A guide to starting a business while working full time

Starting a business whilst still in a full-time job has a number of attractions, not least of which is seeing if the business will work before giving up your income and having money to put into the business without draining your savings as quickly.

You also won't lose benefits like health care and pensions.

Continuing to work can mean you have more time to plan and do things well, being choosy about customers or projects rather than feel pressured to bring in income because you need to support yourself.

So, how do you get started?

Six steps to starting a business while working full time

1. Choose a business idea

Wanting to start a business is not enough to make a business work. You need to start with an idea - and have a passion for it because there will almost certainly be times when the going gets tough, and it’s only that passion that will keep you going and wanting to succeed.

(Other options to consider if you don’t have a smart business idea are doing exactly what you do at work but freelance if there is a market for it; or looking at one of the many franchise opportunities out there and matching them to your interests, ambitions and skills.)

Once you have your idea, look at the competition. Who is already doing something similar? What do you like about what they do, and what could you do better or differently? What are they charging?

Talk to people you trust about your idea. Gauge their reactions. Listen to their ideas. Don´t argue with them over details, and if they don´t like the idea, don´t necessarily take it to heart. Henry Ford once apparently said that if he'd asked people what they wanted, they´d have said faster horses. Only you can decide what´s right for you.

Follow your ´gut´ instinct: it´s the sum of your life experience to date.  Starting your own business whilst still working full time can prove a smart move - a safety net whilst you work out whether your ´side hustle´ is producing a product or service that will generate enough to allow you to quit your full-time job.

And remember that a business idea without taking any action, will never be anything more than just that: an idea.

2. How will you manage your time?

Whatever the ´get rich quick´ crowd suggest, businesses don´t run themselves and become profitable overnight. Most will need a lot of time and self-discipline.  

Something has to give!

What can you call on others to do? You may be able to build your own website, for example, and there is a lot of software out there to help you. But it will take you longer than someone professional and you may make mistakes. For each part of the business plan, look at who might be able to help you and what you need to pay others to do.

Time management will be key: using your time effectively will be a key to success, and to accruing the benefits of starting a business. Whether you are aiming to make money on the side or aiming for World domination, try to ensure that things like going to the gym and downtime with friends and/or family don´t go completely amiss. You becoming ill won´t help your business.

3. Create a business plan

Successful businesses start here. It sounds boring when you´re itching to get going, but this plan will help you work out how you are going to run and market your business.

The UK government has a useful resource for creating a business plan: Write a business plan

The plan will help you work out whether you need funding to help you start up, flush out your costs and allow you to plan your workload. It will also make you decide what ambition you have for your business. Do you want to start a side business or are your ambitions bigger?

Even if you are simply buying and selling things, or selling things you make, you´ll want to know costs, stock holding levels etc to make the business work.

Anyone can run a business at a loss. Starting a side business while still employed comes with it´s own frustrations, but can be a really good way to test the business, see what resonates and who with, and let´s you start and run with less risk. If you are able to start this way, there are a lot of benefits for you AND the business. It will mean you can more confidently set realistic business goals and plans, as well as seeing whether this is the business for you.

4. Protect your current employment

If you´re reading this, it´s likely to be because you want to run a business but still have the security of an income.

Check whether your employment contract has a non-compete clause (and if what you want to do falls into this category) or if you are allowed to run a business whilst still working full time.

Don´t risk your employment by working on your own business during company time or by using their equipment like printers, laptops, stationery etc.

If you´re not ready for full-time entrepreneurship, consider whether you could reduce your hours at work to dedicate time to your new business at the appropriate time.

5. Stay legal: there are tax implications to running a side business while employed

Business owners in the UK can earn up to £1,000 without telling HMRC and declaring the extra turnover.

This is less than £100 a month (£25 a week), so if you have a small ´side hustle´ (micro business) this may be OK for you, but most businesses will exceed this.

Be warned. HMRC is apparently investing almost £40 million to crack down on people who fail to report properly, with a dedicated team identifying discrepancies between income from digital platforms and tax returns.

If you have ambitions for your business, it may be as well to make sure that your business is properly registered from the start and consider appointing an accountant. There is plenty of good software out there that will allow you to do your own bookkeeping, but a good accountant will keep you on top of filing and can often save you money.

Many people forget when running their own business in the early stages that company income isn´t personal income: make sure you understand and make provision for tax and national insurance.

Even if you are still in a full time job, register your business. It will help you stay legal and may protect you later from people who copy. Registering will also stop you inadvertently pinching someone else´s business name.

6. Self-Storage

Running a small business while working can fill your home with 'stuff' from stocks to stationery, marketing materials and boxes.

If you are starting a business from home, self-storage can be invaluable for putting away things to make space in your home until the new business is ready to take on premises - and protect your sanity!

Similarly self storage can be used for storing stock, even for preparing packages for e-commerce type businesses [insert e-commerce article link] to keep your home a haven.

Pink Storage operates throughout Wales and in the northwest of England, and even has a price promise on self-storage: Pink Storage