To start or not to start a side business… That is the question you may be asking yourself. And it is OK and natural to think about that at some point in life. After, the pandemic has jeopardized the employment status of so many people that it is only natural to consider your options. As an African, things were already bad enough in some areas prior to the pandemic.
In a previous post, I had briefly exposed ideas on how to start earning online. But I never gave you insights of what to consider when starting to have a side business. So, shall we?
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Why do you want to start a side business ?
When people think about starting their own business they often have a few reasons why they want to do it. Maybe they want to be their own boss, have more control over their work life, or make more money. Or the people who have reasons but don’t want to take the time to start a business?
There are a lot of reasons people might want to start a side business. Here are some of the most common reasons people start a side business:
- To supplement their income:
Maybe someone wants to start a side business to make extra money but they don’t have any extra time to work on it. They can set up a business as a hobby and make extra money doing it, or they can start a business that they can work on part-time while they continue working their regular job.
- To take control of their work life
The tendency to keep control of our work life is evermore increasing. And not only it is understandable, but it also does make sense. More and more people are realizing there is no job security anywhere. The market needs are fast evolving: some skills that were coveted years ago have become obsoleted. The reverse is true as well: skills that were non-existent years ago have become the bases.
Any employer can make you redundant at any time. In some countries, they can also make you redundant for any reason. Recently, lots of employees had lost their jobs as the world was experiencing the COVID-19 pandemic. The realization of how easy it is to lose a work contract push people to not wanting to depend on their employer.
- To work from home
Although working from home can present some inconveniences, there also are some non-neglectable advantages. Such advantages are transport cost reduction, familiar environment, spending more time with loved ones, convenient working times, etc. In most cases, such people can work from just about anywhere in the world, as they do not necessarily need to be at their employer’s .
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Brainstorm potential business ideas.
There are a lot of options for starting a side business, depending on what you’re interested in and what you’re good at. If you’re not sure where to start, here are some brainstorm ideas to get you started:
- Content creator
- Crafting
- Visit guide / Tour guide
- Photography
- Affiliate marketing
- Event planner
- Catering truck
- Interior decoration
If you have no idea of what business to start, answer the following questions.
- What are your interests?
- What do people say you are good at?
- Are any of the above interests or talents monetizable?
- Is there a market for it?
- Will you continue doing it even in case there is no cash flow yet?
Should the answer to the last three questions be “yes”, then go for it!
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Come up with a business plan.
If you’re thinking of starting a side business, there are a few things you’ll need to consider. First, what kind of business can you start? There are many options, from a simple online shop to a more complex enterprise. Once you’ve decided on your business, you’ll need to create a business plan. This document will outline your goals, strategies, and plans for turning your side business into a successful enterprise.
Once you have your business plan in hand, you’ll need to start organizing your resources. You’ll need to account for both financial and human resources. You’ll also need to think about marketing and distribution. If you’re starting a small business, you may be able to do all of this yourself. If you’re starting a larger business, you’ll need to enlist the help of a consultant or other specialist.
Think about setting up a business entity, finding a location and getting started with the marketing and sales efforts.
Finally, it’s important to remember that a side business is unpredictable and risky. You may not make as much money as you expected, or you may be quickly overwhelmed. It is important to plan and make sure that you have
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Research the costs and benefits.
When it comes to starting a side business, there are a few things to consider. Costs and benefits include things like time and money spent, potential income, time required, etc.
- Time and Money Spent
The time and money you spend starting a side business can be divided into two categories. Such categories are: time spent working on the business and time spent making money from the business.
The time spent making money from a side business can also be divided into two other categories: time spent marketing the business, and time spent making money from sales.
- Potential income
When it comes to the potential income, this depends on the marketing strategy, your potential customer and your pricing strategy. We’ll be covering that aspect further down.
- Time Required
The time required to start and run a side business can vary depending on the type of business. The time required to start and run a small business, for example, may be less time than the time required to start and run a larger business.
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Identify potential customers for your side business.
Whatever your customer bases, it’s important to target your marketing efforts specifically to them. This means creating content that is relevant to your customers and creating a marketing strategy that targets them specifically.
