How To Come Up With a Side Hustle Business Idea
How To Come Up With a Side Hustle Business Idea
How to start a side hustle is want to start a business but scared of failure? You don’t have to risk it all. Now’s the time to push your hobby or skills to make extra money on the side.
What is a side hustle?
The term ‘side hustle’ has become a catching word in the business landscape, replacing ‘part-time business’ and refers to starting a business while holding down your day job.
A side hustle is how many people in the UK go about starting a business as it reduces the typical risks associated with entrepreneurship. You can keep the safety of a paid jon while giving yourself time to build confidence and grow your business.
Whether you are short of cash, have a mortgage to pay, family to support, or are just racked by the prospect of failure, then a side hustle is worth considering.
A side hustle is not about giving up your job straight away to pursue becoming an entrepreneur, rather about making an additional income while enjoying every minute of running a part-time business. Then, if your side hustle takes off, you can look to drop the ‘side’ and turn it into a full-time hustle.
Most employers are receptive of employees starting a side hustle, provided it doesn’t compete with the employer’s business and is operated outside of working hours.
In fact, many companies have been known to actively encourage employees to pursue a side hustle as it encourages them to pick up new and enterprising skills, without the company having to pay out for it.
Google is renowned for enabling its employees to spend 20% of their work time on their own projects (Facebook, LinkedIn and Apple all have similar ‘20% policies’).
Benefits starting a side hustle?
- Chance to do something you love – You can pursue a passion that you don’t get to focus on at work and turn it into a side hustle.
- Profits – One of the biggest attractions of starting a side hustle; you can earn additional income on the side.
- Financial security – You don’t have to worry about running out of money as you still be receiving your regular salary. On the flip side, should you lose your full-time job, you have the added security of having your side hustle to fall back on.
- Time to test your idea – You have the opportunity to try new things to scale your business and can test the market first, leaving the door open if you decide to pivot your side hustle into a full-time business.
- Get started straight away – You can launch a side hustle on your own; you don’t need employees or investors. A side hustle can be your baby.
How to come up with a side hustle business idea
Look out for gaps in the market and do your research
In his book Side Hustle: From idea to income in 27 days, author and host of the Side Hustle School podcast, Chris Guillebeau explains that to come up with a side hustle you should “get in the mindset of finding the profitable ideas that exist all around you”.
This includes paying close attention to your surroundings as you never know when a good idea will turn up. On page 30, Guillebeaut advises that as you look closer, you will begin to spot even better and more profitable business ideas:
“Here’s an example of a hustle that went beyond the “starter idea” approach. One day, a web developer named Paul was commuting to work alongside with thousands of other people.
“Traffic during rush hour is no joke, and many of those commuters were constantly on the lookout for shortcuts, tips, or anything that would make their commute a little bit quicker and easier. At the time, there was no single, go-to resource where all these people could see traffic patterns and get real-time updates on buses, roadwork, or any other pertinent information. Paul built that resource and is now making more than $7,500 a month from it.
“See how it works? In this case, Paul combined an existing skill (web development) with a clear need (real-time traffic information) that served a large and active market. Paul now works full-time on the hustle, and it all started with an idea that popped into his head on his morning commute.”
Utilize your skillset or background
Just as Paul capitalized on his web development skills, you can capitalize on your skills and career background to launch a side hustle.
For example, if you are currently working in content or copywriting then why not consider working on a freelance basis and offering to contribute articles to publications?
Alternatively, if you are currently working in tech development or coding, you could always look to offer assistance out of working hours to companies in need of a quick tech fix.
UK entrepreneur Richard serves as inspiration for using your skillset to identify a problem which can then be turned into a successful side hustle. While simultaneously studying for his degree, Richard found something in school that has turned into a successful business.
Make your hobby pay
Whatever your hobby; be it a desire for fitness, baking, cleaning, selling online etc, there are countless side hustle business opportunities you can pursue. We can support you throughout the process. https://obiankesbusinesses.co.uk/contact/
If you are into working out then you could gain a personal trainer qualification and offer personal training courses. If arts and crafts is your thing then you could look to sell your creations and designs on marketplaces such as Etsy, Amazon, Gumtree and eBay.
