Are you thinking about starting a side hustle? You might dream of leaving your day job to focus on it fully, or you just want to earn some more cash during your free hours. To kick off a prosperous side hustle, it is vital to set up some basic things first.
What is a side hustle and what good can it bring you?
A side hustle is a way to earn more money apart from your main job. It is good because it lets people earn extra while they also get better at other ways to earn money and work when they want to.
Having a side hustle that does well means you can earn as much as you want. With more cash, you can save up, find the best way to be free of debt, or go on that holiday you have been thinking about. While it sounds fun to start a side hustle, it is important to have a strong plan to enjoy all the good things it offers. Also, you need to start with a side hustle that suits you the best.
Steps for starting a side hustle
Finding the right side hustle to earn some extra money is just the beginning. You also need to figure out which business fits well with how you live.
Then, you have to learn how to start your side hustle the right way, following all the rules and laws. Here, we will give you all the info you need to start your side gig.
Decide the time you can dedicate
A big step in starting a side hustle is to find out how much free time you have. Ask yourself, are your evenings open or are you already too busy to even find a few hours for yourself each week?
If daily you can work on your side hustle for a few hours, then you can choose a job that asks for more of your time regularly. If not, maybe you can start something that gives you money even when you are not actively working on it after setting it up.
To know how much time you have and to choose the right side hustle, use a planner or a calendar. Put in it the things you do every day and when you do them.
Most likely you have done this before, so checking your schedule should be easy.
You might find things you did not expect. Like finding out you have free hours on Monday and Wednesday afternoons. Or you learn that you are busier than you thought and you only have time on Saturday mornings for your side hustle.
Be realistic in finding out the time slots you have free and the time you can give. Keep in mind, your side hustle should not come in the way of your main job, spending time with loved ones, or doing other important things. After this, make a plan for managing your side hustle time.
Once you know your free hours and the times you are available, you can choose the right hustle, based on if you can work actively or you need a job that earns by itself.
Pick a side hustle you enjoy
Think about what you enjoy doing. Since your main job might take a lot of your effort, it is key to find a side gig that keeps you happy for a long time. Pick something that you find easy or fun.
For instance, if you like freelance marketing, you could become a person who helps companies with social media. Choose a hustle that uses your strengths.
Let what you love to do help you
If you are not sure how to start, think about your hobbies for some ideas. Maybe you enjoy writing, baking, gardening, or tidying up. Check if any of the activities you love can become a small business that earns for you.
If you find it useful, jot down all the hobbies or likes you have in mind. Then mark the ones that can earn money or have the chance to earn, and take it from there.
Know how much you want to earn
It is one thing to want extra cash every month but how much is “a bit extra”? Think of the financial goals you have and the money required to reach them.
For instance, figure out the extra amount you need to be debt-free. Or, if you plan to buy a new car, what will it cost? Understanding the amount you wish to earn can guide you in choosing the right side hustle.
There are side gigs like filling out online surveys or walking dogs that might give you a few hundred dollars monthly.
But if your aim is to match or even beat your current earnings, opt for a side hustle that has the potential to become a full-time job.
First, pinpoint why you want to start a side hustle. Is it for a one-time payment or a steady increase in your monthly income?
If it is for a single payment, know exactly the amount needed.
If it is for a steady income boost, figure out the exact monthly amount you desire.
Knowing this will simplify picking a side hustle because you will understand what meets your income needs and what does not. It helps in deciding if the hustle will be for a short or a long period, influencing your choice.
Build a business plan for your side hustle
Before you start your side hustle, make sure you have a business plan ready. This plan will be your guide to reaching your small business goals. It is not just about having a plan; it must be a good one to attain success.
You don’t need a very long business plan. What is important is that it points out the vital steps to create a rewarding gig. Be open to altering your plan because as your ideas take shape, you might see new aspects.
By working on your business plan, you will understand better what you want for your business. It might even give rise to brand new concepts.
Detail your business plan
Begin with an executive summary that explains your business and the issue your service or product solves. Make it short and create it after outlining the main parts of your business plan.
Know who your customers will be. Identify their main characteristics and reasons they would be drawn to your business. Social media platforms like LinkedIn and Facebook might be valuable in reaching them.
