Entrepreneurship isn’t always the easiest path to take. Many people start and fail at their businesses, year in and year out. After all, it’s well known that most businesses fail. In fact, the U.S. Bureau of Labor Statistics (BLS) reports that approximately one-fifth of businesses fail after the first two years. Around 65% fail within the first ten. And it gets worst — only 25% of all businesses make it to the fifteen-year mark.
That sounds so grim. However, it’s still possible to capitalize on what you know and start some sort of business this year . You don’t need to start a full-time gig or a completely new company that takes you away from your day job in order to be successful. Instead, starting a side business might be a good way to improve your situation even just a little bit. For this year, and for years to come. Before you dismiss the idea of a side gig, here are five reasons to start a business in 2021.
Extra Money
If you wish you had a little extra money, a side gig can help. It’s not fast cash, but it can provide you with a little extra. Whether you want that extra money to pay down debt, to save up for a vacation, or if you have another purpose for it, a little extra income can go a long way.
Don’t underestimate how powerful a little extra can be. That spare income can make your dreams a reality, even if it seems like it’s just a little amount. The side gig income may not pay for your mortgage, but it will add up quickly if you’re saving it all. Think about it. Sure, $100 a month seems like nothing. But how great would it be if you could buy yourself something nice every single month? And that’s only $100 a month. Imagine what $500 or $1,000 a month could do for you. This alone is a good enough reason to start a side business this year.
Income Diversity
Sometimes it’s not as much about having extra money as it’s about having multiple sources of income. What would happen if the hours at your day job were dramatically cut? Or if you lost your job altogether? You might have to draw on your emergency fund (if you have one) or find some other way to make up the shortfall. You are at the mercy of your employer if all you have is your regular job. What happens when they decide you are no longer necessary?
Even if the company can’t function properly without you and your job is secure, you should still plan for the worst. What happens when the economy decides that the whole company is no longer necessary and everybody loses their job? Income diversity can protect you against a potential disaster. With the help of a side gig, you can reduce your reliance on a single income source. That way, if something happens to your main income, you still have other resources to rely on.
It’s a Great Time to Start a Side Gig
It feels weird to be saying this during a pandemic, when millions of Americans are out of a job. However, I haven’t seen so much euphoria in certain segments of the population in a long time. With so much liquidity in the financial system and so much government stimulus, some businesses are booming so much that they are hiring like crazy.
The better news is that the public seems to have a lot confidence in the vaccine rollout so far. That could really boost the economy in the second half of this year. Even sectors that were beaten down by the pandemic are starting to come to life. It’s in these times that starting a side business can actually be easiest. All you need is one client to get started,. That could motivate you to keep pushing to expand your gig.
Productive Use of Your Time
How productive is your time? No, you don’t always have to be doing something productive. Sometimes it’s good to unwind by watching TV, reading a good book, sleeping in, or doing something else that is fun or relaxing. However, you don’t want all of your time to be idle. You can make more productive use of your time with the help of a side gig. You’ll engage your mind in something different and interesting, plus you have the chance to earn more money while doing so. It’s a good way to grow as a person, as well as grow your bank account. It’s a better use of your time compared to many other things you spend hours doing. No, you don’t need to rewatch The Office for the ninth time. Start a side gig instead.
I’ve been telling my friends (and also my readers on MoneyNing.com) how I love writing for WalletGenius as my side gig. The extra money helps, absolutely. But the real value is the change of pace from working on my own site all the time and still feeling productive at the same time. During this now-yearlong lockdown when everybody is much more isolated, I’ve also enjoyed the increased interaction with others. I’ll end this paragraph right here since it’s starting to feel like I’m sucking up! [Editor’s Note: flattery will get you everywhere.]
Sense of Accomplishment
Finally, we all like to feel as though we are accomplishing something. When you start your own business, you can feel good about your efforts and victories. It’s one thing to be recognized as an outstanding employee. It’s quite another to take pride in something that you built yourself. When I feel down, all I need to do is visit my website to see what I’ve built over the years. This sense of accomplishment can lead to confidence that can enhance other areas of your life. You might be surprised at what even a modest side gig can do to improve your life. Use 2021 as a chance to get started. There’s no better time to start than now.
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