work? You may be able to run your business from home; or keep home and work separate by finding premises for your business.
- What about the money side of things? You will probably want to set up a separate bank account and you may need funding for set-up, development and growth.
- Do you understand your tax responsibilities? Remember to notify HMRC of any changes in your income, whether or not you have other paid employment. If you have been receiving benefits you will need to check if these could be impacted.
- Do you need professional advice? You may benefit from professional assistance, such as accountancy and bookkeeping, or marketing and IT support.
5. Overcoming resource issues in a part-time business
You might find that running a part-time business takes more time than you predicted. This can lead to difficulties with meeting obligations from current employment or balancing family life.
In this case, consider if there are any ways you can save time or bring in extra help.
- Could you use any online tools to save time on activities such as bookkeeping, marketing, or project management?
- Can you plan ahead to predict any busy periods?
- Is there any work you could outsource to a supplier?
- Could you join forces with a business partner who has a shared ambition and complementary skill set?
6. Support for part-time businesses
Your local Chamber of Commerce offers support and advice and may organise networking meetings for businesses of a similar size, in similar sectors.
Consider joining the trade association for your business sector, to interact with peer businesses for advice and information.
Mentoring can help you develop business skills and benefit from a fresh perspective.
Business Gateway can support you too - contact us or find your local office.
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