Starting A Side Business 
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So far on my blog I’ve been focusing on general tips to save money and some of my personal financial mistakes. Maybe I’m just a pessimist and have been focusing on the negative.
This week I’ll switch it up a bit and share a bit about why I started a side business.
I’d have to say I first got off on the path to start my side business in college. There I was enrolled in a general computer systems technology diploma program. This taught me a wide range of computer skills that would later come in very handy.
In addition to the skills I acquired, I also crossed paths with someone living in the same college dorm and taking the same computer diploma program. I admit I didn’t get along with him much at the time, but he turned into a big source of inspiration.
Soon after graduating I heard that this guy had launched his own dating website. He was running it all on his own and it was quickly gaining a lot of momentum. Basically he was offering a free service funded by ads in a niche dominated by companies that charge membership fees. Over the years I watched enviously as his website became quite popular and he started making a lot of money.
So I began tossing around some ideas for a website that I could start on my own. Nothing really sounded promising enough though. I was just hung up on the notion that it needed to be a unique idea.
Later while I was working as a webmaster (and website marketer in training), my boss gave me some very wise advice. She told me that to get ahead in this country, you really need to establish a secondary source of income. Her reasoning was that if you just work a daytime job, a large percentage will go to taxes and you’ll manage to find a way to spend the rest.
That was when it really clicked. I decided that I was going to start my own website and see if I could put my new website marketing skills to use. I just had to think up an idea.
The plan I settled on was to target a lucrative niche and create a business directory filled with affiliate offers. Luckily I had all the basic skills to do all the work myself. And now I had the motivation to put those skills to use and work hard.
I thought I had the ideal business plan and it was going to make me rich. Not everything goes exactly as planned though. In the end, I didn’t make much money with that first website, but I did learn some valuable lessons and discovered a new sub-niche to focus on instead.
Since then I have gradually expanded to various other niches. These websites have had their ups and downs. I’ve even gone through periods when they were making enough for me to work on them full time. During one of those times I looked into the benefits of incorporating in Canada but decided it wasn’t right for me at the time. Unfortunately online income can be quite unstable.
Still, these websites have served me well and brought in some nice income. Even when I’m not working on them, the commission checks keep showing up. It definitely adds some financial flexibility.
Anyways, that’s the gist of the story. It may not be glamorous, but perhaps it is just the foundation for something better down the road.
Thinking of running a more traditional side business? For tips on how to manage your finances, check out this business cashflow guide from Hitachi Capital. If you think your idea has a great chance of success enter the SMB competition for a chance to win funding free of charge.
If you run your own side business, what led you to start it? Did you have any specific motivations?
63 Comments
Good Post – can you give us some financial details
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I was debating whether to include any numbers in this post. I guess I wanted to keep it modest. Since you asked though…they’ve been consistently making at least $1k/month for years. When things are going well though and I commit more time, it’s gone up to 3-4 times that and more. This month I should hit $2k which is a bit of a surprise since I’ve left those sites alone while focusing a lot on blogging.
That is awesome!!!!
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We’ve e-mailed a lot about my side business, so you know that I started a dog walking/pet sitting business
What prompted me to start it is my love for animals. Right now I’m not making a ton of money, but it’s certainly nice to have a little extra money in the budget for spending and saving.
I really respect that you built a side business around something that you love. I should follow suit and try to figure out some way of making side money from take care of animals. I think I’d enjoy that a lot more than always being in front of a computer.
Definitely pretty interesting about online affiliate niche sites. I have an idea for an online business (and bought the domain, etc.) but need to get my butt in gear to make it happen… I’m way too dependent on the day gig as of right now.
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At least you have a great day gig to be dependent on. Shoot me an e-mail about your idea for an online business. I’ve been involved in enough online businesses at work and at home that I can probably give some helpful feedback.
Very true. Will do.
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Cool, I’ll be watching for your e-mail. I’d really like to hear what kind of idea you’ve been thinking about. From what I know about you, I’m sure it’s a solid idea…and I promise not to steal the idea
I used to buy clothes and shoes for “cheap” and resell them at a higher price on ebay. I would love to open up a consignment shop but those stores are so risky and it would involve a lot of traveling. I’m thinking of another small venture fashion-related. Do you mind if I email you to discuss it and see what I could make out of it? I’d love your advice!
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Sure no problem Erika. Since we’ve already been e-mailing each other, you know how to reach me. I don’t have much experience in the fashion industry, but I’m sure there is some way to expand upon that idea to make it more profitable and on a large scale.
