After a career in structural engineering, Michael Anderson earned a business degree and followed that with a master’s in finance. He advanced to the executive level, first as a vice president and then as a CEO. His love for statistics was born in business school, and he is now finishing a master’s program in applied statistics. His focus and passion are in statistical analysis for improved business decisions.
Haven’t we all desired to better ourselves, especially once we became adults and joined the work force? We strive to better our position where we work, and many of us studied to earn our advanced degree(s) while working full time. Since “work hard to get ahead” is an American battle cry, it’s no wonder the side hustle has become so popular.
The side hustle (i.e., moonlighting) is nothing new, with probably the most famous and successful moonlighters being Steve Jobs and Steve Wozniak, who founded Apple Computers. They did so while working at Atari and Hewlett Packard, respectively. Similarly, Instagram’s founders created their company by working evenings and weekends.
As a corporate executive, I exhort all of us to do our side consulting ethically and legally. Our firm has experienced many damaging actions by unethical staff members, but those actions always come back to bite the culprits—the world is much smaller than it once was. Consequently, always discuss it with your firm if you feel there could be a conflict of interest. Our consulting work should never adversely affect our performance for our current employer, and a good starting point is to use common sense and the golden rule.
For example:
Don’t
run your side business during your day job. It is tempting to shoot a quick email to a client while at work, but don’t do it! It’s not only unethical, but with all the tracking software on the market, companies know what is being done on their computers. Further, they have a legal right to observe any email you send. If you must, take your lunch break outside the office and send your emails from your laptop or smart phone, but never on the company’s time.
Don’t
take on too much and show up at your day job late, distracted, stressed out, or over-tired. Be open and up front with your side hustle clients. Tell them this is a side business (for now) that you will be conducting after regular business hours. Tell them to expect your emails when they have likely gone home.
Don’t
run a side business that competes with your day job and/or do anything that goes against your contract with your employer. Conflicts of interest are not only unethical, but can result in a lawsuit. Therefore, be cognizant of what projects you engage in.
Do
continue to work hard and be focused at your day job. The goal should always be to do what you can at your job to grow the company, not just go through the motions to collect a paycheck. Jobs and Wozniak accomplished much at their day jobs, even collaborating to create one of the most successful computer games, called Breakout.
Do
be open and honest if asked about your side business. … Honesty is always the best policy, even if the short-term results are painful.
Do
operate your business in a manner that you’ll be able to explain to your boss with your head held high. Treat your employer the way you want your future employees to treat you.
Having owned two successful corporations, I am one who always looks for business opportunities in whatever I pursue. Our side hustle should be approached as if starting a company, both structurally and operationally, so it will flow smoothly as it grows.
Here are a few steps worth taking, whether you are just starting out or considering taking it to the next level.
1. Create a business plan—this should always be job one!
A business plan is an invaluable tool; it helps guide you and can answer difficult questions about the venture. Tons of information exists on creating one in book stores and on the internet.
2. Get organized.
This is critical as your business grows, and if you don’t start early, it becomes overwhelming as the number of documents grows. Consider a structured and logical numbering system for all your files (e.g., invoices, analytical files, computer programs, etc.). This allows for quick and easy access at all times. I often create database software to assist with this, but use a spreadsheet program at a minimum to help you stay organized.
3. Protect yourself with insurance.
An errors and omissions liability policy is appropriate for consulting work. Hopefully you will never need it, but one claim can make it well worth the cost, not to mention the peace of mind it brings.
4. Draft a contract/work agreement.
Sadly, the days of the handshake are long gone. Consequently, a solid agreement between you and the client is a must. It doesn’t have to be 20 pages long; binding contracts can be as short as one page. However, you want to be sure you are protected, and thus a lawyer should review the contract. In the past, I have drafted the contract in grave detail and then had a lawyer review it. If you’ve done good research, the lawyer should only need to make minor changes, and thus the legal costs can be substantially reduced. Be sure to discuss this with the attorney in advance, because some don’t allow this type of arrangement.
5. Consider a business structure.
There are many business structures you should consider (e.g., sole proprietorship, partnership (if you have a partner), LLC, S-Corp, C-Corp, etc.). There are different tax advantages and operational requirements with each that must be considered to determine which is right for you. Be sure to consult with a CPA to help you weigh all your options.
Moonlighting for statisticians isn’t like delivering pizzas after our day jobs. Our analysis and subsequent recommendations have the potential to make or break a company. Not to mention, some firms can be quite litigious.
There is such a diverse group of analysts here that it would be difficult to give ideas for obtaining clients; however, staying within your passion is always a good idea. Perhaps you desire to help the legal, health care, or transportation fields. We become much more valuable as an expert in one or two areas. My advice would be to think creatively and outside the box. Sometimes, that’s what it takes to get to the next level.
The side hustle can be rewarding and exhausting—physically, mentally, and even emotionally—at the same time. Taking care of ourselves can keep us performing at our best (at both of our jobs). Make sure to take time out for physical and spiritual exercise, and regularly do absolutely nothing but relax and recharge emotionally.
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