By Grace Agada
The conventional advice for those working in the corporate world and want to create another source of income is this: ‘Start a part-time business and make extra money’. Although starting a part-time business seems like good advice, it is actually bad advice.
Starting a part-time business will make you poor. Think about it for a moment. How many successful part-time businesses do you know in the world? I doubt if you know any. They do not exist. Businesses that are successful are run full-time.
Yet thousands of working-class professionals are deceived each year to start part-time. They think that owning a part-time business will make them rich. They also think that their part-time business may someday be a gateway out of the corporate world.
While a part-time business may add a few coins to your wallet, creating wealth through a part-time business is impossible. It is also impossible to exit the corporate world through a barely profitable business. Profitable businesses are run full time.
They generate enough capital to set their owners free from salary. Unprofitable businesses keep their owners glued to salary. They barely can stand on their own two feet.
To understand how a part-time business, affect your income, let’s first define what a part-time business really is.
A part-time business is a full-time business owned by a CEO but run part-time. That is, it is a business requiring full time, but for which the owners only invest part of their time.
Part-time businesses are different from side hustles. And here is how. A side hustle is freelance employment that rides on an existing full-time business, while side hustles can be run part-time, and do not make you a CEO. A business makes you a CEO and can only thrive full time.
A typical example that shows the difference between a business and a side hustle is Uber. Uber is a business with a CEO at the helm of affairs. The independent drivers of Uber are freelance side hustlers, while Uber as a business provides a navigation system, and processes for the movement of passengers.
The independent drivers simply plug into Uber’s system with their cars. Independent drivers are thus side hustlers and can work for Uber at their spare time. Uber is a business and is successful only full time. This is the difference between a side hustle and a business.
Doing business part-time is prolonging your years of struggle in the business world. You will be ineffective in the business as well as in your job. Chances are high that you will favour your job over your business. And this is the reason why so many part-time businesses are ineffective.
Think about this for a moment. If your job that has the CEO and other key management staff at the helm of affairs cannot thrive with part investment of your time, what makes you think that your business where you are the CEO will thrive when you invest only part of your time? Investing your savings in a part-time business that requires full time is like throwing away money into the trash can. The more money you invest in it, the more money it will burn.
To grow a business successfully you need to dedicate time and energy to make it work. This is the only way to create wealth in the business world.
So, what then can employees do with their part-time businesses?
Employees can do one thing, but before we talk about what employees can do let’s quickly highlight the two important things employees must understand.
First, employees must understand why they are stuck in a part-time business and resolve any fear or obstacle that stands in their way to a full-time business. Without this first critical step, employees will remain locked in their part-time businesses with full-time employment.
If a business is the surest way to create wealth and achieve financial freedom, why are employees not facing it full time? Answering this question is key if employees must deliver themselves from their full-time employment and part-time CEO position.
The next thing employees must understand is this; It is impossible to combine two active sources of income at the same time and achieve great results in both.
An active source of income is any income that needs a person’s full time and attention. A business is an active source of income. And so also is a job. To combine a business and a job, and achieve great results in both is impossible. The business most times suffers and produces only fragile income.
To create solid wealth, employees must either face their businesses full time or find other passive sources of income to combine with their jobs.
A passive source of income is any income produced by the investment of savings and managed through the active participation of a third party. Passive income does not need a person’s full time and dedication. Thus, these are the only type of income that can combine with a business or a job.
With these two critical understandings, employees are now set to take the next critical action, which is to transition from a part-time business to a full-time business. To do this employee need a part-time to a full-time transition plan.
A transition plan is a plan that helps employees shift from wasteful part-time businesses to profitable full-time businesses.
This plan contains two key components; The first is an income protection plan, an important component that facilitates exit from the corporate world.
One of the reasons employees stay stuck in a part-time position is a lack of faith in their own finances. Employees need financial confidence to exit the corporate world. Without this no voluntary exit is possible. The second thing employees need is a business profitability plan.
A business profitability plan is a plan that helps employees develop confidence in the ability of their businesses to create wealth. There is no sense in exiting a job to a business that lacks the capacity to meet your needs. A business profitability plan makes it immediately clear, specific and measurable. How your business will deliver the wealth result that you desire.
When you are armed with an income protection plan and a business profitability plan you become financially confident to face the business world full time. You also develop the ability to overcome the fear of the unknown. The fear of the unknown is any fear that results when employees have no concrete plan for the future.
When employees create their future rather than wait for it they face the future with boldness.
Creating wealth and achieving financial freedom is not rocket science. The path has already been laid down. The big deal, though, is whether you are willing to follow the path, pay the price and take timely and decisive action.
If you take the right actions today you will encounter wealth. If you don’t, pretty must everything will remain the same or even worse. The only way to achieve the life of your dream is to take the actions that will help you build that life today.
Perhaps, you are stuck in a part-time business and want to face it full time. It may even be that you are just starting out. And want to get it right the first time. We can help. We will help you build financial confidence, show you exactly how you can make money and validate your business for profitability before you venture out.
With our part-time to a full-time transition programme we will show you how to create a continuous, consistent and endless flow of income for yourself. You will be in total control. If you want this kind of help. Send an email to email@example.com.
Building a Successful Business is a full-time job. If you must work part-time do a side hustle instead.