Based on your interest area, time and the risk able money you have, you can acquire and run an existing business as your side business.
For example, if you have Rs. 50,000 of investment money that you can risk, i.e. invest in a high-risk high return instrument then you can use the money to buy an existing business.
Below are a few side business that can be acquired:
#1. Existing Blog
An existing blog will have some content with some audience. The audience could be a few thousand per month or more, coming from SEO. The blog would be making some revenue like Google ads, sponsored posts, or affiliate commission.
Based on your understanding of the niche and the skills, you may need to spend Rs. 50,000 or more to acquire an existing blog.
Now there is a huge difference between skills that will be required to run an Rs. 50,000 blog Vs an Rs. 5 Lakh blog.
Let us understand the different skills needed when you buy an Rs. 50,000 Vs an Rs. 5 Lakh blog.
Obviously, the Rs. 50,000 blog business will be in the starting phase and will have a higher risk as compared to the Rs. 5 Lakh blog. The Rs. 5 Lakhs blog will be more stable and will carry moderate risk.
For an Rs. 50K blog you need to understand:
#1. Content – How much content (in the number of words) has been published. If there are 20,000 words of content on the blog then probably the blog is worth a lot less, maybe around Rs. 20,000.
But, if it is having 50,000 words with proper internal linking, SEO is done (on page & off page), the content has been written properly, edited & reviewed, then the blog is worth Rs. 50,000..
#2. Installation – You need to know how much it will cost you to put up a new theme or a plugin. You also need to see whether you will need to hire a freelance for carrying out the settings.
#3. Traffic – Check the existing traffic, the keyword intent and the future potential of the blog. You need to make sure that there is a headspace for the blog to attract traffic and growth.
You are paying for the future potential and not for the present value of the blog.
In less money, you may not get a high-quality blog. But, if you are looking for a 10x return then you can learn SEO skills or other skills instead of hiring a freelancer and save money.
For an Rs. 5 Lakh blog you need to know:
#1. Revenue the blog is generating every month
You need to know the per month income that the blog is generating and the various monetization methods the blog is using.
#2. Traffic the blog has
Check for the existing traffic the blog is attracting and whether it is from the organic channel or paid channel and their percentages. The blog should not have a high amount of traffic from the paid sources because then you have to spend money on running ads.
#3. Blog Potential
The blog should have the future potential to grow. Check whether it is saturated or is there any upper side left. Always invest in a blog that has growth potential.
Check with the seller for the next six months of the content plan and the list of keywords that are left to capture.
You can expect to have a 2x return on your investment. If your budget allows, you can hire an SEO guy to take care of the on-page and off-page optimization. Take time and try to understand the process related to running the blog.
Skills that you need to have after acquiring a blog
- Knowledge of quality content
- Know where the blog is making money and keep it functional
- Basic SEO stuff and how to outsource writing and other stuff
- Traffic potential and to maintain it
#2. Affiliate Business
Affiliate business is about promoting products of other companies to your readers. When someone buys through your special (affiliate) link, you get a commission.
For example, you have a gadget blog that helps the reader to find the best android phone under Rs. 20,000.
For every recommendation, you include a button to “Buy on Amazon”. If the reader clicks on the link and makes a purchase you will earn the affiliate commission.
You can buy an affiliate business by paying 20X to 30X of monthly revenue depending upon the authority and future potential.
If a blog is making Rs. 5,000 per month, then you would need to pay in between Rs. 1,00,000 to Rs. 1,50,000 to buy the blog.
Before purchasing the blog, you should check the percentage of money earning pages and the information pages. Information pages are the posts that give product information and include how-to guides.
Whereas, money pages are posts that help you monetize your traffic. There should be a healthy combination of money pages and information posts.
For Affiliate marketing:
- You need to understand the basics of paid marketing -Target audience and the offer that you are going to show
- You need to have the skill to run campaigns, bidding and manage budgets
- Skills to replace or continue the affiliate partnership
- Basic SEO
#3. Existing Youtube Channel
You can buy an existing Youtube channel with a subscriber base to run as a side business. You would save time to test the content and create a base audience with the existing Youtube channel.
You should buy a Youtube channel in a niche where you have an interest. Like, if you are a gadget geek, then you can buy a Youtube channel on gadgets.
You can monetize your channel with Youtube ads, sponsored content and brand promotion.
Before you buy a Youtube channel you need to understand:
- How many followers the channel has
- Source of video views
- How the channel is monetized and the monthly revenues
- The number of videos in the channel and the face associated with the channel
There is no fixed rule but a good Youtube channel with 50,000 subscribers will cost you around Rs. 75,000 and above.