If selling products online is more up your passion, you could always search charity shops and vintage stores for any profitable items to resell to consumers on sites like Etsy, Amazon, Gumtree and eBay.
Recent research has highlighted that there are now more than 600 Britons who have made more than £1m by selling items on eBay and Amazon so there’s certainly money to be made. If you want more inspiration for what works on eBay and Amazon, then check out report which shows the most popular products purchased on the site include car accessories, wall decals, CDs, DVDs, and furniture.
Online retailer of arts and crafts goods
A number of successful entrepreneurs started out by turning their hobby into a side hustle. Why can’t you?
Take Davies an entrepreneur. Davies started Crafter’s Companion – an online retailer of arts and crafts goods – as a modest part-time business while studying at university. After graduating, Davies decided to focus on the business full-time and her company now generates annual turnover in excess of £15m and has expanded internationally.
Jan Koum, the founder of WhatsApp, was born in a small village near Kiev in Ukraine. Coming from poverty, Koum’s family emigrated to California, and Koum started learning about computers in his spare time. By the time he was 18, he had developed impressive skills, and in 1997, he was hired by Yahoo! as an infrastructure engineer.
He spent a decade in that industry before realizing the huge potential of the app industry in 2009 and starting WhatsApp Inc. By 2014, WhatsApp had become enormously popular. Facebook bought the app for a staggering $19 billion.
Key lessons to learn
Invest in yourself. You need to invest in yourself before you invest in anything else, by focusing on improving your skills, education and experience. Without self-investment, you won’t be able to build a business, let alone sustain one.
Additionally, entrepreneurs can come from humble beginnings, so long as they are willing to work hard, commit to their ideas and take the risks necessary to see those ideas become reality. Don’t let a lack of money or experience dissuade you from following your dreams.
Examples of side hustle business ideas:
- Social Media Marketing – Offer freelance social media marketing assistance to new brands.
- Dropshipping – Purchase goods from a third party and retail these to consumers. Learn more about dropshipping here Contact link form
- Website– Provide online products for customers to buy without going into a shop
- EBay- Provide online services to customers
- Public speaking – If you’re a confident speaker working in a specific industry then you could offer out your public speaking services to events and conference.
- Amazon – Create an online product you are passionate about to sell.
- Cleaning- Services can be provided in person or by employing staffs.
How to run a successful side hustle
Once you have decided on your side hustle business idea, you will then need to get it off the ground.
How do you do this?
- You should establish clear working hours for your side hustle business and stick to it.
- You should create a timeline, decide key milestones and objectives of what you want your side hustle to achieve and when.
- You should always be honest with your employer.
- You should try to keep at least one day of the week for you – work/life balance is key.
- You should keep time for training and personal development.
Starting A Business With A Full Time Job
Starting A Business With A Full Time Job
Why juggling two jobs can give your business the perfect start.
After a demanding day at work, for some of you, crunching numbers and pushing pens, the last thing anyone wants to do is go home and do it all again, so it is understandable that many prospective entrepreneurs think twice about starting a business with a full time job.
In fact, there are many advantages to burning the candles at both ends – here are the top 10:
Reduced Risk
If you are starting a business with a full time job, you will retain a guaranteed income – and reduce the risks associated with starting a business with a full time job.
For Jason Quey, an entrepreneur who launched his first footwear and clothing business at age 22. Quey has been working as a freelance marketer, keeping his side business.
Setting up a business is a time when you are testing your emotional strength, faith and patient.
Extra Time
Building a website for your business idea is easier than you might think. Our online tool ranks the top website builders that offer free trials.
A day job also gives you extra time to set up your project. Rather than rushing your vision into the public domain, you can make sure you have clients lined up, suppliers and partners in place, and a top-notch website.
Tristram Mayhew, who started building Go Ape while working for General Electric, says:
“In our case, we came up with the idea in August 2002 and didn’t leave our jobs until 12th January. We found that people often don’t come back to you for two or three weeks; for us, the insurance took two or three months. So you can’t rush it through in a matter of a few weeks.”
