16 Steps

to Starting a
Business While
Working
Full Time

®
In Partnership With
 WELCOME!
16
STEPS

Achieve Your
Startup Dreams
W C
elcome to the world of business ongratulations on taking the first step
ownership! Those who pursue the towards a new venture! We know firsthand
entrepreneurial route are of a different that small businesses make a big impact,
cut than the rest of the population: providing products and services across
driven to pursue a passion and carve their own path to the country. Each and every one of our nearly 4,500
success. We’re so glad you’ve chosen this road. The UPS Store® locations is run by individuals just
We at SCORE exist to support your efforts as a small business like you—men and women who made the decision
owner every step of the way—from dipping your toe in the water to leave behind the daily grind to make their mark
of a great idea to the full-fledged launch of your venture. Use this with a business of their own. They understand the
guide to make exactly that leap and utilize the support of a SCORE
day-in and day-out challenges and opportunities
mentor and the small business resources of The UPS Store to make
the transition as smooth and effective as possible. of running your own business. Because they stand
beside you, The UPS Store franchisees use their
Thanks to the support of the U.S. Small Business Administration
(SBA) and partners like The UPS Store, SCORE mentoring and experience as small business owners to ease the
resources are completely free. Get connected with a SCORE mentor struggles and stresses of their small business
and access more free online tools at www.score.org. customers—and celebrate their successes.
Starting a business is a daunting route to take but you don’t have to Thousands of small business rely on their neighborhood The
go it alone. Arm yourself with the tools and expertise that will best UPS Store to help them with the logistics of running their
guide your path. business. You will find a list of our products and services, as
well as a store locator, on our website at www.theupsstore.com.
We are excited to partner with SCORE in presenting the
information, examples and resources that follow. We hope
they will assist you as you start down your new path as a small
business owner.

KEN YANCEY, CEO On behalf of The UPS Store network, let me be one of the first
to wish you the best of luck as you begin your exciting journey!
SCORE

TIM DAVIS, President

The UPS Store

| 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 CONTENTS
16
STEPS

2-8 PART 1: Get Ready

2 STEP 1: Select a Business
4 STEP 2: Write Your Business Plan
5 STEP 3: Goal Setting and Planning
6 STEP 4: Choose Your
Marketing Methods
7 STEP 5: Figure Out Your Finances

9-18 PART 2: Get Set

9 STEP 6: Know the Rules
STEP 7: Set Up Your First Office
10
STEP 8: Business Licenses, Taxes
11
and Insurance
STEP 9: Invest in Your Image
12
STEP 10: Find Your First Customers
13
STEP 11: Manage Your Money
14
STEP 12: Manage Your Time
15
STEP 13: Manage Your Energy Level
16
STEP 14: Create Work/Life Balance
17
STEP 15: Work Your Business Network
18

19-20 PART 3: Start
19
STEP 16: Go for It!

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16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME | 1

 STEP PART 1: GET READY

1
Do you dream of being your own boss? If you want to start a business, but aren’t quite ready to give up
your job and its accompanying security, salary and benefits, don’t worry; you don’t have to. Working full time doesn’t
have to mean giving up on your entrepreneurial dreams. In fact, starting a business while working full time is a great
way to test the waters of entrepreneurship and gradually grow your startup into a full-time business.

Select a Business
P
erhaps you already know what kind of business 3. Your personality traits. It’s important to select a business
you want to start; perhaps you just know you that fits you. If you’re shy and dislike talking to strangers, a
consulting business that requires cold calling and constant
want to be an entrepreneur. To find the perfect networking to attract clients may not be the right fit. If you’re
business, consider: social and love interacting with people, on the other hand, you
probably won’t enjoy running an ecommerce site from your
spare bedroom and connecting with customers only on-screen.
Is your heart set on a business that requires traits you lack?
Partnering with someone who possesses those qualities can put
you on the road to success.
Assess your experience, interests and personality traits, then
brainstorm possible business ideas to develop a list of options.

1. Your skills and experience. Many people start businesses

related to past jobs. For example, if you’re an IT manager for
a big corporation, you might start an IT consulting service.
This approach simplifies startup because you already have the
skills, knowhow and business connections to get your business
off the ground. On the other hand, after working all day in IT, Will It Work Part Time?
will you want to spend nights and weekends doing it, too? Also
keep in mind that you can’t approach your employer’s clients as When starting a business while working full time, you must choose
potential customers. a concept that lends itself well to part-time operation and meshes
with your personal and job commitments. For example, if you
2. Your interests and hobbies. Some entrepreneurs decide work 9:00 to 5:00 in your full-time job, it’s probably not realistic to
to change course entirely and start businesses based on their start a retail store that has to be open from 10:00 to 8:00.
hobbies or personal interests. After a long day at work, it’s
energizing to shift gears to a completely different business. On However, with a few adjustments, many business concepts (even
the other hand, your fun hobby may not seem as much fun when retail!) can be made to fit your needs. Take these factors into
it becomes a serious business. account when selecting your business idea:

2 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 PART 1: GET READY

10 SMART STARTUP IDEAS

Looking for a business idea? The following businesses don’t need a
commercial location and can easily be run from home. Any meetings
with customers can take place in the early mornings, evenings or on
weekends, at their homes or businesses.
1. Ecommerce website 6. Personal training
2. Tutoring service 7. Interior decorating
3. Children’s extracurricular activities 8. Writing/editing
(i.e., language, art or music lessons) service
4. Catering business 9. Pet grooming
5. Housecleaning/home services 10. Photographer

free, you have more time to spend on a business. If you travel

frequently for your job, work very long or unpredictable hours,
or have a spouse and young children, you may need to start very
small or find a business partner to help out.
■■ Would your business require an outside location such
as a store or office? Where there’s a will, there’s a way. For
example, if you’re determined to start a retail store, you could
enlist a partner who can run the store while you’re at work.
However, choosing a business that can be run from home—at
least at the beginning—will make your life a lot easier. If you’ve
always wanted a retail store, you could start with an ecommerce
site and add a physical location when your business goes full time.
■■ When and where will customers or clients expect to
meet with you? Businesses where most interaction with
customers takes place over the phone or by email; at customers’
homes or places of business; or during the evenings, nights
or weekends are ideally suited to part-time operation. Since
customers won’t expect to meet with you during normal business
hours, you can keep your day job.

