The Good and Bad of Starting a Side Business While Working

A lot of us dream of owning our own business and being our own boss. Keeper of your own time, fate, destiny and all that, right? It sounds exciting (who wouldn’t want to be the founder of an uber-cool startup or the face behind an exciting brand) but it doesn’t come handed on a silver platter. Nope – like everything else in life: You. Gotta. Work. For. It.

Plus, there is the whole uncertainty factor that comes into play when you want to venture out on your own with no secure salary, benefits or whatsoever. Which is why a lot of people actually start working on their business idea while still being employed full-time. It’s quite common actually – most people don’t start out being their own boss; they eventually get there after some work experience that will come in handy for their business or after thinking about a few ideas before settling on one that they are certain will work and testing it out while still employed. All hoping that eventually the side business becomes more lucrative and exciting than their current full-time role. That’s the dream, right?

The good news is this dream can be a reality (we know, we’ve interviewed a lot of successful entrepreneurs who quit their full-time job when their side gig really took off). Which means it is possible – and proven – that you can hold down a full-time job while hustling on the side.

But should you do it? Here are some pros and cons to consider about owning a side business while employed full-time.

The Pros

• There’s more security running a side business while still employed. You are generating guaranteed income while you work to develop your business on the side, which means you don’t have to worry about running on zero in case your business doesn’t take off and you’re unemployed.
• It’s less risky. Imagine quitting your job, using your savings to manage your business... and realising it is not working out and you’ve wasted all that cash. At least when you’re employed, you still have some money to sustain while you pump in some savings towards your business. And if it doesn’t work out, hey at least you’re still earning a living, right?
• You can quit anytime. If your business takes off, you can quit. But if you quit first and your business doesn’t take off, you can’t get your job back.
• Existing contacts. A full-time job puts you in prime position to network and expand your contacts. Which – ahem – you can use to build contacts for your new business. Not being in a gainful employment while working on your business puts you at a disadvantage as you may have to start from bottom up to build credibility about your brand and yourself.
• Benefits. Medical/health insurance. Bonuses. Allowances. Leaves. EPF. You still get all of these even if you’re running a side business because of your full-time employment. None if you don’t have a secure job.
• Savings. So your business isn’t quite ready to take off yet; it still needs some capital. Where can that money come from? That’s right – part of your salary.

The Cons

• Hello, no weekends. True story: A friend ran a small café while holding a full-time job at the bank. Her weekdays were long because of the hours at work and her weekends were non-existent because she was at the café. The side business didn’t last long as she soon became frustrated not being able to spend time with her family or even herself, and something had to go – her side business or work. So think carefully of the commitment!
• It’s not easy. Can you handle juggling your customers from your side business on top of meetings, deadlines, presentations and work trips? What if something clashes? ‘Nuff said.
• Stress! You’re with your boss in an important meeting and a customer calls, demanding that you fix something ASAP or you won’t get paid. Now, how do you get out of this sticky situation and do both at the same time?
• It may be illegal. Some companies – especially banks – have a rule against owning side businesses while in employment. Read your job contract carefully before you start that side business; you may be required to declare earnings from other businesses or even be subject to a lawsuit if your side business is similar to what you’re currently doing.
• Not everyone gets lucky! Reality check – for every successful side business, there are tons more that fail. All businesses need time and effort. If your full-time employment doesn’t allow you to focus on your side gig, chances are it won’t take off the way you envision it to or it will take a lot longer... much longer than you’re willing to wait or spend time on before finally saying, “Oh well, I tried.”