Skills needed to run Youtube business:
- Managing people, camera, lighting, and other equipment
- Continue idea generation, creating engaging and relevant videos
- Video editing & design skills
#4. SaaS (Software as a Service)
SaaS is a method of software delivery where you access software as an application. The servers and the database are maintained by the host and the information/ data is accessed using the software. Common examples of SaaS are emails, MS Office, Google Apps and Slack.
In the SaaS business, you are the data vendor who charges customers for using your software applications and products over the internet.
There is a wide range of SaaS for sale that starts from as low as a few thousand Rupees to price in millions.
Skills that I need to have after acquiring a Saas business:
- Planning & visualizing skill to make growth plans
- Marketing skills for SaaS businesses
- Understand the product requirements, customer requirements, what should be the next features and the budget.
- You would need people skill, management skills
- Task assignment skills
#5. Instagram Influencer
In the Instagram influencer business, a brand finds an influencer who already has a connection to the target audience that the brand wants to reach.
The brand and influencer enter an agreement in exchange for a fee or commission on the product sold. The Instagram influencer then creates content and shares it with their followers.
You can buy an existing Instagram account with a minimum of 10,000 followers.
A decent Instagram influencer account with 50,000 followers can cost you Rs. 70,000 to Rs. 1.5 Lakhs.
Skills needed to run Instagram influencer business:
- Idea generation & creating the new content
- Keeping the content schedule
- Knowing the niche and;
- Managing community engagement & expectations
#6. Twitter Influencer
Like Instagram influencers, a Twitter influencer’s shout-out for the brand’s product can also spark a word-of-mouth marketing campaign on Twitter.
Twitter influencers can do more than just tagging the brand, they can explain the product, how the product has helped them and why they are promoting it.
You can purchase Twitter influencer accounts for Rs. 50,000 with a few thousand followers. The low priced account may not have a large number of followers.
Skills needed to run Twitter Influencer business:
- Building community engagement
- Conversation & communication skills with your followers
- Brand management & engagement
E-Commerce is an online store or a marketplace where you sell goods online on a platform. You can buy an existing e-commerce store that sells toys, stationery, T-shirts and other products.
The price for an e-commerce website varies depending on the niche, inventory level and monthly revenues. You have a range from Rs. 50,000 to price in millions.
You would need to check the traffic source to the e-commerce store before buying. The store would receive traffic from SEO, the direct user, or paid ads.
SEO and direct user stores would cost you high as you are receiving the free traffic and wouldn’t need to spend money to bring traffic to your e-commerce store.
You would need to learn about paid ads for stores receiving only paid traffic.
Skills needed to run an e-commerce business:
- Running paid ads for the store with paid traffic
- SEO skills for the store with organic search
- Gauging the future demand-supply of the product
- Sourcing, inventory and people management
#8. Informational Product Selling
Informational products are digital information in the nature of instructions, educational or information data that is made available online and is consumed by the reader online.
Examples of informational products include an ebook, digital report, templates, workbook, newsletter or infographic.
As a business you are involved in preparing informational products and selling them to your customers and businesses that need them in place of their written content.
The investment needed to acquire an informational product business range from Rs. 50,000 to Rs. 2 Lakhs.
Skills needed to run informational product business:
- Idea generation and creativity
- Knowing customer preferences for informational product
- Learning new technology
- Managing team, if any
#9. Mobile App
Mobile apps are software applications that are developed to run on your smartphone and help you perform activities in simple steps. They are usually a miniature version of a full-fledged web application.
App developers sell their codes and generate extra revenues. You can buy the apps after considering the monthly cash flows, underlying technology, and access to a bigger user base.
Purchasing mobile apps will cost you Rs. 50,000 and above.
Skills needed to run mobile app business:
- Knowing coding and developer tools & platforms tech
- Troubleshooting and bug fixation
- Managing customer requests
#10. Agency Business
Agency business is where you have a team of people helping you to run a small business of providing services to clients and companies such as content marketing, SEO services or content writing.
The business revolves around converting clients for online projects and then getting the quality work done & delivered with the help of the team members.
You need to have a marketing guy who takes off the client and the team that takes care of the execution.
The investment to acquire an agency business depends on the nature of the deliverables and the team size. You need to spend upwards of Rs. 2 Lakhs and above to acquire an agency business.
Skills needed to run agency business:
- Expertise in your domain (agency service)
- Skill to create strong processes
- Team management skills
- Marketing skills for sourcing work.
Now you know all about side hustles and side business and ready to start your journey.
Next, we will discuss how to set up your business as a legal entity.