■■ What days and hours do you currently work? Unless you

can adjust your work schedule (for example, requesting an early
morning shift so you have afternoons off), you’ll need a business
you can operate outside your current work hours.
■■ What days and hours can you devote to your business?
Consider personal commitments as well as job responsibilities.
If you are single, childless and have nights and weekends

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 STEP PART 1: GET READY
2

Write Your
Business Plan
W
hen you’re starting a business part time, ■■ Describe the sales channels you will use to sell your product
you may think you don’t need a business or service.
plan. However, a business plan is ■■ Detail who your competition is and what characteristics will
enable your business to compete effectively.
important for any startup—big or
■■ List your experience and background, and that of any co-
small. Much more than a tool for obtaining a business
founders or partners.
loan, the business plan is
the road map you will use 2. Financial Forecasts: Explain how much it will cost to start
the business, where the money will come from and how you will
to keep your startup on spend it, and your financial projections for growth.
the right track. ■■ List the equipment you’ll need to buy and any other investments
Business plans typically include you must make to get started.
these sections: ■■ Explain where your startup money will come from, such as
Executive Summary personal loans, savings or salary.
■■ Project your income and expenses for the first year in business
1. The Business
and estimate how long it will take to break even.
2. Financial Forecasts ■■ Include any outside investors or grants as an option of where
3. Supporting Data your startup money may come from.

We’ll explain the Executive 3. Supporting Data: Like an appendix for the business plan,
Summary last, because you’ll this section provides backup evidence for the information you
write it last. included elsewhere, such as the size of the market for your
product or service.
1. The Business: This section explains your business model—what
your business does and how it will make a profit. Executive Summary: As the name implies, this sums up all the
information in the business plan. If you show your plan to investors,
■■ Describe your business, your product or service and why there
lenders or potential partners, this is the first and perhaps the only
is a need for it. part they’ll read, so it must convey all the key information needed to
■■ Explain who your target market is and how you will market to them. convince them your business is worth their consideration.

BUSINESS PLAN RESOURCES

■■ Visit BPlans for hundreds of free sample plans you can use as templates.
■■ Check out Business Plan Pro, popular business plan software that comes with more
than 500 business plan formats for different business models and industries, as well as
financial formulas, charts, graphs and tables built in.
■■ Need more assistance? Wise Business Plans is an online business plan service where
writers with MBAs use your ideas to write a business plan for you.
■■ Visit the SCORE website (www.score.org) to download free business plan templates and
get help from a mentor in putting your plan together.

4 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 STEP PART 1: GET READY

Goal Setting
and Planning
S
tarting a business can seem overwhelming, Each of these goals can be broken down into smaller steps. For
especially when you’re also holding a full-time example, steps to developing a website would include:
job. Goal setting and planning are crucial to ■■ Choosing a domain name for your website

success. ■■ Registering the domain name

Use your business plan to map out your goals and the steps ■■ Finding a web hosting company
necessary to achieve them. When you know your overall business ■■ Finding a web designer, website development company or website
goals, such as how many sales you expect to make in your first templates to create your website
quarter of business and when you anticipate reaching profitability, ■■ Determining what elements your website needs and how they will
you can set smaller, interim goals to reach these larger milestones. be laid out
For instance, suppose your business model is an ecommerce website ■■ Choosing shopping
selling apparel and accessories for teenage girls. In order to get cart and inventory
this business up and running, there are several goals you’ll need to software for your
accomplish, including: website
The more detailed you
can be in laying out
each step to startup, the
better. For example,
“Choosing a domain
name” could be broken
down into even smaller
steps:
■■ Brainstorm domain
names by myself
■■ Brainstorm domain names with friends and family
■■ Choose top five to 10 domain names
■■ Visit domain registrars to see which names are available
■■ Narrow down options and select one

If you break each step into smaller steps, achieving bigger goals
will seem more manageable. When you’re starting a business part
time, you’ll have limited time to work on your startup each day.
Creating tasks you can complete quickly will give you a feeling of
accomplishment and generate forward momentum.
Once you’ve listed your goals, sub-goals and the specific steps needed
to reach each milestone, plan a timeline for your startup’s launch.
■■ Developing a website Create a timeline that is challenging enough to keep you energized,
■■ Finding sources of inventory but realistic enough that you don’t get discouraged. Perhaps
you’ll commit to accomplishing one small task each day, or one
■■ Finding prospective customers
intermediate goal per weekend. Your SCORE mentor can help you
■■ Setting up mailing and shipping systems develop a realistic timeline and keep you on track.

