4 Tips for Starting a Consulting Business on the Side

If you aren’t quite ready to make the transition to full-time self-employment, starting a consulting business on the side is a good way to test the waters. It gives you the chance to see if working for yourself is something you enjoy, while also identifying any gaps in your skills and preparing yourself for full-time self-employment if you decide it’s the right path for you.

Here are four considerations to keep in mind as you consider consulting as either a part-time or full-time career.

1. Ensure Your Employee Agreement Allows It

Any agreements you signed when you came on board with your current employer may include provisions that restrict or limit your ability to freelance as an independent consultant. These restrictions could include non-compete agreements, conflict of interest guidelines, or requirements that mandate disclosure of all outside employment. In some cases, employment agreements may outright prohibit additional employment, or even retain rights to any projects or work you do while employed—even if they are done outside of work. 

Before launching your consultancy or taking on a project, obtain a copy of this agreement along with any other restrictions from your company’s HR department so you can make sure you’re in compliance. You may also consider consulting an attorney to go over any agreements or language to ensure full understanding. 

Learn more: 7 Steps to Start a Consulting Business 

2. Review and Define Your Business Goals

Part-time independent consultants may have unique goals to consider regarding their dual-employment status. While some part-time consultants may plan to moonlight indefinitely, many view their situation as temporary as they transition into full-time independence or as they decide whether to commit to consulting or to their current employer. 

From the outset, it’s important to clearly determine your goals, including a timeline and list of criteria. For example, if you’re planning on transitioning to full-time independence, outline the standards you will use to signal each phase of your transition—such as a certain sustained income or number of clients needed to leave your current job. Creating objectives as markers of success or failure can help you determine where to focus your career efforts. 

Try this: 10 Ways to Get New Consulting Clients 

3. Manage Your Time Carefully

Starting your own business and landing your first clients can be challenging and time-consuming, particularly if your hours are limited by another job. Make sure to keep the working hours for your two jobs separate. Clearly communicate your availability to any current or potential clients so they know your availability. Also, take great care to ensure you don’t inadvertently use any time or other resources from your current employer in pursuit of your consultancy. In many cases, this may be grounds for termination. 

Maintaining a healthy work-life balance requires conscious effort for any independent worker, and it becomes even more challenging for part-time independents juggling a full-time job. With more hours spent working and fewer hours for yourself, family, and friends, the risk of stress and burnout increases. During this time, be sure to define boundaries and use free time to stay mentally and physically healthy. 

Check out: How to Achieve Work Life Balance When You’re Self-Employed 

4. Join a Marketplace to Find Consulting Jobs

For those ready to take the first step into independent work, there are plenty of platforms that can help them get started. If you believe you have skills that would be valuable to enterprises looking for highly skilled independent talent, start your moonlighting career by joining online job marketplaces like MBO’s marketplace.   

More and more enterprises are using marketplaces to get direct access to qualified independent talent and often create talent networks, so they have a pool of talent available when they need someone for project-based work. 

Up next: How to Transition from Full-Time Worker to Self-Employed