- 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)
- 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
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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
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!)
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
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?
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)
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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.
- 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:
https://www.youtube.com/watch?v=RwtUbF7K4xQ
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
- 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
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
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
- 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.
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
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