Side businesses are a great way to add extra income to your salary. Yet the amount of work they take to execute successfully is often grossly underestimated. Side hustles need to be done properly and this requires time and money. While we may not be able to free up time for you, we can help you understand how to raise the capital you need with our expert tips below.
Sell Assets and Property
The first place to look is at the assets you already have at your disposal. If you can manage to sell items or property and not rely on a loan, it gives you an advantage. You don't have to make repayments that may eat into your profit. As you have less debt, it may also make it easier for you to get loans at a later date should you need them.
Property is the most obvious place to start. If you have any land, apartments or homes you can sell to raise cash, then these are always a good idea. Make sure any income from them, like rent, will be less than your side hustle makes. Swapping a £500 rental income per month for a £300 side hustle is not good business. If you want to work quickly and sell a house fast, some companies will offer cash for properties. With turnaround times of as little as seven days, they can be great if you need capital quickly for your business venture.
If you are not lucky enough to have a property you can sell, then look at other assets you may have. Perhaps you have a second vehicle that is not getting used or items in the home that could be sold. Create a budget containing everything you will need to get the business started and you should have a stronger understanding of how much you will need.
Crowdfunding
Crowdfunding is a fairly new phenomenon, but one that works and can be a huge boost to a business from a marketing perspective. It involves asking people to fund you before a product is delivered. You set a total and when that is reached, you create the product and deliver it to people who have backed you. If you don't make the total, nobody is charged.
Due to its model of operation, crowdfunding is not for everyone. It is fantastic if you want to get a product made and already have a strong following on social media or existing fans. As such, it works best for niche items, pieces of art and music.
Loans
The final option is to get a loan. The most obvious place to look is with friends and family, who will probably not charge the interest rates professional lenders will. However, many people prefer to avoid this and go for a more business-like relationship with a bank or loan company. In this instance, you will need a robust business plan the likes of which any fully functioning business would require.
All of these options should provide you with enough money to get started. Plan a budget, but more importantly, plan your time. A side hustle needs to be deployed with just as much expertise as a full-time occupation to have the results you desire.