Could you be a part time entrepreneur? How to make money on the side with a pop-up, website or even just green fingers

By Amy Andrew
culled from:http://www.thisismoney.co.uk
Have you put dreams of starting a business on hold because you're not sure about throwing in the day job to put all your time and money into an idea?

Well, think again. Many business owners start off with side ventures, which they run during their spare time.
They don't expect their fledgling business to pay the bills, but they don't limit themselves on growth either.

How about a pop-up? Street food organisation Feast's summer festival

You'll need to be realistic. Part time entrepreneurs have the opportunity to make a go of working on something they are passionate about, but expectations should be kept in check.

For example, if you love to cook you could launch a restaurant or deli - but that would a full-time commitment and a lot of money.
Your best bet is probably starting off with a weekend catering business, market stall or foodie pop-up.
Most importantly, you need to have fun.
As Professor David Rae, from the University of Lincoln, points out: 'Selecting something you enjoy or are passionate about will help immensely in terms of building up your business – the enjoyment factor essentially changes who you are, it shapes your identity and is a key ingredient with any successful business.'

The figures

Part-time entrepreneurs are actually more common than you might think. In fact, the British are more likely to take on extra work to supplement their income than other Europeans, according to research by nutrition company Herbalife, which uses a business model that employs independent distributors to sell.
Women and older people are most likely to work extra hours. The study showed 85 per cent more females than males work on side businesses and 47 per cent of those over the age of 50 have more than one income stream, compared to around 38 per cent of young people.
Most of those polled said they needed the extra cash to pay for their basic needs (71 per cent), with the rest saying they wanted to boost their income to pay for a holiday or pay off debt.
The research reflects the tough economic times, as well as a change in mentality among workers. Today people tend to change jobs, or even professions, more often throughout their working life - which means it is easier than ever before to become a part-time entrepreneur.

Best places to be a part-time entrepreneur

It is now much faster and cheaper to go into business for yourself. You don’t need to take out a huge loan or even quit your job to be an entrepreneur - developing a business idea, testing it and even take it to market can cost only a few hundred pounds.
According to Herbalife’s research, part-time work in the hospitality sector gives British people the most extra cash. Professional freelancing is also very popular, as is working in retail. 

Not interested? Professor Rae, who was consulted for Herbalife’s Second Income Study, picks his top side-lines.

Pop ups

The pop up format is immensely popular and provides people with a real opportunity to test the market and trade at a low cost.
There are lots of opportunities to create pop up stalls – from festivals and family days out to local markets and events. Innocent Smoothies started out in this very way – selling drinks at a music festival to test the market and gain valuable feedback from their customers. They also allow you test your sales, marketing and negotiation skills.
Or, how about a pop-up restaurant which you can hold in your home for free?

Monetise your assets

Gardening: Make money by selling flower pots or produce

Do you have a room in a house that’s not being used that you could rent out? Do you have a garden that you can grow vegetables, herbs and flowers in for the local market?
Using your home to make, grow and produce something is an economic, low risk method of starting a business, that gives you flexibility to work the hours around your primary job. It’s a smart way to get started.  
Many people are into organic and home-grown veg these days, and with packets of hundreds of seeds coming in at around 60p, you can sell your own produce for a serious profit.

Direct selling

Direct selling helps people gain work experience through running their own micro businesses and is an opportune way to develop entrepreneurial skills.
The concept is simple - you are trained in products - which can be anything from beauty products to cleaning equipment - and then go on to sell them via their own businesses. 
Find out more from the Direct Selling Association.

Get online

Trading – buying and selling - is a low risk way of getting started, but it’s important to use resources and skills to your best advantage.
The internet makes it possible to sell anything these days but identifying a niche or specialisation and finding out what people need is always important.
Research popular internet search terms, pick a product or service that interests you and you can start building your business from there.
Try to think of a business that won't take up time while you're at work. Although you could set up a part-time PR firm, for example, or consultancy, most clients will need you to operate between 9am and 5pm.
If you are a tech geek then your options will be endless - there is always space in the market for those that know how to do web design, or mobile marketing and you can easily do that at night or over the weekend.
If design isn't your thing, how about a review blog or website copywriter? This may not be the world-changing idea you were hoping for, but they are a way of slowly building up business and if you hit the market right with an idea that snowballs can be potentially very profitable.

