Small Biz Lady: You’ve coined a term employedpreneur…can you explain what that is?
Tai Goodwin: Employedpreneurs are hybrids — we are full-time entrepreneurs who are also part-time entrepreneurs. Some of us need the stability and benefits of a day job but refuse to give up the dream of being our own boss. Our PT biz is about finding a way to work our passion for profit using our 9-5 as fundraising to pay the bills
Small Biz Lady: Why do you think more people are taking this approach?
Tai Goodwin: The idea of having a side hustle or side business isn’t new — many of us know people or have that relative who fixed cars or did taxes on the side. I remember growing up, my father baking and selling pies and cakes every holiday, eventually catering weddings and special events all while working a regular 9-5 job. With the stability once assumed with a 9-5 job no longer a guarantee — wise professionals have started creating their own options. You have technology now that makes pursuing your entrepreneurial dreams easier. You can launch, manage and grow your business virtually. Just because you can’t escape your cube right now — that doesn’t mean you can’t launch a sustainable business that can scale over time.
Small biz lady: What are the benefits of launching a business while working full time?
Tai Goodwin: Having an income from your 9-5 job means you can carefully choose your clients and your projects based on fit and not solely on needing a payday. Skills and training from your day job can translate into practice and experience that can help you run your business. Working your business like a part time job allows you to build expertise and credibility if your passion is in a different field. You have time to work on your portfolio, get testimonials, build a showcase what you have to offer. And getting to do work you love — even if it is just part-time can recharge you if your day job is burnout central
Small Biz Lady: On the flipside what’s the downside of launching a business while working full time?
Tai Goodwin: First of all, there’s a huge time commitment — you are working in your business nights and weekends, your social life gets put on the back burner. When you have income coming in, you have to be careful not to over invest simply because you have your day job as a funding source. And for some the cushion of a day job delays the urgency of getting clients or creating a sustainable business plan. Another downside is the time constraints. Your opportunities for face to face networking during the day are limited. Not only that but the hours you have available compared to someone who is in this full-time means that it will take you longer to build your business.
Small Biz Lady: What are some of the biggest mistakes people make when launching their business?
Tai Goodwin: Branding before billing is a big one. By that I mean spending money on websites, business cards, the look of being in business before they actually do the work to see if it is a good fit for them — I advise folks to get clients before they get business cards. I have my own stash of cards that have changed over time as I worked my way into my sweet spot niche.
Another one I learned the hard way is not taking care of the infrastructure: legal, accounting, business plan, marketing plan, setting up a business budget. And then there’s having a bad business model where you are passionate about an idea that doesn’t have a target audience that is willing to or capable of paying your rates.
Small Biz Lady: Are there areas that employedpreneurs should focus on when starting their business?
Tai Goodwin: One of the main things to ramp up on as soon as possible is marketing. If you don’t like sales and marketing DO NOT go into business for your self — you will hate entrepreneurship. As a start-up you will spend more than 60% of your time marketing and selling your business. If you don’t — you end up with a hobby that eats your time and money and not a profit generating business
You also have to get comfortable stepping outside of your comfort zone, taking risks and failing, learning the financial side of running a business. Learning how to network and talk to people about your business (like an entrepreneur and not an employee) both online and offline is also critical.
Small Biz Lady: How do you successfully manage a career, a business and a family at the same time?
Tai Goodwin: Have really honest conversations about the changes to your lifestyle for the next year and set firm boundaries. Get buy-in and support from your family and if you can make it a family business. Make a point of scheduling quality family time as a priority. You have to be diligent when it comes to your work hours too — plan your work and set SMART goals for getting things done. As much as you can use technology and a virtual team to automate and maximize productivity: the right tools and people are critical.
Small Biz Lady: How have you been able to build a solid client base as an employedpreneur?
Tai Goodwin: Your time is limited so you need to know who you are going to serve are and how to find them online and offline. Then use social media to build a strong brand online through blogging, article marketing, and social networking. Attend live networking events and conferences — use vacation time if you have to. Learn to ask for referrals and connections. Provide quality work that gets your clients and customers results — and remember to get testimonials when you do. Do one marketing thing every day to fill your pipeline even when you have clients — never let the well run dry.
Small Biz Lady: What tips can you share from your own employedpreneur journey?
Tai Goodwin: Despite the offers that you see online and in your inbox. There is no overnight success — quick instant money path. Your business is based on one success, one client, one lesson learned a time. Hire a coach or join a mastermind group for support and accountability and build a team of advisors. The mastermind groups I’ve been a part of have been an invaluable source of resources, connections, ideas, and encouragement.
And finally, do what you can to find your niche sooner rather than later. NEVER differentiate on price (being the cheapest). Know the value you bring relevant to your customers’ pain and charge what you are worth from the start.
Small Biz Lady: Your upcoming book lists 21 things people should do before they quit, what are your top 3?
Tai Goodwin: 1 – Strip down their lifestyle and spending habits in preparation for how they will live the first 3 years of being in business.2 – Learn how to promote yourself online — social networking and social media marketing need to become your best friend 3 – Consult a financial advisor to get a clear picture of the implications and impact of starting a business. Especially what you will need to do to prepare for retirement.
Small Biz Lady: How does someone start to make a transition from employedpreneur to full-time entrepreneur or solopreneur?
Tai Goodwin: Create an exit strategy with a target date for leaving and the milestones you want to have reached before you leave: how many clients you need to have, the amount of money coming in from the business, how much money you will need to have saved for living expenses, etc…Consider a phased approach by going from FT employee to PT employee once the business is stable enough. Another option that has worked well for some people is to turn full-time job into their first client by becoming a contractor.
Small Biz Lady: What resources are out there for current employedpreneurs and those thinking about launching while working?
Tai Goodwin: Well first — your book Become Your Own Boss in 12 Months tops the list — I also recommend Quitter by John Acuff. Both offer great insights and food for thought for anyone pursuing working for themselves. Offline — get connected to your local SCORE offices, professional organizations, and networking groups. MeetUp.com is a great way to find groups of business owners to connect with. Online there are lots of resources for entrepreneurs – some of my favorites are BNet.com, Entrepreneur Magazine, Small Biz Trends. However, I had a hard time finding something specifically for those of us launching while working. So I created Launch While Working (http://launchwhileworking.com), a site and community specifically for employedpreneurs.
My intention for the site is that it become a resource for the employedpreneur community and a place for us to connect, learn and become vendors and service providers to each other. Most of us have the same evening and weekend work hours so let’s leverage that to do business with each other.
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Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her one of the Top 20 women for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)