Independence
Tristram adds that, by keeping cash coming in from your existing job, “you may not have to resort to an investor or take loans, or at least minimise that.
“It’s incredibly important to maximise your equity shareholding. When you start out, it’s the most expensive time to sell equity because everyone investing will say it’s very risky, so the equity is almost valueless.
“You might find you give away half your business for something which seems a lot of money at the time – £100k, £50k, £20k – but if it does succeed, you may come to regret it.” When faced with the risk of losing control of your business, those few weeks of all-hours torture might suddenly seem worthwhile.
Commitment
Anyone starting out in business at some point, question whether they have the desire to see their vision through. However, once you have spent a few weeks balancing two jobs, you will know for sure whether you are sufficiently committed.
Tristram an entrepreneur says such a gruelling schedule “will test your passion for your business idea. Most people’s experience of starting their own business is working all hours. If you don’t like the idea of starting a business with a full time job, maybe it’s not the thing for you.”
Companionship
If you’re setting up a business on your own, things can get very lonely if you’re working by yourself all day.
Hannah McNamara says that one of the benefits she gained from working in a chair shop was “sanity”, adding that “starting a business with a full time job from scratch can be very lonely, so having people around you can help you stay focused, and can even give you new ideas.”
Contacts
In most cases, your employment contract will forbid you from poaching your existing firm’s clients and customers straightaway. However, you may be able to use the contacts later.
Jacob advises any prospective entrepreneur to “make sure that you are using all of your existing work contacts effectively. Many people’s first customers are the ones they worked with in their old job.”
New Skills
Rather than viewing your existing job as a distraction from your new venture, you can use your salaried role to improve skills which will help you in your start-up.
According to Grace, “before working in a shop, I didn’t have much experience of selling directly. In the shop, I had to listen to people selling and come up with a solution, rather than coming up with the hard sell. It really helped my listening skills.”
Time Management
As an entrepreneur, good time management is key, and combining a full-time job with your new venture is a great way to learn true time management skills, in a real-life environment. If you can balance the demands of the two businesses, and switch between salaried employee and self-employed decision-maker, you should be well-equipped to handle life as an entrepreneur.
Grace says that when she was working two jobs, “I found the time I spent on my business was much focused time. If you have only got a few hours a day, you make sure those hours matter, and you are actually doing something productive.”
Creativity
When you are balancing two jobs, you have to think outside the box to maximise time and money. This can only lead to creative solutions, as Grace says:
“I put sales clothing design player on the bus to the chair shop, rather than reading a novel or listening to music. I practised it at the chair shop, and was able to employ the things I learned in my business.”
Positive Thinking
As you have the safety net of the salaried job, you will know you are starting the business because you want to, not because you have to.
Andrew says: “It’s important psychologically to be making a positive choice to start your own business. I was about to start a new job in London and it was important for me to be able to say ‘no I don’t want that, I want to start my own business’.”
Starting an eBay Business
Starting an eBay Business
Could starting an eBay business lead to cyber success? Get started with the Startups’ step-by-step guide to becoming an eBay entrepreneur.
Key areas to consider when starting an eBay business are:
- Opportunities and ideas
- Getting stock
- Registering and setting up
- Costs
- Rules and regulations
- Potential earnings
Opportunities for starting an eBay business
Internet auction website eBay is one of the biggest retail phenomena of our time. The opportunities offered by an eBay business stretch way beyond the chance to sell unwanted bric-a-brac, or discarded Christmas presents.
EBay was started by Pierre Omidyar in September 1995 as a result of his wife’s desire to add to her collection of sweet dispensers; not even in his wildest dreams could Omidyar have predicted how far his venture would go. The simplicity of setting up on eBay has persuaded millions of people who would never previously have considered going into business to start out for themselves, and millions more have established healthy second incomes by buying items and selling them online for profit. According to statistics released in June 2011, eBay had 96 million active users and 233 million customers worldwide.
