Amazon FBA or Dropshipping. Which is better?
In an era where career paths are diversifying, the old lie that most new businesses are doomed to fail is far from the truth. Currently, nearly half of the UK are earning a second income through side hustles, each bringing in an extra £900 a month on average. how to start a business
Here, I will share the top five side hustles for 2024, providing a deeper look at their potential for profit, the typical startup costs involved, and the realistic effort needed to achieve the average monthly earnings of £900. dropshipping mentoring
Side Hustle Idea 1: E-Commerce
Understanding E-Commerce
E-commerce represents one of the most accessible routes into a secondary income, mainly because of its scalable nature and broad reach. It involves selling products online whether it’s Amazon FBA, eBay or Shopify, there are plenty of options. This sector will continue to grow and is expected to reach 4.45bn in value in 2024. The beauty of e-commerce lies in its diversity—ranging from Amazon FBA, where sellers utilize Amazon’s vast distribution network, to dropshipping, where inventory management and shipping are handled by third parties, and the emerging trend of live selling on platforms like TikTok Shop.
Success Stories in E-Commerce
JacksAmazonClub through the world of Amazon FBA showcases the high ceiling of e-commerce success. By the age of 21, he had made 7+ figures with Amazon FBA, bought supercars, and had built a team to run his business. His success underscores the potential of e-commerce to generate passive income once the initial barriers are overcome and systems are put in place. It’s important, however, for newcomers to remain vigilant about the issues of scammesr & gurus in this industry. Ensuring you learn from credible sources and perhaps even invest in a vetted mentor can set you on a path similar to Jack’s. earn money from home
Starting Your E-Commerce Journey
Beginning an e-commerce side hustles requires an understanding of the different models (Amazon FBA, Dropshipping etc), how much time you need for each, andf whether or not you need a physical location for shipping + prepping! The initial setup might involve some trial and error, but with persistence and the right guidance, it’s possible to achieve significant profit margins. Based on a consistent number of sales, and maintaining a 20% profit margin, you would need to generate sales of around £5,000 a month to surpass the average side hustle income. So starting an E-Commerce business in 2024, is definitely one of the best side hustles to consider. e-commerce side hustle
We’ve also created a free E-Commerce guide, which is available to download in our free Skool community.
Trading, whether it’s stocks, forex, or cryptocurrencies, represents a more speculative side hustle that can yield substantial returns for those who master it. This hustle requires an understanding of market trends, the ability to react swiftly to market changes, and a robust risk management strategy. While trading can offer quick financial gains, it is also fraught with potential for significant losses, making it a high-stakes side hustle that is not suitable for everyone. trading courses
Prop Firms: Don’t Trade Your Own Capital
Proprietary trading firms, or prop firms, offer traders the chance to trade with the firm’s capital, sharing profits while minimizing personal financial risk. This model is beneficial for skilled traders who lack the capital to trade at significant volumes on their own. Prop firms usually require traders to pass various challenges, which demonstrates their trading ability. 5% profit isn’t much of your £1k, but 5% from your £100k funded account and now your talking. property courses
Common Pitfalls in Trading
Unfortunately trading is often surrounded by scams and misleading advice, particularly from sources that promise unrealistic returns or sell secret strategies. True trading success comes from a deep understanding of the markets and not from following so-called ‘expert’ signals blindly. Around 70% of people lose money when they trade, so if you are starting here, make sure you learn and trade with someone else’s capital!
Is Trading Right for You?
If you are considering trading as a side hustle, it’s vital to start with a clear understanding of the risks and potential rewards. Educating yourself thoroughly before starting, practicing & only trading with demo accounts, until you are confident with your strategy. At that point you can start tackling funded accounts. It’s a side hustle that requires patience, & discipline, that can lead to large profits or large losses.
Side Hustle Idea 3: Property
Exploring Different Property Side Hustles
The property market offers various side hustles from deal sourcing to BRRRR (buy, refurbish, rent, refinance, repeat). Each method has its own set of risks and benefits and typically requires some level of upfront investment. Deal Sourcing is usually the cheapest way in as it is a service based business, you can learn more on deal sourcing here.
Success in Property
The journey to success in property is often as rewarding as it is challenging. We recently paired James, with one of our vetted deal sourcing mentors Paul. His progress shows that building a property business alongside a full-time job is possible, and worthwhile. Success in property will require you to:
Strategic Planning and Execution: Success in property begins with a well-thought-out plan that includes detailed market analysis, investment goal setting, and strategy formulation. This plan should consider long-term market trends and economic cycles that could impact property values and rental demands. The ability to adapt to market changes and modify investment strategies accordingly plays a crucial role in sustaining profitability.
