How to Start a Business While Working Full Time (8 steps)

“Is it really possible to start a business while working full time?”

I used to ask myself this question every night as I dragged myself home after another 80-hour workweek. I was exhausted, frustrated, and desperate for a way out.

But here’s the truth I discovered: Not only is it possible, it’s the SMARTEST way to build your freedom.

I’m living proof. I managed to cut my work hours from 80 down to just TWO per week – and used that reclaimed time to launch a thriving business without burning out.

Today, my wife Carey and I run Lifehack Method full-time while traveling the world with our three kids.

And I’m about to show you exactly how you can do it too.

💡Key takeaways:

Managing your life and side business requires careful planning and requires you to be incredibly focused on the right tasks
Steps to start a business while working full time include setting the right goals, finding a business idea, and making a plan for when and how to transition from your job
To ensure it’s legal for you to start a side business, take a look at your employment contract to understand if your business conflicts with it (jump to step #7 for more)

How to start a business while working full time:

Find a business idea
Set goals
Create a business plan
Understand your finances
Focus on the most important tasks
Make time for your side business
Ensure your side business is legal
Transition to a full-time business

What are the benefits of starting a business while working full time?

Most people think having a full-time job is an obstacle to entrepreneurship. They couldn’t be more wrong.

Your job isn’t holding you back – it’s your secret weapon. Here’s why:

Zero financial pressure: Your steady paycheck funds your business while eliminating the desperate need for immediate profit
Freedom to experiment: Without the pressure to make money fast, you can test ideas until you find what works
Built-in productivity training: Juggling both roles forces you to become ruthlessly efficient with your time

But how do you start a business while employed? Let’s find out.

How to start a business while working full-time

You CAN start a business while working full time. We’ve done it, and so have our clients.

Just ask Kathryn, one of our clients who followed this exact approach. She was stuck with a boss who made her work life miserable. Everyone told her she was crazy to think about starting her own business.

Eight months after working with us, she walked away from her toxic job into her own thriving consulting business.

Now, let me show you exactly how to do the same (without overworking).

1. Find a business idea (without starting from scratch)

Here’s the #1 mistake most aspiring entrepreneurs make: They think they need some revolutionary, never-before-seen idea.

The truth? The best business for you is hiding in plain sight.

That’s how Carey and I discovered our business. We weren’t productivity experts with fancy certifications. We were just two burned-out professionals who figured out how to reclaim our time and lives.

When friends saw our transformation, they begged us to show them how we did it. That demand for good productivity coaches became Lifehack Method – our multimillion-dollar business.

Your action plan:

Write down 3-5 skills you already have that solve problems for others
Ask yourself: “What do people constantly come to me for help with?”
Test your idea by offering to help friends or colleagues with this skill
Research similar businesses – if they exist, that’s GOOD (it means there’s demand!)

Remember: Your ideal business leverages what you already know while solving a problem people will gladly pay to fix.

2. Set goals that actually move the needle

Let me be brutally honest: Starting a business while working full-time will test your limits. Without crystal-clear goals, you’ll quickly lose momentum and motivation.

Whether they’re long-term or weekly goals, your goals must be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound. But more importantly, they must excite you enough to get you working after an exhausting day at your regular job.

For example:

Weak goal: “I want to create a successful membership community.”

Strong goal: “I will create a membership community with 150 paying members in the next 12 months.”

Then break that down into actionable milestones:

Get 50 people on my waiting list within 60 days
Launch with 10 founding members by [specific date]
Host weekly live sessions every Wednesday at 7 PM

💡 Pro tip: Write your goals somewhere you’ll see them daily. The visual reminder will keep you focused when all you want to do is watch Netflix after a long day.

Get more tips for setting goals in this video:

3. Create a business plant that actually works

You know what you want to do – but you need to know how you’re going to get there. In other words, you need a business plan.

It doesn’t have to be long, confusing, or formal. Think of it as a roadmap to guide you and keep you focused.

It should cover these five essentials:

Your offer: What specific product or service are you selling, and what makes it different?
Your ideal customer: Who needs your solution most desperately? Where do they hang out online and offline?
Marketing strategy: How will you consistently get in front of your ideal customers? Pick just 1-2 channels to start.
Sales approach: How will you convert interested prospects into paying customers? Make this process as simple as possible.
Revenue goals: What specific numbers do you need to hit each month to make this sustainable?

Keep this plan to 1-2 pages max.

4. Get your finances in order (before you actually need to)

Did you know that nearly 40% of entrepreneurs lose sleep over money worries? Don’t let that be you.

Financial stress is the #1 killer of promising businesses. Here’s how to prevent it:

Start budgeting like a business owner: Track every dollar and identify expenses you can cut to invest in your business. Even $100/month adds up to $1,200 annually – enough to cover essential business tools.

Separate business and personal finances immediately: Open a business bank account even if you’re just starting. This simple step will save you countless headaches during tax season and give you clear visibility into your business performance.

Know your funding options: While the average business costs around $40,000 to launch, you can start many online businesses for under $1,000. Consider these funding sources:

Personal savings (the least stressful option)
Small business loans from your bank
SBA loans (the Small Business Association funds billions annually)
Friends and family investments (proceed with caution)

💡 My advice: Start as lean as possible. Validate your idea before investing heavily – many of our most successful clients started with just a laptop and a few hundred dollars.

5. Focus on the most important tasks

When you’re building a business while working full-time, every minute counts. And you can get much more done every day – and use that time to build your business.

However, you’ll need to prioritize the most important tasks.

To do so, use the 1:4:5 rule to create an effective to-do list:

1 high-priority task: This is your “must complete” item that significantly moves your business forward. Do this FIRST, no exceptions.
4 mid-level tasks: These support your growth but aren’t mission-critical for that day.
5 low-priority or simple tasks: Quick wins that can be done in spare moments throughout your day.