As any user will know, starting an eBay business features just about everything for sale, from the weird and wonderful to the plain and practical. However, thousands of UK customers look for eBay bargain every day. Its unsurprising that many entrepreneurs have decided to take advantage and use the website to generate a full-time eBay business. An independent trade body, the Professional eBay Sellers Alliance, or PESA, has been set up exclusively for these people; PESA claims its members’ total sales amount to over $400m a year.
In addition, starting an eBay business can represent a quick route to international trade, and UK sellers in particular are taking advantage of this opportunity. A recent study conducted by the US site found that the UK is leading the way in eBay exports, with UK businesses exporting to an average of 39 different countries each – more than anywhere else in the world. Fashion accessories represented the most widely-exported products from UK sellers in the first quarter of 2014, with vehicle parts and mobile phones also presenting lucrative export opportunities.
Julie Smith, from England, gave up her job as an IT consultant after she found she could buy and sell designer shoes and handbags on eBay for a profit. Her eBay business, based on buying shoes and bags from wholesalers and selling them on eBay, soon grew into a £6,000-a-month operation.
Amid all the wacky eBay stories that regularly invade the press, such as the housewife who put herself up for sale for £25,000, there are plenty of thriving businesses taking advantage of the eBay phenomenon. One such business is The Gathering Goddess, a vintage clothing company run by Wilmamae Ward, who says:
Extensive marketing
“I had been buying beautiful vintage clothes on eBay for several years and had amassed a huge collection for which I no longer had room. I decided to sell some of my collection back on eBay. I was amazed at the prices achieved, so I began to sell more and more and it just snowballed. eBay allowed me reach many customers
“I soon decided this was a business I would love doing, as I was able to indulge my fashion obsession and make a great living at the same time. It also enabled me to work from home and make my own hours.
“In addition, unlike a bricks and mortar shop which has to rely on passing trade and extensive marketing, eBay provides all of this on a global basis – without the overheads. “Starting an eBay business was quite easy, I think the most important thing is to find a niche that few other people are competing in, if you can do this then this is probably the best way to start an eBay business.”
Setting up an eBay shop is just the same as starting a business so you will need to register as self-employed with HMRC and you may want to register the business as a limited liability company to prevent risks if the business fails. Fill out the CONTACT US FORM to get started https://obiankesbusinesses.co.uk/contact-us/.
How to make money on eBay: Selling tips
Julie Smith, of eBay clothing business The Gathering Goddess, has attracted a huge amount of interest from the fashion world since putting her collection online.
Here she gives her tips on how to set up and run an eBay business:
- Start with selling something that you know about or love doing.
- Research the eBay market in your particular sector as well as on the internet to see what the competition is doing and what is being offered. Find a point of difference that will set you apart from your competitors.
- Be committed to it. It is not easy but it can be extremely rewarding.
- Build up your positive feedback. This is the bedrock of eBay and what sets you apart as a good seller. Excellent customer service = great positive feedback. Never slack on good customer service.
- Always keep track of your competition. Don’t just research them once or occasionally. Remember they are looking at you and as your business steams ahead; they are plotting and planning to take over.
- Be as transparent as you can with your potential customers. Don’t hide costs and describe your items clearly and honestly. Building trust builds business on eBay.
- Don’t spend huge amounts of money on stock and setting up. Start small and grow it slowly. The world of eBay can be complex and the best way of discovering this world is by experiencing it. If you plough in with a huge store full of lots of stock, and you don’t know about it, then you risk falling quickly on your face.
Getting stock for your business
Setting up an eBay business is much like setting up a normal home-based business, as you don’t really need anything other than a computer and storage space. Your biggest challenge will be finding plenty of low-cost products you can sell at a profit.
The most obvious and efficient way to accumulate products is to buy them in bulk from wholesalers. Finding a wholesaler that will supply you with cut-price stock can be a challenge, but if you shop around you will be able to find bargains.
If you strike an agreement with a wholesaler, you should be able to get a constant supply of warehouse stock for your new business. A number of sites, such as Making Money Online, offer links to wholesalers specialising in eBay businesses. Furthermore, Wholesale Pages, set up a ‘special offers’ section, specifically aimed at online sellers, in June 2011.
