I have decided to include the chapter on making an extra “part time” income at the start of this manual for a very good reason. Most of the ideas that are included in the manual are capable of earning a substantial amount of money in certain circumstances. Some are easier to start than others, some require more investment and some require more ongoing effort. Some provide an instantaneous return while some provide a small but recurring income. However, all of the ideas can produce a little part time income.

Therefore, if you have decided upon a part time income as opposed to a business opportunity that can replace your day job, this is far easier to achieve. It is also somewhat easier to achieve you goals, assuming that you set them realistically.

I have already said that setting a target for a part time income should be no more than 10% of what you currently earn from your day job. For most people this will set a limit of around $3,000 to $10,000. For most, a target of $6,000 per year (or $500 per month) is a sensible starting point. Remember, there is nothing to stop this part time business becoming a full time earner!  If you are on a low income, $6,000 will provide a substantial and welcome boost to your lifestyle.  If you are already reasonably remunerated, $6,000 will fund an extra luxury holiday or payments on a smart new car.

Keep an eye open for administrative niceties!

There are a number of considerations to think about when starting a new business. The main problem to avoid is upsetting the taxation authorities. If you are simply starting a small “hobby” business that turns over a small amount – you are not under the same pressure to register with the authorities immediately until it shows some form of regularity. However, it is important that you record every penny that you spend on the business and every penny that it earns. In all p;robability you will record a loss in the first few months anyway.

In the early years I set up a couple of new businesses. On one occasion I had stationery printed (before the days of quality colour inkjet printers) and on another I invested in several $100s of stock. Both businesses failed, not because they were bad ideas, but because I lacked the motivation to take them  forward. The business styles were not for me – I will look at this problem in some more depth.

In some residences there will be clauses in the deeds or lease agreements preventing the running of a business. This is to prevent problems arising such as customers visiting residential addresses (i.e. too many cars in the drive) or machinery being used in apartments! However, sometimes it is included as standard in some cases, and a nosey neighbour might just report your new business start up.

Assess the “self employed” lifestyle

One good thing about a part time business is that it allows you to “test the water” in business. I have used this to good results and as mentioned, have previously had two failures. These taught me that I needed to find a business that did not involve selling low value or dubious value goods by using expensive or outrageous marketing techniques – I needed to feel that I was supplying a valuable service or product line – not simply chasing a profit.

Working from home can be lonely – do you want to be on your own? There are ways of overcoming this but it pays to be aware of the problem. Are you motivated enough on your own to keep at the business. A part time business can be a great tester, but if it doesn’t hold your interest you might be less inclined to pursue it diligently. Will you attention wander – after all you are chasing an additional income – you don’t actually need it like your full time  employment. When you come home from a full day of working it is easy to switch on the TV and forget the need to put a couple of hours into your part time business.

Can you allocate a set time to deal with you business every day or every week? If you can do this you are past the first hurdle.

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Filed under: A Free Business Start Up Guide

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