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 STEP PART 1: GET READY
4

Choose Your
Marketing Methods
M
arketing spreads the word about your
new business to potential customers. It
includes print and online advertising,
direct mail, public relations, social
media, word-of-mouth and more.
Start by creating a mission statement that succinctly and
memorably expresses your business’s purpose, your target
customers and what differentiates
your business from the
competition. For example, if you’re
starting a children’s tutoring
business, your mission statement
might be, “Our mission is to
example, if your children’s tutoring service has a target market of
help children grades K-12 reach
young, well-educated moms who are avid online shoppers highly
their full potential through fun,
influenced by social media, you should focus most of your marketing
individualized instruction that
efforts online.
develops a lifelong love of learning.”
If you provide financial consulting services for retirees, on the other
The next step is to develop a
hand, and your target market reads print newspapers and magazines
consistent brand identity for
and enjoys getting direct mail, you should use print advertising and
your company. Your brand is the
mailers.
“personality” of your business.
Visual elements such as your logo, Every startup needs marketing collateral, which can include:
packaging and website design;
■■ Logo
your marketing copy; and even
the marketing methods you use all help convey your brand. In the ■■ Business cards
example above, the brand is educational, personalized, caring and ■■ Letterhead and envelopes
fun. Warm, bright colors; friendly, conversational copy; and lively
■■ Website
design will all help convey this brand.
■■ Brochures
To choose your marketing methods, ask:
■■ Fliers
■■ Who are your target customers? (Are they businesses or
consumers? What are their demographics?) ■■ Mailers or sales letters

■■ What media do they use? (Do they read print newspapers or prefer ■■ Print or digital presentations
online blogs? Which radio or TV stations do they tune in to?) ■■ Product packaging or labels
■■ Where do they normally buy products or services like You don’t have to develop these all at once; start small with what you
yours? (Online or in stores? From big-box retailers or small need now. Get help with logos, business cards and more at The UPS
independents?) Store Online Print site.
■■ How will you sell your product? (Online, by wholesaling to stores,
Your SCORE mentor can help you fine-tune your mission statement
through sales representatives?)
and business brand, choose the perfect marketing methods for your
The answers to these questions, as well as your available time and startup and determine what marketing collateral you need to get
budget, will determine what marketing methods work best. For started. Visit www.score.org.

6 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 STEP PART 1: GET READY

Figure Out
Your Finances
A
s a part-time entrepreneur, you’ll rely on
your own savings and loans or investments
from family or friends to finance your
new business. Banks rarely lend money to
part-time startups. Managing your business finances
professionally not only helps you make the most of
your precious startup funds, but also prepares you to
obtain loans or investors as your business grows.

Sales Projections
To project sales, figure out the units in which your products or
services will be sold. Depending on your business, units could be
products, hours or discrete services (such as preparing a tax return).
Next, estimate how many units the average customer will buy. For
example, the average tutoring service customer might buy two units
(hours) per week.
Finally, project when you will get paid. This varies depending on
industry. For instance, an ecommerce business gets paid immediately
via credit or debit card, while a tutoring service might bill monthly,
with payment due in 15 days.
Financial information you’ll need to get started includes:
Gross Profit Margin
Projected Startup Costs Your gross profit margin is the dollar amount of sales, minus the
How much it will cost to launch your business, and where is the direct costs of sales. Direct costs vary based on sales volume; for
money coming from? Startup costs include equipment, inventory, example, an ecommerce’s business’s direct costs include shipping
legal costs (such as incorporating the business or obtaining and handling. Indirect costs (also called fixed costs or overhead) are
licenses), insurance, wages and taxes. those not affected by sales volume, such as salaries.

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 PART 1: GET READY

FINANCIAL AID
SCORE has free,
downloadable tools and
templates to help with
all aspects of financial
planning, bookkeeping
and accounting. To access
these tools or get advice and
assistance from a SCORE
mentor, visit www.score.org.

should monitor your cash flow statement monthly or even weekly to

make sure your business brings in more money than it spends.
You’ll also need the following tools to manage your business’s
finances.

Business Bank Account

Even the smallest startup needs a business bank account. Keeping
business and personal expenses and accounts separate avoids
problems at tax time and ensures you can take all the business
deductions you’re entitled to. A business bank account also shows
customers and vendors you’re a real business, builds your business
credit rating, and is essential if you ever apply for a business loan.

Accounting Software
Simplify startup and prepare for growth with an accounting
and invoicing system that’s easy to use. QuickBooks is the big
name in small business accounting; Sage One, Freshbooks,
AccountingDepartment.com and FreeAgent are popular solutions
for small startups, one-person businesses and companies that use
freelancers or independent contractors.

Payment Processing
Breakeven Analysis
How will customers pay you? You may be selling products online
The breakeven point occurs when your gross margin (sales minus and taking payment at the time of purchase, selling services or
cost of sales) equals your fixed operating expenses. To calculate products in person and accepting payments at the time of delivery, or
the breakeven point, divide Total Operating Expenses by Gross sending invoices after services are provided.
Margin (as a percentage of sales).
No matter how you ask for payment, your goal is to get paid as fast as
BREAKEVEN SALES = TOTAL OPERATING EXPENSES / GROSS MARGIN PERCENT possible. To speed things up:
Think of this as an algebra problem where X = breakeven sales. ■■ Find a credit card processor so you can accept credit and debit
You should reach the breakeven point after six to 18 months in card payments. Look for one that can grow with your business, is
business. If not, you may need to rethink your business model. convenient and has low fees.
■■ If you invoice customers, choose software that lets you invoice by
Cash Flow Statement email to get paid faster, and set up your business bank account to
The cash flow statement details collections and payments—that accept online payments.
is, cash coming into and going out of your business. Similar to a ■■ If you get paid in person—for example, if you’ll be visiting
checkbook register, the cash flow statement shows your opening customers’ homes or selling products at a crafts fair—use a tablet
balance, expected deposits and withdrawals, and an ending or smartphone to take debit or credit card payments on the go with
balance for the month. As with your personal bank statement, you apps such as Square, Intuit GoPayment and PayPal Here.