“Sellers don’t really like to divulge where they source their products as this is where they make their profits,” explains a spokesperson at eBay. “For the older items, people go to markets and charity shops. For newer items, they go to wholesalers, manufacturers and liquidators.”
You may have a collection of items that you wish to get rid of to start with, or there may be a bric-a-brac shop down the road that sells products at a low price. Make sure you explore each avenue to achieve the best possible profit margins, and seek out specialist advice – a good source of guidance Jeremy James, who offers specific insight on sourcing wholesale products.
Setting up a business on eBay
Becoming an eBay member is relatively hassle-free – and this simplicity is one of the reasons almost £750 worth of goods change hands across the site every second.
To set up, you will first need to register; this can be done quickly and easily on the eBay website. Once your registration is done, click on the drop-down menu labelled ‘Sell’ found in the top right-hand corner of most eBay pages, and follow the step-by-step instructions from there. You may wish to upload a picture from a digital camera, or one off the web, to illustrate your product.
The next steps are creating a business account, and setting up an online shop. To start trading under your business name, set up a business account with eBay. To do this, you will need to provide a UK postal address, or landline telephone number, and details of a bank account capable of accepting Direct Debit instructions.
Those registered for VAT should also disclose their VAT registration number – by doing so, they won’t have pay VAT on their seller fees. (If you don’t have a VAT registered number, register with HM Revenue & Customs.) For all VAT-exempt sellers in Europe, eBay offers VAT at the Luxembourg rate of 15%, meaning your fees will rise slightly.
To be able to open a shop, you need to have a PayPal account, plus a minimum score of five positive feedback reviews.
Your user ID on eBay contains a comments section from customers and buyers. You are rated for your reliability and honesty and comments stretching back for a year are displayed. Although you have a public right to reply to comments, a long list of negative comments could prove disastrous. New eBay users, in particular, will be cautious when parting with their money and if you have gained a reputation for poor service they are unlikely to turn to you.
Alternatively, if you don’t have a PayPal account, you need a minimum feedback score of 10; these are based on the reviews you receive from buyers for each item you sell. You also need an automatic payment method on file to pay seller fees (credit card, debit card, bank account.)
Then go to the eBay stores site and click on ‘Open a Shop’ on the right-hand side of the page. Your customers will then be able to add your shops to their ‘Favourite Shops’ list in ‘My eBay’, and you can choose to set up and receive reports that analyse your sales.
EBay costs
In the formative days of your eBay business, storage space shouldn’t be a problem. Once you have a profitable business up and running, you may then want to rent out space to store your items.
“Don’t rush into buying storage space,” advises an eBay spokesperson. “If you start off in a small manner, you can use your living room, garage or loft for storage. You will know when sales demand that you need more storage space.”
Once you have created a business account, you can set up an online shop by paying a monthly subscription fee. This ranges from £14.99 a month for a basic shop package, to £349.99 a month for the most advanced offering.
It costs between 10p and £1.30 to list an item for auction on eBay, depending on the opening value or reserve price of the item. For fixed price listings, the insertion fee is usually 40p (if the seller does not have an eBay shop), or 20p for media items such as books, music and DVDs. With a shop, the listing fee ranges from free to 10p, depending on the shop package purchased.
EBay then takes a slice of the selling price once an item is sold. In a bid to simplify its pricing model, eBay recently changed its business sellers’ fee structure. As of May 2011, the tiered model (where the fee charged depended on how much the item sold for) was shelved, in favour of a flat percentage fee depending on what category the item falls into. For most items, eBay now takes 10% of the final selling price, regardless of how much the item sold for. Fees vary across certain categories though: for instance, on tech items such as computers and consumer electronics eBay takes just 3% of the selling price; for media items the fee is 9%; and for clothing, shoes and accessories the fee is 12%.
EBay says the new pricing model will make it easier for sellers to predict and calculate their fees and that fees will decrease overall for many sellers, but concedes that they may increase for some.
Making and receiving payments through PayPal, eBay’s online payment system of choice, also incurs a small transaction charge.