Additionally, it’s important to make sure that your side business is sustainable. This means creating a business model that is both profitable and sustainable. This can mean things like setting up a system where you make a fixed amount of money regardless of how many customers you have or setting up a system where you make a fixed amount of money regardless of how much product you sell.
Whatever your side business, make sure to target your marketing efforts specifically to your customers and create a business model that is both profitable and sustainable.
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Create and distribute marketing materials.
Creating marketing materials for your side business can be a lot of work, but it can also be a fun and creative process. There are a few things to keep in mind when creating marketing materials for your side business:
- Make sure your materials are easy to understand. Your target audience should be able to understand what you’re trying to say without having to read a lot of text.
- Use catchy slogans and graphics to capture attention. Make sure your materials are visually appealing so that people will want to read them.
- Make sure your materials are relevant to your target audience. You don’t want to promote your side business to people who aren’t interested in it.
- Make sure your materials are available in different formats. You may want to create PDFs, eBooks, and even video tutorials to make your materials more accessible.
- Keep track of your marketing materials. Keep track of which materials are working well
Once you do that, make sure you disseminate your marketing material by targeting your potential customer. The marketing will be pointless if it doesn’t reach your targeted audience.
Decades ago, people were using television ads and physical advertising boards of the city to market their products and services. Including in Africa. Nowadays, internet has literally made marketing to be a click away from reaching people. And Africa is not excluded. Through internet as well, you can target your customer. Lots of African companies have become internationally renowned because of the digital marketing. I will soon make another post on that.
Other channels are through television and events. Target events where your ideal customers will be located.
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Develop a strategy for pricing and marketing your side business.
When pricing your products and services, you’ll want to consider a few key factors.
- Price point: your price point should be based on what your target market is willing to pay. You’ll want to price your products and services at a level that will make a profit, while still attracting potential customers.
- Competition: keep in mind how your competitors are pricing their products and services. This will give you a good idea of where you should price your offerings to stay competitive.
- Margin: your margin is the difference between your price and your cost of goods sold. You’ll want to maintain a healthy margin to cover your costs and make a profit.
- Discounting: discounting can be a powerful tool to increase sales. Be sure to calculate your cost of goods sold and your margin to determine how much you can discount before losing money.
- Accessories: Some customers may prefer to purchase additional accessories with products or service. Make sure to consider such situations when working on your pricing.
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Establish your side business infrastructure.
When starting your own business, the first and most important step is to establish a strong business infrastructure. This means setting up systems and processes to help you manage your business, track your progress, and stay organized.
There are many different ways to set up your business infrastructure, and it depends on the size and complexity of your business. Some common infrastructure setups include:
- Having a business plan. A business plan is important not only to show investors and customers your vision for your business, but also to help you track and measure your progress.
- Having a marketing strategy. A marketing strategy will outline your marketing plans and goals, and will help you determine the resources you will need to reach your target market.
- Having a system for tracking expenses. You need to track your expenses to ensure you’re spending your money wisely. This can be done through a budgeting system or by keeping track of your actual expenses.
- Having a system for tracking milestones. You need to know when you’ve reached important milestones in your business, such as when you’ve achieved your initial business goals.
- Having a system for tracking your finances. It’s natural for everyone to track their finances. When it comes to business owner, its critical, as the livelihood of the business depends on its finances.
Such systems and infrastructure will help you determine the resources you will need to sustain your business.
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Monitor and evaluate your side business.
Monitoring your business is important to ensure that you are running the best possible operation. There are a few key steps you can take to improve your monitoring process:
- Evaluate your current monitoring process. Are you using the right tools and methods for your business? Are you tracking the right data?
- Evaluate your data collection methods. Are you collecting the right information? Is your data quality high?
- Evaluate your data analysis methods. Are you using the right tools to analysis your data? Are you making informed decisions based on your data?
- Evaluate your decision-making processes. Are you making the right decisions based on your data?
- Evaluate your communication processes. Are you sharing the right information with your stakeholders? Are they aware of your business’s monitoring status?
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TLDR
Why do you want start a side business ?
Brainstorm your potential business ideas.
Come up with a business plan.
Research the costs and benefits.
Identify potential customers for your side business.
Create and distribute marketing materials.
Develop a strategy for pricing and marketing your side business.
Establish your side business infrastructure.
Monitor and evaluate your side business.