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What to Consider before Starting a Side Business

24 May 2017 No Comment

Not everyone can afford to pay their bills or live the life they want on a single job. While taking on another job could be the way for them to earn the money they want, they may be more inclined to start up their own business.

It’s certainly an appealing proposition to be your own boss and decide how much income you want to earn. However, there could be some things holding you back from making that happen. We are going to look at some of the legal ramifications of starting your own business and what you need to think about before you begin.

Are You Legally Able to Run Your Own Business?

This should be the first and foremost question on your mind as you consider beginning a business on the side. You must consider the consequences of starting up a business for yourself while you are still working for an employer. In some cases, it simply isn’t something you can do and still be on the law’s good side. For example, your employer could have made you sign a contract that prohibits you from doing similar work for someone else. Even if that someone else is you, it could still be illegal.

Make sure you go over your work contract and even have a lawyer look it over for you before you get any new business started. For some jobs, this step isn’t necessary. However, if you did sign a work contract, then it is definitely a requirement.

Do You Have the Collateral to Make It Happen?

Starting your own business can be difficult. Sidestepping the legal question, there is also the question of how you will be able to afford it. Not every business is going to take a lot of startup money to get going, but many of them will be expensive propositions. You must consider how you are going to afford travel for your business, a storefront or online space, upkeep, products, employees and more. Take careful tally of all your required assets and expenses before you get too excited about starting your own business. We don’t want to hold you back from your dreams, but we do want you to be realistic. Too many people jump into starting their own business without thinking about the ramifications and how they will be able to afford it. Take careful note of all your expenses to determine if this is something that you can afford to do.

Will It Keep You from Doing Your Current Job?

Finally, we want to you to consider the effect this new business will have on your current job. Likely, it is your current job that will be the primary moneymaker. If your new business starts to crimp on your current work and affect your performance, earnings and career, you may need to reconsider it. You must keep whichever job is go into benefit you the most, and you want to ensure that the new business is not preventing you from earning the same amount of money you have been at your job. If it doesn’t, then your business startup could be a bad idea. It should be helping you to earn more money and not preventing you from making as much as you used to.

You should also think but how your new business will affect your work relationships, particularly with your boss. If your employer thinks that you are falling behind in your work or underperforming because of your new business, they may ask you to leave the company or quit that new business, and you want to ensure that doesn’t happen.

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