When it comes to careers – especially for young professionals – there is a seemingly endless number of options available: there are different industries you can work in; there are non-profits and for-profits; different companies within a given industry; different departments within a company; different certifications and credentials you can pursue; different degrees you can obtain; even different volunteer and social opportunities.
If you want to “climb the ladder” and build a great resume, you have to commit a lot of time towards becoming the employee and professional that you aspire to. You need to be focused and free of distractions. This can lead to a potential problem for some: the young professional with an entrepreneurial itch.
Is it possible to have both a successful career and run a small business at the same time?
As someone who does have a career while simultaneously running a small business (key word small – I am talking about this blog here!) I can attest to the fact that you really have to have your priorities straight to make it work. I spend over twenty hours a week working and managing the site. This requires significant time sacrifice in the evening, before work (I get up 30-40 minutes earlier than I would if I didn’t have a blog), and on the weekends. I definitely have been able to make it work so far, but there are always challenges when you take this approach.
Trying to have both a career and small business comes with risks:
- Burnout from being stretched too thin
- Neglecting physical, mental, emotional, and/or mental health
- Neglecting a spouse or significant other, friends, family, and other social connections
- Declining quality of work both in your 9-5 job and your small business
- Neither your career or small business ever growing because your attention is always split
One big issue that can arise is if you have to go get a night MBA or some other advanced degree to further your career. It inevitably will add to the overall time commitment to your career. Could you imagine running a small business on top of a 9-5 job, night MBA classes, studying and researching for MBA classes, and trying to have some sort of social life? I really don’t think it’s realistic.
The Benefits of having both a Small Business and a Career
While there are certainly many risks that come with trying to “have it all,” there are a ton of benefits of having both a career and a small business (or “side hustle” as some like to call it).
Being able to have additional income on top of your 9-5 job is something that can really put you ahead financially. The extra income can be used for debt paydown, investments such as dividend-paying stocks, or something you otherwise couldn’t afford such as travelling internationally. Another big benefit is that if your company is having trouble and God-forbid has layoffs, you at least have some income that will continue. Finally, you may be able to sell your business for a lump sum down the road. This can be a great exit strategy if you want to continue your career but do not want to simply end your small business.
Peter Anderson, who owns Bible Money Matters was able to create a second full-time income through his blog and other online businesses (he also owns Logos for Websites). His second full-time income has allowed his wife to stay at home full-time and raise their son.
There are many others who have turned their side businesses into full-time income. Whether it’s through blogging, IT consulting, or something else, there are countless examples of people who pursued their passions part-time and were able to leave their 9-5 job to run their small business full-time.
Tips for Making it Work
While there will always be situations where it makes sense to end a profitable business (read Grayson’s story for another perspective on this topic), there are some things you can do to make it work:
- Organize and Plan Ahead – It’s so important that you plan and organize if you are going to try to have a small business on top of your 9-5 job. Prioritizing tasks so that when you are working you are truly working is probably the most important thing you can do. If you can get ahead (I know, nearly impossible even if you are running a small-business full-time) you will be able to relieve some of your stress, especially if your business runs on hard deadlines.
- Reinvest and Outsource – Once your small business is bringing in some revenue, and perhaps even before you get to that point, consider outsourcing some of the tasks in your business. While it may feel good to have money going into your bank account, and hiring out work might limit the income you receive, it can be the best choice long-term. If you can leverage the skills and services that others have to offer, it can help grow your business and make it more valuable long-term, not to mention free up some of your time.
- Eye on the Prize – If you started a small business/side hustle, you clearly did it for a reason. Whether it was to try to make an income doing something you love, such as writing, photography, graphic design, etc., or it was simply to make extra money to pay down debt or increase your income, there was a reason you started your business. Focusing on why you started, as well as what your end goal is, can motivate you to continue building your business. Who knows, maybe one day it will replace your full-time income?
Owning a small business and having a career can work. For many people who are in debt, doing full-time work they despise, or simply do not want to give up their career, having both a small business and career can be a great choice.
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Do you have a small business and a full-time job? If not, have you ever considered doing both at the same time?
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I had a small business at one time and was working full time a few years ago. Let me tell you this is nothing easy to do if its not an online business and even then its very difficult. Time management is one of the hardest aspect and getting clients to understand when you will be available to talk with them. In the beginning it was ok because I had 1-3 clients. But as I grew more clients would try to contact me while I was at work and couldn’t talk.