I'M TOPPING UP MY PENSION

Dawn Stanford is a 79 year old grandma who runs a flourishing Wellness Clinic in Woking, which she set up after taking on a second job direct selling with Herbalife more than 10 years ago.

'When I started working on my second job I was working full-time as a secretarial PA in the telecommunications Industry. I was not looking for a second job.

'My daughter became a Herbalife distributor in 1999 and introduced me. I started by building my Herbalife business alongside my career, actively working about 10 hours a week on Herbalife.                             

'Running two jobs was enjoyable, stimulating and exciting (I’d never worked for myself before) and after about 18 months with Herbalife I resigned from my job because I wanted to concentrate on building my own successful international Herbalife business working from home. I’ll be 80 next month and I’m continually looking forward to expanding my business.

'It is of immense benefit because, even as a pensioner, I enjoy on-going financial security with the opportunity to continue earning more through my own efforts.'

I SET UP MY BUSINESS FOR £197

Lara Sheldrake, 26, works in recruitment, but decided to set up Y-Pro - a website where young professionals compare experiences and stay up-to-date on the latest topics - from home.
'My business partner, Haley Pascal, and I noticed a gap in the market and knew we had found something new and exciting, worthy of exploration. 
'Setting up Y-Pro from home has its benefits as it allows for flexibility. I have a full-time job so finding the time can be a challenge, but it is refreshing to come home and be able to pick up Y-pro - it is so rewarding having an idea and seeing it through.
'People ask me how I find the motivation but it doesn’t even cross my mind, it may be tiring and arduous at times but I love it and to me it's my baby.
'With us both having full-time jobs, this probably wasn’t the right time for us to set up a business. But a good idea should never be ignored and the digital media world, being a 24-hour domain, accommodates a flexible working approach.'
'You just need to make time, have patience, passion and perseverance.'

Why keeping your job when you start-up may be a good idea?

1. Test the water

It’s a big risk to leave a stable job and venture out into territory unknown. Although it will be hard work juggling the two, staying in full or part-time employment allows you to test the demand for your new business idea, while maintaining a safety net in case it doesn’t go as well as you hope.
Plus, cashflow is generally an issue for any new start-up. It’s difficult and expensive to borrow from the bank and starting a second job while you’re still in part or full time employment is essentially low-risk and low-cost. Any profits can also be invested straight back in to the business.
2. To save

Many people begin a part-time business in order to save for something they couldn’t otherwise afford like a house, car, or holiday. Their regular salary continues to pay for everyday expenses.
With annuity and inflation rates at rock bottom, some side business owners have started their companies simply to fund their retirement.

3. The perks

Employer pension contributions can make up a sizable chunk of your pension pot - which is not to be sniffed at. Your firm may also offer other perks, such as health insurance, a free travel-card or a mobile phone.
Leaving your job could mean you will miss out money-saving perks, so setting up a second business in your spare time means you could get the best of both worlds.

Things to consider before becoming a part-time entrepreneur

1. Say goodbye to your weekends

If you think you’re busy now, wait until you have a company to run. Make sure you are under no illusions; businesses, however small, take up lots of time, particularly in the beginning stages.
This will limit the time you have for your family and personal relationships so think carefully about the time commitment and consider what it will take to start your business.

2. The stress factor

Imagine this scenario: a demanding client from your side business calls during office hours, demanding immediate attention. What do you do?
It can be tougher than you think to separate your working hours, so you will need to assess your priorities before you start.
The best type of side business is one where you can dictate your own hours. After all, you don’t want your side business to endanger your full-time job or vice versa.
4. Take your time

Don't expect your fledgling idea to become a million-pound success story overnight. Remember, if you can only put in a few hours a day plus weekends, it will take longer to get up to speed.

