From Side Hustle to Main Hustle: How to Set Up a Micro Business
Are you tired of relying on a single source of income? Do you have a passion project that you want to turn into a profitable venture? If so, consider setting up a micro business. A micro business is a small, usually home-based business requiring minimal investment and low overhead costs. Setting up a micro business can help you earn extra income, pursue your passion, and gain financial independence. In this blog, we will guide you through setting up a successful micro business and show you how Thriday can help you achieve your goals.
Side Jobs to Make Money
If you're looking for a quick and easy way to earn extra income, you might want to consider taking up a side job. Side jobs are part-time or freelance work you can do outside your regular job or business. They can range from delivering food or driving for ride-sharing apps to freelance writing or graphic design. The most profitable side jobs are those that require minimal investment and have high demand.
To choose the right-side job, consider your skills, interests, and availability. You can also research the most profitable side jobs in your area or industry. Once you've found a side job that works for you, you'll need to register for an ABN, track your time and expenses, set up invoice software and find ways to optimise your pricing.
Thriday is perfect for ABN-holders who start a side job as you can track all your income and expenses in one place. Thriday will then automatically take care of your bookkeeping, accounting and tax. You can also use Thriday to issue invoices and quotes to get paid securely and promptly. Join Thriday for free today to start earning extra income from side jobs.
The Benefits of a Side Hustle
A side hustle, whether a part-time job or a micro business, can offer many benefits beyond extra income. A side hustle can help you develop new skills, expand your network, and even discover your passion. It can also provide a sense of purpose and fulfilment outside of your regular job or routine.
In addition, a side hustle can improve your financial situation by increasing your income, diversifying your sources of revenue, and reducing your reliance on a single income stream. This can provide a safety net in case of unexpected events or emergencies and help you achieve your long-term financial goals, such as saving for retirement or buying a house.
To get you thinking, here are some unique business ideas you can start as a side hustle:
- Virtual Interior Design Services
- Eco-Friendly Cleaning Services
- Personal Styling and Shopping Services
- Mobile Car Detailing Services
- Virtual Event Planning Services
- Customised Meal Prep Services
- Pet Photography Services
- Social Media Consulting Services
To set up a successful side hustle, you will need to do some careful planning and preparation. First, research the market and competition to ensure there is demand for your chosen niche. Create a business plan and set realistic goals for yourself, including a timeline for launching and growing your side hustle. Consider the financial aspects of your venture, including startup costs, pricing, and revenue streams. Then finally, build a solid online presence, including a website and social media accounts, to promote your business and reach potential customers.
How to Start a Small Business
If you're ready to take your passion project to the next level and start a micro business, here are the key steps you need to follow:
- Choose a business idea: This can be anything you're passionate about, have expertise in, or solves a problem or market need. Do some research to validate your idea and ensure there's demand for it. Then pick an idea with a competitive advantage as it will make your life easier.
- Define your target audience: Who are your ideal customers? What are their needs, pain points, and preferences? Understanding your target audience will help you tailor your product or service to their needs and preferences.
- Create a business plan: This will help you define your business goals, strategies, and financial projections. It will also serve as a roadmap for your business and help you secure funding or investments.
- Register your business: You must register your business by applying for an ABN. Depending on your location, and the type of business you operate, you may need to obtain licenses and permits. For example, if you are serving food, you will require a Food Safety Supervisor's Statement of Attainment.
- Set up your workspace: This can be your home office, a shared workspace, or a commercial space. Make sure it's comfortable, functional, and meets your needs.
- Build your brand: To build a brand customers love, create a logo, build a website, set up social media accounts, and create marketing materials that reflect your brand identity and values.
How Much Money Can You Make?
One of the most common questions people have when starting a micro business is how much money they can make. The answer to this question depends on various factors, such as the type of business, the size of the market, the competition, and the quality of your products or services.
Generally speaking, micro-businesses can generate anywhere from a few hundred dollars to several thousand dollars per month. Over time, some micro business owners can turn their side hustle into a full-time income, while others use it to supplement their regular job or income.
To increase your earning potential, you must focus on creating value for your customers, optimising your pricing and cost structure, and scaling your business over time. Thriday can help you analyse your business performance and provide you with insights to help you grow your revenue and profits.
How to Manage Tax When You Run Multiple Businesses
If you're running a micro business as a side hustle, you might also have a regular job or multiple sources of income. This means you must manage your taxes carefully to avoid overpaying or underpaying. This is where Thriday can help. Thriday is a next-generation accounting platform designed for small business owners. Thriday automates banking, accounting and tax and saves busy business hours over 5 hours a week. Once your business is registered, you can join Thriday for free.
Here are some tips for managing your taxes with Thriday when you run multiple businesses:
- Set up separate bank accounts: Having separate business and personal bank accounts provides clarity, organisation and helps to maintain financial boundaries, making it easier to track business expenses, manage cash flow, and simplify tax reporting. With Thriday, you can set up multiple bank accounts* in seconds.
- Keep accurate records: Thriday automatically tracks your income, expenses, GST, receipts, and invoices. This means that all you need to do is earn income and spend money, and Thriday will take care of the rest.
- Understand your tax obligations: Different types of businesses have different tax obligations, such as income tax, sales tax, payroll tax, and self-employment tax. Thriday will automatically categorise these transactions to the correct chart of accounts and claim any eligible deductions.
- File your taxes on time: Make sure you file your taxes on time and pay any taxes owed. Thriday will notify you, so don't forget when things are due.
Thriday is the easiest solution for managing your tax obligations and provides tools and resources to simplify the tax filing process.
Micro Business FAQs
What is a micro business?
A micro business is a very small business, typically with just a single business owner and minimal start-up costs.
What are some advantages of running a micro business?
Some advantages of running a micro business include flexibility, low start-up costs, and the ability to make quick decisions. Micro businesses can also be more personal and provide a more personalised service to customers.
What are some common challenges of running a micro business?
Common challenges of running a micro business include limited resources, difficulty competing with larger firms, and lack of access to financing. Micro businesses also often require the owner to wear many hats and take on multiple roles, which can be stressful and time-consuming.
How can I market my micro-business on a limited budget?
Marketing a micro business on a limited budget can be challenging. Still, many low-cost or free options are available, such as social media, word-of-mouth referrals, PR and networking. It's essential to identify your target audience and focus your marketing efforts on reaching them where they are most likely to be.
How can I manage my time effectively when running a micro business?
Effective time management is critical when running a micro business, as the owner is often responsible for all aspects of the business. Strategies for effective time management include setting priorities, delegating tasks where possible, and using tools and apps to streamline processes and save time. It's also important to take breaks and avoid burnout, as overworking can harm the business and the owner's well-being.
Starting a micro business can be a great way to earn extra income, pursue your passions, and gain valuable entrepreneurial skills. However, setting up and running a successful micro business requires careful planning, execution, and ongoing management. In this blog, we've covered some of the critical steps involved in setting up a micro business, including finding your niche, identifying side jobs to make money, understanding the benefits of a side hustle, starting a small business, increasing your earning potential, and managing your tax obligations.
By following these tips and leveraging the resources and tools provided by Thriday, you can increase your chances of success and achieve your financial and personal goals. So, what are you waiting for? Join Thriday for free today to get started on your micro business journey and turn your dreams into reality. Good luck!