A Side Gig versus a Full-Time Home Business
Are you one of the many entrepreneurs working a full-time job while running a business on the side? If so, you might wonder – when is the right time to transition the side gig to into a full-time business? This question is an extremely difficult one to answer because it depends on your personal situation. Like any huge decision, there are countless factors to weigh.
If you work a full-time job and run a business on the side, you have access to:
- Benefits
Therefore, consider the following before transitioning:
Is your family in a situation that allows you to go without your bonuses, flex funds, health insurance, etc.? Does your spouse’s job offer healthcare? Are you okay with working harder before a vacation just so you can go on vacation without losing income? Are you capable of contributing extra to your 401K to make up for an employer match?
- Job Security
Therefore, consider the following before transitioning:
Is your side business as stable as your full-time job? If not, are you okay with this instability? Can your family function financially, physically and emotionally without this stability? Are you willing to make sacrifices to make your business as stable as possible?
- Guaranteed income
Therefore, consider the following before transitioning:
Can your family live comfortably without guaranteed income? Does your husband make enough to support the family on one income just in case you run short certain months? If you lose this guaranteed income, how will this affect your children?
- Extra cash
Therefore, consider the following before transitioning:
You may or may not make as much as you’re making now starting off. Are you using this extra money to pay for extracurricular actives for your kids? Vacation? Living expenses? The more critical the expense is, the more you may need to keep the extra income.
- More clientele
Therefore, consider the following before transitioning:
Do you have enough clients now to support your business going full-time? Should you hold off another few months until you have a few more consistent clients?
- Better resume/portfolio
Therefore, consider the following before transitioning:
Are your resume and portfolio good enough to get you business as they stand, or do they need to be supplemented? If it’s the latter, consider staying at your FT job until you have more projects under your belt, a certain project goal or until you add another big client to your roster.
- More freedom to experiment with ventures
Therefore, consider the following before transitioning:
Are you absolutely sure this business is what you want to run with? Is there a good chance it will survive? Thrive? Support your family? Be fulfilling? Be rewarding? Are you itching to do something else? If you aren’t sure, consider staying at your full-time job and experimenting with other opportunities until you find one that you’re absolutely sure will offer you the life you need and want.
Working full-time and running your own business on the side has a large amount of benefits, but it also has a great number of cons. Working a full-time job with a business on the side can mean:
- You work around the clock
- You have less time for family
- You have less time to enjoy life
- Your quality of work may suffer
- You may anger your employer
- You will still need childcare
- You will still spend money on commuting
- Your vehicle will have more miles
- You won’t receive tax benefits and write-offs
Answering the question of whether or not you should continue to pursue your business on the side or transition full-time should be more clear now. After you’ve assessed your situation as it is, consider the additional pros of a full-time home business.
- Freedom. With a full-time home business, you may have a great deal more freedom than you do working for an employer. You can typically make your own schedule and work how, when and on what you want to.
- Autonomy. Other than your client demands, running a home business provides significant autonomy. You manage your own priorities, set your own goals, and shape and control your own destiny.
- Better work/life balance. Running your own business means, for the most part, you are in control of your schedule. Therefore, you can more easily work around the needs of your family and live a more fulfilled life.
- Better pay. Depending on what stage of your career you’re at and what industry you’re in, self-employment has the potential to offer you a higher salary. With yourself as boss, you can set your own rates and work as much or as little as you need to make ends meet.
- More money. Costs associated with employment such as childcare, commuting, vehicle mileage and clothing can add up quickly. With self-employment, you can trim or cut a great deal of these costs, leaving more money in your pocket. You can also get tax benefits and write-offs that you wouldn’t get by being employed.
- Less stress. Office politics, commuting hassles, employer pressures and time/scheduling constraints can put a significant toll on a person. With a home business, much of this subsides. You also don’t have to worry about what to wear, because you can wear anything you want or nothing at all!
So, What’s the Verdict?
According to Scott Gerber, business ownership is always the way to go. His philosophy is that if you want to keep a job, you have to create a job. So does this mean quit your day job tomorrow and risk everything? Maybe to him – yes. But we moms have families to consider. We can’t worry about just ourselves; we have to also worry about how our decisions affect our children, spouses, etc. So what do we do?
The bottom line is this – if you can make the transition while maintaining the physical, emotional and spiritual wellbeing of your children and spouse – then go for it. If you can’t, spend a bit more time juggling both until you’re sure your family’s needs are met. At FreelanceMom.com, we believe self-employment is always the way to go as long as you’re not jeopardizing your family’s wellbeing in the process.
