If you want more cash, consider starting a part-time
business. Almost everyone has the skills and time needed to launch
a business that’s capable of generating an extra $500 to $1,000 per
month.
With a part-time business, the smart strategy is to get it up and
running within a week or two for no more than a few hundred
dollars. H
ow to do it...
LOW-COST BUSINESS IDEAS
Identify skills that you already possess that could be turned into
a service-oriented
business.
Possibilities...
Tutoring. Tutor students or help high school
students prepare for their SATs or ACTs. Teachers, former teachers,
professors and those with degrees from prestigious universities are
particularly likely to attract clients.
Auto care/repair. If you’re good with cars,
offer auto-maintenance and basic repair services.
Computer. Provide tech support to individuals
or small businesses. Set up computer networks, solve problems,
optimize computer performance or create and manage Web
sites.
Foreign language. If you’re fluent in a
foreign language, tutor those who want to learn it or students
struggling with their foreign language classes.
Handyman. Home maintenance and repair
services always are in demand.
Music/acting. Tight budgets are forcing many
public schools to cut back on music and theater programs, creating
openings for private tutors.
Photography. Offer portrait or wedding
photography services.
Sewing/alterations. Alterations are on the
rise as people choose to repair, not replace, clothing.
Sports. Help promising young athletes hone
their abilities. Those who played a sport professionally or for a
prestigious college program are most likely to attract
clients.
Woodworking. High-quality handcrafted wooden
bowls and other carved kitchen items can fetch attractive prices in
boutiques and at arts and crafts fairs.
If you do not have a particular skill that is likely to be in
demand, there are service businesses that do not require extensive
training or skills (though experience is, of course,
helpful).
Possibilities include...
In-home elder care
Child care/day care
Lawn and garden care
Carpooling/driving services
Pet walking/pet sitting
Housesitting
Housecleaning
BUSINESSES TO AVOID
Certain businesses are best avoided by people seeking to earn extra
cash with little risk...
Retail stores. Retailing typically requires
an expensive inventory, long hours, employees and leased commercial
property. Retailers must compete with Internet sellers and massive
chains.
Franchises. Profitable franchises charge big
up-front franchise fees that part-time business people typically
cannot afford.
"New idea" businesses. It takes lots of time
and marketing dollars to convince consumers to spend their money on
something that they’ve never spent it on before. The failure rate
for such businesses is very high. More than 485,000 applications
for US patents were filed in 2008 -- only a few of these will be
successful. It is better to offer a service that people already
understand.
SETTING PRICES
Contact companies that provide similar services in your region, and
inquire about their rates without mentioning that you intend to
enter the same business. Avoid the inclination to undercut the
competition’s prices. Offering the lowest price for a service
creates the impression that your services are less valuable. It is
better to charge comparable prices and explain why your services
are superior.
Examples: Establish that your
qualifications are more extensive... or offer a money-back
guarantee.
Exception: Offer lower prices to
customers who sign up for extended service packages. Locking
customers into long-term arrangements can help beginning businesses
build reliable cash flow. It also is a way to make your service
seem like a bargain without creating the impression that it is low
quality.
Example: Someone starting a
part-time car-maintenance business could offer a discount package
to customers who sign up for a full-year auto-maintenance program.
MARKETING YOUR BUSINESS
The most cost-effective marketing tool is word of
mouth...
Visit local businesses that offer related
but not overlapping services. Tell
the owners or managers of these businesses what your business does.
Ask if you can post a flyer in their windows or leave a stack of
flyers on the counter.
Examples: Someone starting a
house-sitting or lawn-care business could contact real estate
agents.
Consider sharing a storefront location. Ask
area businesses that are in some way related to your intended field
if they have extra space that they are willing to sublet to you.
This can be much cheaper than renting your own space, and you’ll
have an inside track on that existing business’s
customers.
Example: Someone starting a sewing
and alterations business could sublet space at a dry
cleaner.
Contact organizations that work with your intended customer
base.
Example: If you intend to provide
tutoring or music lessons to kids, contact local schools and youth
clubs.
Volunteer your services to local
nonprofits. It’s a good way to make contacts and show
off your skills.
Offer satisfied customers a discount on their
next purchase if they refer someone who also becomes a customer.
TAXES, LICENSES AND INSURANCE
Don’t worry about taxes at first. New businesses typically have 90
days from the date they start taking in money to get tax payments
squared away. It’s best not to get bogged down in such details
sooner than necessary, but do ask your accountant if you need to
charge tax on any of your goods and/or services. Don’t worry about
hiring a lawyer or incorporating your business until your business
is up and running.
A few details do need to be sorted out before your business gets
going...
Contact your town or county offices to find
out if you need any licenses or permits.
Set up a separate checking account for
business expenses and receipts.
Ask your insurance agent about professional liability
insurance, particularly if your business involves
anything that could cause injury or trigger a lawsuit.
Contact your auto insurance provider if you
plan to use your personal vehicle for business. Your existing
policy is unlikely to cover business use.