There are various options to make you stand out from the crowd, such as premium listings and titles in bold. Although these options do not cost much by themselves, it will add up if you are listing a number of items. Work out which items need pushing by trial and error – you can always take action in the future if an item needs to stand out more.
EBay rules and regulations
Another advantage of an eBay business is that you shouldn’t be too tangled up in red tape. With no extra staff necessary and the ability to run the entire business from home, you won’t be spending your days getting an ulcer over regulations.
Although eBay itself is user-friendly and a pleasingly accessible marketplace for your products, it does have several rules which you have to abide by. The most significant of these rules for small firms concerns what you can or can’t sell on the site. Here is a list of items completely prohibited by eBay:
Adults only Drugs and drug paraphernalia. Embargoed goods Firearms, ammunition, replicas and militaria. Government identification, licences and uniforms. Government, transit and postal-related items. Hazardous materials. Items encouraging illegal activity. Lock-picking devices. Mailing lists and personal information. Medicine and healthcare products policy. Offensive material. Police-related items. Prescription drugs. Prohibited services. Stolen property. Weapons and knives.
In addition, the following items can only be listed under strict conditions:
Aeroplane tickets. Alcohol. Animals and wildlife products. Artefacts, antiques, cultural items and grave-related items. British titles. Catalogue sales. Charity or fundraising listings. Clothing, used. Contracts and tickets. Cosmetics, used. Counterfeit currency and stamps. Credit cards. Digitally delivered goods. Electrical and electronics equipment. Event tickets. Food. Football tickets. Franking machines. Human parts and remains. Manufacturers’ vouchers. Plants and seeds. Promotional items. Property. Recalled items. Slot machines. Stocks, bonds, securities and related certificates. Tobacco. Train tickets. Travel. Unlocking software.
EBay promises
Obviously most UK small firms wouldn’t consider selling human remains or grenade launchers, but it’s worth going through this list as selling agreements on items such as football and airplane tickets are strictly controlled.
Other items such as food and batteries fall into a grey area for eBay, which describes them as “questionable”. So if you have 1,500 cream cakes to sell, check with the site first before you try to auction them off.
EBay promises tough action against those breaking the rules, and you could find yourself barred if you persistently flout the code of conduct. Not delivering items on time or not paying for goods is frowned upon – not only can this get you in trouble with eBay, it will impact on your image as a reputable business.
Because you are a reputable business, there are also rules from HM Revenue and Customs (HMRC) to follow.
If you are trading as a business, you have three months to register as a sole trader with HMRC; this can be done at your local office, or online. If you expect your turnover to exceed the threshold for VAT (currently £73,000 ) you must notify HMRC within 30 days. You will then need to electronically submit a VAT return each quarter (monthly and annually options are also available), and it’s probably prudent to engage the services of an accountant.
Most eBay traders don’t have to register with Companies House. However, if you decide to trade through a limited company (which can be more tax efficient) then things are slightly different, and Companies House registration becomes a formal requirement. Each year a set of accounts needs to be submitted to Companies House as well as to HMRC, together with a CT600 company tax return.
Any profit from the business will be treated as personal income, meaning you have to complete a self-assessment tax return. If your turnover is below £15,000, you only need to complete three lines on the self-assessment form: your total income, your total allowable expenses, and your profit. However, accountants would strongly recommend you take a more thorough approach, and cover as much of the self-assessment as you can, even if you don’t technically have to.
In June 2011, HMRC announced a major clampdown on tax from eBay earnings, so it’s more important than ever to be vigilant and methodical in managing your tax affairs. A number of accountants can offer specialist advice for eBay sellers.
Making a profit on eBay
Making a profit on the items you buy and then sell is the very essence of starting an eBay business.
There is no sure-fire way to make a profit, but by sourcing goods at a low price and selling them at the going rate, with prompt delivery, you should begin building up your takings. There are certainly plenty of people out there looking to buy – eBay offers a large marketplace.
