One of the best ways to turbocharge your retirement saving plan is the “side hustle,” a part-time business that allows you to monetize your spare time. I’ve come to realize that a lot of people instantly dismiss this idea because they have it in their head that starting a business requires a chunk of change. Not so! You can launch a potentially lucrative business for about $100.
Just follow these three simple rules, courtesy of The PennyHoarder.com:
1. Start a business that allows you to use skills and tools that you already possess. Perfect example: If you play the piano well, own one, and like children. Boom! You’re in the piano lessons business for only the cost of advertising, which can be done on the super-cheap. Ads on craigslist and local family-oriented websites, fliers on school and church bulletin boards. Done. You’ll have a handful of kids tinkling your ivories and still have enough money left over to buy me a thank-you lunch.
2. Find one or more cheap ways to generate revenue with your business. Into books? Scour yard sales and Goodwill for interesting titles and sell them through an Amazon storefront. As your inventory grows consider also taking a table at a flea market.
3. Reinvest. At first, use most of your revenue to expand the business – acquire more inventory, equipment or advertising. With every sales cycle, you can put a bit more money in your pocket. My two older boys recently expressed interest in starting a business, so we opened a Shopify online storefront to sell ball caps bearing our own “Wet Moose” brand. We’ve got a bit more than $100 in the project, but we are living by this reinvestment rule. Nearly every dollar we bring in will go to buy more hats. Assuming, of course, we sell the first batch!
One quick caveat. Don’t be pennywise and pound foolish in setting up your business. Make sure you have any required permits of licenses. And, depending on what business you are in, consider liability insurance. These things will hike your start-up coast by a few dollars, but they will also keep your part-time gig from becoming a full-on disaster.