Moonlighting a Startup Can be a Great Way to Start a Business
For many entrepreneurs, starting a business full-time is not an option. Developing
and launching your business idea as a moonlight career can be a good alternative,
but requires an even more concerted effort to remain on track.
The advantages of moonlighting your startup are significant. Because you are still
gainfully employed, your risk is greatly reduced. You don't have to worry about feeding
your family only Top Ramen for dinner or cutting your living expenses to the bare
bones. You retain whatever benefits your full-time job provides and have less to
lose if the venture takes more time than expected to take off. You aren't on any
external deadlines (only the internal ones you set for yourself), so you can take
the time you need to dig into the details of planning your business and learn any
skills you are lacking. Once you are open for business, you can control the growth
and learn as you go. Entrepreneurship is all about lessons learned, and the slower
process of a moonlight startup does give you the time to work through the obstacles
at a less frantic pace.
The downsides of moonlighting a startup are on a more personal level. Your full-time
job will have to take precedence over your startup, and time and energy constraints
can be a real issue. If your day job is at all stressful, expect to triple or quadruple
that stress level during the planning and early stages of your startup. Because it
is your own idea that you are working on, you will take the decisions even more seriously
and agonize over the options even more critically than you do for your day job. At
the same time, with a full schedule of work and personal responsibilities, your startup
can be the easiest thing to neglect. Be sure to use a time management system to keep
you on track. Block out dedicated time for your business and treat it as mandatory...and
be sure others in your life understand the importance of those scheduled work sessions.
If you are considering launching your business idea as a moonlight startup, there
are a few things to keep in mind. First, don't let your venture interfere with your
day job. Don't start a business that in any way competes with your current employer
and be sure to let them know that you are starting a business on your own time. Some
employee regulations require that you clear any additional employment with HR or
legal before you start. As long as there is no conflict of interest, you will usually
get the OK. Do not use your employer's resources for your startup -- that includes
your employer's time. You wouldn't want your employees starting their own business
while on your clock, so give your employer the same courtesy.
The types of business that work best for moonlighters are specialized, niche ideas.
With a limited amount of time to spend on the startup, the narrower the focus the
easier the process will be. Consider single-product ideas, or a service that can
be completed independently (and after-hours). The best distribution channels are
ecommerce or direct marketing because your lack of availability during regular work
hours will not matter. Consider partnering with your spouse or a close friend or
family member. Sharing the responsibility will not only speed up the development
of your idea but can also help keep you motivated and on track.
The most important factor to keep in mind in moonlighting a startup is that your
business needs and deserves the same attention to the basics as any other type of
startup. Planning, marketing, and financial management are still the primary keys
to success and you still need to take the time to develop every aspect of your idea
before you commit the resources to launch. Use your time wisely and don't give up...you
will be quitting your day job before you know it!
About the Author
LaunchX.com is dedicated to training entrepreneurs to turn their good ideas into
great companies. The LaunchX System provides step-by-step education in the mindset
and skill set entrepreneurs need to succeed. Our program includes intensive seminar
training, key business software, and specialized workbooks that teach you the fundamental
skills you need to achieve your financial and worklife goals through entrepreneurship.
Register today for our introductory course and see what LaunchX can do for you!
Contents copyright © 2009-2011 by LaunchX LLC. Permission granted to reprint this
article in its entirety provided that the “About the Author” section and all hyperlinks
are included.