8 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 STEP PART 2: GET SET

6
It’s time to put the nuts and bolts of your startup in place. From buying business equipment and setting up
your office to finding your first customers and managing your time, the tips on the following pages will help
you juggle the responsibilities of your job, your life and your new business so you succeed in every area.

Know the Rules

T
o stay on your current What about using personal devices to do business at work? You may
employer’s good side not think you’re “stealing” from your employer, but if you pick up
your personal smartphone to answer a business email during work
while launching your hours, you are on your employer’s clock, not yours. To protect your
business, here’s what reputation and your business, confine working on your startup to
you need to know. your own personal time and space. You can bring your laptop to
work and use it to work on your business during lunch—as long as
Terms of Agreement you go out to a coffee shop; you shouldn’t do it while eating lunch at
your desk.
If you signed a contract or
employment agreement when you Don’t slack off at your job while starting your business. In fact,
were hired, review these documents. you’ll need to work harder than ever. Volunteer for new duties or
(They should be in your employee projects to gain skills and experience that will make you a better
manual, which you should also entrepreneur.
review). You may be prohibited from
Maintaining your reputation at work will be invaluable as you
starting a competing business or
transition to full-time entrepreneurship. Treat them right, and your
soliciting your current employer’s
former employer and co-workers can be powerful allies to your new
clients. Your employer may even claim
business, providing referrals, giving you glowing references and even
ownership of your business or product if the idea was developed on
becoming customers themselves.
company time, using company resources or while you worked for
the company. If you’re uncertain about your legal rights, consult an
attorney. Breaching terms of employment could put your job and
your new business at risk.

To Tell or Not to Tell?

Should you tell your employer you’re starting a business? In most
cases, it’s wisest to keep quiet. Your boss might assume that you’ll
quit soon, that you’re less dedicated or that you’re expendable if he
or she knows you have a business of your own.
In addition, it’s best not to mention your new business to your co-
workers. Don’t ask co-workers to buy products from you or refer
clients to you. Rumors travel quickly, and gossip from co-workers
could spread and harm your reputation.

Do the Right Thing

Never use your current employer’s time, premises or equipment
to work on your startup. This applies not only during work hours,
but after hours as well. You can’t work at your desk from 9:00 to
5:00, then work on your business until midnight just because you’re
“off the clock.” Nor should you use employer-provided computers,
tablets, smartphones, networks or email accounts to do anything
related to your business. Your current employer can legally access
these devices and communications.

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 STEP PART 2: GET SET
7

Set Up Your
First Office
Y
our home is the ■■ Do you need to meet with clients at home? You’ll
logical place to want a separate office (such as a converted garage or guest
house) or a room with an outside entrance.
set up a part-time
■■ Do you need to make products or package items
business—but
for shipping? You’ll need plenty of space to spread out,
first, find out if your or you may want to consider having your shipping services
community is zoned for outsourced to a shipping expert if your product category or
home-based businesses. volume requires it.
Many communities restrict ■■ Do you need inventory or materials? Make sure you
have a secure space to store them.
or prohibit:
■■ Storing hazardous materials If you don’t have a spare room, create a separate workspace
by curtaining off a corner of the bedroom, screening off a spot
■■ Creating nuisances (noise, in the dining area or buying a desk armoire for your business.
odors, waste) Separating business and personal space helps you and your
■■ Doing business outside family see your startup as a real business, not just a hobby.
■■ Modifying a home’s structure or
adding signage
Business Equipment and Services
■■ Creating traffic You probably have some of the equipment you’ll need to run
your business, such as a computer, printer and smartphone. It’s
■■ Taking up excessive street best to have a computer just for your business so you don’t risk
parking with delivery, customer your kids accidentally deleting key client files. An all-in-one
and employee vehicles, or printer that scans, copies and faxes is an affordable printing
commercial vehicles solution. Or, save on startup costs by handling printing, faxing
Stay in your neighbors’ good and copying at a business service center.
graces by keeping your business as If your equipment needs are more specialized, talk to a SCORE
unobtrusive as possible. mentor who can help you prioritize your purchases and
find affordable sources of equipment, such as liquidators or
Find Your Space equipment leasing companies.
Take the time to create a home If your business requires shipping products to customers, using
office space that fits your needs. a business service center such as The UPS Store to professionally
package, weigh, ship and track your
shipments ensures your shipments arrive
MEET AND GREET on time and in good condition.
If you need to meet with The UPS Store can also serve as your back
clients, but don’t have
space for a separate office to your business, providing you
office at home, search the necessary tools to help your small
online for executive business thrive. The UPS Store offers
suites or co-working in-store and online printing, notary,
spaces where you can document finishing, mailbox services,
rent conference rooms packing and shipping, all tailored to fit
on as as-needed basis. your small business.

