I operated a side business that eventually became a full time commitment requiring more than 60 hours per week. Although I enjoyed a level of success greater than any other jobs I previously held, the journey required more effort than if I had been employed elsewhere. Eventually I suffered a work related injury that required me to close my business, conduct a job search, and ultimately start a new career. However, I look at my years of self-managed employment as a real learning experience. It was often hard, but rewarding work.

One problem relating to a part-time startup many don’t consider is burnout due to high input that may only result in break-even output or even operating at a loss for a period of time. That is to say, you might dedicate as much time as possible to making your part-time enterprise profitable, only to find you are not making much more than your operating expenses. If you have become involved in a side business that requires a full-time effort to really break free and enjoy its full potential, you may find yourself making less than at your present job, or career. It is precisely because it is a part-time side business that may preclude finding the necessary time for growth.

If you are not careful, the feeling you’re just not getting anywhere can sink in and begin to affect your overall day-to-day outlook. This is where it is helpful to be passionate about your chosen business. If you were only lukewarm about your freelance venture to begin with you run much greater risk of burnout, or even depression. On the other hand, if you take a hard look at your options before becoming invested, you stand a better chance of narrowing your choices to the ones most likely to carry you over the hump to where fireworks just may be waiting on the other side.

I have mixed feelings about having a side job. I have tried it, through multi-level marketing, for the past three years, and all I got was a bunch of good information and little or no money. The idea is good, the stress may be worse, and the final result is that the “side” job is continually trying to tell you to work hard enough to make it your main job,and then leave the other.

The problem is, for many people that never happens. True, there are some who find their niche and become extremely wealthy, but there are others who give their life savings and have nothing to show for it. It also means time away from family, time away from taking care of your health (we all need some down time!), and time taken away from your primary job, because your mind is distracted to the “new” business.

I also had a major problem with leads for our side business. Considering most of my acquaintences are related to my main position, and therefore can’t be morally pitched without a problem with conflict of interest, we were relegated to purchasing leads, which are nothing more than trying to pitch a complete stranger. It’s not considered cold calling, but it should be.

On the positive side, when a sale comes by (the products of the company are great!) we get a few extra dollars, but it is not something we can even consider counting on. So much for helping the paycheck to paycheck issue!

Barry

Not sure where it is headed, but it is definitely steadily growing.

While the extra business does take time, it also is energizing. My employer knows and encourages my side business, which makes it great.

Better to try to build something of your own and fail than to look back and say “shoulda woulda coulda”. there are dreamers and doers. If you dream about doing this, then do it. If you don’t, then don’t. But don’t dream on the sidelines.

thom

America was built by entrepreneurs. Two hundred years ago about 80% of Americans were entrepreneurs and 20% were employees. Now it is exactly the reverse except for two demographic sectors, immigrants and college students. Immigrants come here for the opportunities available and don’t complain about how hard it is to work your way up from nothing. By the way, in almost every case their idea of nothing and ours is vastly different. College students have seen their parents work their whole lives and then get laid off or end up with nothing to show for it and they’re not buying into it. They’ve grown up with the Internet and don’t see anything wrong with starting four five Internet business because the barrier to entry is low, they have nothing to lose, and if they fail they can always go get job later.

I have nothing against people working 9-5 until their 65 and then spending their golden years traveling the world or doing whatever they enjoy. The unfortunate reality is that for most it 9-5 to 65 and then part- time at Wal-Mart to supplement their social security (there is that damn word again) and their non-existent pension or under-funded retirement. If people want to disagree with me that is fine, I’m used to it. I have learned to disregard the opinions of others unless they happen to be paying my bills. If you want to put your security in the hands of your employer go right ahead. But check out the layoff report at http://www.jwtec.com/hrlive/layoffs.php and search nationwide for just the last week and see how that worked for all those people.

Cheers

Chris J.

That’s the essence of a problem much bigger than “one job”.

Now, I’ve blogged, and kept redefining my thoughts. Until this popped out: Success for your generation is: (1) ruthless financial discipline — no bad debt; (2) a life long interest in learning — education — a degree — they can’t take it away from you; (3) a white collar job in order to save big bux; (4) a blue collar skill for hard times — never saw a poor plumber; (5) one or more internet based businesses — your store is always open; (6) a free time hobby that generates income; and (7) a large will-maintained network of people who can “help” you.

“paycheck2paycheck” is indicative of not having that “ruthless financial discipline” that in item#1!

One blogger, http://www.getrichslowly.org/blog/2007/10/28/build-wealth-with-a-virtual-employer Build Wealth with a “Virtual Employer” Sunday, 28th October 2007 (by J.D.) gave up the idea of creating a “shadow” employer. Basically direct deposit your real paycheck into an account and “pay yourself” a regular lesser amount. It’s tom foolery! But sometimes, fooling yourself isn’t bad. I used something similar on various occasions when I was in my own biz (three times) and used it to flatten out the peaks and valleys of cash flow from consulting. So there are ways out of it. My Mom taught me to bank half your raise every year and a 100% of any “windfalls”. That enforced education made later life easier because it was a habit.

Now, I’m not trying to preach or make it seem like I’m so smart. I just made “different” mistakes. For example, when I worked on Wall Street, I was so taken with the Human Genome Project, I bought 25k of stock with my own money and watch it drop to 2k in about ten weeks. Another time, I bought into Delco right before GM tanked. The only nice part of these “mistakes” was that I wasn’t playing with the mortgage money. Lest anyone think I’m a terrible picker, I’d just say that some of my picks were much much better. And, if you believe in Mutual Funds and Exchange Traded Funds, you can bet every horse in the race.

So, bottom line, you need get out of the hampster wheel of paycheck 2 paycheck. Jumping into sidelines, second jobs, side businesses, or even (Intelligent Designer forbid!) Multi Level Marketing will only sping the wheel faster and not make any progress.

imho!

(Disclaimer: I’m not a doctor, lawyer, accountant, or Indian Chief. Nor, have I stayed in a Holiday Inn Express lately! Blog posts are for entertainment value only; not intended as investment advice. This is neither an offer to sell or an inducement to buy, which can only be made by formal prospectus. Results shown are for illustration only, and are not reflective of actual returns accomplished by actual investors.)

FWIW YMMV FAIWWYPFI
fjohn