Starting a part-time business

Advantages and disadvantages of starting a part-time business

There are advantages and disadvantages to running a business on a part-time basis.

Advantages include:

  • you are able to stay in paid work and have the security of a regular income until the business is up and running
  • you can use skills you have learned working for an employer in starting and building your own business
  • if you have obligations such as caring for dependents, it is a way of having an income
  • you can test whether there is a market for your products or services without a major financial commitment
  • if you have a hobby that you would spend time on outside work anyway, you may be able to make money from your interests

However, disadvantages include:

  • finding the time to run a business can be difficult and it may take up more time than you have available
  • you may find it hard to concentrate on paid work if the business has a problem
  • you may have to put in long hours, which can cause stress
  • it might take a long time for the new business to develop and become viable
  • if you stay in work, you'll have to pay tax on both sets of income, which may mean the business is not financially viable

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