Side hustles are great, and in today’s tech savvy world it’s easier than ever to start one. I definitely love it when people pursue a side hustle. In fact, I encourage most people to try their hand at it. After all, a side hustle brings more income and financial stability to you and your family. In this article, I’ll be going over side hustles and turning them into a full-time business (if you choose to), all while maintaining a great work-life balance!
Side Hustles
I’ve said it before, I’m saying it now, and I’ll say it again – start a side hustle. There are many lucrative side hustles you can start, all it takes is the bravery to start one and the discipline to keep it going. If you’ve never started a side hustle before, but want to, it’s best to just dive in! The importance of getting started is obvious, but do your best to keep it up as long as possible – at least 6 months – so that you can actually see the results.
Another Source Of Income Can Take You Far
Hey, who doesn’t want to make more money? If you’re in a job you hate and exceptionally bitter about it, this is one of the biggest things that will help you on your ways towards a richer mentality. Since there are so many ways you can start, do some brainstorming and see what works for you. Hopefully, one day, this side hustle can be a serious source of income or it could even replace a day job. At worst, it can just help you level up your monthly investments!
To be frank, starting a side hustle is probably one of the best ways to help you hit your financial goals. Yes, budgeting, saving, and investing are all important parts, but there is only so much you can do on a limited income. Starting a side hustle helps you augment your income and take your investments to another level. Want financial freedom? Pick up a side hustle.
On top of the financial aspects, side hustles also help you learn a lot. Take this blog for example. Through the process of creating it, maintaining it, and helping it grow, I’ve learned far more than I ever thought I would. I’ve picked up extra web development skills, learned about SEO, and experienced the ins and outs of social media. Well, at the very least I’ve learned about the social media platforms I’ve been using. Additionally, I’ve even become a much better writer!
The Side Hustle Mindset
All this basically boils down to the usefulness of side hustles. However, side hustles aren’t for everyone. It can take a special mindset and work ethic to incorporate one into your daily life. If you aren’t cut out for a side hustle or business, then you don’t need to start one!
Getting Started
Starting a side hustle can be scary – a bit intimidating to most people. The good news is that it doesn’t have to be. Side hustles generally aren’t that complicated. Many people are able to come up with a good plan or strategy for starting, but they end up failing to launch. The key to starting a side hustle is just that – starting. Then, once you’ve started, it’s important to stay disciplined and keep up the hard work.
Set Goals And Expectations
Now, going into a new side hustle, you need to set a reasonable goal. Going back to the blog example, maybe you want to reach a certain number of pageviews per day or week. Perhaps you want to reach a certain word count by the end of the first year. Or, if it is a different side hustle like freelancing, maybe you want to have a specific amount of work lined up for the foreseeable future. That could include things like repeat customers and ongoing contracts.
For more general goals, you could focus on things like your desired income from the side hustle. Just remember to be realistic and to not set your expectations unreasonably high.
Brainstorm Ideas – Start With What You Know
When you start coming up with ideas for your side hustles, it’s a safe bet to stick with things you know. For example, if you’re an accountant perhaps you could provide accounting services to a market that you know needs more help. If you work in a technical field, then you could become a niche technical consultant for smaller companies. To start a blog or review site, this would be a good time to think of a bunch of article ideas you can run with.
If you’re just starting out, keep it simple. You don’t necessarily need to reinvent the wheel. Focus on something you know or can learn, and look to provide value in whatever product or service you get into.
Begin Immediately
This is going to be the hardest part, and the point where most people quit. Yes, people do quit that fast. It may take a lot of work, but immediately start going into action to get everything you need to start pursuing your side hustle. If you’re blogging, this initial phase may be the period where you set up the website and your social media accounts. If you’re doing something more akin to freelancing, this is probably where you’d create accounts on platforms that help freelancers find gigs, and potentially reach out to your connections to start finding work. For whatever you’re doing, don’t underestimate the power that word of mouth still has.
Work Hard For 30 Days
The first month can be the scariest for most people. I generally recommend people come up with a quick, basic plan and just dive in. Don’t get stuck in the planning stage. For the first 30 days you should just be focused on hard work and getting your hustle off the ground. Use word of mouth, networking events, social media, or anything else you need to get started. If your side hustle requires a significant online presence, this is also the ideal time to start building an audience on social media or to fine-tune your website. During the first month, just keep your head down and get to work!
