8 business-killing mistakes avoid when building it outside your 9-5

Hey UpFlipers,

Plenty of entrepreneurs start their business on the side while working a 9-5.

But the leap from employee to entrepreneur is tricky — the road is riddled with pitfalls and roadblocks that can slow you down or wreck your business.

So in today’s newsletter, we’re diving into 9 critical mistakes to avoid and a “fast-forward button” that makes dodging these mistakes easier.

If you want to make your journey from 9-5 to business owner as quick and painless as possible, read on…

9 business-killing mistakes to avoid when building a business outside your 9-5

Dodging these pitfalls will put you ahead of the majority of aspiring entrepreneurs out there:

Do you just need some side income? Trying to save up enough money for a down payment?

Or do you want to make this thing full-time?

Chances are that’s you if you’re reading this newsletter.

So if you do go full-time business mode… do you want to get insanely rich, or win your time back? 

Want to make an impact on the world with your business? If so, what impact?

You need to figure out your “Why”. Otherwise, you’ll lose focus and motivation.

If you struggle with finding your “Why”, Goals! by Bryan Tracy is an excellent book to check out.

2. NOT making a plan

A “Why” isn’t enough, though. You also need the “how” — a plan.

Calculate how much you need in the bank and your “freedom number” — your minimum business earnings needed to sustain you once you quit.

These will motivate you during the process and inspire confidence to make the leap when you’re ready.

Note how much time you have to work on the business and when you’ll work on it, too.

For example, if you have kids, will you wake up early to knock out business so you can spend time with family? Will you do business at night after the kids are in bed?

Sketch out a timeline for this, too. Deadlines have a magical way of making things happen.

Planning removes “analysis paralysis” and gives you a clear path toward the goal. Just follow the plan (and adjust if needed).

3. NOT getting your spouse/partner on the same page

Business is tough. You’ll work long hours when it’s a side hustle and for a while after quitting your job. 

Leaving a stable gig for unpredictable income (your biz) is scary for many, too.

Some persuasion may be in order. This is why planning is crucial. Showing your spouse/partner you plan makes it more than a pie-in-the-sky dream.

Don’t push it too hard, though. If you have to delay going full-time into business to preserve your relationship, do it.

At the end of the day, relationships matter most in life.

If your spouse isn’t ready, your business and your relationships with loved ones are at risk.

4. Bailing on your 9-5 too early

Some gurus urge you to jump ship ASAP and go all-in on the business.

And having your “back against the wall” can help. 

But you also risk of running out of money… and starting all over with a new 9-5.

So stick with the 9-5 until you hit your financial targets.

Stash your paycheck in your savings. Put some into your business, too, to kickstart growth.

5. Noncompetes and “no-moonlighting” clauses

Employers don’t want employees helping the competition. About 20% of American employees are bound by noncompete clauses.

This might limit your client/customer base. Consider this when choosing a business model and industry.

Some companies don’t even let you “moonlight” — work a job/side hustle outside work.

We’ll never tell you to violate your employment contract. So your best bet might just be saving as much as possible and putting plans in place to start a business.

6. Slacking at work

Once your business starts making money, it’s tempting to start coasting at work. 

Don’t.

Your boss may take notice. Employers aren’t fond of weak job performance, even if they don’t stop you from moonlighting.

It would suck to be fired before your ready to become a full-time entrepreneur.

Not only do you have to “make things work”... but you potentially just ruined a good reference or future business relationship.

So keep working hard on the job. When you are ready to quit, give them the courtesy of two weeks notice and whatnot.

7. “Paying yourself” too early

Few things offer a greater rush than watching your very first sale hit your bank account.

Holy cow. I made my own money running a business!

And it feels good to have some extra money coming in.

But don’t touch those dollars yet. If you want out of the 9-5… the quickest way is putting revenue toward back into your business.

Even when you make the leap…

Live on as little as you comfortably can and reinvest your profits into the business.

This is why getting your spouse/partner on board is vital. They MUST believe in you and your business. Otherwise, they won’t want to cut back and live lean for a long period while you build your business.

8. Paying attention to the wrong things

Know what kills so many new businesses?

Chasing shiny objects and focusing on things that don’t make money.

This distracts you and drain your bank account — money and time you could put toward, well, making money.

Sales and revenue are top priority when you’re starting out.

If you’re spending hours fighting with WordPress to get your website looking perfect, you aren’t making money.

If you’re agonizing over which bookkeeping software to use when you don’t have revenue to account for, you aren’t making money.

Obviously, your business model impacts what’s important. An eCom store, for example, needs a decent design. 

Other businesses, like freelancing, don’t even need websites for a long time. By the time you do need a site, you might have enough money to pay someone to make a nice one.

