The idea of launching a side business offers exciting possibilities—whether it’s financial growth, personal satisfaction, a potential career shift…or all three. But juggling both raises some important questions: Is starting a business while working full-time actually feasible? How can you manage your time effectively, and what ethical considerations come into play? And perhaps most importantly, is it possible to succeed in both without burning out?
This article will help you navigate the complexities of running a business while working full-time, with practical tips for juggling both roles and ideas for businesses that can fit alongside your current job.
Is starting a side business while employed legal?
When it comes to working full-time while starting a business, legality and ethics are essential considerations. Make sure you understand your employment contract to avoid any legal restrictions or conflicts with your employer.
Non-compete clauses
Starting a side business while working full-time can be challenging, especially if your employment contract includes a non-compete clause or restrictions against conflicts of interest. Review your employment agreements first to ensure your side business doesn’t violate any of the terms. Equally important is to clearly separate the time, resources, and clients associated with your full-time role from those in your own business. For example, using clients from your full-time job to benefit your side business would typically be prohibited.
Intellectual property
Many employment agreements state that anything you create while working there—especially if it’s related to the company’s business—could legally belong to your employer. For example, if you develop a software tool that overlaps with the company’s offerings, they might have the rights to it, even if you worked on it outside of office hours.
Entrepreneur Chris Bajda, founder of e-commerce stores Groomsday and Groovy Guy Gifts, emphasizes the importance of scrutinizing these clauses. “I remember reading mine closely to make sure I wasn’t crossing any lines, especially around intellectual property, since anything that overlaps could cause issues,” Bajda says. “You don’t want to build something only to find out it’s technically your employer’s.”
Benefits of building a business while working full-time
Starting a business while working full-time can provide a unique set of advantages that not only reduce risks but also help build a strong foundation for your venture.
Financial safety net
With regular paychecks covering your essential expenses, you’re able to test your business idea without the overwhelming pressure to immediately generate profit. This financial cushion gives you freedom to experiment, iterate, and gradually build momentum without risking financial instability.
Experience and networking
Your current job may offer invaluable skills and industry insights that can be directly applicable to your new business. From honing project management abilities to sharpening communication skills, your full-time role can serve as a training ground.
Meanwhile, your network of colleagues, supervisors, and industry contacts can become potential allies, offering advice, and connections, or even becoming future clients or customers.
Less financial pressure
Having an extra income stream can ease financial pressure from your primary job, making it easier to handle work-related challenges. Knowing that your side business has the potential to grow into something bigger can give you a renewed sense of control over your career and finances, reducing day-to-day stress. Likewise, having a steady paycheck means you don’t have to rely solely on your new venture for income, allowing you to build it at a manageable pace.
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Challenges you’ll likely face and how to overcome them
Running a business while working full-time offers many benefits, but it also presents potential hurdles. Balancing two commitments requires strategic planning to ensure steady progress in both areas.
Time management
Balancing your full-time job with your business can be tricky, especially when both require significant focus and energy. It’s easy to feel overwhelmed, as each role has its own demands and deadlines.
Setting clear boundaries is essential. Establish dedicated hours for your side business (like early mornings, evenings, or weekends) and stick to a routine that doesn’t interfere with your primary job. This way, you’ll maintain professionalism at work while still making consistent progress in your business. Use tools like calendar reminders, productivity apps, and time-tracking to stay organized and on task.
Energy and burnout
Working long hours across two roles can take a toll on your energy levels, increasing the risk of burnout.
Prioritize rest and take breaks to recharge, so that you’re not constantly in “work mode.” Bajda shares his personal experience on starting a side hustle while working full-time. “Making sure I had some personal downtime kept my energy up,” he says. “Walking, watching, reading, or listening to something motivating were small ways to feel productive while still giving my mind a break. Burnout is real, so finding that balance early on helped me stay steady.”
Work-life balance
By juggling a full-time job and a business, your personal time might get overlooked. But keeping space for family, friends, and relaxation is vital for long-term sustainability.
Setting aside even a few hours a week for non-work activities, like exercise, dinner with friends, or even catching up on your favorite TV show can help refresh your mind. And of course, don’t neglect the importance of a good night’s sleep.
Read this next: 37 Tips for a Better Work-Life Balance
How to start a business while working full-time
Figuring out how to start a business while working a 9-5 can be challenging, but it’s totally doable with the right approach. Here are a few tips to help you balance these two sides of your professional life:
1. Choose a business that fits your schedule
Pick a business idea that aligns with your availability, ideally one that doesn’t demand a large initial investment or constant attention. Consider options like e-commerce, freelancing, or offering online courses—businesses you can manage from home during evenings or weekends without disrupting your primary job. An idea that fits well into off-hours lets you balance both responsibilities without letting anyone down.
2. Start small
Begin with a side hustle that can grow over time, scaling as you gain more resources, experience, and time to invest. This approach allows you to test and refine your business model gradually, lowering the pressure to go all-in from the start. By building a foundation first, you can seamlessly expand when you’re ready—and also get all the help you need to make your business grow.
