With the recent financial difficulty over the past 12-18 months for people and businesses, many are now looking for ways to generate some additional income to help support their current jobs by starting their own business.
In 2020, an incredible 835,494 new business were created which compared to 2019, is a 41% increase and continues to grow when compared to earlier years indicating that people are looking for another source of income.
In this article, we’re going to be looking at a few small business ideas which could be good opportunities for those who are interested in starting their own business but aren’t entirely sure of what they want to do or where to start.
Dropshipping
E-commerce is a continually growing market and is predicted to have a global value of $2.5 trillion by 2022. This figure will continue to rise, which is why Dropshipping is as popular as it is.
Thanks to places like Amazon, Dropshipping has become incredibly popular, due to how easy it can be to set up once you know what you’re doing. It’s a relatively low-cost start-up and stock, labels, tracking and warehouse aren’t an issue, as the wholesalers where your customers order from can eliminate any issues which do arise without you needing to be involved.
There are a few cons to this, however. The wholesalers you use are responsible for shipping your stock and if there’s an issue, then your customers will complain or just go to a competitor. Additionally, using wholesalers will ultimately reduce your profit as they’re looking after your stock, labelling, delivery, tracking, etc., which is something that you’ll need to weigh up if you think Dropshipping is something of interest to you.
Trading
This one can take a little more skill to set up, but that’s not to say that it isn’t worth it in the long run. Trading, whether it’s stocks or forex, can be a great way to generate additional income.
There’s a huge variety of different areas you can trade, futures trading is great if you’re interested in the future economic outlook. Scalpers are short-term traders, whose main aim is to take small profits frequently, which can range anywhere from a few minutes to a few seconds. There’s a huge array of different strategies that can be considered and if it’s something you’re interested in, it could be worth finding the one you’re comfortable with.
With trading, though there are incredible highs, as with everything, you must be careful. There are some safety nets you can put in place when you first start out, so it could be worth trying with a demo account first until you find your feet; start small and work your way up.
Freelancer
Freelancing is a lot more common than you think, with a third of the UK working as a freelance or on a contractual basis. Freelancing can be great for those who enjoy the flexibility of a week rather than a structured 9 to 5 job and usually find the work-life balance is much more equal to those who are in a weekday structured job.
Not only that, but you’re able to choose who you work with which could sound strange but, as an employee, you have no choice who you work with or whom for. Employees are hired because it’s best for the business, but as a freelancer, you’re able to set your own rules and choose to work with people who are the best fit for you.
One of the main issues with freelancing is the inconsistency of income. Whilst working for a business, you’re usually guaranteed a particular income a week. Whereas a freelancer, your days and weeks can completely differ, meaning you have to be thinking a few steps ahead. It’s not for everyone, but if being your own boss is something that you like the thought of, then this could be an additional income method you could consider.
