5 Business Ideas to Boost your Finances in 2020
Are you looking to improve your financial situation before the end of the year? We would all like to have some positives come out of 2020 and be healthier with our finances in the new year.
If there has ever been a time to question your current circumstances and work commitments, now would be that time. With so much uncertainty surrounding the economy and businesses, now could be the perfect time to start working for yourself, or to at least generate a second form of income to enhance your financial situation and generate more money for the future.
‘The best way to predict your future is to create it.’ ― Abraham Lincoln
Perhaps you’ve been sitting on a business idea for a while, but you haven’t had the time or energy to put it into practice? As the world stood still for a moment, it may have allowed you to pause, reset and think about putting your plans into action.
If you’re prepared to put the effort in, then there’s a whole range of opportunities out there for you to explore when it comes to boosting your finances. From clearing debts and helping others to do the same, to investing money to make an additional income, to the more traditional ways of setting up a business. Read on to find out how you can implement these business ideas to see an uplift on your future finances and start earning money today.
Some points to consider when it comes to boosting your finances:
- Reduce current expenses and excessive spending habits
- Choose an appropriate savings account or invest your money
- Start an online business
1. Clear the Debt
Before you look to put your latest business model into action, it might be worth clearing any debt you may have; new business ventures often come with risks and may take several months to set up before you start making a profit. As you spend time researching your business plan and putting general plans in place, why not work towards clearing any outstanding credit card bills or loans you may have to pay? Monthly debts and bills can eat into your profits if they’re not kept to a minimum, and the best way to boost your money situation is to earn more than you are currently spending.
Start by reviewing your current income and expenditure, and focus on paying off unnecessary bills that are eating into your cash flow, there are many simple solutions to minimizing your debt, which will subsequently free up capital for you to use towards starting a business. Reducing your debts will not only help with startup business costs, but it will also provide peace of mind and improve your credit rating. Be sure to pay off the highest interest debts first such as credit cards and short-term loans. Then look to settle the balance on mid to long-term debts with lower interest rates such as car loans and student debt.
2. Enter a Prize Draw
If you’re content in your current place of work and not looking to be your own boss anytime soon, then you could at least set up a second form of income alongside your monthly wages. Do you consider yourself to be a lucky person? If so, there are plenty of prizes draws you can enter to win items or cash, and some draws may not even cost you a penny to enter. You can also sign yourself up to answer questionnaires as part of market research for other companies, and although you may not earn a great deal from filling out a 30-minute questionnaire, it’s still better than nothing and helps towards improving your finances.
3. Invest Your Money
Experienced investors will treat their investment portfolio as a business, and for many, it will be their full-time job. For the more risk-averse you may want to try the stock market, although this can be risky if you’re not familiar with the market and this type of investment. As the Coronavirus stock market crash is well underway, it might be worth looking at other investment opportunities such as real estate. At the moment, the property market has seen some of it’s best months making it a far more lucrative investment for you to explore.
The demand for rental properties is at an all-time high and interest rates are at an all-time low when it comes to acquiring a property, so if you have some savings set aside, it might be worth putting them into a physical asset and renting it out to make a consistent monthly profit. Parting with your money can be a scary thought, especially when it’s such a large sum, but making a down payment on a property could be one of the most profitable decisions you ever make. By choosing a buy to let the investment you’ll not only receive extra income in rental payments to boost your cash flow, but you’ll own property to sell on in years to come, giving you an additional lumpsum payment in the long-term. If you’re new to the property market, it’s worth doing your research, and there are plenty of podcasts and guides available online from specialist companies like RWinvest to help get you started.
4. Start a Business
You may have considered starting your own business in the past or contemplated turning a hobby into a way of making an extra income, but as many of us have been forced to work remotely, or worse, have become unemployed, now may be the time to put those business ideas into practice. Perhaps you have found yourself completing a side hobby during isolation such as learning another language or writing blog posts as a way to escape. Why not offer these skills as a freelancer and help others to expand their language and blogging expertise. If online tutoring interests you, try using secure websites such as Fiverr to advertise your skills and build a client list.
Whether you are looking to replace your current job role, or just want to top up your income, starting your own business can be a flexible and successful way to earn extra money or replace existing money streams.
5. Sell your stuff
Many people have used their time at home to clear out unwanted items. This may have sparked an idea to set up an online store to sell pre-loved clothes or pieces of furniture you no longer use. This is a simple and relatively straightforward way to make money, and if you indulge in excessive amounts of shopping, you’ll probably have a large list of stuff to sell.
This can also be a great way to practice your photography and video skills, as you will need to upload visuals of your items onto websites like eBay or mobile apps such as Depop to build a customer following to sell to – you’ll be surprised at how much money you can make from decluttering your home!