Dave Ramsey: Structured right, a side job can be a great thing

Dear Dave,

I work as a software developer, and recently a co-worker approached me about starting a side business together. We would create apps for the legal community with advice from my wife, who is a lawyer. The only problem is that we’re in the middle of Baby Step 2 of your plan, and we still have some debt to pay off. Do you think starting a business would be too risky at this point?

— Jeremy

Dear Jeremy,

It sounds to me like this is the kind of idea that would require more in the way of brain sweat and time than money. I would just think of it as a part-time side job and go for it.

However, make sure you have a clear understanding of exactly how much — if any — financial support would be required. Set these financial boundaries, and also be clear on when you expect the business to make money.

One thing I would warn against is ending up in a partnership if this thing becomes a success. Partnerships are bad news in the business world, so I’d advise you to figure out a way to structure things where you each own different parts — something more along the lines of a joint venture.

But in terms of doing some side deals, creating some cool new apps, and making money in the process? Absolutely, I would do that. Just figure out an intelligent way to structure the business and finances so you don’t get pinched!

— Ramsey Dave

Related

Messy primaries plague both major political parties, causing chaos and confusion in the midtermsBeaches closed and sandbags filled as Tropical Storm Bertha approaches the Gulf CoastKimberly Yee leading Tom Horne in bitter GOP primary for Arizona schools chiefRain moves in north of Phoenix, flash flood warning issued for Cave CreekTrump will attend the dignified transfer of 4 US service members killed in the Middle EastAs the president touts Trump Accounts, some families are still waiting for baby’s $1,000