Want to do what you love and make some extra money on the side? Money Girl has the trick to creating your own home business—and even launching a new career.
If you’re ready for a brand new career or just want to make some extra money on the side, starting a home-based business might be the answer. Today, I’ll give you tips to find and launch a business that’s right for you.
Benefits of a Home Business
Saving more of your current income is great—but the upside potential of making more money is unlimited. Creating a second income can be the key to dramatically improving your financial life so you can invest more, pay down debt faster, or accumulate a healthy emergency fund.
In addition to earning more, a side business gives you an entirely new source of income that can keep you safe if you lose your day job. And if the business really takes off, you might even have the freedom to quit your main job and become a full-time entrepreneur.
That’s exactly what happened to Donna, who I recently spoke to about her 6-figure home-based business (that you could easily start). Click here to listen to the full interview.
How to Choose a Home Business
When you’re trying to decide what business to start, ask yourself these 3 questions:
What are people willing to pay me for?
What do I have a passion for?
What work fits my skills and talents?
Providing a product or service that you know people are already paying for—like cosmetics, house cleaning, website design, or music lessons—is a smart way to limit the risk of starting a new venture. Without an existing market for what you sell, you might have a fun hobby—but you won’t have a profitable business.
You also need to have a deep interest in the work because you’re going to spend a lot of time doing it. That passion is how you’ll maintain your enthusiasm for the business while you make sacrifices like watching less TV, getting up earlier, or working on the weekends.
Taking advantage of your existing skills and talents can also ensure your success in a new business. For instance, if people are always telling you that you’re really patient and good at explaining things, you might be an excellent tutor.
Think about what you already get paid to do or have been paid for in the past and whether you can turn it into a business. Or do you have a hobby that has the potential to be a home-based business, like photography, writing, or building furniture?