Me, teaching in my old studio
If you have a skillset separate from your regular job, consider building an income stream around this skillset. However, you should only do this if it is a skillset that can generate a decent income when broken down into an hourly rate.
One example of a second business that I would not recommend is housecleaning. While there is usually continued demand for such services, there is also a high supply of people willing to offer that service in order to make a little income.
You are better off pursuing other opportunities rather than settle for a second business that effectively pays you minimum wage.
The goal is always to produce an income stream that achieves one of two goals…1) it allows you to retire from your regular job because you are making more money from your second job, or 2) it eventually becomes a relatively passive source of income.
Trading stocks is one such income stream that can achieve both of those goals.
Other skills that can provide a decent income on the side through a second business include
- Teaching golf
- Preparing taxes
- Hair styling
- Catering
- Makeup artist
- Mechanical repairs
- Computer repair
- Website development
- DJ
- Magician
This is just a small list of potential businesses that may be quite profitable as a second business away from your normal work.
However, if your primary source of income involves a business where your hourly rate is higher than what you can attain through a second skillset, and you have control over how much business you can develop for that primary source of income, then you should simply consider expanding that business, rather than develop a second business.
This was a lesson I personally needed to learn.
I’ve been self-employed as a commercial real estate appraiser for many years. However, it’s never been a business I’ve truly enjoyed. So, I turned to golf instruction as a potential business to replace my appraisal business.
Bad choice.
I recently took the time to improve my skills as an appraiser. This has allowed me to increase my fees dramatically.
As a result, there is no way I could build a golf instruction business to match my appraisal business without making a big sacrifice. Furthermore, it’s very difficult to match the hourly rate I earn through the appraisal business. It is possible as a golf instructor, but it is also far more demanding, and requires much more time devoted to marketing, compared to my appraisal business.
Therefore, I’ve changed my focus.
Now, there are some key things to consider when developing a second business. This is a very difficult endeavor for anyone to undertake. Just because you have a second, profitable skillset, does not mean you will get business…you have to go get it (as I indicated with the golf instructing business).
With that in mind, you need to put in a lot of time with your marketing. Here are some steps you’ll need to take if you are going in this direction for a secondary income stream…
Get a Website
If your second business involves providing a service or producing a product, you absolutely need a website.
There are a few services out there that allow you to build a website fairly easily if you have no internet experience. Strikingly is one such service that allows you to build a pretty slick looking website fairly quickly.
If you have some experience, or you are more of a do it yourselfer, I recommend using Bluehost to find a good domain and to host that domain. You can then download WordPress and get set up with a cool theme such as Avada Theme, which is what I use with this blog.
Marketing Tactics
Once you’ve got that website up and running, you’ll need to spread the word about your business. Depending upon what type of business you have going, you may be able to use some of these guerrilla marketing tactics.
You should also be sure to use some of the now traditional means of marketing, such as social media, email marketing, joint venture marketing, etc.
Having an email list will be critical to your success. Whenever someone uses your services, ask for their email. In fact, you should try and get some more information from them as well…birthday, work anniversary, names of spouse and kids, etc. The more information you have about a client, the more ways you can market to them.
Consider reaching out to your local newspaper publications, business publications, etc to see if you can write a column on a monthly basis. This is basically free publicity. Getting your name and brand in front of a large audience consistently will pay huge dividends in the long run.
How Much Should You Work?
Well, depending upon the business, you can probably set your own hours and work as much or as little as you want. What you’ll want to do with your marketing is create demand, so that you can then name your price.
Ultimately, you probably don’t want to work too much with your second job unless your goal is to replace your primary job. Remember though, the initial goal for the second business is to create another stream of income.
If you ultimately enjoy this second business to the extent that you want to make it your primary job, well then you are joining the ranks of the entrepeneurs who wake up every day, looking forward to going to work! That’s not such a bad deal.
Final Thoughts
Developing a second business is probably one of the two more difficult streams of income to build due to the work involved. However, it can ultimately become the most rewarding it your second business replaces your primary job.
Hey, if you enjoyed this article, shoot me some comments below! Would love to hear some more ideas about second businesses and marketing tactics you may be using.
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