It may sound stressful, but it will help you in life
Self-employment requires certain qualities with regard to one’s own way of working. Above all, you need to be able to design your own operations and have enough motivation to be self-employed for your own business. However, many people shy away from the leap into self-employment. The risks seem too high, a job offers a certain degree of security – and in any case, being independent is like jumping from one moment to the other into the cold water. The solution to this is the reasons beside the job. If you have ideas to realize yourself, you can start your own business as a sideline. In the following article we will show you how to do it and what to look for.
Reasons aside from the job – can that work?
Yes, it certainly can. It can not only work, but is now one of the most popular forms of starting a business in Germany. The KfW Startup Monitor shows that more than every second start-up company is now run part-time. That’s independent of the industry. From simple online sales via e-bay and other portals, to craft activities, to services on the Web, every imaginable independent activity can also be carried out as a part-time job.
There are different ways you can implement the reasons beside the job. On the one hand, you can start small and slowly approach the area in the form of a part-time self-employment. On the one hand, you benefit from the security that your employment offers, but on the other hand, you can find out at the same time how good a self-employment really is. If it works and you have mastered the start of a certain basic income through your company, you can try the transition from employment to self-employment.
Alternatively, you can use the part-time self-employment as a permanent extra income for regular earnings. This is the form that I have chosen for myself permanently. I work as an accountant 20 to 25 hours a week to enjoy the benefits of a permanent job. Due to the lower fixed working hours, I am much more flexible in my entire daily routine because there is simply more time away from the regular job. This employment is supplemented by my part-time self-employment. So I get a solid full time salary with full flexibility and a varied workday. This works perfectly well for three years now.
How do I start my own business?
We have already put together useful information for you in some articles. Here you will find a guidebook on how to start your business . In addition, here you will find all development steps from your business idea to a successful company . In addition, you should note the most important legal requirements for corporate governance. You can find more interesting articles about special company forms and facts here:
- Company foundation from unemployment
- That’s how you start a business next to your studies
- Foundation of a UG
- Foundation of a GbR
- So you start a GmbH
- Start a business abroad
What fundamental factors do I have to consider when setting up next to the job?
You are not allowed to decide for yourself which activity represents your main occupation and which activity is conducted as a secondary occupation. That is bound to objective criteria. Among other things, it depends on your working hours, your income and the question of whether you employ employees. Ideally, you work alone first and work a maximum of 18 hours a week with your part-time self-employment. In addition, your income from your business should not exceed the employment.
As a rule, you should inform your employer about the situation in order to take up part-time employment. He can not prevent this, as long as your full-time job does not suffer under your secondary occupation. In addition, no conflicts of interest may arise because you would compete with him. Although a duty to notify an outside job to the employer is often contractually established, it is not actually effective. Nevertheless, it would be best to issue a written confirmation of your part-time work, so that you can be sure that you have secured it.
Which special rules are there?
The above rules apply to ordinary employees. A few special features apply to civil servants, students and part-time self-employment in full-time unemployment.
As a civil servant, you may spend a maximum of 20 percent of your weekly service on a secondary job. The additional income earned may not exceed 40 percent of your final annual base salary. This will definitely require a permit, which can also be denied. This may be due to your occupancy as a civil servant, conflicts of interest with your work and activity that is incompatible with the reputation of public employment.
You can earn a maximum of € 305 per month and work part-time for a maximum of 18 to 20 hours per month. You can exceed the earnings limit twice a year for two months. If you want to earn more money within the possible working hours, you can insure your student health insurance and increase your earnings limit to about 2,000 euros per month.
In the case of unemployment, you may actually start only 165 euros extra charge and generally a maximum of 400 euros. However, there is a special rule that allows you to earn more. If you have pursued your part-time self-employment for at least 12 months in the last 18 months of employment, you can continue to receive the income from it without being charged, even if this is significantly higher than the insignificance limit of 400 euros. The prerequisite is that your income is within the range in which you have moved in the last 12 months of your part-time job. In addition, in principle for additional income in unemployment applies that a working time of 15 hours per week must not be exceeded. Otherwise, you are not considered unemployed.
What role does social security play in founding alongside the job?
You probably know it from your employment that social security contributions are deducted from your salary in addition to the payroll tax. These are health, nursing, unemployment and pension insurance. As an employee, you usually pay about half of the costs incurred, your employer takes over the other half. The self-employed, on the other hand, have to pay for their social security expenditure, but are freer in terms of which areas of social security should be covered. Health and long-term care insurance are the compulsory insurance, benefits to the statutory pension insurance are mandatory only for certain groups of self-employed. Unemployment and accident insurance are generally voluntary for all self-employed.
Now, however, when setting up your job, you have a special social security status. By definition, you can only work full-time or only be self-employed. Social security only applies to one of the two areas, namely, the one that is considered your main job. When starting next to the job, this is usually your job for which social security contributions are paid off as normal. In this case, your earnings from self-employment remain social insurance-free. On the other hand, if your self-employment is the main job, you have to take the above-mentioned precautionary duty over your independent income. For this, your employment relationship remains social insurance-free, since you are already covered by the self-employment.
No matter how you regulate it, you benefit greatly from the fact that only one part of your income is covered by social insurance. From the practical division between me personally between employment and self-employment as a manager of my company, I can confirm that this really works. If you are hired, you pay about 20 percent of social security contributions on your gross salary – in the case of self-employment this part is completely eliminated.
More tips for starting next to the job
- Ideally, find employment that you can do from home. In addition to pounding large production sites and innovative product developments from the ground, the factor of available time will probably fail.
- Plan with the lowest possible capital requirement. A sideline self-employment also signals to investors that you do not put everything on one card, but you “only” create a second foothold. Correspondingly, potential investors will react to financing requests. In addition, the reasons next to the job means that you anyway start slowly first or you want to occupy permanently part-time. You will not get rich right away so big investments at the start can be a risk.
- Maintain a well-structured time management. If you alternate between two jobs, everyday commitments and your free time, that means you have to get many things under one roof. Accordingly, make sure that you work out a clear timeline, when which area requires your focus, and that you can fill all four areas sufficiently.
- Talk to your social environment about your ideas. Naturally, self-employment is viewed critically by employees. This is helpful in that you may be confronted with potential concerns about your idea and think about how they actually affect you. So your idea takes on more and more forms by trying to circumvent imponderabilities from the outset.
- Invest your motivation in the project. Even though starting next to the job may not be your main activity at the outset, you should at least burn for the area you want to be active in and consider it an important part of your self-fulfillment. Then you bring the necessary motivation to really make the project a success.
Reasoning aside from the job is an excellent way to “try out” self-employment on a small scale, to prepare for a successful start as a full-time entrepreneur, or to permanently earn extra income from your regular job. In doing so, you benefit from a number of advantages, such as the absence of social security contributions for your additional earnings. It is important that you do not financially take over the job just beside the job, but at the same time you are full of passion. In this case, you can benefit from greater flexibility with simultaneous protection or greater self-fulfillment. Accordingly, the small step into self-employment can be rewarding for you in many ways.