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

Subjects covered in this guide

Also on this site