Aside business is typically something someone does during their free time to earn further income in addition to the main salary. This is often a place where people can create a profit from something that they are passionate about.
Examples include:
- Photography
- Catering
- Tutoring
- Graphic Design
- Sewing/Tailoring
Having a good business plan for your side business is the first step. This is essential as you cannot be successful without having some sort of plan in mind.
This would determine:
- What your business is about.
- Who your target audience are
- How the business will be operated
- What product/service you will be offering
- Who you are competing with
Next thing to be mindful of is the structure of the business. There are many types of business structures including Partnership, Corporation, Sole Proprietorship and Limited Liability Company (LLC). Now one of the most important things needed for your side business is a name. A brand name can make or break a business so careful consideration is needed.
This includes:
- The demographic your side business will appeal to
- If the name is unique enough
- Available web domain
With all this in mind its time to set up business credit. Business credit is a company’s ability to obtain borrowed money which it can use to buy products or services based on the confidence/trust that payment will be made in the future. They are well worth it in the long run as it helps to monitor and maintain you side business identity, assets, and finances.
Now you need to create a plan to obtain funding for your side business. These can be either self-funding, through family/friends, bank loans, Angel Investors or through crowdfunding. Each type of funding has its pros and cons, so it all comes down to what you.