Clarify the items or services you will offer and ensure they solve the problem stated in your executive summary. Think of how to price them and the sales strategy.
Your operation style is vital. It sets the foundation for the customer experience you aim to give. Ask yourself if all elements from your product packaging to your website resonate with your brand identity.
Understanding your rivals is essential. Knowing their strengths and weaknesses will help you carve out a unique space for your business. It prepares you to offer something better.
Estimate your initial costs including fees for starting up, branding, and website development. Explore funding options and decide if you need investors. Align this with your financial aims.
Plan your daily budget to keep your gig running and stick to it. Being good at budgeting is key to managing your business funds well and overseeing your costs effectively.
Forecast your earnings and profits clearly. This involves a steady revenue stream and strategies to reach potential customers. It is about adapting to what works and projecting your business gains accurately. Also, work out the exact profit on each offer and find ways to boost your profit margin.
Remember, a substantial business plan that is flexible to change forms the foundation for a prosperous gig. It guides you in handling your finances well and understanding the market, paving the way for success.
Choose a business entity
Before you launch your side gig, it’s critical to decide the legal structure of your business. This step is crucial as it will have implications on how you report income, your level of personal liability, and how you can raise capital.
Start with understanding the variety of structures available. You have options like a sole proprietorship where you are the sole owner handling all business aspects alone. This is a simple setup but comes with the downside of unlimited personal liability.
Then, there is the partnership model where you collaborate with one or more individuals to run the business. While this allows for shared responsibilities, it does require a solid agreement to prevent future disputes.
Considering an LLC might be a wise choice as it offers protection from personal liability. This implies that your personal assets stay protected in case the business incurs debts or is sued. Moreover, this model grants you the ease to operate with a management style that suits you.
You can also opt to form a corporation, stepping into a setup where the business is a distinct entity, separate from its owners. It protects you from personal liabilities but demands a stringent setup with comprehensive documentation.
Whether you choose an S corporation or a C corporation, the differentiation primarily lies in the taxation system. While delving into this, consult with a tax advisor to understand which would serve your interests the best in the long run.
So, before you step into the exciting world of side gigs, take a pause to align your business with the right legal entity. It’s like choosing a solid foundation stone for your building, ensuring stability and protection as you reach for the sky with your business dreams. Remember to get insights from an accountant to navigate the tax implications effectively and tailor it to meet your side hustle’s unique needs. This thoughtful step can save you from future troubles, guiding your path to a successful and secure business journey.
Use free resources for your side hustle
Starting your side hustle doesn’t mean you have to spend a fortune on resources and tools. Indeed, there are free resources available to help you get started and they can be your stepping stones to achieving your dreams.
A top spot to find the guidance you need is your state’s government business or taxation website. This platform offers a wealth of information on various business structures including all the pros and cons of each, helping you make an informed decision on the best fit for your business.
Similarly, the U.S. Small Business Administration website is a treasure trove of insights and guidelines, catering to your every query on how to set up and manage your business effectively.
But don’t stop there. You should always be hungry for knowledge and eager to learn. The good news is you don’t have to break the bank to fuel your learning spree.
Watch out for opportunities to hone your skills and gather fresh ideas. This could be a free course that adds value to your business or Facebook groups where like-minded entrepreneurs share insights and experiences, all without requiring you to shell out any cash.
Embrace the chance to learn freely and enhance your know-how. When you make use of these free resources, you are not just saving money; you are building a solid foundation for your side gig with a community and knowledge bank to support you. Remember, every step you take to gather knowledge empowers you to craft a side gig that is not just successful but also sustainable.
Name your business side hustle
So how do you choose a name that sticks and truly represents your venture? First, pause and ponder who your demographic is. Will the name resonate with them? Then, gauge the uniqueness of your preferred name. It should stand out in a crowd, memorable and distinct.
Next up, dive into the digital space. Check if the web domain for your chosen name is up for grabs. This step ensures your business has a home online, a crucial aspect in today’s digitally driven world.
Also, do your due diligence to avoid stepping on any toes. Ensure the name isn’t already under someone else’s trademark. A quick search can save you from legal troubles down the line.
