Successful side business owners recommend starting with something you enjoy like a life-long passion or new found hobby. Thousands of people every year start side businesses that allow them to earn extra money. In the U.S. alone, 26% of people that started a business in 2019 were able to add an average of $14,705 to their annual income., so its no wonder flourishing entrepreneurs are looking to get set up.
Turning your hobby into a business may have been on your mind for some time, and having this chance to reset as the world was forced into isolation due to the current Covid-19 pandemic may have provided a push in the right direction. Many businesses are looking to transfer their services onto digital platforms which have opened up the door for freelance web developers, and anyone working in the digital marketing industry.
If you’re looking for your next side hustle, but you’re not sure what to do, check out these five at home business ideas we put together in a previous post. When you have a clear idea of what it is you want to do, add some of the quick tips below to start to form your business plan and use these key things to turn your hobby into a successful side business.
Choose a Relevant Business
If you plan on turning your hobby into a business to generate income, you will need to consider what type of business you have. As many startups have been affected by the current climate, you will need to be sure that the industry you want to work in still has the demand to make a profit. Choosing a relevant business should give people products or services that they need; alternatively, you could take the investment route and utilise any financial experience you may have in the stock market, or secure a lucrative asset in the property market. Property investments are highly sought after at present, for house prices are increasing as the demand for buy to let property is at an all-time high. This form of side business can provide you with additional monthly cash flow through rental payments, and an excellent retirement pot in the future when you come to sell the property. For first-time buyers, there are plenty of free guides, articles, and podcasts available from property specialists like RWinvest for those who are looking to invest. The property market is thriving, and the amount of people looking to rent is at an all-time high therefore if you’ve had an interest in becoming a landlord it might be the time to start on this new venture.
Plan Your Goals, Objectives, and Business Strategy
Once you’ve decided you on the path you are going to take, you now have to put a plan in place to execute and make your business goals a reality. Considering your goals and objectives and whether or not they are achievable is essential when conducting a business strategy. Use online templates to help you with your business plans and remember to include as much detail as possible. It’s suggested that creating a five-year plan can be valuable to businesses as it produces a timeline of achievements for you to reach, as well as it being a realistic timeframe for you to implement the strategy and make a profit.
Look at Any Risks Involved
First and foremost, you have the risk of not being relevant in a struggling economy. Look to involve yourself in essential industries like healthcare, food, or digital marketing. When setting up a new business, there can be multiple risks involved from, needing to save startup capital to buy equipment for your business, or to pay employees that help with the day to day running. Financial lenders are becoming more cautious with bank loans as we enter into another recession, so you may come up against some challenges before you have even started trading.
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