It is not uncommon for a new enterprise to barely break even in its first year, but working a second job to boost cash flow is not always a practical option. Here are two alternative ways to inject more money into your new business.
Last year was another record year for new business startups, giving a strong indication that this age of the entrepreneur shows no sign of ending. The number of private sector businesses in the UK grew to 5.7 million in 2017, continuing the trend of the three percent year-on-year rises that we have seen since the turn of the millennium.
The growth in entrepreneurship comes despite the stormy conditions of the global economy. In fact, there is a strong argument that financial uncertainty is actually a driving factor in encouraging budding entrepreneurs to take the plunge and go it alone.
Growing pains for a burgeoning enterprise
Be that as it may, even the best idea with the most ambitious business plan is always going to need some time to start generating money. It is not uncommon for a new enterprise to barely break even in its first year, and while that might be fully allowed for in the business plan, it doesn’t alter the fact that you still need to keep a roof over your head and food on the table.
Working a second job to bring in some extra cash is unlikely to be practical when you are putting all your time and energy into the new business, but there are other ways to bring in much-needed additional income for those of an enterprising nature. Here are two of the most popular.
Forex trading has become a hot topic among investors over recent years, and the increased range of trading apps and platforms has made it far easier for amateurs to get involved than it was ten or 20 years ago. The other great thing about all those apps is that they can automate a large part of the trading process, meaning you can generate revenue without having to dedicate hours of effort.
Of course, it is also easy to lose money this way unless you know what you are doing, so getting a good broker you can trust needs to be at the top of your agenda. This how to choose a broker checklist is a handy resource for making the right choice. With the right technology and a trusted broker overseeing everything, this really is a “set it and forget it” way to generate extra income.
Affiliate marketing is, perhaps, the ultimate passive income generator. The only downside to it is that it takes a little time up front, but if you already have a blog or a website that is generating good traffic, then the battle is more than halfway won.
The theory is simple. You use your website to promote or recommend products or services that you believe in to your audience, and you receive a commission on each click or sale you generate. Recommendations are a powerful sales tool, which is why having a website with good traffic is so important.
The most important thing with affiliate marketing is to be genuine. Only promote products that you genuinely believe in or your reputation, and therefore your value as an affiliate marketer, will evaporate. This guide on getting started in affiliate marketing provides all you need to know in a no-nonsense way.
Rik Snuiverink is a financial advisor, writer and journalist
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