10 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 STEP PART 2: GET SET

Business Licenses,
Taxes and Insurance
C
hoose the legal form of your business ■■ Equipment and furnishings
with an eye to future growth. Your options ■■ Office supplies
include sole proprietorship (one individual ■■ Business travel, entertainment and meals
owning and operating the business) or ■■ Mileage traveled for business purposes
partnership (two or more individuals owning the ■■ Health insurance
business). These simple forms of business are fine for
If you want to take a home office deduction, 1) your home must
most startups’ needs. be your principal place of business and 2) the part of the home
However, you should also take the time to understand other you deduct must be used exclusively for business. In 2014 the
options, including the C corporation, S corporation and limited IRS introduced a simplified home office deduction option that
liability company (LLC). In these more complex forms of business, streamlines recordkeeping. Get details by visiting IRS.gov and
the business is a separate legal entity independent of its individual searching for “home office deduction.”
owner/s. While these forms of business have more paperwork Keep detailed expense records; this simplifies accounting and
and legal requirements, they provide important tax and liability protects you in case of a tax audit. Talk to an accountant or tax
advantages that can protect your personal assets. They can also preparer to make sure you’re filing your business taxes correctly for
make it easier to attract investors as your business grows. your form of business.

Licenses and Permits Business Insurance 101

Every business must register for a business license either in the state Most homeowners’ or renters’ insurance policies don’t cover
where it does business (for LLCs and corporations) or the county business equipment or furniture. If your equipment is minimal, such
of residence (for sole proprietors and partners). Registration fees as a computer and printer, adding a rider onto your homeowners’
are typically less than $200; you’ll also pay annual renewal fees. coverage may be sufficient. However, if you have a separate office
Depending on your industry, you may also need state, county and/ space, store inventory at home or have customers or suppliers visit,
or municipal licenses. Visit your state, city and county websites for you will need additional protection.
more information.
Property coverage and general liability coverage protect you against
Tax Time loss, damage and lawsuits if anyone is injured on your premises. If
you provide services such as consulting or accounting, investigate
You can deduct many of the costs associated with starting a errors and omissions (E&O) insurance. This covers claims by clients
business when you file your taxes. Deductible business who are harmed by an error you make, such as miscalculating their
expenses include: taxes. Talk to an insurance agent to determine your needs.

MAKE IT LEGAL
Legal websites such as Nolo, RocketLawyer
and The Company Corporation offer
information and resources explaining
business formation options, advantages
and disadvantages. Your SCORE mentor
can help you make a decision;
visit www.score.org.

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 STEP PART 2: GET SET
9

Invest in
Your Image
I
f you want people to take your startup seriously, ■■ Invest in
you must present a professional image. professionally
designed and
Fortunately, technology makes it easier than ever printed business
to give the impression that your business is bigger, cards, brochures,
more established and more successful than it really is. fliers, letterhead and
To create a professional image: marketing materials.
Business cards or
■■ Get a full-service business mailbox. This gives your letterhead printed out
business a professional mailing address, as opposed to an on your computer create
obviously residential one like 22 Cherry Tree Lane. It also keeps a low-budget image you
important business packages and mail such as checks and bank want to avoid. Visit The
statements safe UPS Store or your local
when you’re away business service center
from home or out for help with your
of town. The UPS printing needs.
Store offers real
■■ If you sell or ship
street addresses,
which looks more products, quality
professional than packaging makes a
having a P.O. Box big difference in how
number for your customers perceive
business. you, and can even
enable you to charge
■■ Obtain a separate phone number for your business. more than you otherwise might. Pay attention to everything
Smartphones typically let you host more than one number from the box your products ship in and the padding inside to the
on a phone. Record a professional message on your business color and fonts of the label on the outside.
voicemail. Use a different ringtone for your business line and
■■ There’s nothing less professional than losing an
always answer calls to that number in a professional manner.
important document. Ensure you always have key data
■■ Set up a separate email address for your business. It’s or customer files accessible by using cloud storage options
best to use an email affiliated with your website domain (such as to securely store your data online. OneDrive, Dropbox and
[email protected]), but using a Gmail address Google Drive are popular options for small business use. To
is widely accepted as well. Just make sure your email sounds protect yourself in case of a computer crash, invest in a backup
professional, such as [email protected], not blakefamily@ solution that automatically backs up your computer data online;
gmail.com or [email protected]. Carbonite, Mozy and SugarSync are popular with small and
home businesses.
IN THE CARDS ■■ Last but not least,
invest in yourself. If your
Unique business cards can make a big new business involves meeting
impression, especially if your startup is with clients, make sure you are
food, design or crafts-related. Consider well groomed, dress professionally
business cards made of unusual materials
like wood, plastic or metal; in unusual and carry quality accessories.
shapes or sizes; or with 3-D effects such as Keep the vehicle you use for
embossing or textured surfaces. business clean inside and out.

