So many people have the dream of setting up their own business. You may have always wanted to but never got around to it. Do you have a great idea which you know will just work and people will love? Or perhaps your current job is bringing you down and as much as the pay packet is perfect in your bank account every month, it’s not what you really want to do.
If you’re considering setting up a business on the side whilst you’re still employed there are a few things to think about and look into. Be sure to check your current employment contract before you start. There is often a clause which will stop employees from setting up their own business whilst employed with the company. This is fully understandable because if you put yourself in their shoes, they want members of staff who are committed and devoted to their role. This isn’t to rain on your entrepreneurial spirit before you start, it’s just something to be aware of. You wouldn’t want to be halfway through setting up what could perhaps be the next chapter of your life, find yourself in breach of contract and have the income you rely upon pulled from under your feet. Be financially sensible.
You think you don’t have enough time in the week already? Just wait until you work full time and set up a business in your spare time, or lack thereof! Think about your job, the commute, family time, meal times, household chores and everything else you do in a week. Do you want to sacrifice that one hour in front of the telly on a Friday night? You need to have a decent work-life balance and make sure important things like family don’t suffer from setting up a company. Limited spare time to dedicate to the running of a business will ultimately make said business suffer.
Inevitably, it takes money to set up something new and until you start selling your product or service, you might indeed incur a loss. With this in mind, it might be an idea to set yourself up as a sole trader so your losses can be offset against your employment salary. This could mean you get a tax refund and those losses aren’t as much of an impact in the short term. Here at Bruton Young, we can advise you on the best way to go about this and have a proper talk through all your options.
Businesses succeed, businesses fail. The latter is the reason why people stay in employment when trying to set up a new venture, to ensure they still have an income to pay the bills. However, as said first, businesses succeed. If yours is one that does, at some point you’ll need to decide whether to take the step away from your employment and run your business full time. This leap of faith is just that, one in faith. No one knows how it will turn out but as the saying goes, if you don’t jump, you won’t fly.