However, the eBay marketplace is now more congested than ever; thousands of businesses have started trading on the site since the start of the recession. An eBay spokesperson says that eBay’s business users “are attracted to it because eBay is a ready-made e-commerce solution – everything is taken care of, all you need is a computer and a digital camera.”
As any financial risk to your eBay enterprise is small, you can experiment with the goods you are putting online. Vary the prices to see what the market rate is, and then stick to it. Check out what your competition is doing whenever possible, as they may be undercutting you. With so many eBay businesses in the UK, the chances are that someone else is doing what you are doing.
By their very nature, auctions are unpredictable, but they are the only way to ‘test the water’ and see what kind of demand there is for your stock. When you are posting your first few products, set a low price and see how many bids you get and how much the price rises.
You can set a reserve price on items over £50, but it’s best you only do this if you are extremely confident they will sell for the set price.
It’s best not to set reserve prices on the first items you sell, as you will not be able to work out the market going rate for specific items.
An eBay spokesperson says, like many businesses, there is no guaranteed way of making a profit on the site.
“It’s all about the market. Buyers love the chance of getting a bargain – do your research to see what you are likely to get, look at your profit margin and go for it.
“You should only use a fixed price if you are very confident about the auction.”
Why Drop Shipping Business Might Be A Bad Business Idea
Why drop shipping business might be a bad business idea
While dropshipping might seem like a no-brainer business opportunity, there are several drawbacks and potential issues you should be aware of first. These include:
Supplier errors
Running a drop shipping business means that you never see or handle the goods that you retail, yet your customers won’t necessarily know or care about this. If they buy an item from you they will expect the item to be delivered on time, as advertised etc., from you – and not the supplier.
If there is an issue with an order and your drop shipping supplier(s) makes a mistake, for instance there is a problem with the item delivery, there are missing items, or perhaps low-quality packing has damaged the item, you will be held at fault by the customer and will have to accept responsibility.
You may be able to avoid these errors by only working with reputable and high-quality drop shopping suppliers, but this will come at a cost.
Shipping costs
Most businesses that use drop shipping will source their goods through a variety drop shipping suppliers.
This can create complexities with shipping charges. For example, you are likely to incur several different shipping charges if a customer buys four products that all come from different suppliers and all have separate shipping charges.
You will need to swallow these charges – at a cost to your business – as you could easily deter customers if you were to pass on the shipping charges to them.
Low profit margins
Drop shipping is competitive and, with many retailers operating in this industry, you will need to set your prices at a level that will attract customers to shop with your business and not a competitor.
As it requires such little time and money to start a drop shipping business, it’s easy to operate on low profit margins but this does leave you with limited options if you really want to create a long-term, sustainable retail company.
However, you can generate larger profit margins by operating your drop shipping business in a niche market and selling goods that you know will capitalise on customer demand:
- For ideas on what products or goods your drop shipping business should stock, research before deciding what to sell and this could offer great returns.
- To ensure your products are what customers are looking for, you will need to carry out market research.
How to start a business while working
Starting a business while employed can be a great way to test your business ideas – here is how you could make it work.
For many people, quitting a job to start a business is an unaffordable luxury. With bills to pay and families to support, many have no option but to keep the day job while building their new company – necessitating a delicate juggling act fraught with stress, complexity and potential conflicts of interest. However, there’s no reason why you can’t serve your day job and side hustle.
Some of the world’s top companies started as a side hustle, during evenings and weekends. Balancing a job role with a start-up can have real advantages, enabling you to gain contacts and advice while testing your commitment to the company you wish to start.
We have asked some of Britain’s top entrepreneurs to offer their advice on how to start a business while working. Here is what they told us:
Create a clear schedule
At the outset, it’s vital that you create a clear, realistic timeline for starting up your business, breaking down the process into achievable goals. That way you will always be clear exactly where you are up to, vital in maintaining focus and avoiding frustration.
Prioritise the most important tasks and those which will take longer, such as securing insurance, completing the necessary registration, and applying for start-up funding. If you leave these until the end, you could face exasperating last-minute delays.
