Do you dream of giving up your job and being your own boss? Making the jump from employee to entrepreneur and business owner can prove daunting, as well as rewarding.
Some people find getting a ‘happy balance’ by remaining in employment but embarking on a side hustle. As a result, they run their own business on the side while working full time. Others want the challenge and rewards of running their own full-time business.
Side Hustle or Full-Time Business
If you’re deliberating whether to start a side hustle or full-time business venture, take a look at the following pros and cons of side hustles and full-time businesses to help you decide.
Side Hustle Pros
Diversify Your Business
You might already run a business and are thinking about starting a side business. Side hustles can be the perfect way to diversify your business. By varying its range of products or services, you can increase the profitability of the business.
One example of a business embarking on a side hustle is the multinational furniture retailer, IKEA. In 2017, IKEA announced it was considering opening a chain of standalone restaurants.
Peace of Mind
We can never be sure that any kind of business will be successful. By starting a side hustle and remaining in employment, you can have peace of mind that if your business doesn’t work out, you’ll still have work and be generating an income.
Give You a Competitive Advantage in Your Career
Starting a business requires you to learn new skills. Such skills can be used to develop your own career and give you a competitive advantage.
Starting a side hustle can be the perfect way to unleashing the creativity inside you.
Be a Better Problem Solver
No-one said running a small business wasn’t without its problems. Starting any kind of side hustle is bound to create some kind of problems. By overcoming such problems, you’ll become a better problem solver, something you can use to help you in your career and on a personal level.
Side Hustle Cons
Your Employer Might Not Approve
Not all employers approve of their employees starting any side business and might even put an outright prohibition on side hustle ventures, as they want their employees’ full attention. Your employer’s views on side hustles should therefore be considered before starting your venture.
Assignment of Intellectual Property
Companies that create significant amounts of intellectual property might require their employees to sign an agreement that states intellectual property produced while you are employed at their company is owned by the employer. Again, this is something to consider before you devote time, energy and resources into creating an invention.
Insufficient Time to Devote to the Side Hustle
Being employed and operating a business on the side might not leave you with much spare time to spend with family and friends. Juggling the two will also mean you will have less time to dedicate to getting your side hustle up and running and thriving.
Little Down Time
Working in a job and running a side business naturally requires a lot of time, energy and commitment, meaning you aren’t left with any down time.
You Neglect Your Regular Job
Spending time and energy on your side hustle could result in your neglecting your regular job.
Full-Time Business Pros
You’ll Have the Time to Devote to Your Business
Without having a ‘job’ to go to, you’ll have the time and energy to put into really making a go of your full-time business.
You Have Faith in Your Venture
By quitting your job, you are telling yourself that you know your business idea can and will work.
Without having to go to a ‘9 to 5’ job, running a business full-time can help build confidence, self-esteem and help you develop both professionally and personally.
Better Work/Life Balance
You might be managing a business on a full-time scale, but by being your own boss all the time, you can enjoy a greater amount of flexibility, which can improve your work/life balance.
You’ll Experience a Steeper Learning Curve
Plunging straight into a full-time business will put you onto a steep learning curve about the complex world of entrepreneurship. Being forced to learn the skills of running a business from the offset, is likely to make your stronger and more proficient in business.
Full-Time Business Cons
No ‘Plan B’ to fall back on
Of course, not all business ventures work. By putting ‘all your eggs in one basket’ and quitting your job, you won’t have anything in terms of work and income to fall back on if your venture isn’t as successful as you hope it will be.
Harder to Walk Away From
If you’re working on your business 24/7, it can be more difficult to walk away from if the business isn’t going the way you want it to.
Too Much Pressure
From paying employees to marketing your business and sorting out admin duties, running a business full-time can be stressful and could put a lot of pressure on you to be profitable.
Less Time to Learn Essential Skills
By diving into a business full-time, you’ll have less time to pick up and learn those essential business skills compared to if you were running a business as a part-time venture.
Harder to Budget
Without an income coming in from regular employment, managing cashflow and budgeting can be more challenging with a full-time business.