6 Keys to Avoid Part-time Business Disaster

Jennifer thought she had it all. A great job, wonderful family life and a successful part-time business. Until her employer fired her for poor quality of work and her business clients went elsewhere for better service.

This scenario can happen to any part-time business owner. This is not to say working full-time while running a part-time business is impossible but balance and knowledge are key factors in business success.

Part-time businesses allow entrepreneurs to "test the waters" and see if the business is viable while still earning a full-time paycheck. But there are many traps to avoid when moonlighting. Learn the 6 keys to avoid part-time business disaster.

6 Keys to Avoid Part-time Business Disaster

1. A Conflict of Interest?: The first question to ask when starting a part-time business is "Does your venture conflict with the interests of your employer?" If your part-time business and employer markets and serves the same industry, there may be a conflict. Examine your hiring package to see if there is a non-compete agreement and the extent of the clause.

Discuss openly with your boss the venture you plan to start and how it will not conflict with clients and time. In some cases, the company can view your moonlighting as a positive gain for the company if you can acquire new skills that can be applied to your current job.

2. Determine Part-time Suitability: Some businesses are more suited to part-time operation. Retail operations require full-time hours, whereas a consultant can take on several small projects with less time commitment. Talk to other people in your industry to see if part-time is a viable option.

3. Manage Your Time: Running a part-time business while fully employed will test your time management skills. Family, chores and sleep may be the biggest issues. Avoid burnout. Many part-time business owners under estimate the commitment required for success. Accept limited work projects and do not over promise.

4. Build Support: A 40-hour work week combined with a part-time business may add up to more hours than running the venture full-time. Make sure family and friends understand your burden and can be there to offer help. Support can be as simple as help with errands, filing and bookkeeping.

5. Focus on One Business: The temptation of all small business start-ups is the lure of multiple business opportunities. This must be avoided at all costs by the part-time business operator. With already limited time and resources, expanding into other businesses can draw much needed attention away from your part-time company. Focus on one business only until you have made it successful.

6. Know the End Result: As you set-up your part-time business, have a clear end goal in mind. Is this venture simply a means to additional income, or will it one day be a full-time company? If you are planning to quit your day job, set a time line to transition from part-time and employed, to full-time business and unemployed. If possible, have extra cash reserves built up to augment the ups and downs of not having a regular paycheck.

A part-time business can be a wonderful way to grow your company. In our fast-paced business world, it seems atypical to dabble part-time in starting a new business. But if you have a need for security, the "slow-to-grow" venture can be the best chance for success. Just ask Michael Dell, who started Dell Corporation part-time in his college dorm. Part-time may be the best start-up secret to date.