Creating a second income stream is the single most powerful way to enhance your lifestyle. More capital means a wider array of choices when it comes to taking vacations, buying a new home, or investing in the stock market for long-term profit. Those who make an effort to establish solid second income streams know the value of having more choices in life. In fact, that’s usually why they go to the trouble of doing so in the first place.
Step one is about exploring the options. There are plenty of them, so you’ll want to take your time finding a project, job, or micro-business that aligns with your personal interests. Be sure to borrow via a small business loan so you can get the new project off the ground without lengthy delays. Aim for work that allows for flexible scheduling so you can do it nights and weekends, and it won’t conflict with your primary career. Remember to invest in promotion and advertising even though the endeavor is a side project. Even small businesses need marketing materials and ad campaigns to become profitable. Lastly, be diligent about keeping accurate records. They’ll serve you for routine tax filings as a database for measuring which expenses were worthwhile and which weren’t.
Explore the Options
Don’t commit to an idea immediately. Spend time looking at what interests you and a field in which you have the skills to excel. Popular micro-companies include those in industries like affiliate marketing, e-commerce sales, sales of digital goods, business consulting, and resume writing. Research the top two or three on your list before choosing where to expend your long-term efforts.
Get a Small Business Loan
It’s imperative to borrow the right amount of money for your new business. That means doing enough preliminary research so you can fill out an online application, like one for an Accion small business loan while having a reasonable idea of what your funding needs are. The main advantage of such loans is that entrepreneurs can choose not only the size of the disbursement but choose a lender who offers an excellent support network, educational materials for startup owners, helpful coaching, and more. If you borrow the right amount from a reputable lender, it’s possible to start generating a second income stream sooner rather than later.
Aim for a Flexible Schedule
Try to find a part-time endeavor that has flexible enough hours, so you won’t stress out trying to maintain your current job. Starting a second stream of income is not a good way to manage burnout so if you are already at that point you need to really consider your bandwidth to take this on. Additionally, seek opportunities that allow you to put in hours any time of the day or night, particularly on weekends. Some of the most successful second-income projects are weekend gigs that people work from home, like e-commerce stores, and resume services.
Keep Accurate Records
Note that accurate record keeping is vital even though you might just be devoting a few hours per week to the new company at first. Not only will you need detailed financial data for tax filings, but the information will reveal how efficiently you’re spending money. If, for instance, advertising is the largest expense item, but there were no sales for the entire month, reconsider your promotional strategy.