The secret to financial stability is having multiple sources of income.
That’s why starting a business on the side is always a good idea, specially for full-time employees.
This post will guide you through the initial process of putting up a side business, and give you insights on the things you need to prepare for and do when building one.
First, let me define what a side business is in my opinion.
In a nutshell, a side business is an entrepreneurial venture focused on augmenting your cashflow. This means the initial purpose of starting one is not to replace your main source of income, but to simply build a new income source.
That definition may seem trivial, but understanding that will be one of your keys to your success, as you’ll find out later.
The very first thing you have to answer is:
How much time CAN YOU put into the side business?
This is important specially for corporate people, and also home makers.
Your employment is your main source of income and it would be a bad idea to let your side business eat up time supposedly meant for your day job. And it’s the same for home makers, who have important duties and responsibilities to their family.
In a sense, if during weekdays, you work for 9 hours, sleep for 6 hours, and your daily routine sums up to 4 hours – this will leave you about 5 hours of “free time” – plus of course, your weekends.
Now comes the second question:
How much time ARE YOU WILLING to put into the side business?.
So in our example, how many hours out of that 5 are you willing to dedicate to this venture? And how much of your weekend rest are you willing to “lose”?
The Side Business Idea
What’s a good side business today? Unfortunately, I can’t give you a straightforward answer there – and you have to Introspect, Investigate, Imitate OR Innovate.
However, do bear in mind these very important tips:
- Start a side business that will not take away your focus and affect your performance in your regular work, or daily responsibilities.
- Make sure that it’s not in conflict with your work. So for employees, please review your company policies well so you won’t get fired if your boss discovers what you’re doing.
- And finally, do something that you love. You’re sacrificing your free time here, so you might as well enjoy what you’re doing, right?
Side Business Idea Examples
To get you started on your brainstorming, here are some side business ideas:
- The Freelancer Route
- Becoming a “one-man-band” – everything is up to you.
- Examples include becoming a gym instructor, an English or Math tutor, a web designer, a landscape artist or interior decorator, a baker or food caterer, an eload seller, a voice talent and much more.
- The Network Route
- Building a team that will run the side business with you
- Examples include joining a direct selling company, becoming part of a multi-level or network marketing business, forming partnerships with other freelancers to share projects, etc.
- The Traditional Business Route
- Putting up a brick and mortar business, which includes home-based and online ventures
- Examples include putting up a sari-sari store at home, buying a franchise, starting an online store, joining bazaars, building a small-scale business in your subdivision’s commercial area, and many others.
- The Passive Income Route
- Earning extra income without much effort, smaller rewards or higher risks – but you sacrifice less time
- Examples include stock market and forex trading, investing in UITF or mutual funds, becoming a silent partner in a friend’s business, or acquiring rental properties.
This list is not exhaustive and there are many other side businesses you can possibly put up. Again, make sure that whatever you decide on, it will be both financially and emotionally rewarding.
Starting a side business requires focus, discipline and strong time and energy management skills. Running a side business does not mean you’ll give it less priority. It still needs your full effort to succeed.
Moreover, it always good to start with your hobbies and interests – and see how you can make money from it. Examine your skills and talents, and market the things you’re already good at.
Also, I encourage you to get the support of your family and friends, and even your boss and officemates. They’re usually your first customers, and more importantly – your gentle voice that will remind you if your side business is starting to take a toll on your regular work and other responsibilities.
And lastly, remember that all side businesses has the potential to grow into something bigger. It can and oftentimes, it will – earn as much as your main source of income.
When that happens, then maybe it’s time to resign from your job – and finally become a full-pledged entrepreneur.
Further Reading: A Step By Step Guide To Starting a Business
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