3. Financially prepare
Set aside a budget for your business registration and any initial expenses, and have a plan for handling potential fluctuations in income.
“An important part of the preparation stage involves securing funding for your business idea, creating a reliable safety net, and reserving a business account on the side,” says Yosef Adde, an investor, financial advisor, and founder of real estate company I Buy LA, who also opened his own business while working a full-time job.
If you haven’t built an emergency savings fund yet, make it a priority. “The first thing I did was build a financial buffer that could cover at least six months of expenses, just to be ready for any bumps in the road,” Bajda says. “Having a clear budget kept my business finances separate from personal funds and helped me avoid the stress of unexpected costs.”
Read this next: 3 Ways to Start Your Business Without Going Into Debt
Best side business ideas to start while working full-time
Juggling a business and a full-time job doesn’t have to be a drain on your resources or time if you choose the right type of venture. Certain businesses are especially well-suited for part-time entrepreneurs. Here are some of the best business ideas for full-time workers
- Freelancing or consulting: If you have marketable skills in your current field (or a different one), freelancing or consulting can be a great way to turn expertise into income—as long as it isn’t a conflict of interest with your current full-time job. Freelancing allows you to set your own hours and work on projects that fit into your schedule, whether in marketing, design, programming, or another field.
- E-commerce (dropshipping, print on demand, etc.): An online store, especially one based on dropshipping or print on demand, can be managed during your off-hours with minimal inventory and lower startup costs. E-commerce platforms today make it simple to set up a store and automate much of the fulfillment process, so you’re free to handle other responsibilities.
- Online courses or coaching: Monetizing your knowledge through online courses, webinars, or coaching sessions is another excellent option. Platforms like Udemy or Teachable allow you to create and sell courses on your expertise. Once you set it up, you can generate passive income as people purchase your course over time.
- Blogging or vlogging: Building content around topics you’re passionate about, like travel, finance, or fitness, can evolve into a steady revenue stream from ads, affiliate marketing, and sponsored content. It may take time to build an audience, but it’s a business you can grow gradually.
- Stock photography or graphic design assets: If you have skills in photography or graphic design, you can sell digital products like stock photos, logos, icons, or templates on platforms like Shutterstock, Etsy, or Creative Market. This allows you to generate passive income, as people buy your assets without additional daily involvement.
- Home-based food business: If you enjoy baking or creating unique food items (like sauces, jams, or desserts), consider a small-scale, home-based food business. You can do it as a part-time side business, offering goods through local markets or online platforms that allow homemade food sales.
Tips for successfully managing your time
With limited hours, especially if you're balancing other responsibilities, it's important to adopt strategies that help you stay organized, productive, and maintain your energy over the long term.
Block scheduling
Allocating specific time slots solely for business tasks helps keep your focus sharp and allows you to draw a clear line between roles. “What worked best for me was setting firm hours for each, almost like creating two shifts,” Bajda says. “I’d wrap up my day job and give myself a break before jumping into my business tasks, which kept me from feeling like it was all one endless workday.” This approach prevents burnout and gives you a sense of separation, even when balancing both responsibilities.
Prioritize tasks
Focusing on high-impact tasks ensures your limited time is spent where it counts. “I typically begin with the hardest of the assignments in the morning and administrative work done near the end of the day,” Adde says. This routine, along with a weekly check-in to assess progress and set priorities, keeps you on track without getting overwhelmed.
Use productivity tools
Give yourself a regular check-in period, and use productivity apps like Notion, Todoist, or Trello, to help with focusing and prioritizing. Integrating productivity tools can reduce manual work, automate reminders, and help manage tasks with ease.
When to transition from full-time employment to full-time entrepreneurship
Deciding to leave a steady job for a business requires understanding when the timing is right. You want to look for steady profitability and predictable revenue, both indicators of a business’s financial stability.
“I’d usually recommend business shifting only when your revenue has hit 75%-80% of your salary and is expected to grow,” Adde says.
Begin planning your exit strategy early. Set clear milestones for when your business should reach specific revenue goals, client numbers, or other indicators of stability. This allows you to define a timeline for your transition, helping you step confidently into full-time entrepreneurship when the business is ready, not just when you feel the urge.
A solid financial foundation is another essential aspect when leaving your job to focus on your business. Most experts recommend having at least six months’ worth of living expenses saved, along with a budget plan to account for any potential setbacks.
FAQs
Can I have my own business while employed?
Yes, you can start your own business while working full-time, but you should review any contracts or agreements with your employer, such as non-compete clauses, and make sure your side business doesn’t conflict with your job.
What are the best business ideas for full-time employees?
Some great business ideas for full-time employees include freelance writing, graphic design, dropshipping, tutoring, online courses, or creating digital products. Choose something that aligns with your skills and interests while fitting your schedule.
How can I manage a business while working full-time?
Time management is key when running a business while employed. Set clear boundaries, create a schedule, and use productivity tools to prioritize tasks effectively. Remember, it’s important to balance both your job and your business without burning out.