12 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 STEP PART 2: GET SET

10

Find Your
First Customers
Y
ou’re raring ■■ Collect customer data: Save time and market more
to go—all effectively by maintaining data about prospects and customers.
Customer relationship management (CRM) tools like Really
you need are Simple Systems, ZohoCRM and ContactMe let you track every
customers. How interaction, set reminders and schedule follow-up contacts.
to find them? Try the
following tactics:
■■ Get a business website:
Keep it simple with all-in-
one website packages that
include a domain name, hosting services and design templates.
Popular options include GoDaddy, Web.com and Yahoo Small
Business. If you’re starting an ecommerce business, look for
a website builder specializing in ecommerce, such as Shopify,
Volusion or 3DCart.
■■ Use word-of-mouth: Start your search for customers by
asking friends, family members and acquaintances for leads. You
never know who might introduce you to your first customer.
■■ Publicize it: Tapping into existing networks of bloggers who
speak to your target audience, making connections, and offering
content or services such as writing guest blog posts can align
you with your target audience.
■■ Get social: Use social networks such as LinkedIn, Twitter,
Facebook, Instagram and Pinterest to get your target market’s
attention. Create a social account for your business, and post ■■ Market with email: Ask prospects and customers to sign up
useful content providing information, advice or entertainment. for email messages from your business. (Be sure to comply with
Interact with followers regularly, and link posts to your business the FTC’s CAN-SPAM laws.) Email marketing service providers
website so followers can learn more about your business. such as Campaigner, Constant Contact and iContact let you
create and send professional-looking emails.
■■ Advertise: If your business targets local customers, use
print ads in community newspapers, local directories or ■■ Offer deals: Offering discounts for your first customers can
local magazines to reach them. You can also get customers build a foundation for attracting more. This works especially
by advertising on websites your target market frequents. For well for businesses that provide recurring services. For example,
instance, a children’s tutoring service can advertise on websites a lawn-care service could offer six months’ services for the price
targeting moms of school-aged children, limiting the ads to of three.
moms in nearby ZIP codes. ■■ Become an expert: Get attention from prospects by building
■■ The direct approach: Try a direct mail campaign to reach a reputation as an expert in your industry. Offer to speak to local
your neighbors. The UPS Store offers a service called Every groups your target customers belong to about topics relevant to
Door Direct Mail. Simply choose an area in which you want to your business.
advertise, and The UPS Store will handle the logistics of having ■■ Buddy up: Form alliances with established small businesses to
your direct mail advertising piece delivered to every address in help each other get customers. For example, if you have a dog
that neighborhood. It’s an affordable option to reach people in grooming business, you could partner with a local dog-sitter to
your area. refer clients to each other.

16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME | 13

 STEP PART 2: GET SET
11

Manage Your
Money
Y
ou developed a ■■ Show future lenders or investors that your business is well managed
financial plan and Look at budgeting this way, and you’ll be excited to do it because it’s
forecast as part a way to measure your business success—and get closer and closer to
of your business making your business your full-time job.
plan. As you launch your Personal Budgeting
new business, use them
While working full-time and running a startup, you’ll need to keep
to stay on top of your personal expenses to a minimum. (Maybe it’s a good thing you won’t
finances—both business and have much time for socializing, entertaining or vacations!) Develop a
personal. personal budget that takes into account expenses such as:
■■ Rent or mortgage payment
Business Budgeting
■■ Insurance
Create at least a one-year business ■■ Car payment and insurance
budget, broken down by months.
Bookkeeping and accounting ■■ Food
software simplify this task. How do you develop a budget before ■■ Utilities
your business even starts? If you need help coming up with
■■ Child care
estimates, your SCORE mentor can help you determine:
■■ Personal expenses
■■ How you will price products or services
■■ Retirement plan contributions
■■ The costs of producing your product or providing your services
■■ Your operating expenses Last, but not least, be sure you budget a percentage of your paycheck
to put into personal savings each month. This will build up a fund to
■■ Your startup equipment costs help support you during the transition from part-time to full-time
■■ How much you’ll pay yourself entrepreneurship. If you’re tempted to spend the money instead
■■ Your expected tax liability
of saving, have a set amount automatically transferred from your
checking account to your savings account each payday.
■■ How many units you can expect to sell in the first year

Review the budget each month to ensure you have enough cash to
meet business expenses. Also review it quarterly so you can spot
larger trends and make adjustments if your income or expenses
vary substantially from your projections.
Think of budgeting not as a chore, but as a tool for business growth.
Careful budgeting ensures your business always has cash on hand to
meet expenses. It also enables you to:
■■ Spot potential problems, such as upcoming cash shortages, and
come up with solutions
■■ Set sales goals to help your business grow
■■ Determine if your profit margins are adequate to meet your
income goals and adjust prices and expenses accordingly
■■ Plan for tax time

14 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 STEP PART 2: GET SET

12

Manage Your
Time
A
s a full-time services you need to outsource so you can focus on what you do
employee and part- best—running your business.
time entrepreneur, Assess your business model and budget to determine if the
your time will be productivity you gain from outsourcing is worth the price you’ll
pay. You can find independent contractors and freelancers in a wide
at a premium. Make the most range of specialties at websites including Elance, Freelancer and The
of every hour in the day with International Virtual Assistants Association.
these strategies:
Structure: Setting a regular
schedule makes you more productive.
For example, plan to work on your
business for three hours a day after
dinner, or devote all day Saturday
to it.
Measure: When you’re switching
focus from job duties to business
duties and back again over the course
of a day, keeping track of your time
gets confusing. Use time-tracking software such as
Harvest, HoursTracker and PayDirt to track time spent on
different tasks, clients and projects. This not only simplifies
invoicing if you bill clients hourly, but also lets you see how well
you are using your time.
Outsource: Startup business owners wear many hats. When Delegate: If you outsource, you’ll need to manage your independent
you’ve got a full-time job, too, you may not be able to handle contractors and freelancers. There are many tools to help you
everything you want to. Outsourcing to freelancers or independent delegate effectively while keeping tabs on your virtual team.
contractors can save time and decrease stress. ■■ Project management tools such as Basecamp, Wrike and Trello let
You should never outsource the core functions of your business, you assign tasks and deadlines, check in with contractors via email
but you can outsource duties you dislike or aren’t good at. and chat, view progress and more.
Administrative tasks, such as scheduling or answering routine calls ■■ Use cloud storage tools such as OneDrive, Dropbox and Google
or emails, can be outsourced to a virtual assistant. Choose one in Drive so you and your contractors can access data and documents
a different time zone so your customer communications can be online 24/7.
covered when you’re at work.
The UPS Store provides you exclusive
deals and convenient means of finding
IS IT TIME TO HIRE?
referrals to products and services that Hiring permanent employees is typically a
may be relevant to you. Whether it’s bigger commitment than a part-time business
help with accounting, human resources, owner should make. If you need more
marketing or information technology, hands-on assistance than an independent
contractor can provide, see if you can enlist
The UPS Store Small Business Solutions
family members and friends to help out.
site connects you with the professional