But here’s the real secret: leverage. Ask yourself: “What one task will make everything else easier or unnecessary?”

For example, spending two hours creating an email template might save you 10 hours of writing over the next month. That’s leverage.

Finally, don’t just list tasks – schedule them. Block specific time chunks in your calendar for business-building activities and protect those blocks ruthlessly.

We discuss leverage in this video:

6. Find time for your side business

“I don’t have enough time” is the #1 excuse I hear from aspiring entrepreneurs. But the truth is, you have more time than you realize – you just need to know where to look (and no, you don’t have to burn out in the process).

Here’s how to find those hidden hours:

Maximize your mornings: Even waking up 30 minutes earlier gives you 2.5 extra hours weekly. Use this distraction-free time for your high-priority tasks.
Transform your commute: Use public transit time for planning or learning. If you drive, listen to business podcasts or use voice-to-text for brainstorming.
Reclaim your lunch break: Just 30 minutes of focused work during lunch adds up to 2.5 hours weekly – that’s 130 hours annually!
Audit your evening routine: How much time do you spend mindlessly scrolling? Convert just one hour of Netflix into business-building time.

But here’s the game-changer that helped me scale faster than I thought possible: stop doing everything yourself.

Carey and I wasted countless hours doing tasks that others could handle better and cheaper. Once we started outsourcing, our business growth exploded.

Start with these high-impact areas for delegation:

Administrative tasks (email management, scheduling)
Content creation (graphics, basic writing)
Research (market analysis, competitor research)
Personal tasks (grocery delivery, house cleaning)

Even on a tight budget, you can find affordable virtual assistants and freelancers on platforms like Upwork or Fiverr. Remember: every hour you buy back is an hour you can invest in growing your business.

Carey will walk you through delegation in this video:

7. Ensure your side business is legal

When you start a business while working full time, it needs to be above board. Here’s how to protect yourself:

First, thoroughly review your employment contract. Look specifically for:

Non-compete clauses that might restrict your business options
Intellectual property agreements that could claim ownership of your ideas
Policies about outside employment or business activities

Keep your business and day job completely separate:

Never use company resources (computers, software, supplies) for your business
Don’t work on your business during company time – not even during slow periods
Avoid serving your employer’s clients or competitors unless explicitly permitted

It’s a good idea to consult an employment attorney. One hour of legal advice now can help you get a lot of questions answered and stay safe.

💡 The smart approach: If your business idea directly competes with your employer, consider pivoting to a different niche or checking in with your boss or HR department.

To learn more about legal considerations, check this guide.

8. Transition to a full-time business

The biggest mistake new entrepreneurs make is quitting their job too soon. Financial pressure can force you to make desperate decisions that damage your business long-term.

Here’s how to know exactly when it’s safe to make the leap:

Your business consistently generates at least 75% of your current salary for 3+ consecutive months
You have 3-6 months of living expenses saved in an emergency fund
You’ve eliminated or significantly reduced high-interest debt
You have a clear 90-day plan for scaling your business post-transition

When these conditions are met, it’s time to plan your exit. Give proper notice, leave on good terms, and focus on making your business your primary income source.

Remember: patience here pays enormous dividends. The extra 3-6 months at your job provides the financial runway to make strategic decisions rather than desperate ones.

Now you know how to start a business while working full time.

Keep reading to find out what kind of business you can launch.

What business can you start while working full-time?

Not all business models are created equal when you’re still working full-time. The ideal side business is:

Low on initial investment
Flexible with your schedule
Scalable as your time allows

Here are the six best options:

Freelancing: There’s a high demand on platforms like Fiverr and Upwork.
Consulting: Help businesses grow and navigate change.
Coaching: From productivity coaching to entrepreneur coaching, there’s something for every niche.
Online store: Create and sell physical or digital products.
Investing: Stocks, crypto, and real estate and popular investment choices.
Content creation: Monetize your blogs, YouTube videos, or social media posts.

Still have questions about what it’s like to start a business while working full time? I’ll answer them next, so keep reading.

FAQ: Starting a business while working full time

Is it possible to work full-time and run a business?

Yes! In fact, 44% of people who start new businesses do it while working for an employer. You just need to manage your time and priorities effectively and stay consistent in leveraging your nights, weekends, and free time.

What side hustles pay the most?

The highest-paying side hustles include consulting and coaching, which can help you make several thousands of dollars per month on the side. Freelancing can also help you tap into your existing skills and get paid for them.

What are the tax implications of starting a business while working full time?

Your business WILL be taxable, but the tax rate will vary based on location. And remember, you can also deduct certain business expenses like marketing, software, and home office costs. I recommend keeping business and personal finances separate and working with an accountant to ensure compliance and maximize tax benefits. Read more about taxation on the IRS website.

What’s next?

You now have the exact blueprint I used to escape the 80-hour workweek trap and build a business that funds my dream lifestyle.

But information without action is useless.

Here’s what I want you to do right now:

Block 30 minutes on your calendar for tomorrow to complete Step 1 (identifying your business idea)
Bookmark this article for reference as you progress through each step

Remember Kathryn, who escaped her toxic workplace in just 8 months? She didn’t have special advantages or connections. She simply followed this process consistently, week after week.

Most importantly, she did so because she learned how to make the most of her most valuable resource – her time.

And we have good news.

We’re offering our Win the Week worksheet for FREE.

This powerful tool shows you exactly how to organize your week for maximum productivity, even while juggling a full-time job and growing business. It’s the same system our clients use to plan their week in just 30 minutes – and win back 5-10 hours per week.

Get it here:

The Best Productivity Hack for Entrepreneurs

Entrepreneur Mental Health and Burnout Statistics