Hybrid Entrepreneurship: The Best of Both Worlds

There’s a gold mine sitting under the rough crags and crevices of the economic quake we’ve all been worried about for the past year: the opportunity to be inspired, excited, creative and profitable as hybrid entrepreneurs.

Hybrid entrepreneurship describes the emergence of a new kind of workforce which recognizes that a particular job isn’t guaranteed. But this realization isn’t the end of the world; indeed, it’s the beginning of a whole new one.

A hybrid entrepreneur is a person who takes advantage of the best of both worlds: A steady paycheck with a full-time career and the fulfillment and wealth building that can be achieved through new business ownership. There are also other benefits of being a hybrid entrepreneur, including transferable skills and the additional tax deductions you are entitled to as a business owner.

Tax Deductions*
If you dedicate a specific space in your home or apartment exclusively to running your business, you can deduct the cost of that space on your taxes. For example, if the space comprises 15 percent of your total square footage, and your total monthly rent/mortgage and utilities equal $1,400, this represents a deduction of $210 per month—or $2,520 per year—from your taxable income.

Love going to lunch with co-workers? Well, as a hybrid entrepreneur, you can stop blowing money and instead begin having business lunches to talk about your products or services and deduct half the cost of your lunch. If you spend $20 per week eating out—and most people spend much more—this could become a $500 tax deduction for you.

And what about your children? Teach them the value of work by giving them a job. Parents can hire children as young as 7 years old to do real, but age-appropriate work—and pay them a reasonable wage. You can pay your children up to $5,700 (the 2009 standard deduction for earned income) before they’re subject to paying taxes, and you will reduce your taxable income by almost $6,000 with this deduction alone!

Transferable Skills
Hybrid entrepreneurship also accelerates your success at work and in your new business. Business owners have to solve problems, employ creativity and be leaders to achieve success. As you work on your business in the evenings or on the weekends, your skill in each of these areas will improve—which can also positively impact your full-time career.

In addition, many workplaces offer the opportunity for training. When I was a full-time corporate communications executive, I took training courses and accepted other opportunities to learn more about business budgets and financial management—even though these weren’t core to my job. Strengthening my knowledge in these areas made me a better business owner.

The real benefit, above all others, of becoming a hybrid entrepreneur is gaining a new peace of mind. People who have been reliant on jobs and had never considered what they could do if they ever lost their job—besides collect unemployment—are the ones most fearful of the circumstances we have been facing as a nation. The goal of becoming a hybrid entrepreneur is not to quit your job—it’s about having the best of both worlds. Wouldn’t you sleep better at night knowing you’ve saved some additional money by building a profitable business? If you happen to get that pink slip, as a hybrid entrepreneur, you can ramp up your business activity until you find a new job.

Here are five quick ways to get started as a hybrid entrepreneur:

1. Think about what you like to do, what you’re better at than most people, and what you can do from home in the evenings and on the weekends. Then, research and write a business plan.
2. Talk with your accountant or tax preparer about tax deductions you can take and perhaps any tax liabilities you may need to plan for. This will allow you to build and manage your business with these in mind.
3. Register with your secretary of state and get an Employer Identification Number from the IRS. Then, get a business checking and savings account.
4. Get started with a new Web site, email address, business cards, postal mailbox, e-fax number and business telephone—which could just be your cell phone—and start reaching out to customers right away. (All of this, by the way, is tax deductible.)
5. You’ll go through some challenges getting off the ground, as do all businesses, but your chances of success are greater today than ever. Remember to only work on your business on your own time—never at work. Above all else, focus on satisfying customers and building profits!

* Talk with a tax professional who specializes in small and home-based businesses to make sure you’re legally maximizing tax deductions from your business.

About Felicia Joy
Felicia Joy, founder and chief executive officer of Ms. CEO Media Inc., hosts a national talk radio show for women entrepreneurs called The Ms. CEO Show. Learn more or read her daily blog at www.msceoshow.com.

Additional Reading

• Home-Grown and Nationally Known
• Eight Hours Can Change Your Life
• Creating Job Security by Becoming the Boss