I think it all depends on the setup. If its a simple little hobby business that you run before and after work or even on the weekends then YES I believe you can make it work. This is also assuming that you are able to manage family time if you have one. I know a lot of people who make it work but the have people they can really rely on and trust to get things done when they are not available.
YourDailyFinThanks for sharing your insight. It definitely would be hard to have a “brick-and-mortar” small business on top of a job. Online businesses that can be run from anywhere or from home can be much more manageable. I think family time can really be hindered, so it’s best to have a long-term plan for outsourcing and potentially selling.
Great post today, Dave. I am looking to start a personal finance blog outside of my full-time job. not sue how people are able to squeeze everything in but I am passionate about the subject. I guess true interest and passion can really drive someone to do so much more than they think they originally can do-although I definitely see burnout as a threat.
BudgetforMoreAs long as you realize that it will potentially take a big time commitment I say go for it! Re-evaluating every few months whether it is worth it to continue blogging is a good practice as well.
Been there! I worked 9-5 for the first year that I blogged and was a freelance writer. At the beginning it wasn’t that hard but toward the end I was working 40-45 hours at my 9-5 and freelance writing 10-15 hours a week and blogging on top of that. It was simply unsustainable.
I actually used to open up my email and write blog posts or freelance writing jobs to myself at work. Isn’t that awful? It just got out of control.
Holly at ClubThrifty When things get out of control it might be a good thing, though. Look where you are now!
Love this post! It is definitely hard, and that is why I need to leave my day job. My freelancing won’t be able to grow further until I free up more time.
SenseofCents I think many have reached that point and either coast where they are at or end up choosing one or the other. I look forward to hearing about how the increased time will allow you to grow your biz!
I’ve had lots of extra jobs on top of a day job but it makes it really hard to focus on building a career. I didn’t want to so it was fine.
RFIndependenceWell that’s one way to solve it! If you don’t want a career it’s much easier to set priorities as far as where your income is coming from.
Pretty funny, I’m actually writing a guest post for next week that’s very similar to this, from a more personal perspective. I love the idea of earning some side income and maybe even building it up to something bigger, but I’m also wary of the negative impacts it could have on my life, some of which are evidenced in Grayson’s story you mention. It’s an interesting balance.
Matt @ Mom and Dad MoneyHonestly I don’t know how people who have kids make it work. I know some who do, but overall it just seems like you’d be running on empty a majority of the time. Looking forward to your guest post!
We did it as well before I took the plunge. I had my normal 9-5 job and was spending 15-20 hours per week helping my wife manage her budding freelancing business. It was a lot of work and it does get a little crazy, thus why being organized and efficient is so vital.
FrugalRulesI definitely have enjoyed following your transition and it seems like you made a wise choice. It’s funny how we are all talking about having “too much work” as opposed to what is usually shown in the media and elsewhere of people having trouble finding work.
Thanks for the mention DC. Running a business on the side is no easy task and it requires a lot of commitment. This is why I like running a blog. I don’t really have to be on it every day like I had to be for my ecommerce business. I can step away for a few and it will be fine.
DebtRoundUp Great point, that’s an important comparison. Having a content website versus a business that fulfills orders and has to be actively managed to a greater degree is totally different in terms of time commitment and ability to outsource.
Thanks DC for the excellent post. Whatever you mentioned is 100% correct if you are young professional or mid of career but if you have higher position or if you shoulder more (important ) responsibilities then Dual role is not possible. But agree if you have started your career and plan to be entrepreneur then one must follow all the tips you listed to make it work
SamgillHonestly once you hit a certain level at a corporation you need to give it your all if you want to be succesful. The hours you need to commit, as well as the responsibilities that fall on your shoulders is too great to be distracted elsewhere. It’s a choice all 20- and 30-somethings need to decide for themselves.
I’m just freelancing, but if I ever got a full time job I’d for sure do my blog and work full time at the same time!
BeachbudgetFreelancing can fit within the career question, in my opinion. You may have more control over your schedule versus a strict 9-5 position, but overall it can run into the same challenges.
If I was still working full-time I would probably continue to do some side hustle work, like I use to (selling cruises) but I wouldn’t try to operate a business at the same time, unless I could outsource most of it or have it setup to run on auto pilot. My career was extremely demanding with lots of OT and being on-call at times, and traveling. I wouldn’t even want the additional stress of being responsible for a business too.
TacklingOurDebt Good point, Sicorra. It really depends on the demands of your full-time job and whether you have capacity for added stress of a small business.
