Part-time self employment is how more entrepreneurs start. PT allows entrepreneurs the stability of working a ‘normal’ job while giving them the freedom to explore something new without a lot of risk. PT allows the entrepreneur to test his idea, service, or product. At some point, as the entrepreneurial business grows, the entrepreneur will have to make a choice between his business and working for someone else.
Of all small businesses PT are about half. Remember, this includes lawn mowing, baby sitting, and other seasonal activities. These part time companies are more likely to be more volatile because their owners are not depending solely on them for income. The full-time job is providing the needed income, or it is part time and just adding a little extra money when needed. Over 6 million people sell on online sites such as eBay or Yahoo auctions. This is normally done part time as a hobby or a supplement to their normal lifestyle.
PT entrepreneurship is a great way to gain experience in your industry or in running a business before you are willing to “give up your day job”. If you lack resources to start a retail company or full time business it is sometimes appropriate to start on a smaller scale and work your way up to a full scale company. For example, selling antiques online in your spare time does not require the capital resources that opening up an antiques store would. Sometimes you are faced with a narrow window of opportunity. It might be due to seasonality or pending expiration of an offer. Thus you may have to grasp the offer and run with it part time because you simply don’t have the time to set up the framework, make a business plan, etc…
All part-time entrepreneurs were not created equal. There are four major categories and each is discussed on a following slide.
Stands are seen in a variety of places: Mall kiosks Flea markets Trade shows Street corners of New York To be successful they need plenty of walk-by traffic and a product aimed at the general population who is walking by. Currently many malls have kiosks in the major walkways for cell phones and accessories, cheap jewelry or watches, sunglasses, and even mini-massages.
The Tupperware party has grown up. There are many women who are now engaging in home retail as a way to add to the family income but keep the flexibility needed to be home for the kids and run them to soccer practice. Gone is the stodgy old Tupperware party. In it’s place is Pamper Chef kitchenware complete with cooked samples and points towards free goods if you also sign up to host your own party. Lingerie is also a popular home party sweeping through homes and college campuses alike. To be successful requires a good host who knows how to sell and who is just pushy enough to get the sale without offending. Many times customers will get hooked on the brand at the party and continue to by through a catalog.
Going once, going twice, sold! Consignment stores will take your product and sell it for you keeping a portion of the selling price for their services. Auctions are simply another form of consignment shop with a price which varies based on the sellers demand. Their success is largely dependent on who happens to come by or notice the product. Online auctions are becoming more popular because the auction of your product can last from 1-7 days and is available to anyone on the world wide web thus providing a very large customer base.
Some start up manufacturers find it helpful to place their product in a successful catalog in the same industry. This method offers the customer a picture, description, and method by which to order. This is cheaper than creating your own catalog to start with and lend credibility and legitimacy to your product as customers are already familiar with the catalog. The key here is picking the right catalog such as Sky Mall which reaches out to a large target audience with nothing to do but sit on the plane and read.
Some start up manufacturers find it helpful to place their product in a successful catalog in the same industry. This method offers the customer a picture, description, and method by which to order. This is cheaper than creating your own catalog to start with and lend credibility and legitimacy to your product as customers are already familiar with the catalog. The key here is picking the right catalog such as Sky Mall which reaches out to a large target audience with nothing to do but sit on the plane and read.
Some start up manufacturers find it helpful to place their product in a successful catalog in the same industry. This method offers the customer a picture, description, and method by which to order. This is cheaper than creating your own catalog to start with and lend credibility and legitimacy to your product as customers are already familiar with the catalog. The key here is picking the right catalog such as Sky Mall which reaches out to a large target audience with nothing to do but sit on the plane and read.
Part time businesses by definition should require less than 35 hours per week. But since many PT entrepreneurs already have full time jobs, this means it is easy to spend too much time working. Time management and prioritization will help you keep on track and allow you to be very efficient. If your business is home based it raises two concerns: It is too easy to always pop into your office and ignore the rest of your life and family It is easy to get distracted from work by running downstairs to do a load of laundry or walk out and check the mail.
When pricing one large problem is we tend to want to undercut our competition, or offer good value, and we tend to then price products too low. Another issue is remember the direct costs of inputs but ignoring or miscalculating costs of overhead, professional fees, etc… which raise the total cost of doing business. Remember your own time has value. Hire out basic jobs and spend your time on the more important issues. Also check your competition. This works two ways: You may need to charge less than you thought to be competitive and thus need to recheck your cost structure OR you may be able to charge more than you thought and still steal market share
Entrepreneurs have too much to do. And many feel they have to do it all themselves. However, that’s not true. With good employee’s you can delegate some of your work load. After all you pay them less than your time is worth so let them do some of the more routine tasks of the business. Outsourcing, on the other hand, is hiring outside people. For example, instead of trying to do your own taxes, hire an accountant. Outsourcing is good for tasks in which your knowledge or skills are weak. Typical outsourced jobs include legal, web site hosting, taxes, payroll, and advertising.
If a part-time entrepreneur is also gainfully employed… Is there a conflict of interest? For a landscaper do does jobs on the side the answer would be yes. For a teacher who also sells antiques on ebay the answer would be no because it is not in any way harming the company who employs her. Aggrandizing is harmful not only because you are telling little white lies, but people may depend on you because of your claims and you may not, in reality, be able to meet their needs.
The question of quitting your job to become a full time entrepreneur is often a difficult and financial one. Can you make enough as an entrepreneur to continue to support your current lifestyle? If your soon-to-be former employer offers any help in resume building, classes, or any other transition services go ahead and make use of them. More knowledge is always a good thing and you never know what you may learn that may help you as an employer in the future.
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