Side hustles are great money-making opportunities. However, starting a side hustle is a hectic process. Also, a side hustle may be a money trap if you lack commitment. It takes confidence, commitment, and smart decisions to start a side hustle and reap substantial benefits.
This article walks you through the process of starting a side hustle and provides expert tips on choosing the best side hustle and turning it into a profitable venture.
Steps to Start a Side Hustle
Research your options
The first step to start a side hustle is to research your options. Research provides valuable insights into the industry trends. When conducting research, you’ll need to identify existing products/services and determine what you can change. This helps you decide which side hustle ideas fit your budget, skills, passions, and skills.
Conducting the research also lets you figure out how saturated the area you desire to invest in. If the market is oversaturated, consider switching to other options with high-income potential. There are multiple ways to conduct your research. One way is to interview your target customers. Once you’ve conducted your interviews, you must analyze the information carefully. This helps you understand trends based on the customer’s needs, preferences, and habits.
You can also use Google and YouTube to locate free videos, books, and articles for your side hustle ideas. However, you’ll need to look for resources offering expert tips. As you consider your options, avoid side hustle gigs that promise untold profits.
Pick the option that aligns with your passions and interests
Before putting any effort or money into a side hustle, you’ll first need to choose the gig that aligns with your interests and passions. Since your full-time work takes most of your work and energy, finding a side business that is fun is essential. Pick something that you enjoy doing.
Avoid things that are less enjoyable to you, even though you have the necessary skills. If you’re good at graphic design but don’t enjoy it, starting a side gig as a graphic designer isn’t the right option.
Your hobbies are a good starting point if you don’t know where to start. Write down your hobbies and anything you are good at. Then, pick the hobby or idea with the highest income potential. Once you have selected the most interesting idea, it’s time to focus on how to get started.
Determine your schedule
Side hustles are often undertaken alongside full-time jobs. You’ll need to create a balance between your main job and the side hustle. Determine how much time you want to commit to the side gig. Look at your schedule for days and find how much free time you have.
Perhaps you’ll find you have a couple of free hours in the afternoons and evenings. Or you’ll find that you devote much time to watching TV or scrolling social media. The free time can be devoted to your side hustle.
As you determine how much time to commit to the side hustle, it is important to prioritize rest. Apparently, side hustles take a lot of effort and energy. Experts report that engaging in side hustle immediately after completing the main job can lead to burnout. Your goal is to have a money-making side while keeping your main job. Thus, you’ll need to set aside time for rest between your full-time job and the side hustle.
Set your earning goals
When starting your side business, it is important to determine how much income you want to earn. After all, the main goal you’re starting a side hustle is to make extra cash. But you don’t want to engage in something with low return. A side hustle that earns you only $50 per month may not be worth the sacrifice and commitment.
Formulating earning goals is essential in setting your side hustle up for long-term success. The goals also give you motivation to see your side business succeed. You’ll use the set goals to determine if the side hustle is succeeding. The earning goals serve as benchmarks to discover areas of improvement and make adjustments to your strategy.
Start by researching the average earnings for your chosen side business. Once you’ve determined the average earnings by industry, you’ll need to set realistic earning goals based on the time and effort you’re committing. You’ll need to be realistic and specific when setting goals. If you’re trying freelance writing or graphic design for the first time, you’re unlikely to earn $2,000. Aim to increase your earnings as your experience and client lists grow.
Create a plan
Once you have your earning goals, you need to create a winning plan. The plan gives you the roadmap for starting and managing your side hustle. Your plan is also a great tool to get funding for the new business. Here are different elements you’ll need to prioritize when creating your plan.
Description of the side business
Start off your plan by providing detailed information about your chosen side hustle. Write down the name of your business and what services or products you’ll offer. You’ll also need to outline the problems you aim to solve.
Define the target customers
The plan must detail your target customers and a clear plan on how to build the business around those customers. Researching your target market is important. The research reveals how existing competitors are doing and any gaps you can exploit to build your business. Look for things you can do better than your competitors.
Describe your product or service
In this part, you’ll describe the products or services you plan to offer in details. You should explain how your service or product works and how it benefits the customers. Document the pricing model for your product or service.
Identify your start-up costs
The key to starting a successful side hustle is good preparation. Before you launch the side hustle, you need to determine how much it will cost. List all the expenses, including office space, utilities, licenses and permits, equipment, inventory, and advertising. Understanding the start-up costs helps you launch the side hustle successfully and identify when you’ll breakeven.
Document your marketing and sales plan
Any business requires a marketing strategy. In this section, you’ll outline ways to attract and retain customers. If you’re planning to be a freelance writer, you must create a profile showcasing your skills to potential customers. Utilize word of mouth, social media, or paid advertisements to spread the word.
Get funding for your side hustle
The next step after creating a plan is to get the funding needed to start and grow your side business. There are myriad ways to secure funding for your side hustle based on the initial investment requirements. If your side hustle has a low initial investment requirement, your first resort should be personal savings and loans from family and friends.
You may consider bank loans, crowdfunding, venture capital, and grants for side hustles with high investment requirements. When securing your funding, you must approach the whole process carefully and ensure you’re working with legitimate funders.
Ensure compliance with law
Many people start side hustles without full compliance with the law. But don’t let legal problems wreck your lucrative side hustle. You’ll need to obtain a license and permit for your side hustle. And if your business has a high earning potential, you’ll need to register it and file taxes.
Make It Happen
Now that you have everything ready, it’s time to start your side hustle. Remember, building trust with your customers is vital to a successful business. Be respectful and open to your customers. And always deliver high-quality work. Building trust with customers helps you establish long-term relationships and get referrals.
