Why start a business part-time?

You may dream of the day when you can quit working for an employer to start a home business. If you cannot start full-time, don't be disappointed. Most home businesses are started on a part-time basis

A part-time venture, especially a home-based one, generally costs less to launch because of lower overheads. There is less operational debt because profits are invested back into the business.

An entrepreneurial idea can be safely tested for its market potential to determine whether it's worthwhile.

An entrepreneur can keep their 'regular' job, continuing to support themselves or family while simultaneously operating a sideline business.

Business expenses can be deducted from other earned income until the home business becomes profitable (talk to a financial advisor about business taxes).

A business can operate part-time until children are in (or out of) school; retirement; the entrepreneur has mastered business management skills and become familiar with the industry; or the venture produces enough profit to go full time.

A loan may be more attainable because of the business's track record of sales and operations.

A part-time business's flexibility enables it to expand its offering of services or products if a new customer market unexpectedly opens up.

Depending on the entrepreneur's time and resources, several part-time businesses can be operated simultaneously.

If the business is a partnership, the owners can determine whether their working relationship will succeed before too much time or money is invested.

Part-time ventures also have drawbacks

The business may not be taken seriously because of limited time or hours.

Even though it's only part-time, frustration can develop from insufficient support or time to put into the venture.

Slow business growth may be discouraging; or conversely, sudden, rapid growth can be overwhelming, especially if owners cannot handle unexpected customer demands or think their skills are inadequate.

How to start a part-time business

Start-up basics are the same as going full-time:

Pick a business
Write a business plan
Prepare and research the operation and start-up needs
Persist. Even a part-time business demands a daily commitment of hard work and marketing efforts
Be professional. Whether you are part- or full-time, home-based or not, customers will expect no less than your best.

Some prefer a sideline business. One book publisher's sales rep said: 'I like having my music business part-time because I have the option of doing business with people whom I enjoy. I tried it full-time, but it was no longer fun. I'd rather have the steady income of a job I like and the enjoyment of running a business at my pace.'

Whatever the individual entrepreneur's decision, having a part-time business can decrease the pressure to make a fast profit and provide more opportunities for personal growth and business success.