16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME | 15

 STEP PART 2: GET SET
13

Manage Your
Energy Level
W
hen you’re running a business and restful sleep by keeping your bedroom cool and dark; banning
holding down a full-time job, you may feel smartphones, tablets and laptops from the room; and “winding
down” with a relaxing activity half an hour before bed. Also try
like you don’t have time to do anything to go to sleep and get up at the same time every day­—even on
but work. Keep in mind, though, that at weekends. This will help you stay more energized.
this point you are your business—and if you neglect your 3. Eat right. Heavy, greasy or fatty meals slow you down.
health, your startup will suffer. Try these sleep, diet Instead, eat lean proteins, fruits, vegetables and whole grains
and exercise tips to help keep your mental, physical and for maximum energy. Since your busy schedule will likely mean
emotional batteries recharged while you work on getting grabbing meals on the go, pack snacks like energy bars, raw nuts
and fresh fruits or vegetables—they’re portable and provide
your new business off the ground. sustained energy. Avoid sugar and excessive caffeine; they pep you
up briefly but you’ll quickly crash. Stay hydrated with plenty of
water, and drink herbal or green tea instead of soda and coffee.
4. Make time for fitness. You may have to cut back your fitness
routine to fit in your startup duties, but don’t give up exercise
altogether. Many entrepreneurs get their best ideas and insights
when working out. Instead, find ways to squeeze in short
workouts. If driving to the
gym, changing, swimming,
showering and driving back
takes too long, substitute 15
minutes of calisthenics in
the morning, a quick walk
around your office park
on your break and a brisk
walk with your family after
dinner. By getting shorter,
but more frequent, sessions
of activity in during the
day, you will enjoy many
of the physical and mental
benefits of longer workouts,
1. Know your peak productivity. Whenever possible, find the without feeling as if you’re
most productive time to work on your business based on your taking time away from your
natural rhythms. Some people focus better early in the mornings; business.
others come alive late at night. If you’re exhausted after work,
5. Build in downtime.
you may need to dedicate weekends to your startup. If you need
Schedule at least 30 minutes
some work-free time on the weekends to recharge, put in a few
a day for an activity that
hours each day before work, after work or at night to focus on
restores you, such as
your startup tasks.
reading, pursuing a hobby
2. Get quality sleep. Once in a while, you might have to pull or spending time outdoors. Avoid pastimes that drain rather
an all-nighter for your business—but try not to make a habit than recharge your energy, such as watching TV or surfing the
of it. Without adequate sleep, you’ll be less effective. Get more Internet, in favor of more active pursuits.

16 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 STEP PART 2: GET SET

14

Create Work/Life
Balance
S
tarting a business while working full time 4. Do one thing at a time. When you’re trying to accomplish so
requires a delicate balancing act. You not only much, multitasking may seem like the answer. In reality, giving
every task your undivided attention will get better results. When
have to manage your job and your startup, you’re working, focus on work; when you’re not working, focus
but also make time for your personal life. on what you’re doing. You’ll feel far less frazzled.
This is easier if you’re single and childless, but if you 5. Involve family members in the business. If feasible, get
have a significant other and/or children, you’ll need your family involved in your startup so they’ll feel invested in
to take them into consideration, too. Here are some its success, too. Can your spouse design your business website
suggestions to keep things happy on the home front. or handle your bookkeeping? Can your children stuff envelopes,
make copies or help package products? Getting the help you
need while spending time together is a win-win for everyone.
6. Cut back on non-essentials. Your focus during startup
must be on your job, your business, your family and your own
wellbeing. Eliminate anything that doesn’t support these priorities.
That may mean eliminating or drastically curtailing activities such
as socializing, volunteering or attending cultural events.

1. Get real. Be honest with your family about what the business
will require from you and how it will affect their lives. Don’t try
to minimize the challenges you’ll face, or you’re just setting them
up for disappointment later.
2. Work together. Before starting your business, brainstorm with
your family about problems that might arise and ways you can
handle them. For instance, if you won’t be able to attend all of
your children’s sports events because you’ll be meeting clients
after work, can you promise that you’ll still attend the playoffs?
3. Keep lines of communication open. Ask your family to
let you know when your business is negatively affecting them
so you can nip the problem in the bud. When people don’t
communicate, resentment festers.

