1 January 2008 No Comment Print This Post  Email This Post

2008 has barely begun, and already, I’ve heard from plenty of people about their financial goals for the new year. A common thread seems to be creating a new business.

There’s no questioning that the economy isn’t so great at the moment, though everyone has a theory on when it’s going to turn around. It doesn’t necessarily seem like a great time to start a business, but a lot of people seem to be looking for a fall back plan, just in case. They see personal businesses as a way to keep money flowing in, no matter what happens to their day job.

This seems a bit different from the typical entrepreneurial spirit: these people don’t want to quit their jobs. They want businesses that they can do from cubicles, while on the go, or in the free time they have after work.

If you’re looking to start a side business, start by getting your personal financial house in order. Danny gave you a great list of steps yesterday, so I won’t rehash his material. While you don’t have to have every bit of your financial situation ironed out, you do need to have yourself organized to the point that you know how much money you want your business to bring in and how much time and money you can invest into the project.

The next step is deciding what sort of business you want to operate. You need to take into account that you can’t spend every hour of every day babying your business, especially if it’s only a side project. You might like the idea of time-intensive businesses, like computer repair or making handmade crafts, but you need to be sure that you can bring in enough money during the few hours you can devote to the work to make a significant difference. Consider taking a look at businesses you can run online, from running eBay auctions to running your own website. You’ll be looking at lower capital investment, a well as projects that you can work on when you have time, like early in the morning.

The rest of the process will differ greatly, depending on what type of business you decide to start, but you should keep a few things in mind.

• Don’t let your side business interfere with your day job. You may be able to get away with checking your email at work, but taking phone calls, or actively ignoring your ‘real’ work is going to put you in a position to test just how much income your side business can bring in.
• Run your business like a business. Do your taxes, act professionally, etc. If you don’t take your business seriously, no one else will.
• Save any income from your business, if you can. If your day job pays all your bills, your side business has just become the perfect opportunity for saving money, making investments and paying down debt.

Thumbnail image by TallCJ