Look Back And Learn
At the end of the first 30 days, it can pay off to take a quick inventory. Are there any glaring mistakes? Is there something you can fix or do better? How did the first month go? Have you made your first sale or profit yet? Consider the events of the past 30 days, how well you did, and what you can do to improve. After that, all that’s left is for you to keep moving forward.
Continue For At Least 5 More Months
No, you don’t necessarily need to keep going at the same pace. However, commit to continuing to work on the side hustle for another 5 months, without quitting, and you’ll start seeing real results. A lot of side hustles and businesses need at least 6-18 months to really start seeing growth, especially if it’s something you’re new to. So, continue working on it for at least 6 months in total, and then review where you are and how far you are from where you want to be.
Remember, certain things take time – most people quit just before they start seeing exponential growth, don’t let that be you. Also, if you need a good bank to start storing all of your side hustle’s earnings, check out Axos. They have arguably some of the best personal checking and savings accounts on the market right now, and their business accounts are also quite competitive.
Taking Your Side Hustle Full-Time
If you have a side hustle or budding business, I’m sure you’ve thought about what it would be like to do it full-time. Choosing a side hustle to start can be hard, getting it up and running in 30 days is even harder, but the hardest part is staying consistent. Consistency over the long haul is what will make or break your hustle. Of course, hopefully you’ll eventually be successful enough with it to be able to quit your day job and be entirely independent! When it comes time to do that, you’ll have some hard choices to make. Without further ado, let’s get into the details of when you should actually take your side hustle full-time.
Identify What You Want And Need
It’s important to know what you actually want out of your side hustle. Do you even want to take it full-time? Do you want to quit your day job? Whatever you actually want, it’s important to realize it and set the proper goals to get there.
If your long-term goal is to be completely financially free, taking your side hustle full-time might be the best choice for you. It’s crucial to weigh the pros and cons and figure out what is the best for your overall success (which is more than just how much you make). For example, you may make slightly less with your side hustle instead of your job, but you may have a far more flexible schedule. Alternatively, you may be able to make a lot more, but it will require a lot of your time. Ultimately it comes down to what you want from your side hustle and how you want to grow.
Keep Your Day Job Until You’re Almost Overwhelmed
A good rule of thumb is to keep your job until you have too much work to do both. This may give you a period where you’re putting in a lot of extra hours, but it also serves to help make the transition as easy and painless as possible. If you don’t have enough customers or work from your side hustle to give you a consistent income and workflow, you may not be ready for the switch yet. Once you start reaching the point where you only have time for one, it becomes easier to choose. This is usually the stage where your priorities will start to show or become obvious – if they weren’t already.
Start Charging More
With all of that said, obviously two full time jobs or businesses isn’t sustainable on your own. Once you reach this point you may decide you want to dial one or both back a bit, drop one completely, or outsource a lot of the day to day activities of your side hustle. Because your side hustle has consistent work and income at this stage, it gives you a lot of options and you can ultimately pick the best course for your personal goals.
For me, once my side hustles reach a full time income, I’ll probably dial back in my day job and eventually leave completely. That is just my personal preference though, as I like the freedom that comes with my own hustles and businesses, but also want to ease into it for stability’s sake.
However, to reach those levels of consistent income, you may need to start charging more once you have consistent work. This may sound counterintuitive, but it’s not as weird as it sounds. At this stage you’ll have a serious workload. You may reduce some of the workload due to clients leaving, but you should still have the same revenue or more after you increase your prices. You can then increase your prices incrementally until you’ve struck a balance between profit and time spent working.
Build Back Up Until You’re Overloaded Again
Once you have the price point really nailed down, you can start building back up to the “overloading” point. Reaching that again, with the increased prices, will make it much more apparent whether your side hustle or business is ready to be taken on as a full-time endeavor.
Do The Math – Can You Live Off Of It?
It should be relatively easy to figure out if your side hustle can make you enough to support your lifestyle. Either way I recommend having a strong emergency fund before you leave your job for good. Side hustles are great, but the income can be inconsistent from month to month, so you need to plan for the periods where you may be earning less than normal.
If, even on your low months, you make more than your day job then you are probably set and ready to go! If you’re on the lower end, and aren’t sure if you can support yourself, it may be best to see if you can ease yourself into it. It may not be possible, but see if your employer will let you work reduced hours (with pay cut proportionally).
