With the effects of the coronavirus pandemic leaving many people short on funding, some have turned to side businesses to provide them with extra funds to make up for their financial losses.
Starting a side business while working full or even part-time can sound daunting and almost an impossible task. However, the benefits do outweigh the costs, especially once you see your first success.
Below are some main advantages to side businesses to inspire you to take the plunge:
- It provides a second income – be that for savings, to settle payments or to help you afford extra luxuries in life
- It can lessen the worry of losing your job – many people who start a side business end up quitting their role to focus on their business full-time
- It can enable you to meet other business owners and therefore provide you with more opportunities or collaborations
Regardless of the benefits, you must be clear on why you want to set up a business and what your goals are, which will enable you to be prepared too:
- Is it a part-time or seasonal business that focuses on services or products for specific seasons or events?
- Is it to replace your current and main job?
How to plan your side business
Most entrepreneurs spend a lot of time planning and preparing their side business to turn their innovative ideas into reality. The first step is creating a business plan. While there are no specific requirements for this type of plan, as they are unique to each business, we advise to highlight the below points in the plan to help you navigate your start-up more easily:
- Business goals
- Financial strategy (where you will obtain funding etc.)
- Market research
- Operation plan
The next step is conducting research. You will need to know your target audience to start with, along with the following:
- Where and how to find your customers
- Your target customers’ needs and preferences
- Your competitors
- Your competitors’ price points
- Your pricing strategy (compared with competitors)
- What your competitors’ are lacking – can you use this to your advantage?
- What makes you unique, compared to the competitors?
The above points are just some things to start considering for your business plan, but it will need to be more in-depth, and as detailed as possible.
For more information, please contact our experts today.