Ways to generate extra income, and in particular through starting a side business…
The first thing I’ll say, and this is from personal experience, if you start a business that you want to grow and you want to be your full-time occupation, a business that employs other people… well, the chances are it won’t be the fastest way to generate income!
I say that because usually you won’t be able to pay yourself if you are putting all of the money back into growing your company.
That’s not to say don’t do it – in fact, this is exactly what I do, and hopefully over the long term, starting your own company will result in your earning a lot more extra income, but today I want to talk more about how you can increase your income now.
Profit > Cost
So, I’m referring to starting a small side-business that generates a profit (that is, the income you earn is more than the costs of the products or services you’re selling). The trick here is to spend the time before you do anything to work out if your idea is actually going to be profitable.
Who is your target market?
You also need to make sure that there is a market for what you want to sell, that people actually want to buy your product or service.
A really common way for those who have a skill, like tradies, graphic designers, or beauty therapists, is for them to start freelancing on the side. This way you can charge your clients less than what they’d have to pay through a big company, and you can choose how much extra you work.
This is probably the most fool-proof way to start a small side-business that will definitely generate extra cash, rather than just costing you money.
What other ideas do you have to start something on the side? Have you tried this before? I’d love to hear your success stories in the comments section, or even your ideas for what you could try. Good luck!