Take Steps To Get Ready
It’s always possible you’ll realize you’re just not ready to take your side hustle full-time. In that case, adjust your work schedule to something you can sustain. On top of that, take the time to start brainstorming how you can get to a point where your side hustle is enough to support you. You make just need to keep growing and finding consistent customers or create more content for your audience. However, you may be able to increase your profit margins and grow that way.
Whatever works best for you is the way to go. Remember to not limit yourself. A six figure income is attainable by anyone who develops the right skills and has the work ethic for it. Just don’t hold yourself back from success!
Choosing To Go Full-Time
If you’re reading this article, you probably want to be financially free and no longer need to work a 9-to-5. That’s great! However, don’t jump ship before you’re ready. It can be easy to rush things before you’re prepared, but patience is incredibly rewarding.
At the end of the day, you need to do what’s best for your success and happiness. Meeting your financial goals is obviously important, and I write tons of articles on making more money or investing more to watch your money grow exponentially. However, it’s just as important to factor in your own personal satisfaction and joy. If you would hate doing your side hustle full-time, you don’t need to take it full-time at all. Sometimes it’s perfectly fine to pull back from your side hustle or business to focus more on your day job or to spend more time with family!
Starting A Business
At some point in our life, all of us have considering starting our own business. However, those who followed through are in the minority. Perhaps it was a lack of information, funding, or experience that stopped you from starting your business. Whatever the reasons may have been, there is no reason you can’t learn how to start one now. These days it is easier than ever to start a successful business.
Starting From Scratch Vs From A Side Hustle
Starting a business is a lot harder when you’re doing it from scratch. That’s not necessarily a serious deterrent, however if you have the chance it can be easier to start it through a side hustle. A side hustle can provide a useful segue into a business, so you don’t overload yourself with work too quickly.
Do Your Research
The first thing you’ll want to do when you have an idea for a business or a side hustle is some research. Specifically, you’ll want to look at the market data and the details you can find about the logistics of it. This way you’ll start to learn the ins and outs of the industry and what you’ll need to do to get the business off the ground. More than that, you’ll know what is normal in the market. That’s good for letting you know how to be competitive. You may see holes that people aren’t filling, which you can. Additionally, it will help you with your pricing and expectations overall.
The one thing to avoid is getting too caught up in the research. It’s easy to do, but remember that you have to start at some point. Push yourself to gather the information and analyze it as fast as (reasonably) possible.
Write A Business Plan
Once you have the basic research out of the way, it’s time to write up a business plan. Make it detailed, and try to encompass every significant part of your business. This includes things like general pricing strategies, customer acquisition, and so on. This will help you by giving you something that can work as a guideline. Instead of winging it, you’ll have something you can follow to keep you on the right track. As new information comes in, or the market shifts, be willing to adjust your business plan accordingly though.
Find Funding, If Necessary
There are a lot of options for funding. You can practice your elevator speech and shoot for an investor, or you can request a loan from a bank. Just do your research and make sure with whatever you do that you’ll be happy with it in the long run. However, I think people overemphasize the need to find funding. There are many businesses and side hustles that require little or no money to start up.
If your business needs a substantial amount of money, try to get creative with it. You may be able to fund it yourself, or you can find a partner to split it with – a partner who will also help with the workload. Just don’t sell yourself short here!
Pick A Location – If It Matters
Now, I know that many modern business ideas can be almost completely remote. Often, the location where you base your business doesn’t matter much – outside of taxes. However, there are many different businesses where location still matters a lot.
Let’s take stores and restaurants as an example. If you go through the effort of starting a shop, or a nice restaurant, but do it in the wrong location, then you’ll be done before you even started. When your location impacts your company’s success or failure, make sure you put in the proper thought and consideration for it.
Define Your Legal Structure
The next step is determining the legal structure for your business. That will be based on how you want to handle your taxes as well as how much liability you’ll want to take on personally. If your business is something where you can get sued, limiting your personal liability can be crucial. The main ones to consider are:
- Sole proprietorship
- Partnership
- LLC
- Corporations
- S Corporations
For most people reading this article, sole proprietorships and LLCs are likely the most common and suitable structure for your business. Of course, before you decide, be sure to do your own research or hire a consultant.
A Name Matters
It pays to pick a great name for your business. Like location, this can be really important. Depending on what you do, a simple and straightforward name (that describes what the business is) will be perfectly fine. For those with businesses that require strong marketing, like many business to consumer operations, that may not be enough. Try to brainstorm and see if you can come up with something that is catchy, but also gives the customer a good idea of what your business does.
