Are you looking for the next big thing when it comes to setting up a new business venture? Perhaps you need a side hustle to add to your current income? Whatever the reason is for you to want to start a business, now could be a perfect opportunity to invest in an idea you’ve always had, or to come up with something innovative and different from your 9 to 5 job that could set you up financially for years to come.
There isn’t long left before the end of the year, so don’t delay, start implementing your business plans today to end 2020 on a high and set yourself up for success in 2021 and beyond.
Unfortunately, due to unprecedented circumstances, you may have had little to no choice when it comes to finding a new way to make money. Economists predict that unemployment rates will continue to rise for the rest of the year as the world works hard to get ahead of the global pandemic. The Bank of England forecasts that the levels of unemployment would most likely peak at 7.7% in the spring of next year, so now may be the perfect time to change direction and start boosting your finances in 2020 to put yourself in a better position for what lies ahead.
Sometimes we claim we don’t have enough time to put a business idea into action, but as the world stood still, it may have allowed you to pause, and to start moving forward with your plans. Anyone can start a business if they are prepared to put the effort in. there are multiple sectors and areas of expertise to explore, and if executed well, can help to improve your finances. We have put together some of what we consider to be the best business ideas to implement in 2020, along with some tips to boost your finances to enable you to get started.
Top tips – start by reducing current expenses and non-essential spending habits before investing in a new business strategy. If you need capital to get your project going, it might be worth setting up an appropriate savings account with a reasonable interest rate. Alternatively, look for other ways to start a business, such as setting up you’re an online store or service that requires minimal start-up costs. Finally, you choose to invest your money, if you have any savings and acquire an asset that would make you a small fortune in the future.
Read on to find out more about the steps you can take to steer you in the right direction when it comes to saving or increasing your income, as well as some of the different types of business ideas you can research and try out for yourself.
Clear Any Outstanding Debt
First and foremost, you have to recognize that any business or investment opportunity comes with its own level of risks, and worst case you could end up in a ton of debt, even if you hit the ground running. To minimize the world of trouble you could land yourself in, it’s probably a good idea to clear any outstanding debt beforehand. Spend some time reviewing your current income and expenses and get rid of any bills that are impacting your cash flow – no matter how small, they all add up. By saving on your monthly expenses, you should be able to put that money towards paying off any smaller or medium-sized debts such as credit or store cards, and car payments. Once the debts are diminished, you should have some extra cash to start your business. A few other added benefits to clearing bills is that it will improve your credit rating and so you will appear more reliable to potential lenders should you need a bank loan or mortgage.
Tip – always start with your highest interest debts first and work your way through them, down to the lowest interest rates.
Clear Out and Sell Your Unwanted Items
For many of us, we have had plenty of time at home to clear out any unwanted belongings and things we no longer use. Once you have freed up this valuable real estate, instead of donating or throwing away these items, why not sell them to make some money? Selling unwanted items such as clothing, toys, furniture, and electronics can be a pretty easy way to pocket some extra cash. With a plethora of retail platforms to choose from like eBay, Depop, and Craigslist, you can have an online store set up in no time. Once you have a few items listed online, people can securely purchase your second-hand goods and leave a business review, which is important for future customers who could potentially buy from you. Sell as little or as much as you like, depending on many items you have to get rid of.
Tip – be sure to spend some time taking clear photos of your items, as people will want a true representation of what it is, they are buying!
Invest Your Money in Real Estate
Use a lucrative investment such as property to boost your finances. For savvy investors who are looking to expand their portfolio, then taking advantage of a thriving market could be the best business venture for you. Property prices are at an all-time high, and even though all investments come with risks, real estate is considered to be more stable during a recession, when compared to the stock market, for example. Like anything that could cost you money, and time, it’s worth carrying out the appropriate due diligence first, to ensure that you choose the right investment for you. At the moment, the demand for rental properties in popular locations is extremely high, and so a buy to let investment could provide you with some seriously high rental returns for years to come.
Securing a large asset such as a house is a big decision. Still, it could provide you with consistent rental payments and capital appreciation, setting you up with a generous pension fund further down the line, not to mention the significant improvement to your cash flow.
Tip – if you’re new to buy to let investment, read up on the property market, and look for relevant guides and information from specialist companies. The UK based property company, RWinvest, offer extensive articles and eBooks for free, on their website.
Start an Online Business
Lastly, if you want to start a business and keep your start-up costs to a minimum, then setting your products and services up online might not be such a bad idea. Thousands of people are promoting their work through digital platforms every day. This is a business idea in itself if you’re particularly good with computers and design, why not offer your skills as a freelancer and help others get set up online too. From graphic design to web development and digital marketing, these are all valuable tools people will need as more brick and mortar businesses close and start their digital journey. Use websites such as Upwork and Fiverr to promote your services, and much like second-hand retail sites, once you have a bank of good reviews, you can start building a client list to either top up your income or create a full-time business venture.