I sure hope it is possible, seeing as I’m trying to start a business on top of my job. :) Great post DC! I think one of the overlooked benefits is that you widen your skill set. Being a small business owner requires you to wear many different hats and gain skills in a lot of areas you may not in a typical career. The widened skill set should be able to help you be more successful in you “main” career.
ayoungproI certainly can’t disagree with you there! But the time commitment of running that small business can really take away from other things you could be doing in your “free” time, which I think is the main issue here.
DC @ Young Adult Money ayoungpro For sure! I’m running into that very problem myself. ;)
You bring up some good points. I’m especially sensitive to the question of tradeoffs: having it all is sometimes a costly illusion. You might end up having worse versions of everything in your “all” – a so-so career, a side hustle that underperforms, and a family/friends that you don’t spend as much time with as you’d like.
A lot of the time, saying “no” to some things is the right decision.
DonebyFortyYou really need to be able to manage your time and have a long-term game plan for outsourcing tasks. I think it’s important to evaluate what you are doing with your time every few months and see if there are changes that should be made.
No doubt that it’s possible but like you mentioned burnout is a huge risk. You need to have great time management skills.
OneSmartDollarI agree, it’s pretty unsustainable without time great time management skills.
I started my business while I was working on my career. Initially, I was just an investor in income property and built it into a business. Eventually, I was able to achieve financial independence.
krantcents1 I love that you’ve already reached that level. I hope to continue to increase my income streams outside of my 9-5.
I agree that burnout is possible! But I’ve found that it’s less likely if you’re very interested in the topics
Monicaonmoney Very true! If you are passionate about your side income it is much easier!
Yes, my blog is the fun part of my day so I don’t mind it.
I don’t make any money from my small blog yet until I move to self-hosted and I work full-time in a career I trained many years for and I love. I don’t think I realized how demanding blogging could be until about 6 months in back in 2012 when things started to sky rocket. I’ve had to schedule and balance my life so my wife does not sit my dinner and a bowl of water out on the back deck, continue to keep fit, and be around friends and family. If one thing dominates your entire being then there is a problem. I don’t want that to happen to me. Thanks for the reminders and tips.
I was actually thinking about this the other day: the choice of how you can spend your extra time, whether it’s on your 9-5, side business, or with your significant other or friends. There’s always tradeoffs and I think what you said at the end was right – think about why you started your side hustle to begin with. That’ll give you more context and allow you to decide perhaps where spending that extra hour of time would be most valuable to you (in terms of happiness and maybe money-wise)..
Roger@lifelaidout I think it’s also important to think about long-term situations as well. While there are certainly short-term benefits of side hustles, I think the more you can think long-term the better.
DC @ Young Adult Money Roger@lifelaidout Yeah, I agree, you shouldn’t be short-term greedy and at the end of the day, as Seth Godin said, “doing work that’s important leads to more happiness than doing work that’s merely profitable”.
Roger@lifelaidout Seth Godin is awesome!
You bring up some great points DC! I think having time management skills and the ability to plan/work ahead is helpful. If I could just find time to sit down during the weekend and write a bunch of blog posts, I wouldn’t find myself writing into the night, and as a result, being tired during the day at work. You really need to keep everything in balance. Having a side hustle shouldn’t negatively impact your regular job.
These are some great points. I think the biggest issues with managing both is being stretched too thin and neglecting spouses! Once I decided to go to bed earlier and start doing more work in the morning, I started feeling less stretched!
@BudgetBlonde–Thanks a good point. I typically do the opposite (stay up until 2am and get to get everything done) and then I’m just exhausted in the morning! I’m going to try that instead.
Great article. Certainly lots to consider because the decision to rent or buy will cost you hundreds of thousands of dollars over the next 30 years! I decided to buy right away but think if I could do it over again, I’d save the 20% and not have PMI of $120/month! PMI is such a waste of money.
Great post! I work full-time but I also started a small business on the side reviewing resumes. Taking the time to learn how to start a small business and manage it is consuming but it balances out my full-time job that pays more but isn’t as fulfilling. My goal is to pay down debt and then when I eventually have a family I can keep the small business to work part time. It’s great to see how people juggle the two!
Organization is so key. It’s something that I’m working on being better at. I don’t consider my blog a business, but it certainly takes up a good chunk of time each week.
StudentDebtSurvivor If you can’t organize and prioritize, I think it’s very difficult to succeed at balancing both a career and small biz. I think you should think of your blog as a business, you certainly have the reader base and I’m assuming the traffic to start expanding with more content and advertising.