Remember To Follow Laws And Regulations
Now, as you start your business it is important to follow all federal and state regulations for its operation. This varies a mind-boggling amount between niches and types of businesses, so you’ll need to do more research here. There are many states and agencies you can contact for more information regarding local guidelines and requirements. In fact, your state likely has an online resource with a checklist or document to help you through the whole process.
If you find that you can’t figure it out on your own, or there are abnormal and complex requirements, don’t hesitate to hire someone who can help.
Additional Licenses
With the federal laws and regulations, just remember to do your due diligence. Depending on your niche, there may be additional licenses required of you. Make sure you get them and have all your paperwork done properly before you begin operations. You don’t want to start a business and then get crushed under a massive legal battle!
Open A Business Account
Make sure you open a business account with a bank that suits your needs. For personal as well as business use, I’ve always enjoyed Axos – as I mentioned earlier. Its business accounts are useful and incredibly competitive. However, they’re more suited for supporting online businesses. If you run a store or restaurant – or have physical locations that require a lot of payment processing – you may have better alternatives for your needs.
Do your research, find a good bank, and get it set up. It’s not a complicated process, but don’t forget about it and rush to do it at the last second. Just find what will suit your needs and run with it!
Recruit Using ZipRecruiter
If you need to find and hire employees, then ZipRecruiter is certainly one of the best options for you. It’s a job board than can help you find good, qualified candidates fast. Approximately 80% of employers who post a job on their platform will get a quality candidate through the site within the first day. So, don’t hesitate to try it out. The pricing is pretty competitive too. For more details, follow the link and see everything that ZipRecruiter can provide employers!
Prepare For The Risks
Whenever you start a business, there will be risks. Make sure that the type of business you start has risks that you’re comfortable with and can manage. To minimize risks, you can start small with a side hustle before you turn it into a business, or you can change the niche to something that has fewer of the risks you’re trying to avoid. With that being said, don’t be so scared of risks that you’re not willing to take any. When you do that, you’ll just get stuck in place and never start.
Decide If You Need Insurance
One final thing to check off the list is insurance. This comes with risk mitigation, and varies wildly. Some businesses need a lot of coverage, while many don’t. Consider your niche, industry, and the risks you’ll struggle with. Get the insurance that meets your needs and minimizes the risks you’re most concerned about. A slightly lower profit margin (as long as you’re still profitable) may be worth the extra peace of mind.
Your Work-Life Balance Is A Top Priority
Your personal finances are important. Making money is important. However, remember what you’re working so hard for. It’s crucial to find the right work-life balance for yourself, so don’t beat yourself up if you find yourself needing to reprioritize.
Make Boundaries
I think most people acknowledge that boundaries need to be made, but many have a hard time setting them and sticking to them. Have a conversation with your business or accountability partners about it if you need to, but make sure you identify some boundaries and rules you want to set, then stick to them. It’s invaluable for some hard boundaries to be set – in any work environment.
Schedule Some Time For R&R
Obviously, if you spend too much energy on just work, then you may end up feeling unfulfilled or miserable. Burning out is a real ordeal, and one that can be avoided by minimizing your workload coupled with the management of stress that can complicate your life. Remember, if you end up burning out, you can set yourself back. If you learn to manage your priorities and balance it with time for rest and relaxation, that can help you get ahead. Obviously, we all want to work hard, but it’s also understandable to pursue other interests and have a break every now and then.
Find Time For Your Passions
Passion can be a good thing, even great at times, but choosing a long-term profession just because of it is dangerous and irresponsible. With that being said, it is incredibly important to incorporate your passions into your lifestyle to a certain extent. Nobody wants to work and hustle all day with no room to pursue things that really drive them and bring them joy – that’ll only lead to burnout in the near future.
Family Time Is Irreplaceable
At the end of the day, life is a bit of a balancing act. We can never have all the answers, and focusing too hard on any one thing can be a bit too much to handle for any individual. You need to strike the right balance between work and play, especially regarding things like spending time with your friends and family. Let’s face it, you’re far more likely to regret not spending enough time with your family than you are to regret not making the “right” amount of money!
Conclusion
Overall, just make sure you’re not obsessing over money to the point where you forget the important parts of life. Take advantage of side hustles, but do your best to use that money you make to further your own goals and the parts of life that truly matter to you.
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