Start-up as a sideline: Things to keep in mind.
Entrepreneurs with a permanent employment may benefit from starting their own start-up as a sideline enterprise. That way you benefit from financial stability and can switch to your start-up as soon as the foundation phase is successfully completed.
Setting up a start-up as a sideline enterprise
Working part-time is an effective way to reduce the risk of your start-up. The salary obtained from your job ideally covers the cost of living and reduces dependency from your venture. That way you reduce the risk of standing out in the cold in case of bankruptcy. As soon as your start-up has passed through the tricky foundation process, you are ready to focus on your company entirely.
Get your employers consent
Having your employers consent will help you get through the first steps of your start-up, as it is important that he agrees with your entrepreneurial endeavour. There are a few hurdels when working on your own project in your free time. Your self-employment can’t breach your contract of employment. Your start-up is not allowed to compete with your current firm. And most of all, your employer needs to be able to count on your usual performance.
Weigh the advantages and disadvantages
When building up your start-up as a sideline you need to think of all the pros and cons. Being employed while on the path to independence is a safe bet, but it also means having less time for your start-up. This means that establishing a solid and autonomous firm will take more time. Handling a part-time job and a start-up simultaneously can also cause strain and overload. You need to take into account extra hours and long nights. But if you are confident in your idea and have the entrepreneurial spirit, going for a sideline enterprise is a good option.
