It is very common these days for individuals to start a business on the side. This is what a recent survey by The Hartford suggests.
In the survey, over 4,000 U.S. adults throughout the nation were polled. Around a quarter of these survey respondents indicated that they have a side business. This would suggest that around 57 million people here in the U.S. own and run a company on the side.
Other things that the survey results point to when it comes to side businesses are that:
- Many side business owners have full-time employment: Around half of the surveyed side business owners said they also have a full-time job.
- Extra income is a common motivation for having a side business: A little over three out of every five surveyed individuals who owned a side business said their company was financially motivated.
- Baby boomers are the top owners of side businesses: Baby boomers were found to be the owners 38 percent of side companies, more than any other generation.
- Many side businesses earn under $5,000 annually: Around 43 percent of the surveyed side business owners indicated that their business fell into this income group.
Now, certain things could put a side business owner’s goals, including financial goals, for their company at risk. Among these are unexpected events.
What can owners of side companies do to prepare for the unexpected? One is to get insurance for their business. However, the survey indicated that having their company insured is pretty rare among side business owners, with only 12 percent reporting it.
Another is to factor in the possibility of the unexpected in the legal planning for the business. There are steps that side business owners can take to try to the reduce the chances of future unexpected events leading to legal troubles for their company. When individuals are setting up a side business, they can go to skilled business law attorneys for guidance on what they can do during the start-up process to protect their overall goals for the company in the long-term.