Setting Up A Side Business

August has traditionally been a quiet month for news and business but this year is a different story. The New York production and photographic industries used to entirely shut down over this month, but as advertising and editorial work has diminished by about half this year, everyone has their nose to the grindstone all over the city, including myself. Yes, we are sweating our way through August heat, grateful for the work. However, if you're someone who is accustomed to having downtime in August because your clients go away, or have been asked to take unpaid furlough time by your boss, use this time wisely and work harder than ever.

Now's the time to turn your hobby or other skill into a side business and perhaps because you're passionate about it, you'll more than likely succeed despite the caveat that over 50% of small businesses fail in their first five years of business.

If you were thinking about going on vacation but left the money in the bank for a rainy day: use part of this money to fund your endeavor. Being frugal is not the only solution to surviving this recession. You can also raise your income and, in the process, keep your brain active, knowledge evolving and meet new people through your marketing efforts.

Some of the following suggestions may sound ridiculous, but even the smallest entities can expand to the largest proportions. Seth Godin started Honest Tea in his kitchen; Amy's natural frozen food brand started "on a shoestring" budget in Amy's parent's barn in the late eighties; Starbucks, the ubiquitous coffee house was started by three teachers in Seattle on $1,350.00 in 1971.

- Have fruit trees or bushes? Make jam (outlay: labels, jars, sugar, cooking utensils, gas stove-top). Take your jam to your local store and ask them if they'll take it on consignment.

- Keen gardener? Advertise your services locally with fliers or business cards. If there's a yard in desperate need of work in your neighborhood, offer to redo it for free and use it as an example to other customers or model for your new business.

- Does your degree have nothing to do with your current vocation? This is quite common among my friends, colleagues and acquaintances. For example, your degree's in English literature but you work in marketing. Could you be a freelance editor, proof-reader or book reviewer?

- If you know a foreign language can you procure part-time work as a translator or teach privately part-time?

Now is also the best time to get deals on overheads like rent and other services for your business. Almost every one of my colleagues and friends here in NYC have renegotiated their rent or got seriously reduced rents on new apartments. Tenants are in a bargaining position, which is a refreshing because rents were getting truly ridiculous even in areas like Bed-Stuy and Bushwick. In addition to this, don't be afraid to barter vendors down. I've procured discounts as high as 20% on fees for some of my clients simply by asking. Vendors are keen to give discounts if it means they can bolster their dwindling customer base. Savings like this can reduce your start-up costs significantly and give your new business the boost it needs.