If you find yourself constantly brainstorming small business ideas to generate extra income, you’re not alone. Many people explore new ventures either by addressing untapped needs, improving existing products, or even aiming to create something as groundbreaking as Facebook. This can provide a nice supplement to your regular job and potentially lead to significant future earnings when you’re ready to move on to other projects.
I recently got inspired to revisit business startups after watching “The Social Network.” I’ve categorized my business ideas into “Old Economy” and “New Economy” ventures, both of which can be lucrative and potentially evolve into full-time endeavors. New Economy ventures are particularly scalable.
Old Economy Side Businesses:
Real Estate: This is a popular side gig for many who wish to diversify their income and assets. For 15 years, real estate was my preferred way to build wealth. I invested over 80% of my year-end bonuses in real estate. It’s a passive investment, which is ideal now that I’m a father. I know several people who have done well with rental properties, from owning a single home to managing multiple apartment complexes. They benefit from steady demand and limited competition, which helps during economic downturns. A property management company handles their day-to-day operations, from tenants to maintenance.
Though I’ve considered investing in rental properties, distractions always seemed to get in the way. However, if the right opportunity came along, I’d be ready to jump on it. For those looking to invest in real estate, consider private real estate markets in the Sunbelt and Midwest where the prices are more attractive.
Multi-Level Marketing (MLM): You’ve likely heard the MLM pitches, where you’re encouraged to recruit others to sell products. While some MLMs offer legitimate products, the business model relies heavily on continuous recruitment. I’ve known many who’ve tried MLMs, but none have stuck with it due to the challenging nature of the business.
Freelance Consulting: Leveraging skills you’ve accumulated over your lifetime can also be a rewarding side gig. Whether it’s playing piano at weddings or fixing computers, freelancing allows you to earn extra money. It’s not the most scalable option since your earnings are tied directly to the time you invest, but it can be a viable income stream.
New Economy Side Businesses:
Blogging: Almost everyone has a blog these days. Blogging allows you to share your opinions and life experiences, and it can be quite lucrative. Starting a blog can lead to various opportunities, from freelance gigs to influencing. It’s all about managing your time effectively and creating engaging content.
Outsourcing: The global economy offers significant cost advantages in certain sectors. For example, you can outsource tasks like CAD services overseas for a fraction of the cost of local providers. By coordinating with skilled professionals abroad, businesses can save money while maintaining quality, benefiting everyone involved.
Investing in Entrepreneurs: Beyond starting your own business, consider investing in private companies. Many of the world’s wealthiest individuals have reaped substantial rewards by investing in private enterprises. With companies staying private longer, early investors stand to gain significantly.
In summary, whether it’s through real estate, blogging, or investing in emerging companies, there are numerous ways to supplement your income and diversify your financial portfolio. Starting a small business or investing in one can be a game changer, offering both immediate income and long-term financial growth.