I used to do some consulting on the side for past clients, but I haven’t done that in a couple of years. At this point I don’t really have a side gig, though one day perhaps my blog will provide the income to allow me to by a bottle of Diet Coke every month. And you’re right, a novel idea isn’t a necessity, the follower strategy is tried and true.
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Consulting work is usually a pretty profitable side business, especially if your expertise is in demand. It gets a little tricky when it overlaps your job though. Some employers would feel that you’re taking away their business.
You’ll have no problem earning that bottle of diet coke every month. I already got enough for 2 bottles from a commission for the only ad in my sidebar. It’s a small sale, but not bad considering I didn’t do anything extra to promote that service yet.
I have thought about running a side business but haven’t gotten much farther than that. I do do some part time consulting here and there but it isn’t regular.
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Considering the popularity of your blog, I would consider it a side business. Maybe you just need to find different ways to monetize that traffic. Mixing in the occasional consulting work is a good idea too. It’s always smart to diversify your income sources.
I use to sell scripts for websites back in the day, it made a fair amount of cash. I stopped after I lost interest in programming/scripting. I would love to bring in some income with my blog. I do not, however, want to fill it with adsense ads. I will most likely have to go with affiliate links and private ads.
This is far away though, but I will be working on it.
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Have you considered getting back into the script business on just the marketing/sales side of things? It would be easy enough to outsource the actual programming.
As for your blog, the income should come in time. It seems that if you rush it early on, some people do not respond very favorably. While adsense is a pretty popular source of income for blogs, it does usually take away some of the visual appeal. Plus it usually makes less money than some personal affiliate product recommendations.
I haven’t really started up any side businesses. Long-term I’ll definitely own rental property and my goal has always been to own my own business.
If you’re not the owner of the company you work for, then you’re really making somebody else all of the money. So, I guess I haven’t really thought much about side businesses as my focused has been getting to the point where I can start my own main-business.
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Jason I’m confident that your blog will evolve into a decent side business. It seems to be gaining a lot of momentum early on.
If you do have aspirations for starting a full on business, perhaps it is worth thinking about how it can be first started as a side business. Then as you build up a client base and customer testimonials, you could transition into working at it full time.
That’s a very good point Jeremy and sometime I consider from time-to-time. I’m not sure how well that would work as it would directly compete against my current company…
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That does complicate things. You definitely don’t want to risk burning an bridges and harming your personal reputation. I guess in some situations, all you can do is plan and research before you feel you’re ready to make the jump. At the least in the meantime you are able to build a longer tract record of success in your field.
We have a lot of little side gigs but lately have been feeling that we are spread a bit thin. It is hard to know whether it would be better to throw everything we have into one or two things or continue doing 4 or 5 things… Hard to know- and hard to know which ones have the most potential etc.
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I sometimes feel the same way with my websites spread across several different niches. If I try to work on them all, I end up getting nowhere with all of them. So instead I usually make 1 or 2 a main priority for a while. Most of the time it makes the most sense to concentrate on the ones currently making the most money. I think that to stay happy you also have to prioritize them by which ones keep you the happiest. Like in my case, this blog is making me next to no money at this point, but I enjoy the work much more. Plus, long term it has the potential to be a bit more stable than my other ventures.
I would love to have some side income, I just don’t know where to start. I know that I would eventually like to have my own business and I do have some general ideas for that, I just want to have enough money saved so I don’t have to take out massive loans to start it.
Perhaps there is some way you can start getting your business idea off the ground before fully taking the plunge. Maybe you could start it on a part time basis or do some initial work to test the actual interest or profitability. Or there might be some other kind of research you can do beforehand. If it really is a business that requires a big investment upfront, it is a big trickier. In that case you might want to get out there and chat with people who are already involved with that kind of business. While they may be your potential competitor, there’s a good chance that they would still be willing to answer any questions you may have. Who knows, maybe they’d even be willing to help out with start-up costs for a cut of the profits.
Great post, Jeremy. And yes, this is something that I have been thinking about a lot lately.. Like some here, I have a pretty decent day job, but even with a steady income– I have been battling the dollar for far too long.
Starting the website has been great, and we are having a ton of fun writing.. But of course, we aren’t making anything off of yet. But I do see many folks who with similar sites who are doing quite well for themselves, and I think we can get there if we don’t burn out.
I have a couple of ideas of niche websites that I have been considering.. One in particular that I almost pulled the trigger on the other day (as far as purchasing the domain name & another hosting package from GoDaddy).
Do you still maintain your niche sites?
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I still do a bit of periodic work on them, but mostly it’s been all setup to run on auto-pilot. Google has been fighting back against that kind of setup though. Now they tend to favor sites that frequently post fresh content and that regularly get new links. So the blog format might be the better way to go these days.
