Advice on Creating Supplemental Income as a Small Business Owner
Supplemental income is a wonderful thing, especially for business owners, since it’s often the case that the incomes created by their primary businesses are mostly pumped back in again in order to create more profit or increase production capacity. In order to create some extra money for themselves, business owners will often have one or two side projects that they either manage in their spare time or have added to their core businesses as additional services for their clients. Wealth management services and strategic investments are another relatively common way for business owners to create additional revenues.
Offering an additional service at your primary business or as a complement to it. This is a tempting option for many business owners, since creating an expanded menu of client options can serve as a marketing draw in and of itself, and capitalizes on the networks and marketing that you have already put into your business. However, the downside of this option is, should you find that people are not interested in this additional service, it can wind up costing you money rather than creating additional incomes. It’s better to respond to inquiries on the part of your clients, or to go to them for their opinions and collect market research before planning a new program. Otherwise, the money, time and effort you expend trying to establish a source of extra income runs the risk of not creating commensurate return.
Consultation. If you are willing to find the time, serving as an expert consultant in your field is a potential source of income and exposure for you. Other businesses, especially younger businesses, can benefit from the experience of a more senior team member. A position as a small business owner puts you in a position of authority on field specific topics, and leveraging that expertise can be potentially lucrative should your find a way to connect to your target market. A word of warning, however. Consultation hours that you keep need to be clearly established and allow time for you to manage your responsibilities to your first business. Clients may wish you to keep the hours that they want, so managing expectation relative to what you are able to perform is essential.
Liquidating extra property. One way that business owners can create some extra income is through getting rid of property that they are not using through a channel such as ebay. Extra business inventory can also be liquidated, although depending on the nature of the inventory, business owners may have to find more specialized channels to reach a buying market. While, compared to the other two options listed in this article, this may or may not have as much potential to create profit, business owners have the option of putting a lot less time into this strategy. Whatever property you have that you don’t need can be placed for sale, and you can control the volume of property on auction at any given time, allowing you to dictate the potential amount of hours needed to manage the project.
Photo Credit to U.S. Department of Agriculture on Flickr