Think about approaching your boss
Wendy Tan White founded the web development company Moonfruit while working at internet bank Egg. She quoted: “Don’t think you can’t go and speak to your boss. Even if you haven’t gotten a close relationship, most companies want to keep their staff and even if they can only keep you part-time, it might be worth their while.”
Many employers are entrepreneurs themselves and will appreciate the fact that you have shown initiative, particularly if you choose your words carefully.
Christian Lanng, who started up Tradeshift while working for the Danish government said: “You should demonstrate to your bosses that what you are doing is a compliment to them. Tell them why it will help the existing workplace, flatter their ego, and give them credit.”
Use your holidays
If you want to get your business up and running quickly, you will need to use all the time available and annual leave provides a key window of opportunity. Moreover, by using your holidays for work rather than pleasure, you could end up making financial savings to go towards your start-up.
Although, for some your family may not appreciate the fact you are devoting holidays to work, but hopefully, when your company takes off, they will see the benefits of the decision.
Get into a routine
As anyone who’s ever revised for an exam knows, the structure is crucial to working effectively at home. This is doubly important if you have already worked a full day; so you need to plan out a regime for your start-up, identifying the exact time you will be starting work each evening, and the time you will be logging off for the night.
Once you have created your schedule, make sure you stick to it. Don’t take refuge in procrastination and don’t work a minute below your finish time. The more disciplined you can be, the better.
Maximize the resources available
Mayhew founder of a tech company founded a company while holding a senior position at his job, said:
“I definitely spent lots of late nights thinking it through, writing and making plans on the internet. A lot of the market research was available on the internet – it’s extraordinary how much you can get.
“I also talked through with friends with relevant backgrounds, particularly accountancy backgrounds, in the evenings. People will be generous with their time, so you should ask for as much advice as you can get. With things like cash-flow forecasting, everyone needs as much help as they can get.”
Get support
You may have always dreamed of standing completely on your own two feet. However, if you want to build a successful start-up without quitting your existing job, you may need the support of someone else.
According to John; “it’s tough to discipline yourself when starting up on your own, so it’s good to have a co-founder, so you can meet and work outside the 9-to-5.
“If you really don’t want to work with a co-founder, find someone like a friend or mentor, who is doing something similar. I know entrepreneurs who will meet other entrepreneurs and work together, to create a structure for their day.
“It’s also worth trying to get yourself into a group that meets once a week or once a month – there are loads of groups out there and they can help you through it.”
Try and get full-time help
Sarah mentioned how she hired her first employee two months into the business, ensuring that someone would be working on the business throughout the working day while the founders were seeing out their paid job.
Nevertheless, you may well be unable to pay someone before you get the business off the ground; in this case, you might want to think about taking a young graduate on a placement or work experience stint. Sites such as Gumtree will allow you to run job adverts for free, which could provide another vital cost-saving.
Choose a good location
When you are juggling two jobs, every minute counts. You have to make the very best of all the time you have available. It is essential that you find a location that works for you, and allows you to achieve maximum productivity without distraction.
John said “I do not like working in the house that much, but a lot of good coffee shops have Wi-Fi, some people will even let you use their offices.
Avoid cross-over
In the age of smartphones, tablets, and personal email addresses, there’s no reason to bring your start-up activity into your day job, because the two can be kept completely separate.
Christian advised: “Be fair, and careful, about how you use email. Use Hotmail or Yahoo! mail to generate correspondence about your start-up, don’t use your work account.”
Some entrepreneurs have also added: “In order that there’s no conflict or interruption, I would advise setting up another phone number so that you don’t have people calling you at the office with regards to your new business venture.”
Behave with respect
Ultimately, like entrepreneurs, you have to behave with respect. Your current employer could be a potential customer, supplier, or even investor one day, so try not to burn your bridges. You might hate your paid job, but it’s still important to be professional. There is a saying, what goes around comes around, and if you treat your boss badly, they will remember it.
If you are still not sure whether to start your own business, contact us https://obiankesbusinesses.co.uk/contact/ and we will provide some extra motivation.
If you finally do set up a company and as your business grows it is likely you will begin to think about leaving your job to work on your start-up full-time. We have a guide to help you quit your job.