5. Does your contract allow you to take a second job?
You need to check your existing contract of employment to make sure there’s nothing in it that prevents you from taking on a second job.
Some contracts might rule out additional jobs where there could be a conflict of interest – working for a rival company, for example, or where the second job might bring your main employer into disrepute.
You risk being fired - or even sued - if you market a product or idea you came up with while working at your full-time job, so try not to work on your side business while at work.
If there’s nothing in the contract, your employer can’t prevent you from taking another job.

What about the law?

Get licenses and registrations

Get the proper licenses, registrations, and insurances in place before operating your side business.
If you’re offering a service, do your research to find out whether you need to be licensed and registered.
Do your homework on the product or service you’re going to offer too.

For example you may need to take out insurance against faulty operation or accidents caused by your product. Equally, if you decide not to get protection, make sure you understand the risk you are taking on.
Your tax situation
If you’re working more than one job it’s your responsibility to make sure you’re paying the right amount of tax.
The tax system treats one job as your main employment, and will usually calculate your personal tax allowance to that job.
You could end up paying too little tax if HMRC doesn’t know you have two jobs and is applying your personal allowance to both. You might also pay less than you should if what you earn from both your jobs makes you a higher-rate tax payer, but tax is deducted from your second job at the basic rate.
This could result in you getting a big tax bill, and being charged interest and penalties.
On the other hand, you could end up paying too much tax.
If this is the case, you can ask HMRC to divide your allowance between your jobs, or ask for a refund at the end of the tax year. You’ll need to send copies of P60s from your jobs to do this.
You can avoid this by:

• Making sure HMRC knows you have more than one job. When you start your second job, get a P46 form from your new employer.
• If you have more than one job, you’ll have more than one tax code so check both to make sure they are correct.

Your pension and a second job
Taking a second job may give you the opportunity to pay into another workplace pension scheme or possibly to build up extra State Pension through paying National Insurance contributions.
If you are already receiving your State Pension, or you have a private or occupational pension, and you work as well, it can have tax implications.

MY TOP TIPS ON BECOMING A PART-TIME ENTREPRENEUR

Kate Craig-Wood: Successful businesswoman and part-time entrepreneur

Kate Craig-Wood is a successful entrepreneur who recently started a virtual cryptocurrency business, CipherMine, which she plans to run as a part-time business.

Here are her tips to get your business off the ground:
1. Use scheduling tools to master time management. Being organised is essential to being a part-time entrepreneur. If you can afford it, you should outsource repetitive tasks to an assistant, whether that pertains to the business or are of a more personal nature. Always value your own time - it is probably worth at least £10/hour (£20k/year) so if you can get someone to do your washing for you for £7/hour it is a good investment.
2. If your business model is good then you should be able to start generating money from it within a matter of months, potentially with a view to giving up your day job. Forecasting is important here; attempt to model the likely future of the business (eg. how much will you sell, what will your profits be) and if it won't pay you enough to live on soon question whether you should be doing it.
3. Understand tax. Visit Business Link or HMRC.gov.uk to make sure you are aware of what tax you should be paying and when it’s due. Or invest in a good accountant; in my experience an accountant saves you more tax than their fees.
4. Pool resources. I needed to bring together a number of key people with specific skill sets to start my business, being a successful entrepreneur is being able to recognise a business opportunity and bring together the different components to make it work.
5. Funding. If you need money to get your part-time business off the ground then friends and family are always the best option. If at all possible avoid borrowing against your personal assets; if something goes wrong you could lose them. Getting angel or VC funding pre-revenue is basically infeasible in this country, and even post-revenue it is incredibly hard to have sensible conversations with investors. The main source of early-funding is your time.
That said, for my virtual business I did manage to raise several tens of thousands of pounds through an online virtual stock exchange game called Litecoin Global. I would not necessarily encourage others towards this unless they had a lot of knowledge about cryptocurrencies however.