Making that side business work for you

We all desire to achieve overall financial freedom at some point in our lives.

However, attaining this status is an uphill task. For many, it requires sacrifice as one juggles between full time employment and income generating side projects. However, things should not be too gloomy for you.

Following a number of tried and tested approaches, can get you where you have always dreamed of, racking in lots of money, if you do things right.

According to Isaac Maaluki, a personal finance and investment expert, there are generic ways of achieving financial freedom.

Switching from primary income to having a second source of earnings is the universal step considered by the majority.

Although employers view this in a bad light, as it would impact negatively on an employee’s output, it is the way to go for anyone who wants financial independence, in the long run.

This guarantees one financial stability in case of loss of a job. It puts you on the right path to attaining your life’s goal. However, to succeed, you must observe the requisite ethics.

Do not shortchange your employer in deals or use up their working hours for your benefit. If you think this conflict of interest may happen at some point, it is best that you quit and concentrate on your alternative income stream.

However, the investment we are look at is capital intensive. It is an investment that requires a considerable amount of capital to start. According to Maaluki, if your side-business is capital intensive, then consider ventures that are not labour and time intensive.

Securities that take less time to manage and bring in more returns are what you should consider as s appropriate and worthwhile.

For those that are thinking of this kind of investments, he lists three things that should be emphasized when making a decision.

Capital

Capital investments take many forms. However, investing in property is the best option for someone who wants to invest in an area that takes less of their working time. “Anyone with a fulltime job needs to look at investments that do not require too much of their time. Investing in property is usually the best option,” says Maaluki.

Using the example of an individual with Sh15 million to invest, he gives two approaches: investing in low cost real estate residential housing or a hotel. Whichever of the two one opts for, he advises that one must evaluate the investment cost vis a vis the returns.

“Compare the two businesses and decide on the one that will give you better returns and needs less of your time to manage, “ he says.