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Innovative Side Business Ideas to Boost Your Income & Opportunities for Input Tax Credit

John Paul

Have you ever dreamt of savouring financial independence by establishing a prosperous, profitable enterprise? If yes, this article is for you. We will explore a series of achievable side business ideas that can supplement your income and broaden your financial landscape. Plus, do not miss out on the section discussing input tax credit – a must-know for every budding and seasoned entrepreneur.

Side Business Ideas to Boost Your Income

Freelance Writing

Is your command of language your strength? Use this asset to your advantage! With the immense growth of digital marketing platforms, demand for content creators is surging. Freelance writing can be done from the comfort of your home and has flexible hours, making it one of the most convenient business ideas. Content ranges from blog posts and articles to social media content and marketing copy, offering a wide array of opportunities.

Example: You can start by writing articles for small blogs and websites, and as you gain experience, you could move on to higher-paying clients and larger projects, such as eBooks and whitepapers.

Dropshipping

In eCommerce, dropshipping has become popular due to its low start-up cost and nominal risk. You need to operate as a mediator between the customer and supplier without physically acquiring any inventory. This business thrives on marketing strategies and the ability to offer unique products to lure potential customers. 

Example: Create an online store on platforms like Shopify, and partner with suppliers who will ship products directly to your customers. Focus on a niche market, such as eco-friendly products or tech gadgets, to differentiate yourself from competitors.

Personal Fitness Training

Health and wellness are becoming a priority; hence personal fitness training has picked up immense traction. If you are a fitness enthusiast and have considerable expertise in this domain, you can draw health routines, offer online training, or conduct sessions at your client’s home.

Example: Offer personalised workout plans and virtual training sessions via Zoom or other online platforms. You could also create fitness content for social media to attract a wider audience.

Catering Services

Do you love cooking? Flourish your culinary skills into a successful catering business. Begin by catering small house parties or local events, gradually upgrading to larger ones. This is an excellent business idea, especially if you enjoy working in a dynamic and creative environment.

Example: Start by offering catering for small gatherings, such as birthdays and family get-togethers. As you build your reputation, you can expand to corporate events and weddings, offering a variety of menus and special dietary options.

Airbnb Property Management

With the rise of Airbnb, not everyone has the time or the skill set required to manage their properties. This gap births an excellent opportunity for a side business. Offering Airbnb property management services can bring lucrative income, especially if you have good organisational and networking skills.

Example: Manage properties for homeowners by handling bookings, check-ins, and cleanings. You could also offer additional services such as interior decorating and marketing to enhance the property’s appeal.

Tutoring

The education industry is always on the rise. If you hold expertise in a particular academic area, tutoring can be your go-to business idea without heavy capital investment. With the scope of online teaching, your geographical restrictions also get eliminated.

Example: Offer online tutoring services in subjects like mathematics, science, or languages. You can use platforms such as Zoom or Skype and create a website to market your services and attract students.

Navigating Input Tax Credits

While discussing lucrative business ideas, it is imperative to also explore the financial aspect of operations, including input tax credit (ITC). For entrepreneurs, understanding the nuances of ITC can help optimise cash flows and reduce the cost of operations.

An input tax credit is a provision under the Goods and Services Tax (GST) law that allows businesses to reduce their tax liability. Here’s how it works: Suppose you are a business that pays GST on inputs, i.e., the raw materials or services required for your business. The GST law permits you to claim a credit for this tax paid, which can be offset against your GST liability.

Example: If you run a catering service, GST paid on raw materials like vegetables, meat, and spices comes under input tax. When you sell your services, GST is incurred on the total price. You can then adjust the input tax paid (on raw materials) against this output tax.

Benefits of Understanding and Leveraging ITC:

  • Increased Working Capital: By claiming ITC, businesses can improve their cash flow, as less money is tied up in tax payments.
  • Reduced Tax Liability: ITC reduces the overall tax liability, thereby lowering the indirect tax burden on the business.
  • Compliance and Savings: Proper understanding and utilisation of ITC ensure compliance with GST regulations and can lead to significant savings.

Compliance Requirements for Claiming ITC:

  • Accurate Tax Invoices: Ensure that all invoices are accurate and complete, reflecting the correct GST amounts.
  • Timely Filing: Regularly file your GST returns on time to avoid penalties and interest.
  • Valid GST Registration: Maintain a valid GST registration to be eligible for claiming ITC.

Conclusion

The world is teeming with business opportunities if you know where to look. Whether you seek additional income, financial freedom, or a chance to explore your passions, consider diving into one of these business ideas. Knowledge about input tax credits will keep you financially savvy and ahead in your entrepreneurial journey.