In a sign of how tough Australian households are finding the cost-of-living crisis, almost a million Aussies are working a second job to earn extra income – that’s a record 6.65 per cent of all workers.
When Libby and I were raising four young kids, money was always tight. We decided from the start that Libby would be the homemaker dedicated to the kids and I would be the breadwinner.
That was our decision and it’s not for everyone. There is no right or wrong in the mixing of work and home duties in a relationship, it’s up to each couple. We soon realised it was tough to raise a family on one income and we had to find extra cash, particularly during times of economic recession, high inflation and soaring interest rates. A bit like now.
Thankfully being a journalist gives some flexibility. While working for the Australian I was also the Australian columnist for the Economist in London. While at BRW magazine I provided finance reports for radio breakfast shows and hosted a nightly radio investment program while working at Personal Investment magazine.
That extra income was not only invaluable to balancing the family budget but also provided a great training ground to establish our future family businesses.
Want to create a small biz?
Starting a business part-time is the first and most secure route to turning that dream of becoming your own boss into a reality. It means entrepreneurs can get a taste without the sink-or-swim risks of diving in with big upfront costs to sustain it.
The alternative is the riskier strategy of starting a business full-time and struggling to meet the overheads when income is still volatile. Mistakes are a lot more costly. In effect, moonlighting in a part-time venture is providing the business with seed funding to get started. The bank manager will be comforted by the fact that all those early mistakes were made with your money rather than theirs. It is a difficult balancing act although modern technology certainly helps.
The growth of the internet, social media, mobile phone, AI services, personal computers and remote admin can give customers the impression of a fully-fledged operation.
The secret is to become a time-management expert. Family life can suffer and the risk of divorce increases. Weigh up these sacrifices before making your decision. It isn’t easy, but it can be done if you follow some simple rules:
Talk to the family.
It is essential that you have the support of your family before starting a part-time venture. Discuss the idea with them and explain the pressures it will create on family life and free time.
Give family members tasks
The best way to involve the family is to make them part of the venture. Give them tasks which make them feel as though they are contributing.
Be a time manager
Juggling the hours in the day for full-time work and a part-time dream means you have to take advantage of every minute of the day. Use lunch hours and free time to work on the business but do it in a disciplined way.
Forget the luxuries
Quiet nights in front of television, going out to the movies and restaurants could be sacrificed initially to spend time on the business. You must be prepared for this.
Confine business to one room
The last thing you want is for a part-time venture to disrupt the whole household. Try and limit your office equipment and storage to just one room, otherwise you’ll be constantly in turmoil and unable to escape the pressures.
Don’t let the day job slip
The performance at your full-time job is critical. It must not deteriorate. Remember the job is providing that all-important financial security to allow you to try a new business.
Don’t make business calls during your day job. The number one reason: you will get fired!
Tell the boss
There is no reason why you should tell your employer about the part-time business but if you have a good relationship it would do no harm. You never know they may become a customer.
Never compete with the boss
Apart from being unethical, you can be accused of fraud by pinching ideas and systems. Start a totally different business or a completely separate niche.
Don’t use company equipment
Unless you have permission from your employer and offer to pay for anything used, do not use the boss’s photocopier or computer for your business.
