If you’ve been putting off starting your business because you’re not quite ready to walk away from your full-time job, you may have more options than you realize. In fact, 53 percent of Americans have considered launching a side business, and of those surveyed, the minimum income expectation is $50,000 per year. But in addition to the extra income, there are other great reasons for starting a side business. Here are six.
You Can Test Your Product Before Taking the Leap
What seems like a great idea to some entrepreneurs ends up falling flat in the marketplace, and that’s why many new businesses fail. But if you have the opportunity to launch your business part time while keeping your day job, you will not only be able to gauge consumer demand for your product or service, you will also have the opportunity to make adjustments and improvements to it based on their feedback before jumping in with both feet.
You Won’t Incur as Much Risk
Everyone has heard the dismal failure rates of American startups, but if you launch your business while keeping the safety net of your day job and it fails, you won’t lose everything. You will still have your salary, and will only be out the money you invested to launch the business.
You Can Use Your Salary to Help Fund the Business
Starting a business takes money, and people who start full time not only have to fund their startup costs, but also need enough cash to support themselves until the business becomes profitable. That’s not true with a side business. If you’re earning a full-time income while running a business on the side, your salary will not only pay your personal expenses, but you might be able to use the excess to fund your startup and operating expenses as well.
You Can Build Your Business Slowly
When everything is on the line and have no other source of income, full-time entrepreneurs feel an urgency to make the business profitable as quickly as possible. But in a side business, that urgency doesn’t necessarily exist. Instead, you can concentrate on building your business more slowly, spending more time making adjustments to your products and operations as your business grows, so if you decide to go full time, the kinks will already be worked out.
You Can Keep Your Job Benefits
Ask any entrepreneur what they miss most about full-time employment, and chances are they will say it’s the benefits, such as health insurance. When you start a business on the side, you won’t lose the benefits associated with your reagular job, and you can work in your side business until you’re earning enough money to pay for them on your own.
You Can Do What You Love
Finally, one of the greatest benefits to starting a business on the side is the flexibility you will have in deciding which type of business to start. Because you won’t have to rely solely on the profits from the side business to support yourself, you can choose a business that you’re passionate about. For instance, if you are a great mechanic who loves to restore classic cars, you can do that after your normal work hours and on weekends. If you love to create things, you can start an Etsy shop and use your creative talents for your side business.
Keep in mind that starting a side business takes just as much dedication and work as any other type of business if you want to be successful. But for those who aren’t quite ready to take the leap into full-time entrepreneurship, it’s a great option.