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Working a regular job is a two-edged sword. You get to earn an income, but on the other hand, you realize you will have to be your own boss to be wealthy. If you have a 9-5, the phrase is that you are in ‘the rat race’.
The way to exit the rat race is to start your own business. However, unless you have enough savings, it is a good idea to keep your day job and start a side business to boost your income.
The following are tips to help you start a side business:
Improve Your Financial Management
One of the first but most important steps to starting a side business is being better at managing your money. Financial management as an employee and as an entrepreneur is very different. You will be juggling both, which is exhausting, so you need to make it as easy as possible to manage your money.
Consider using SoFi for financial management. Once you manage your finances, you can focus on other aspects of your side business. Excellent financial management will also ensure your living expenses are taken care of so you don’t have to worry about them while trying to break out of the rat race.
Set Goals
Every journey requires a roadmap, and so does the journey of starting a business that will someday help others and make you rich. Therefore, before you start your side hustle, you should write down the goals you want to achieve using the business.
Your goals will differ from those of another, but you should ensure they are specific, measurable, achievable, realistic, and time-based. The goals may include production levels, sales revenue, market share, or profit margins. Regardless, if you want to grow your side business, goals are the map that will get you to your destination.
Write A Business Plan
Before you start making payments for your new business, you should ensure it is economically viable. It would be best if you created a business plan for how you will achieve the goals you set earlier. A business plan requires market research, and it will tell you whether there is demand or opportunity for your business to thrive.
The plan will also apprise you of the legal aspects of running a small business. It is also what you will present to investors or borrowers when looking for financing. A business plan will also tell you if your business will have a competitive advantage which is vital for success.
Perform a SWOT Analysis
If you want to start a side business, you must consider yourself a business or income-generating entity. To that end, you should begin by doing a SWOT (strength, weaknesses, opportunities, and threats) analysis. Create an inventory of your strengths and weaknesses.
Doing so will tell you what you are good at and bad at, which will help you know what you will handle yourself and what you will need help doing. Once you know your strengths and weaknesses, you will know which opportunities you can take advantage of and what threats will stop your side hustle from success.
Get Started
Many people go through the planning stages of their side business without ever going through with it. You will never know if you could have succeeded if you never tried. Do not be like many others who were paralyzed by overthinking and fear. If you have done your research and know you have a worthy idea, what is left is to start.
Starting a side business is challenging as it will take a lot of time and many restless nights. However, if you fully commit, you significantly increase your chances of success. Ensure you improve your financial management, set goals, write a business plan, and perform a SWOT analysis. Remember, starting and taking action is the most crucial step.