Also before proceeding with getting a 2nd hosting package, be aware that you can usually change your existing package to accommodate more than one website.
If you have any questions about starting another website, you’re welcome to e-mail me too.
Hi Jeremy,
A side business is an interesting idea. I work online full-time for clients but I would also like to create something that can bring in some extra cash.
Same with Katie, I don’t know where to start. There are ideas swimming in my head and I guess I’m waiting for something to click.
I’m ok with starting small. I think it would be wonderful to build something and watch it grow.
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If you’ve already got some potential ideas now is probably a good idea to further research those ideas and see if you can expand upon them. See if you can find other businesses with a similar business model and try to learn how they run things. From there it might just be a matter of writing down any questions you have and seeking out the answers. As you plan more you’ll likely build up the motivation to actually get that side business started.
I agree, setting up an online business is tough and its income is not stable. But you learn a lot of things like marketing, connecting with people, sticking to your tasks etc.
You mentioned that you have past experience earning online income. You know this trade better and it shows on this website
Thanks Karunesh. You’re right about how even if a business doesn’t work out long term, you still pick up valuable skills and experience. Then moving onto some other kind of business is that much easier.
Well, I really love buying and selling stuff and have been selling on eBay for 10 years. It’s growing into a nice little income and I really have fun doing it and learning all the tools out there. But I have about 5 new business ideas a day, so it’s figuring out which ones to spend time on. Right now, ebay’s the most profitable so I have an obligation (to my debt) to focus on it. But I like multiple businesses as long as you are not spreading yourself too thin.
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It sounds like you might be at the stage where you would benefit a lot from integrating some outsourcing into your business. There’s only so much work one person can do. Maybe you could hire a virtual assistant to manage your ebay listings and buyer correspondence. It might initially eat into your profits a bit, but should allow you to increase sales volume. Or it would give you the free time to test the potential of your other business ideas.
Yes, that is a good idea. I’ve had to turn down a new client this week that was a large business that wanted me to help them list on eBay. I didn’t have the time to do it well. I want to get a few things automated/outsourced and then I would be able to take on some new clients.
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That’s too bad you had to turn down that client. From time to time I have to turn down freelance work when I’m just too busy with my own projects.
For the outsourcing there are a few routes you could try. Some people prefer to hire locally and post an ad on craigslist or other classified site. Or if you are willing to hire overseas, sites like odesk have a lot of qualified freelancers who accept low wages. Ideally you could find someone with ebay experience that could just right in with minimal instruction. Depending on how much you use their help, you might want to consider offering them some kind of performance incentive to ensure they get high buyer feedback ratings and do the work in a timely manner.
My son decided one day he’d like to buy and sell vans on eBay. He bought cheap vans, made sure they were roadworthy, then sold them at a profit. This was when he had his own small business doing something else. Now though he works for a company so he doesn’t have the time to buy and sell to the same extent. I got involved too as sometimes he’d buy a van some distance away from where we live, so we’d go together in my car to check the vehicle out, then if he bought it one would drive it back, and the other would come back in the car. Got to see some nice places on our visits too.
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Sounds like a good way to spend quality time with your son. It can be challenging to keep a side business going strong when your employment situation changes. I usually notice a big drop off on my website income once I start a new job and start spending less time working at home.
Does selling your stuff on ebay count?
I have tried to cultivate my freelance work, but it’s really hard to budget the time since my day job can eats up a huge chunk of my evenings and weekends too. Obviously passive income sources would be the best of both worlds, but those take some know-how to set up as well. I definitely see the value, I’m just at a bit of an impasse as to how I would get in the game.
Yes that would count if it’s something that you do regularly. If you’re getting good at that and have built up good seller ratings, you could consider taking the next step and trying to find a wholesale source for a popular product you could resell. Or some people approach local businesses and offer to try to sell their older inventory.
If you’re at an impasse with your passive income idea, start by doing plenty of research about the work involved and skills required. Keep in mind that you don’t have to be held back by skills you may be lacking. There are usually plenty of people out there with those skills that you can contract out for a reasonable price. If it’s an online business you’re thinking of starting, maybe I could answer any questions you might have.
I don’t have a side business although I hope at some point in the future I can make some money online. I have niche site I plan to create. I’ve had the domain for a few years now but struggling on how to get it started. In the meantime, I invest which helps improve our finances.
It’s good to hear that you have taken the first step of choosing a niche and buying the domain name. What I would do now is thoroughly analyze the competition. Think about how your website would fit into that niche. What could you do to make your website stand out and satisfy visitors’ needs? Once you have the basic plan figured out, decide what kind of help you need to get it off the ground. Then you might want to ask around to see if anyone can recommend good freelance help. I’m here if you have any questions.
