5 FINANCIAL TIPS FOR STARTING A SIDE BUSINESS

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Side hustles are a common business option because of how lucrative they can be. There are several side businesses you can engage in and they have their advantages. They can serve as a great source of income to support your full time job and also come in handy when you want to start your dream business but you’re not ready to quit your current full time job.

But just as they have their advantages, they also have their disadvantages. Here are 5 tips you need to know when starting out a side business.

Decide which side business you want to go into

There are several kinds of side businesses you can engage in. You can freelance at something that you’re skilled in and people will be willing to pay for e.g. buying and selling of products, finger foods delivery and so on. At first going into many side businesses at once may seem like a good way to make returns quickly but it can get ugly quickly and you start to lose a lot of startup money. Therefore, start with one side business at a time and see how well you progress from there before investing in another.

Start Small

Especially when you are unfamiliar with that field of work, it is always best to start out small. By starting out small, you commit only a minimal amount of money, time and energy. This gives you enough room to understand the way the business runs without negatively affecting your full time job. Take some time to see whether this side business is something that can work for you and if you’re willing to build on it moving forward.

Know how you will fund your side business

All businesses require capital even though some need more capital than others. Depending on the side business you want to go into, do some research to find out how much you will need to set up on a small scale first. Next is to figure out how you’re going to get that capital to fund your business. Are you going to set up a target savings account towards it with the money you’re earning from your full time job or will you take a cash loan? You can also consider investing in a fixed Deposit and use the returns on your investment to fund your side business.

Don’t jump too soon into paying for marketing

Once you begin experiencing a good income flow from your side business, you might decide you’re ready for more customers to patronize you. You want more than just word of mouth advertising. Just keep in mind that investing in campaigns, ads and extensive marketing plans can go two ways.

One, you either don’t get that large clientele you’re looking for and lose investment money. And two, you get the large clientele you’re looking for but have little time to handle it all and still maintain a full time job.

You don’t have to quit your job to start a side hustle

The truth is you will have bills to pay and financial obligations to take care of. The side hustle does not always yield a lot profit at once so it’s better to stick with your full time job until you have at least up to 6 months’ worth of emergency savings. So unless you are entirely convinced that you should leave your full time job and you are prepared to make that financial decision, you don’t have to quit your job to manage a lucrative side business. You can consider hiring someone to manage your side business for you as it grows while you maintain your full time job.

The RenMoney Blogger.

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