I have a website (and it’s ugly)…

But my portfolio is a Google Doc. Most leads see that. The only reason most people visit my site is to read my blog.

9. NOT thinking about taxes and legal stuff

As Benjamin Franklin said, “Two things are certain in life: Death and taxes.” 

Business owners are responsible for taxes. So you have to keep your books and save enough earnings for tax payments.

This can easy enough to handle yourself at first, but a small business accountant is insanely helpful once you start growing.

As for the legal stuff:

Many businesses start as sole proprietorships. But other business structures (LLC, C-corporation, S-corporation, etc.) each offer pros and cons.

This is stuff to talk with a lawyer about when you start making money or have the money now.

No one likes to think about this stuff. But I’d rather deal with small headaches now than massive ones later.

The “fast-forward button” from 9-5 to full-time entrepreneur (that makes dodging mistakes easier)

One of the most successful business owners we interviewed last year was Neel Parekh of house cleaning company MaidThis. 

He started this business working a 9-5 (more like 8-6) finance job…

And turned it into a $1.5m+/year business.

He revealed his “fast forward button” for making it happen:

Hiring a coach/mentor.

“Can’t I just pay a coach to tell me what to do? Someone’s already figured this out… why am I doing everything myself?”

I have to agree. Every time I hit a plateau in my business, I invested in coaching and blasted through that plateau.

(I’ve spent over five figures on coaching, for context.)

As long as that coaching earned me money back, who cares how much I have to spend? It’s all about ROI.

These fast-forward buttons don’t exist in the 9-5 world. So a business coach can feel like “cheating.”

But it’s not cheating for someone who’s “done it already” to tell you exactly what to do and what NOT to do.

Think about it:

If you want to climb Mt. Everest, you don’t go it alone. You’d hire a sherpa to guide you. 

So why would you try to climb the mountain of business without a guide?

This does NOT detract from the satisfaction of working hard and seeing results, either. 

A sherpa can guide you to Everest’s summit… but you still have to make the hike.

Speaking of skipping years of mistakes and getting guidance in building your business…

MaidThis has close to 20 franchise locations and is always expanding. 

Opening a MaidThis franchise could be a great idea if you have the money and want to skip all that trial and error…

Kind of like how a coach or mentor helps.

Click here if you’re interested in opening a MaidThis location.

But I can’t afford a coach/mentor!

I had little to my name when I started as a copywriter. Even when I turned that side gig into my full-time thing, I didn’t have much money for coaching.

So I picked one well-known person in the industry who resonated with me (after checking he was legit) and followed all his stuff.

I got on his email list and followed him on social media. I read/watched everything he put out — emails, blog posts, his free eBook, YouTube videos, etc. I applied everything he taught.

While doing this, I made myself known replying to his emails.

Once I started getting more paying clients, I had money to invest in his lower-level paid stuff. 

I did the same thing as with the free content. I applied what I learned and worked hard to grow my business.

Soon, I could afford his coaching program. I continued interacting with him in there and developed a strong professional relationship.

All that said: You don’t have to build such a relationship with your chosen “mentor from a distance,” though. I’ll admit that such a thing is uncommon.

What matters is picking one person/brand and following them. For instance, following Upflip’s blog, YouTube channel, podcast… and taking a free course or two.

To wrap it all up…

Starting a business while working your 9-5 isn’t easy. 

There will be long days and struggles.,,

So do everything in your power to make things easier on yourself.

That means adequate planning, preparing financially, getting your spouse/partner on board, and continuing to work hard on the job.

Once you’re in business full-time, live lean, focus only on revenue-generating activities, and reinvest your profits. Make sure you’re on top of taxes and legal stuff.

Remember: Coaches and mentors make this easier — whether free or paid.

That’s why the Upflip has both:

Our team is working hard on a mentorship platform for our members. Members will get to talk to wildly successful business owners like Neel of MaidThis!

Plus, membership grants you access to all our courses and more.

If you’re not ready to make the investment, we got you: Check out other free resources on our site.

You’ve got this. We believe in you.

Woah, check these out…

💰 A LOT of people have side hustles these days…

🗺️ Ultimate guide to starting a business, now that you’re equipped to avoid key mistakes.

📺 Watch the interview with Neel Parekh we mentioned (great stuff).

🎙️ Catch our latest podcast episode for more business inspiration.

There are three ways to join UpFlip:

 ✔️ This course could help you “fast-forward” your business growth (get on the waitlist).

✔️ We interviewed a multi-millionaire serial entrepreneur who credits coaching for a lot of his business growth. Check it out!

✔️ Join our YouTube community and be the first to see new interviews with entrepreneurs and other value-packed videos.

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