In turbulent times, many working adults seek to create an additional stream of income. Whether it’s as a way of paying bills or to enhance retirement savings accounts, a second paycheck eliminates undue worry about money matters. But individuals who want to bring in extra income don’t have an easy time of it. For starters, it takes time to get a small business to the point where it shows a profit. Likewise, most budding entrepreneurs need startup funds just to open the doors of the organization. How should prospective owners proceed once they have a general idea of the kind of company they’d like to start? Step one is to make an honest list of all personal skills you bring to the table.
After that, move directly to the loan application phase, which is actually the simplest of all the six steps. Be sure to work with a reputable lender who caters to independent owners. Once you secure financing, write a detailed one-year plan that includes estimates of expenses, profits, inventory purchases, and the number of new customers you expect at six-month and 12-month cutoffs. Name the company and register it with state and local authorities. If you need a tax ID number to operate, apply for one as soon as you can.
It’s essential to have a professional looking website that includes all the features your customers need, like a seamless shopping cart, multiple payment methods, an interesting blog, a clean and informative landing page, and user-friendly navigation. Finally, craft a daily work schedule that you can follow without much variation. Base hours on openings in your current daily routine, making good use of weekend free time. Here’s how to begin.
Inventory Your Personal Skills
You should understand the difference between hard and soft skills and also be honest when listing your skills. This essential step is first for a reason. Knowing what you can and can’t do is at the very core of what it means to become an entrepreneur. Focus on writing detailed descriptions of your most prominent talents. If you can’t do something, just don’t list it. Later on, this skill list will come in handy when deciding which tasks, you need to outsource and which ones you can do yourself. The primary reason for a skills inventory, however, is to discover what kind of business will be most profitable for someone with your background and experience. If you know how to repair computers or do advanced programming, then a tech-related startup would make a lot of sense. Let your current skills guide your selection of a particular field of endeavor.
Apply for a Small Business Loan
Few individuals have the savings or ready cash resources to open their own companies. That’s one of the more practical reasons behind obtaining a loan for startup purposes. It takes money to make money, as the old saying advises. Fortunately for today’s independent-minded working people, there are several excellent ways to get seed money to finance an idea. Not only is it easy to apply for small business loans, but the top lenders offer flexible terms, repayment schedules, and loan sizes. For many borrowers, the most attractive features are more quality than quantity related. That means getting access to interactive support networks and business coaching resources. If you’re a founder who feels locked out of traditional financing streams, consider working with a lender who supports small companies and startups.
Write a One Year Plan and Choose a Name
Be as accurate as possible when developing a one-year plan. Try to anticipate all expense categories as well as revenue streams. There’s no need for 100 percent precision. The goal is to come up with a daily operations routine based on work flow, marketing efforts, and approximate income levels. Choose an appropriate name and register it with tax and legal authorities. That usually includes state, city, and federal government agencies.
Build a Killer Website and Make a Work Schedule
Unless tech skills are your thing, hire a pro to build your company’s website. Test shopping carts, navigation ease, billing functions, payment choices, and all other key features before going live. Then, make a simple work schedule you can stick to for at least six months. Creating a second income stream takes hard work and dedication, but anyone with an idea can do it.