Most people will agree that having more money is essential, but many will admit that they don’t know where to find opportunities to earn from their own efforts. Our education system does not really put much emphasis on self-employment and entrepreneurship; so many graduates leave school with a dependence on external sources to generate an income.

Our columns for this month have been dedicated to helping you understand what you need to do to increase your earning potential by creating your own sources of income. If you are going to survive and succeed in these challenging economic times, you will need to focus a lot of your attention on making extra money in your spare time.

This week, let’s look at some simple strategies that can help you to identify and take advantage of various opportunities to create your own income.

Set income targets
Before you get started on your quest to earn more money, you first need to calculate exactly how much more you would like to make on a periodic basis. Your budget can help you to work out the amount of additional funds you will need to comfortably pay your bills, pay off debt, and pay for the lifestyle of your dreams.

Whatever earning target you arrive at, you then need to break down that figure into a daily amount that will seem easier to achieve. Let’s say that you need to make another J$20,000 monthly to achieve your goals. With approximately 20 working days in a month, it would mean that you need to find a way to earn about J$1,000 extra each day.

Identify units of sale
If you are accustomed to earning from just one source, such as your employer, then it might be a little difficult to comprehend that your extra income will most likely come from making several units of sale. That is, you need to sell a number of units of a product or service to a number of customers or clients in order to attain your earning target.

For example, if you need to make a daily profit of J$1,000, then you could have ten customers who each provide you with a return of J$100. You could also arrive at your target by servicing five clients who give you profit of J$200 each. It’s important to set targets for sales as this will allow you to choose the right products or services which can help you accomplish your objectives.

Find out what people want
It’s not a good idea to simply try to sell a product or service without first determining if there is a need or demand for what you have. Just because you like something, it doesn’t mean that other people will want to pay money for it on a regular basis. It’s always best to test your idea with your friends and colleagues before investing time and money in it.

Another factor to consider is that although people may desire what you have to offer, they are not really your customers unless they are willing, or able to pay for your product or service. If you want to sell a high-end or niche product, ensure that you identify the best places to locate persons who genuinely wish to pay for your offerings.

Exploit your talents and hobbies
Many of us are gifted with various abilities which we take for granted, and one of the easiest ways to find something to sell to the public is to look to your talents or hobbies. If you cook or bake divinely, sing beautifully, explain difficult concepts simply, or keep people in stitches with your jokes, then these can all be avenues for earning.

The key to earning money from your skills is to package them in appropriate ways that meet people’s needs or solve their problems. A flair for baking can be used to make breakfast muffins for co-workers; singing talent can be offered at wedding ceremonies; tutoring for key school subjects is always in demand; and amusing stories can generate online income.

Get creative and innovative
There are many options for earning money once you use your imagination. Think of ways in which your everyday possessions can be turned into income generating assets. For example, a home computer could provide internet service on the weekends in your community. A fertile backyard can be used to cultivate organic vegetables for sale to supermarkets.

The Internet is a great source for finding ideas to earn and outlets to sell your wares. Keep on the lookout for new trends, as this can help you to become a front-runner in offering new styles and fashions. You can also get sales by providing everyday products and services more conveniently or at cheaper prices to friends and colleagues.

Finally, there are some important considerations to keep in mind as you try to earn money part-time. If you already have a job, avoid time-consuming projects that may leave you overly tired or distracted. Ensure that your outside income source does not conflict with your terms of employment; if required, advise your employer about your off-the-job activities.

Copyright © 2013 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, March 28, 2013

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl