Have you considered starting a business while still employed?

My Shanghai-born friend, Annie, says the Chinese have a term for this: “riding in the big boat while carrying the little boat.”

Some entrepreneurs only launch their business officially once they leave employment. However, they incubate the business concept while employed.

Other times, they actually launch the business and run it on the side while still employed. They may continue to run it as a side business for a period of months or even years. Only later do they leave their jobs.

No matter how you do it, I’ve got 6 practical tips for starting a business while you’re still employed:

1. Consider Your Employer Your Banker
I am a huge fan of bootstrapping a business, i.e., using personal money to fund growth. One form of using personal funds is to set aside a portion of your salary to fund your business. That means you need to protect your funding source — your job — until you are ready to cut the cord.

2. Write a Business Plan
Sure, much of your plan will turn out to be incorrect (same goes for most startup business plans). But it’s not the plan that’s important … it’s the planning.

3. Get your Spouse’s Buy-In
Your husband or wife needs to be committed to your startup. If it isn’t a shared dream, or if your spouse is resentful of the time you are spending away from family, you’re adding stress on your relationship.

4. Choose the Right Business
If you are planning on running your business on the side for several months or years while still employed – it’s especially important to start the right kind of business. You’ll need a business where you can set your own hours. You may also need a business that allows you to hire outside service providers or contractors who are literally working on your business while you are at your job.
5. Set Aside Dedicated Schedule for Your Startup
In my experience, the biggest challenge you will have during the incubation is sticking with it and finding time. I’ve known budding entrepreneurs speak about going home to “start the second shift.” That’s exactly how you have to think of it. Commit to spending X hours per weekday and/or on weekends on your business. Stick to a regular schedule – it makes it easier.
6. Turn Your Employer Into Your First Customer
Think of your employer as your first big sales target (assuming your product or service is relevant to your employer). Many a business has gotten off to a great start when the owner’s former employer became the first customer.

Now – off to your startup, and good luck!