Balancing an HR consultancy alongside your current job is an increasingly common scenario for HR professionals eager to diversify their careers or explore new opportunities. Whether it’s starting a consultancy from scratch, or joining an HR franchise, many professionals find the idea of expanding their horizons without leaving their primary employment attractive.
But while the potential rewards are attractive, there are also significant challenges. If you’re considering this path, understanding the pros and cons can help you make an informed decision. Let’s break down the key considerations to help you evaluate if this is the right move for you.
Advantages
Financial security and risk management
Maintaining your primary income while starting a consultancy provides financial security, allowing you to explore new opportunities without immediate financial pressure. This stability reduces the need for external funding and personal savings, making the venture less stressful and more manageable.
For HR professionals launching a consultancy, this financial cushion allows you to focus on building a client base and refining your services without the immediate pressure to generate substantial income. This security also enables you to make thoughtful decisions rather than reacting out of financial necessity.
Expanding your professional skill set
Balancing both a consultancy and a full-time job can significantly expand your skill set. Starting a business often requires you to develop new competencies in areas such as marketing, finance, and operations. These skills not only benefit your consultancy but can also enhance your performance in your current job.
For instance, marketing your consultancy services might improve your ability to advocate for HR initiatives or pitch new projects in your existing role. The cross-pollination of skills can make you a more versatile professional and open up further career opportunities.
Building your network
Running a consultancy while employed allows you to broaden your professional network. Engaging with clients, industry experts, and other entrepreneurs can connect you with a diverse range of contacts. These new relationships can provide valuable advice, support, and opportunities that benefit both your consultancy and your current job.
Disadvantages
Time management challenges
One of the primary challenges of managing both a consultancy and a full-time job is time management. Balancing two demanding roles can lead to burnout and decreased performance in one or both areas. Effective time management is crucial to prevent overextending yourself and to maintain quality in both roles.
HR professionals often deal with complex and sensitive issues that require full attention. Adding a new venture to your schedule could strain your capacity to perform effectively in either role, potentially impacting your overall productivity and job satisfaction.
Potential conflicts of interest
Starting a consultancy can present potential conflicts of interest, especially if your business overlaps with your current job. This is particularly relevant if your new venture involves providing similar services to those offered by your employer or if you are working with clients who may compete with your organisation.
Before starting, review your employment contract and company policies regarding side businesses. Many employers have restrictions on outside ventures, especially those that could be seen as competitive or conflicting with company interests. Transparent communication with your employer can help avoid misunderstandings and ensure you’re in compliance with company policies.
Dividing your focus
Running a consultancy alongside your existing job can dilute your focus and energy. Balancing both roles may lead to a decline in performance or missed opportunities. Entrepreneurship often requires intense dedication, and dividing your attention might slow down the growth of your consultancy.
For senior HR professionals, this divided focus can be particularly challenging. The demands of a full-time HR role combined with the responsibilities of a new business might impact your ability to excel in either domain. Assessing your capacity to manage both roles without compromising on quality is essential before proceeding.
Slower growth for your new venture
Maintaining your current job while starting a consultancy may slow down the growth of your business. Entrepreneurship often demands full-time commitment, and splitting your time between two roles might limit your ability to seize opportunities, secure clients, and scale your consultancy effectively.
For instance, if you’re involved in an HR consultancy franchise, part-time involvement could restrict your ability to fully capitalise on growth opportunities. This slower pace might hinder the consultancy’s success and profitability in the early stages.
Conclusion: weighing the pros and cons
Combining a consultancy with your current job offers both significant advantages and notable challenges. Financial security, skill expansion, and networking opportunities are substantial benefits, while time management, potential conflicts of interest, and divided focus are important drawbacks to consider.
Ultimately, the decision depends on your personal circumstances, career goals, and ability to manage multiple responsibilities effectively. Careful assessment of your capacity to balance both roles, review of employment policies, and seeking advice from mentors can help guide your decision. Starting an HR consultancy can be a rewarding opportunity, but it requires thoughtful planning and a strategic approach.
If you’re a senior HR professional considering the exciting prospect of launching an HR consultancy, download our prospectus or get in touch to learn more about how a face2faceHR franchise could work for you.