The pandemic has left many people without jobs or with a large reduction in their income. We have seen many new small businesses pop up and many people are looking for other streams of income. These days there are many ways to supplement your income and quite a few of these won’t have an impact on your day job. According to the top Managed Services Provider London businesses trust, now is a great time to start your own side hustle and add to your income, which is something we can all use. With so many people working remotely, it has become much easier to balance a job and have a side income.
Starting your own side hustle is a smart financial move to make, especially in the current unstable economy. Diversifying your income is a great move to make and especially for those groups that were highly affected by job losses. Depending on only one form of income can be a very risky move these days.
A side hustle isn’t only for people worried about losing their jobs, it is a great source of extra income. You can use the extra income to build your savings, pay off debt or invest and it can even have tax benefits. Purchases that are made for the business can make you eligible for tax deductions. It will also give you the opportunity to expand your skills and interests which could lead to an entirely new career path.
Choosing your side hustle
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There are many options to look at when you want to start a side hustle from things like freelancing, creating your own eCommerce store, providing services like being a virtual assistant, selling baked goods or even public speaking. If you’re still unsure you can simply search for side hustles on Google and you’ll see many more different options.
The best way to decide what to do is to know what your strengths and interests are. You’ll be a lot more motivated if you choose something that you enjoy and something that you’re already good at. Some questions you can ask yourself to figure this out is to ask yourself what people come to you for help with. This can be things like doing hair and makeup, helping your family with new technology, have you helped to promote events, or do people love your baking? This will help you see where there is a demand for your business.
Another important consideration is the amount of free time and money you have to invest in your side hustle. Starting a freelance business will take a lot less time than something that requires certification, like personal training which will take much more time and money. If you’re looking to start a business that has an inventory, this will take more money to start. A great way to understand what your business will need is to look at market research done by other businesses in the same field.
Once you’ve done all your research, you should do a trial run. If you’re providing a service there are places like Upwork and Freelancer where you can advertise your services. For more community-based services like tutoring or babysitting, you can place ads on Facebook and there are even groups where you can place your ads. If you’re starting an eCommerce business, start off with a small inventory and try to sell on places like Etsy or eBay. You can also try dropshipping, which doesn’t need an inventory. With dropshipping, all you’ll need to do is advertise your product and collect orders, which you’ll then send to the manufacturer. The manufacturer will then take their portion and ship the order directly to the customer.
Create a financial plan
Each side hustle will have its own set of start-up costs. It is important to do research on what these costs could be. Many Managed Service Providers UK companies use help with financial plans. Get in touch with your IT Support Partner or Office 365 Consultant and see what they have to recommend. You can do this by finding people who do similar work on LinkedIn, finding resources online like youtube videos or podcasts and there are even free online events where you can learn from experts in your industry.
Most side hustles these days are online, which means that there will be fewer startup costs. You’ll mostly need your computer and phone. Some other costs that apply to most businesses will be for accounting purposes like Xero or Quickbooks. This will help you to keep a record of your finances and also assist with filing your taxes. If you’re choosing eCommerce, startup costs will include inventory, paid ads, and shipping costs. You can find out what these maybe by reaching out to other small business owners in a similar niche.
It is important to use this new information to create a budget for your startup. It is always best to start with a smaller budget, which will save you money if you decide to change your side hustle once you’ve tried it out. Some essentials you will need to include in your budget are the technology for your business, office supplies, marketing, registration costs, and accounting software.
Setting up your side hustle
You won’t always need to become a business entity right when you start your business. You can always test out the success of your business before you formalize the business. Most small businesses prefer to form an LLC which separates your personal and business finances and provides you with liability protection.
The next thing you should do is open a business bank account. You may require a tax ID which can be done online. The business account will help you to separate your personal and business expenses and will help to build credit for your business. For small businesses, it might be easier to apply for free accounts like Paypal and Venmo, which allows you to receive electronic payments from your customers.
Once your finances are set up, the most important thing to do is to focus on your branding. This includes things like creating a colour scheme, designing a logo, designing packing if need be, and setting up social media. This will help to market your business and to create awareness for the product or service you’ll be selling.
This may seem like a lot of work but once you’ve gotten past these processes, it will be smooth sailing. You’ll easily be able to run your side hustle.