16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME | 17

 STEP PART 2: GET SET
15

Work Your
Business Network
Y
ou may be
keeping your
new business a
secret at work,
but you need to spread
the word about it to the
outside world. Networking
is essential for every
business owner, especially
those in the startup stage.
You can network to:
■■ Build or expand your
mentorship resources for
further guidance and advice they’re still essential
in your new industry/for your new business networking tools).
■■ Learn about resources that can help you grow your business Gradually, you’ll find one
or two organizations where
■■ Meet potential clients and customers you feel at home—and
■■ Get introduced to vendors and suppliers where your networking
■■ Find potential contractors, freelancers or even future employees
really gets results.
for your business
Mentors and
■■ Build your image and reputation in your industry and community Advisors
■■ Discover new business opportunities
Advice, ideas and moral
support from a mentor or
Get Social advisor who’s “been there,
Social media is an ideal networking tool for busy startup done that” can make a huge
entrepreneurs. You can make valuable connections anywhere, difference during startup.
anytime you have a spare moment. For business networking, Your friends and family
LinkedIn is the place to be. The work-oriented social site enables may have encouraging
you to connect with, learn from and get introduced to industry words, but sometimes
leaders, potential clients or partners and more. you really need to talk to
someone who knows what
Person to Person it’s like to start and run a
business. SCORE mentors
Meet new prospects or partners who can help your business grow
(www.score.org) can offer
at the local chamber of commerce; leads clubs; industry-specific
the encouragement and
networking groups; or organizations for minority, women, home-
assistance you need to reach
based or veteran entrepreneurs.
your goals. They can also connect you with attorneys, accountants
Attend networking events with an open mind, a friendly attitude and veteran businesspeople experienced in every aspect of running a
and plenty of business cards (yes, even in today’s high-tech world, small business.

18 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 STEP PART 3: START

16
Starting a business while keeping your full-time job is challenging, but it’s also one of the best
ways to discover if you have what it takes to be a true entrepreneur. If you can handle the hard work and
long hours needed to juggle your business, your job and your personal life, you’ll be well prepared for the
demands of running a full-time business. How do you know when it’s time to make that transition?

Go for It!
B
efore you take the ■■ Growth opportunities have presented themselves, but you need
leap to full-time to move out of your home-based office into a commercial or retail
space to take advantage of them.
entrepreneurship,
ask yourself these Are my operations ready?
questions: Before you quit your
job, make sure that you
Is my business ready? have the following
When you wrote your business plan, in place:
you set goals you wanted to achieve. If ■■ Systems and
you’ve reached those milestones, it’s processes you can use to
probably time to devote yourself full scale your business
time to your business. Here are some
■■ Adequate equipment,
common milestones you might use to
software and other tools
determine your business’s readiness.
for full-time operation
■■ You have developed a new product, produced it and successfully
■■ A solid business
found a market for it.
credit rating and a good
■■ You have obtained outside financing to take your startup to the relationship with a
next level. business banker
■■ You have more business than you can handle. ■■ Professional advisors
■■ You have expanded as far as you can working with freelancers such as an accountant,
and independent contractors, and need to hire employees. attorney and mentor
■■ Your business has reached a certain level of sales. In general, ■■ Adequate vendor and
if your business is making enough to pay yourself one-third of supplier relationships
your current salary, you are probably in a good position to leave to meet the needs of a
your job. growing business

WHAT IF…?
■■ If you need to devote more time to your
business, but also need the income from your
job…see if your current employer will hire you
as a part-time independent contractor. You’ll
still have income, plus the freedom to devote
more time to your business.
■■ If you need to devote more time to your
business, but also need the benefits from
your job…see if you can work part time at a
level of hours that qualifies you to maintain
your benefits.

16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME | 19

 PART 3: GO FOR IT!

Am I emotionally and mentally ready? ■■ Do you need to make any major personal financial moves, such as
obtaining a home equity line of credit or refinancing your home?
Take stock of how you and your family feel about your business so Do so before you quit your job. It’s harder to do these things when
far. The challenges of running a full-time business are different than you are self-employed, especially when your business doesn’t yet
you’ve faced so far, but equally demanding—so don’t expect life to have a financial track record.
get easier (although it will get even more exciting and rewarding).
Consider: Say Goodbye...and Hello
■■ Are your personal relationships suffering as a result of your When it’s time to say goodbye to your full-time job, be sure to leave
business? on a positive note. Thank everyone you worked with and stay in
■■ Do you have a strong support system of friends, family and touch with your former employer, co-workers and other colleagues.
mentors to encourage you in your transition? These valuable contacts may be able to refer you to clients, become
■■ Do you feel excited and energized about quitting your job? (It’s
clients or serve as references to help you get new business.
OK to feel a little bit nervous, too.) Then say hello to your exciting new life as a full-time entrepreneur.
You’re the one in control of your destiny now … and your business’s
Am I financially ready? growth is limited only by your imagination, ambition and energy.
Insufficient capital is the number-one reason startup businesses fail. SCORE mentors can help you start and grow the business of your
Before leaving the security of your full-time job, make sure your dreams. Visit www.score.org to connect with a mentor today.
new business is on firm financial footing.
■■ Have you put enough money aside from your paychecks to
support yourself until you can draw a full-time salary from your
business?
■■ How will you replace essential benefits that your employer
offers, such as health insurance or life insurance? Assess the cost
of continuing your existing health benefits through COBRA or
buying similar benefits on the open market.
■■ If you have not yet reached breakeven, do you have enough
working capital to keep the business going until you do?

20 | 16 STEPS TO STARTING A BUSINESS WHILE WORKING FULL TIME

 Starting a Business?
The First Step is a
Simple Step.
SCORE’S Simple Steps for
Starting Your Business
program is a 5-part series
of 3-hour workshops
designed to give you the
tools, information and advice
you need to succeed. Join a
workshop at a chapter near
you to:
• Evaluate Your Idea
• Discover the
Elements of Success
• Get Expert Advice
and Assistance
• Network and Learn

Free and Confidential Business Mentoring

Find success
Local, Instructor-Led Workshops
with SCORE:
Online, Expert Resources

learn more at
SCORE.org
or call 1-800-634-0245
I ’ve been in a
healthy small business
relationship for years

Whenever Tony needs vital components

for his oil reclamation equipment, he
has them shipped to his mailbox at
®
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street address. See how a relationship
with The UPS Store can benefit your
small business.

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