Start a side business with low budget

Have you thought of starting a side business but are worried about not having sufficient funds? This post will give you ideas to achieve your goal, with proper planning.

Focus on a business with low start-up and overhead costs

Let’s be practical here. Don’t pick a business that requires substantial investment like a retail store or a restaurant. In fact, avoid any business that requires fixed costs, rental, capital expenditure, staff salaries and inventory. During this economic climate, it would be a challenge to secure a loan or financing.

As mentioned in my post “How to generate extra income stream”, the best scenario would be to turn your hobby into a side business. It’s important for the side business to generate joy and satisfaction as you will be investing a lot of energy and efforts into it.

I highly recommend this article which is very helpful about how to start a side business with little funding.

Do you have a special skill or interest? Check out the following ideas:

• Business consulting: What is your area of expertise i.e. accounting, human resources, marketing, project management? Many companies are hiring independent contractors to provide their expert services on a project basis. You could offer your services as a free-lancer on a platform such as Upwork.
• Instructor / Trainer: You can capitalize on your special skill, for example cake decorating or Zumba dancing, and your ability to share your knowledge and teach others by becoming an instructor or trainer. Gaining  a certificate from an online course should be enough. For example, Fitness instructors can obtain certification from organizations like The National Federation of Professional Trainers. Likewise, life coaches can gain certification through the International Coaching Federation.
• Writer: Do you enjoy writing? There are many commercial, technical, medical writing jobs, as well as copywriting. Offer your services via this website.
• Photographer: If photography is your hobby, you can offer your services via many sites like this one.
• Personal stylist: Are you passionate about fashion? Even when people work from home, they still need to look presentable in Zoom or Webex calls and may need help from a stylist. Register here for a fashion stylist job.
• Interior Designer or Fung Shui consultant: Do you have flair in interior design? Have you studied Geomancy or the Science of Fung Shui? There is a demand in this area. List your interior design services here.
• Virtual assistant: If you are well organized (For example, stay-at-home moms should have the best organization and multi-tasking skills in order to take care of their children and household!) and have time on your hands, you can propose your services as virtual assistant, to help a professional with administrative duties, travel booking, answering email, making appointments etc. You only need a laptop and internet connection. Check out website like Red Butler or Remote.co, to offer your services.
• At-home service business: As most schools are still closed, many parents working from home may need some babysitting or tutoring, maybe dog walking or pet-sitting. Since you will be home-based, there is no extra overhead.
• Skilled labor: Do you have sewing skills? You can offer alteration services. Are you good with repairs, you could be a handyman. If you have great gardening skills, offer your services to create herbs planters. All these jobs are also home-based with no extra overhead.
• Senior services: This is a growing sector. According to the S. Census Bureau, by 2030, one in five Americans will be over 65 years of age. By 2050, one in 20 will be over 85. This means that more and more aging people will need help with daily tasks such as rides to doctors appointments, grocery shopping, errands running, household chores. If you are handy, you could learn how to modify homes to accommodate wheelchairs access like building ramps, widening doorways, adding grab bars and fold down shower seats in bathrooms.
• Craft: If you are skilled in creating jewelry, soaps, ornaments or other crafts, or if you have a sewing machine and can make unique clothing, Halloween costumes, tote bags, decorative pillows, stuffed toys… you can try to set up a virtual store @ Etsy.
• Deliveries: You have a car and insurance? Perhaps you can join Uber, Lyft or delivery services for food like Doordash or goods and furniture like Lugg. As restaurants and businesses are not yet fully opened, there’s a high demand for contactless delivery services.

Know your customers and their needs

Of course, you cannot cater to everyone. You must identify who are your niche customers and what are their needs or pain points, and how can you help them.

As quoted in a Forbes expert panel article,“Starting your own business should always include the following four basic steps: First, consider relevant trends and expected future events. Second, build likely and unlikely scenarios based on the impact on people, their hopes, wishes, concerns and jobs. Third, consider any opportunities to enhance positive impact and mitigate negative impact. Finally, build your business model on a positive vision to help people”. – Michael Thiemann, Strategy-Lab™

Mentorship

According to Daphna Horowitz, of Daphna Horowitz Leadership, “If you want your business to grow, you need to grow your mindset in the same way. A coach can help with mindset and a business mentor who has been through the process can help with pointing out pitfalls you can avoid. Invest in yourself and invest in your business so that you can have the best chance of success. I call this “putting your A-team in place” and it will help you make that leap.” –

Investing in yourself also means that you need to learn the business of your business and self-improvement. Take online classes to get more in-depth and updated information about your field,  or learn a new technology or skill.

Mentorship is also very important, and you have to find that one person who could help you advancing your plan,

“We have all been at the point when our hobby has the potential to turn into a business. The challenge during that transition is telling yourself that it is possible to be paid for your value. In most cases, one person gives us a chance when others would not. That relationship is a defining moment and is a great example of your ideal client or customer. Find more relationships like that!” – Colby B. Jubenville, PhD, drjubenville.com

First, prepare your business plan that you can share with your former boss or colleagues, business contacts from Linkedin, or your family or friends to ask for their feedback and support.  Your network’s opinions on your product/service features, pricing, distribution and marketing strategy are very valuable. You’ll get instant feedback on what works and what doesn’t, and can adjust your business concept accordingly.

This article from Entrepreneur  gives great advice on how to find a mentor through various associations such as the Small Business Development Center, Association of Women’s Business Centers or Minority Business Development Agency.

According to a survey by The UPS Store, 70 percent of mentored businesses survive more than five years, which is double the achievement rate of businesses without mentorship.

Mindset

The right mindset is crucial to be an entrepreneur. Even if you have a solid business plan and great products or services, you must have a powerful mindset to weather the ups and downs of building a new business. Work on being mindful and connected with what you want to do. This will help you have a clear and authentic path and relate to your clients and community.

Earlier I mentioned that you should enjoy the business that you are creating, as this will give you joy and make you feel good. Feeling good about yourself will lead to self-confidence and an abundance mindset. Please read my other post regarding abundance.

Leverage free tools

” When you have a hobby that you think you might want to turn into a full-time business, leverage free resources to see how well it does without spending a lot of money upfront. Start with Score as they provide free business advice. Social media platforms also offer free business resources that help you market without spending money. You can even get a website and email address for free to start.” – John Knotts, Crosscutter Enterprises

There are many free tools that could help you in your new business. You can create your own logo, flyers, banners for free on Canva.  A free site like Calendly can help you with scheduling various tasks and appointments. Google drive  is a free tool to store and share large files.  Your business can be listed for free so people can find you via  Google business. For email marketing, you can use mailchimp  to send your newsletter. Access free stock photos for your website or newsletters from sites like unsplash

Scale Slowly And Sustainably

“One of the biggest mistakes many first-time small business owners make is scaling too quickly, resulting in oppressive overhead and fixed expenses. In most business models, you do not have to go from home hobby to storefront or office building in one move. Look for ways to scale slowly and be mindful of sustainable growth principles, which allow you to develop and build your customer base as you go”. – Jonathan H. Westover, Ph.D, Human Capital Innovations, LLC

To recap, to develop a side business with little initial capital, you should start small, take advantage of your special skill, use your network to get feedback on your business plan and hopefully find a mentor. Take advantage of free tools. Importantly, develop the right mindset to build confidence and clear vision.

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