I’ve bounced around a lot of different side business ideas, and the one thing I can settle on is that I don’t want the majority of it to take place in front of a computer. I work at a computer all day, I don’t need to spend a few more hours a week at one.
I like the idea of dog walking, I could definitely get into that, loving dogs an all. I’m also taking a photography course in May, I could see that expanding into a bit of a side business.
That’s probably a good idea to pursue a business idea that keeps your day more varied. Being in front of a computer too much each day can wear on you and isn’t very good health-wise. Dog walking or photography both sound like great ideas that would be quite rewarding. If that’s where your interests are, you’ll be much more motivated and will keep yourself happier.
This is where my passion is. Creating some unique value which people would like to trade money with. A side income is an insurance against a job job as well.
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Good point about job insurance. It is comforting knowing that if I’m ever without work I can fall back upon my online business.
I never really thought about it, but I guess I do have a sort of side business. I gank things from people’s trash and dumpsters, as well as from second hand shops and goodwill, and restore them (usually with surpisingly minimal effort), and re-sell them. I make peanuts doing it, but I enjoy it and my sister always pats me on the head for being environmentally consious and re-using things.
Sounds like an enjoyable side business even if it doesn’t make much money. It’s great that it keeps stuff out of the landfills too. When there are the extra motivations like that it makes it a lot easier to put in the time.
I consider myself as a rocket full of ideas just short a fuse! I have all kinds of ideas, but never know how to get off the ground with them. Once I finish my bachelors in May I’m hoping to spend more time for lift off!
Yeah it’s probably best to wait until after you get your degree. Starting a business takes a lot of time and energy. Maybe while those ideas are in your head you could at least write them down somewhere to come back to them later.
I love running my part-time business. It is important because it is great to have additional skills unrelated to your day-job.
I still believe that even if you do not blog, the skills you will gain will pay dividends not only financially but keep you well-rounded.
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Sometimes those skills directly relate to your job too. In my case I knew plenty about marketing websites, but very little about blogging and social media. In the first 2 months of running this blog I’ve learned so much. I know I’ll be able to take all of this new knowledge and use it any jobs I take on in the future.
Great advice! Always better to have your eggs in more than one basket….
I’m glad it’s working out for you, too. Even if it was a rocky start.
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Despite how many baskets you have, it all comes down to their collective strength. If your main basket is strong enough, the others aren’t quite so important. Or if they are all fairly weak, you could be in trouble.
Hi Jeremy,
I have included this post at my site’s weekly roundup
Thank you Karunesh! I appreciate any extra exposure people provide.
Great post. I was in college when I read a book about passive income and realized then that income from a day job wasn’t going to get me to where I wanted to be. I’ve been working on side businesses ever since, always supplementing my income from my day job. My best friend also has the same drive as me and while we don’t compete with one another on the side business aspect, our discussions about what we are doing motivates us to keep working hard in those times when you might get lazy.
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Great point about having close friends that can keep you motivated. Simply having an idea and a business plan is not enough. You need to be motivated enough to put in the time and effort, even when results are not there. Being friends with someone else with similar aspirations provides friendly competition and gives you someone to bounce ideas off of.
I was kinda hoping MyMoneyDesign would become my money making side business ??? I guess we’ll see with time. For a while I was focused on selling music on iStockPhoto, but the revenue was very small.
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It very well could become your side business. A blog seems to take a while to build to a profitable level though. So you’ll just have to be patient as it builds up to that point.
I’ve heard of people selling stock photos, but haven’t talked to anyone who sells music like that. It would be interesting to hear what kind of music you were selling.
I think your boss had some wonderful advice – creating multiple income streams is one of the best financial moves anyone can make. it’s easier said than done, especially at first. But once you have a system down, you can learn to expand it and find additional revenue streams. I know several people who have been able to leave the traditional workforce, or even retire young because they set up several stable income streams. It’s definitely a goal worth working toward!
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Yes I thought it was pretty good advice too. The problem I encountered was that my income streams just weren’t stable enough. That can be pretty tough to gauge, especially when your judgement is clouded by early success. Luckily those income streams have been still bringing in some cash over the years. Now with all those income streams, I don’t know where is best to focus my efforts.
I have been trying to get my Event Planning side business off the ground. This is something I have done off and on for a few years but never thought about making money at it until now. I think I can do well with it. I have already had people ask me for business cards from events I have done in the past.
That’s definitely a good sign. That kind of business would work well with networking via word of mouth and with business cards. If you host solid events, other people are sure to want to use your services.