Questions to Ask Yourself Before Starting a Side Business is a guest post by Amanda @ Health Insurance Comparison, showing you how to compare health insurance policies and save money!
Many of us have dreams of entrepreneurship and given the current economic climate it may not be a bad idea to look into a side business as an extra means of income. However, businesses aren’t built over night and there are certain aspects you need to take into consideration before embarking on a journey of entrepreneurship. This isn’t to say that some people just can’t run a side business, it just means that people find themselves in situations – financial and otherwise – that will require them to adjust how they start their side business.
What will I be offering?
This is a very important question to ask yourself and the more detailed your answer the better. Before anyone will hire you or ask for your services you need to provide a clear idea of what you will be offering. This will also help you determine the cost of running your operation.
Who is your target market?
When I was in college as an English Literature major the first thing we had to do when writing argumentative papers was figuring out who our audience was. This way we would know how to tailor our paper in a way that would directly impact our readers. Just so you know, when it comes to running a business this is no different.
Knowing your target market will help you figure out a myriad of important information. Who is my market? What do they want? What do they need? Where do they hang out? Where can I find them? What do they use? All of these are important questions to ask when determining your target market, and again the more detailed you are the better.
What is the cost?
Many digital entrepreneurship endeavors cost next to nothing. Take freelance writing for example, if you’ve got a computer and an internet connection you can make extra money writing. However, there are other factors that go into determining the cost.
Do I need a domain? Will I pay for advertising? Do I need a license?
In many cases you need to spend money to make money. While they amount of money you will be investing into your side business may change, figure out how much you will need to get started. Or, at least find out how you can fit a side business into your current budget.
How much time can I dedicate to my side business?
I’m sure that many of you, like myself, have a full time job. This and other responsibilities, like raising children, can limit how much time you can dedicate to your side business.
Make a list of your responsibilities and see when you would be able to work on building up your business. Some people like to work in the mornings before they go their jobs, on weekends, or at night. It all mostly depends on personal preference and any responsibilities you may have.
Starting a side business is an effective and viable way to make extra income in this shaky economy. While it does take a lot of work, the pay off is definitely worth it in the long run.
