The biggest risk of starting your own business is to begin working on building your company while you’re still employed with a full-time job that pays a regular salary and benefits.
Reasons why should not quit 1st job immediately
A stable, dependable source of income will give you much more confidence in testing the waters with a new business that has a high likelihood of failure in the first year.
If you’re in a position to start your business while you’re still employed, you’ll have the best of both worlds. When you start your 2nd business, from day one, you should have an eye on selling it. You should build it up as if you are planning to sell it for top dollar.
By this point, you’ve learned about how to start a “second business” based on passive investment income. But your first business/or if your already working for any company, may still be your main source of income. OR if you want to sell out your existing 1st business, that’s also doable, if not working in a manner it should be.
Few crucial reasons, why would you can sell out your 1st business?
- You can sell it for a huge pay-day—anywhere from six to 10 (even up to 20) times its annual revenue.
- You can leverage your experience and knowledge for thousands of dollars an hour.
- You can remain in the business but with none of the overhead.
When you have a business online or brick and mortar that will be successful, if you work hard and you will achieve something that only the Top 1% of Entrepreneurs ever accomplish. Now, that achievement might feel like “just another day at the office” to you but there is a huge number of entrepreneurs who still need help building their business.
Do’s to start the 2nd business
Growing your own 2nd business is the added stress of unpaid bills stacking up or draining your savings account without a clear path to earning it back.
Saving or investing all of the profits from your side business will help you build a safety net for potential lean times in the future once you no longer have your day job. Here are few tips to starting 2nd Business While You’re Still Employed –
- Do consider running your business as a part-time operation alongside your current job. This is a great model because you’ll continue to have dependable income and benefits while you test your way into finding a way to drive consistent, reliable income with your side business.
- Do understand and follow your employment contract. This is particularly important if it refers to inventions and intellectual property (IP) that you develop as part of your job.
- Do save your side income. Set aside cash reserves from the income your startup creates that can sustain you when and if you decide to leave your full-time job.
- Do be as open with your employer as possible. In fact, if your business is not competitive with theirs, see if you can turn them into a collaboration partner, customer or client. You may even be able to get your employer to invest in your startup or allow you to hold equity in a joint venture.
- Do thoughtfully prioritize your time. If you’re going to keep your day job and work on growing your part-time business at the same time, that doesn’t leave much time for non-essential activities.
Starting 2nd business is big deal if you are still employed. Decide what’s important, consult with the other stakeholders and family. Then create a target list of all the responsibilities and activities you’ll be reducing or eliminating to make time for your business. And plan in a more strategic manner.Are You a Woman Entrepreneur