Adherence to Regulations:
Compliance: Staying compliant with local and national real estate laws is non-negotiable. This includes everything from proper licensing to adhering to landlord-tenant laws.
Anti-Money Laundering (AML): For those in deal sourcing, AML regulations are particularly critical. Compliance involves thorough due diligence on clients and maintaining transparent financial records.
Understanding Market Dynamics: Successful property managers possess an acute understanding of the property market. This involves:
Market Research: Regularly conducting research to stay ahead of market trends, understanding what drives property values in different areas, and knowing the best times to buy or sell.
Networking: Building a network with other professionals in the industry such as real estate agents, investors, and legal experts can provide insider knowledge and opportunities for growth.
Getting Started in Property
Entering the property market as a side hustle can seem daunting due to the perceived high barriers to entry such as substantial initial capital and extensive industry knowledge. However, with the right approach, starting small and scaling gradually, it is entirely possible to carve out a successful path in real estate investment. Here’s how you can start:
Acquiring Industry Knowledge:
Education is Key: Investing time in learning about the real estate sector is crucial. This includes understanding different types of property investments, financing options, and the basics of property law.
Hands-On Experience: Consider getting hands-on experience by interning with a real estate firm or working alongside a seasoned property investor. This practical exposure can provide invaluable insights into the day-to-day challenges and opportunities in the property market.
Capital Requirements:
Funding Options: Explore various funding options available for property investments, such as mortgages, real estate investment groups, or partnering with other investors. This can significantly reduce the personal financial burden and spread risk.
Starting Modestly: Beginning with a small, manageable project can reduce the financial strain. Examples include buying a fixer-upper to renovate and sell or purchasing a single apartment to rent out. This approach allows you to learn the ropes without overwhelming financial commitments.
Mentorship and Networking:
Finding a Mentor: A mentor with a proven track record can provide guidance, prevent common pitfalls, and accelerate your learning curve.
Real Estate Networking: Engaging in real estate networking events and online forums can connect you with potential mentors, partners, and investment opportunities.
Side Hustle Idea 4: Service-Based Businesses
Service-based businesses encompass a wide range of activities from high-tech digital marketing agencies to traditional services such as window cleaning. These businesses generally require less capital to start compared to product-based ventures and are heavily reliant on personal skill and time.
Understanding Service-Based Businesses
Service-based enterprises operate on the foundation of selling expertise and time. Whether it’s consulting, designing, teaching, or cleaning, these businesses offer services that are in demand across various markets. The success of these businesses hinges not just on the quality of the service provided but also on your ability to connect with and satisfy their clients. A lower barrier to entry makes this model particularly attractive to entrepreneurs who possess specialized skills but may not have substantial capital to invest in start-ups.
Case Studies of Successful Service-Based Businesses
A prime example of success in the service sector is the story of Theo and Joe, co-founders of a digital marketing agency. They identified a growing need for digital marketing expertise among E-Commerce businesses and capitalized on this demand by offering tailored marketing strategies that drove measurable results for their clients. Their success was not just due to their technical skills but also their understanding of market needs, their ability to build strong client relationships, and their commitment to delivering exceptional service. This approach not only secured client loyalty but also spurred referrals and helped them expand their client base rapidly. You could also book a call with them if you are interested.
HUSTLE Framework
Commitment to Your Chosen Hustle
Choosing and committing to a side hustle requires careful consideration of your skills, financial goals, and available time. Utilizing our HUSTLE framework can help you in working out what side hustle will work for you. By looking at Heart, Urgency, Spending, Time, Location, and Expertise you can identify if a side hustle fits your expectations.
The success of a side hustle greatly depends on personal motivation and the commitment to face and overcome challenges. Persistence, continuous improvement, and a proactive approach in adapting to market changes are crucial. Leveraging frameworks and tools to align your goals with business strategies can increase the chances of success and satisfaction from the venture.
Turning Potential into Profit
The right side hustle, whatever it is, offers not only a path to additional income but also opportunities for significant professional growth and personal satisfaction. With the right blend of planning, commitment, and a willingness to adapt, entrepreneurs can leverage their skills and passions to build successful businesses. Whether it’s through offering digital marketing solutions, property management, or bespoke consultancy services, the potential to transform your life is there for the taking. If you don’t know where to start, why not join our free community for side hustles.