Does having a part-time job harm your business?

[Jay]

What do others' think of this perception?, does having an extra job outside your business harm your credibility?
Thanks!

[KarenC]

As long as you declare it and pay your tax, it shouldn't be a problem. I used to teach a few hours at TAFE for the same reason and as a sole trader had to declare my income at the end of the year with my business earnings. My accountant didn't have any problem as I paid tax at the higher rate anyway with TAFE (so it was like putting extra tax away), and I put money aside for PAYG for the business.

I definitely don't think you have to 'review your priorities' because you are doing what is working best for you to ensure an income. I think you are being sensible and you sound to me like you are very committed to your work.

The only problem that I know of now is that your 'outside employment hours' are supposed to be only 10% if you wish to add to your own superannuation. I had no superannuation of my own till about 5 years ago when I began putting small amounts away - and I have to sign each year that I am not working for someone else more than 10% of my income in order to claim my payments.

(From what I've observed with both myself and my husband - who is long past retirement age but has to continue working - having an investment in shares would have been a better option than having a little superannuation - but that's another story.)

[Lisa Murray - Biz Coach]

Hey Jay
This is the era of multiple streams of income. If a client questioned me about something like that I would direct the conversation back to the service I had provided them - were they happy, was there anything they were concerned about in relation to the actual service etc...

How you choose to live your life and manage your income sources is not your client's business as long as you are delivering what you have promised them!!

Sometimes it is not so much a leap of faith as a leap of stupidity...you'll know when the time is right to make the leap - leaping too soon and coming across as needy and desperate (ie having no choice about the work you accept) is a much worse option in my opinion!!

cheers
Lisa

[Warren Cottis]

Business is like Monopoly.

When you are out of cash the game is over.

You will serve yourself better as an entrepreneur if you don't worry about what these people think.

You might need a new mentor who lives in the real world though.

[LeelaCosgrove]

I have worked with people who have full time jobs and I DO find it an issue.

I don't want to contact people outside of business hours - I want to be able to talk to them when I want to talk to them. I don't want to wait hours for them to return emails and if I need a rush job done ... or even just information ... having to wait until outside of business hours to do it.

I understand that some people need to feel secure ... HOWEVER - if your number one priority is security, you might need to have a think about whether entrepreneurial endeavours are for you.

If you're waiting for the 'right' time to leave your job - to take the plunge - you'll be waiting forever.

I suppose there is an argument for being 'smart' about it - but as someone who threw in my job and just did it, let me tell you ... there is NO impetus like burning your bridges to ensure that you make a success of things.

[kathiemt]

If you were servicing other clients during the time that you are working a part-time job, would your client have an issue with that? The reality is that you should be in control of your time and as long as you meet your client's deadlines and can complete what is required of you, then what you do with the remainder of your time is your business.

I've had clients who have wanted me to be available at their beck and call for what seems like 24 hours a day, 7 days a week. Two of them were men and I actually said to them (guess it was rather cheeky of me but hey, I did it anyway!) that I would sit and twiddle my thumbs all day if they want to pay me for 40 hours a week. One left me and went elsewhere for his work to be done (it wasn't a lot anyway so I didn't miss it) and the other backed down and apologised and said he knew he was demanding and I was right to put him in his place :-) He also told me to remind him if he forgot himself again. He was always willing to pay for my time and never left me waiting - he truly appreciated my services and the time I gave to him. Sadly he passed away a few years ago, he was a good client.

I never tell my clients what I'm doing with my time, I just let them know when I'm available and if I can meet their timeframes. I haven't yet bumped into one of them when I've been out shopping in the middle of the day, but I guess that could happen one day too, couldn't it?

[Jay]

Originally Posted by KarenC

As long as you declare it and pay your tax, it shouldn't be a problem. I used to teach a few hours at TAFE for the same reason and as a sole trader had to declare my income at the end of the year with my business earnings. My accountant didn't have any problem as I paid tax at the higher rate anyway with TAFE (so it was like putting extra tax away), and I put money aside for PAYG for the business.

I definitely don't think you have to 'review your priorities' because you are doing what is working best for you to ensure an income. I think you are being sensible and you sound to me like you are very committed to your work.

The only problem that I know of now is that your 'outside employment hours' are supposed to be only 10% if you wish to add to your own superannuation. I had no superannuation of my own till about 5 years ago when I began putting small amounts away - and I have to sign each year that I am not working for someone else more than 10% of my income in order to claim my payments.

(From what I've observed with both myself and my husband - who is long past retirement age but has to continue working - having an investment in shares would have been a better option than having a little superannuation - but that's another story.)

Hi Karen

Thanks very much for your advice and suggestions. Yes, I do declare and pay tax on those odd casual jobs, so that's no problem at all. Your superannuation information was interesting to consider too, I will look further into that.

Many thanks
Jay

[Jay]

Originally Posted by Lisa Murray - Biz Coach

Hey Jay
This is the era of multiple streams of income. If a client questioned me about something like that I would direct the conversation back to the service I had provided them - were they happy, was there anything they were concerned about in relation to the actual service etc...

How you choose to live your life and manage your income sources is not your client's business as long as you are delivering what you have promised them!!

Sometimes it is not so much a leap of faith as a leap of stupidity...you'll know when the time is right to make the leap - leaping too soon and coming across as needy and desperate (ie having no choice about the work you accept) is a much worse option in my opinion!!

cheers
Lisa

Hi Lisa

Thanks for sharing your good ideas. Iagree with everything you said, and thank you about the 'Leap of Stupidity' comment, I believe clients can smell and see desperation a mile away, and its not a good look!

I feel much better now about my approach, as you say, as long as my 'other' job doesn't interfere with my business, it should work out fine.

kind regards
Jay

[Jay]

Originally Posted by warrenc

Business is like Monopoly.

When you are out of cash the game is over.

You will serve yourself better as an entrepreneur if you don't worry about what these people think.

You might need a new mentor who lives in the real world though.

Hi Warren

Your post made me laugh! Because its true!! And, yes, I do often place too much importance on what others' think, so I will take your advice onboard. I also agree on the mentor review too. I don't think its really working out for me and she is also not as available as I'd like either.

Anyway, thanks for your time.

Kind regards
Jay

[Jay]

Originally Posted by LeelaCosgrove

I have worked with people who have full time jobs and I DO find it an issue.

I don't want to contact people outside of business hours - I want to be able to talk to them when I want to talk to them. I don't want to wait hours for them to return emails and if I need a rush job done ... or even just information ... having to wait until outside of business hours to do it.

I understand that some people need to feel secure ... HOWEVER - if your number one priority is security, you might need to have a think about whether entrepreneurial endeavours are for you.

If you're waiting for the 'right' time to leave your job - to take the plunge - you'll be waiting forever.

I suppose there is an argument for being 'smart' about it - but as someone who threw in my job and just did it, let me tell you ... there is NO impetus like burning your bridges to ensure that you make a success of things.

Hi Leela
You have raised some great points thank you. I guess the security thing is an issue for loads of people starting out. I am not totally hung up on it, I am just a realist, it doesn't take long to sail through money rapidly and I guess the odd casual job is just a buffer zone, but it does not have my full focus, my business does.

When you took the plunge and left, had you planned your exit and saved heaps of money to get you through the inconsistent income period while you were starting out? How did you manage the process? I am keen to know if you have any ideas to share. Did you do it on your own?

I totally agree with your statement "there is NO impetus like burning your bridges to ensure that you make a success of things".

Thanks for your advice and ideas. I will look forward to hearing from you again.

Thanks
Jay