NFIB

Weekend Warriors:Tips for Running a Successful Weekend Business Part II
04/ 01/ 2002


Today's Workshop, by Jeffrey Moses, continues last week's discussion of juggling time to maximize the chance for success of your second business.

Weekend businesses require the same financial planning and day-to-day operational efficiency that full-time businesses do. You need to have a separate checking account for the business. And you should carefully review and cover all insurance obligations your new business may require. To maximize success on your initial budget, which might be tight, you may need to capture money from each check for your self-employment taxes, business insurance, and retirement savings. This will help you avoid having to come up with all the money for taxes or premiums at the same time.

Since many weekend businesses are started on a shoestring, always purchase your equipment conservatively. You may want to start with used equipment to save money until you're successfully up and running. If you're buying a lot of equipment, or will require services from outside suppliers, always get bids from at least 2-3 vendors.

For most people, the goal in starting a weekend business is that it grow to become a full-time, highly profitable endeavor. Don't expect this to happen overnight, but with dedication and skill, profitability will develop. Once it does, you'll find that your weekend business begins creeping into your regular weekday employment. Then other questions develop. Do you start putting in a few extra hours during weekday evenings? Do you talk with your boss and cut back your regular hours? Do you zip away during lunch hour and put in a few minutes of work? These issues and others need to be carefully considered, and it's usually a good idea to bring in a third party to help with the decisions. Always keep lines of communication open with your spouse, and develop an ongoing relationship with a business adviser or accountant who is experienced in small businesses. Once your business does start to grow, your spouse might be able to jump in as a business partner and contribute time during the week.

One last issue -- your fatigue level. Make sure that you get enough sleep throughout the week and during weekends. If you don't, it will catch up with you, limiting your possibilities for success and even undermining your health. Avoid getting up at the crack of dawn on Saturdays to start work. Once in a while you may have to do this, but don't do it regularly if at all possible.

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