Once you have these bases covered, it’s time to make it official. Register your business name with the relevant state authorities, and voila, your side hustle now has a name, an identity, and is ready to meet the world. Remember, your business name is not just a label; it is the cornerstone of your brand identity, so choose wisely and with foresight.
Set up a business credit
Taking the bold step to set up business credit is a wise choice for your side gig. Doing so means giving your business its own financial footprint. It stands separate from your personal credit history, shielding your personal assets and keeping them away from any business-related risks.
In the early stages, carving out a distinct credit profile for your business can seem a bit daunting. But it’s just about breaking it down into smaller tasks.
To kick things off, your business should take on a formal structure. It could be a corporation or a limited liability company. This step sets a firm boundary between you and your business. It’s a protective shield that also adds a layer of professionalism to your gig.
Next up, get your Federal Employer Identification Number or EIN. This number becomes the identifier for your business in official records, playing a role akin to your social security number.
Following this, lay the financial groundwork by opening business checking and savings accounts. It is here that the financial heartbeat of your business will pulse, recording the ebb and flow of your business finances.
As you tread this path, don’t forget to build a solid business credit profile. This could start with a business credit card earmarked solely for business expenses. Establishing a healthy cycle of borrowing and timely repayments with vendors paves the way to a robust credit profile. It’s like getting gold stars that tell the world your business is trustworthy.
Finally, uphold the virtue of punctuality. Pay your bills on time, and when possible, in full. It’s a simple yet powerful way to craft a sterling reputation in the market.
In all these steps, the key is to show consistency and reliability. It’s about telling a story of a business that stands on its own feet, that is responsible and trustworthy. So step boldly into setting up business credit, an endeavor that promises to add strength and substance to your side gig.
Fund your side hustle
Starting your side gig often means facing the hurdle of funding it. It can seem like a steep hill to climb, especially when you are standing at the foot of your entrepreneurial journey. Yet, it is a crucial step, and exploring different avenues to gather the needed funds is vital.
One of the safe routes is self-funding. It is about making a humble beginning, fueling your business with what you have saved over time. You keep control, avoid the initial burden of debts, and grow at a pace that suits you. Even with limited funds, you can take advantage of free online platforms to build a presence and gradually save to scale up.
However, there is also the option of turning to your circle of family and friends. Here, trust plays a pivotal role. It can be a smooth path with mutual understanding, characterized by low to no interest rates. But remember, clarity is king. Make sure to lay down clear terms to preserve valuable relationships.
Beyond your personal network, angel investors might come into the picture. These are individuals with a substantial net worth ready to invest in budding businesses, often seeking equity in return. While they usually prefer companies over side hustles, it’s not a closed door.
The traditional route of bank loans is ever-present, offering a way to secure substantial funds without parting with a share of your business. It demands a good credit score and comes with the responsibility of repayments with interest.
Finally, there is the vibrant world of crowdfunding, where the crowd becomes your supporter. It is a dynamic space where you showcase your idea to the world, and people chip in to see it come to life. It has its challenges, from platform fees to a considerable amount of groundwork. Yet, it remains a potent tool to kickstart your dream without falling into debt or parting with equity.
Remember, each route carries its own set of implications, be it financial or relational. It is about walking the tight rope with balance, taking informed steps, and choosing a path that aligns with your vision for your side hustle. It’s your journey, and how you fund it lays the foundation for the path ahead. It’s time to weigh your options carefully and take that decisive step forward.
Create a daily routine
Starting a side gig demands a rhythm that harmonizes with your daily life. Crafting a daily routine that accommodates both your day job and your budding business is not just important but essential.
Delineate the hours you can dedicate to your side gig. It involves scrutinizing your current schedule and identifying pockets of time that you can repurpose. Even sparing an hour daily can make a significant difference. It’s about steady progress rather than a rushed journey.
Alongside, nurturing a sense of organization stands as a pillar in your business journey. From managing your time to keeping tabs on your financial streams, staying organized will serve as your compass. Regular checks on your emails and keeping a diary to note down essential meetings and appointments should become a habit. You want to steer clear of chaos and build a space where efficiency thrives.
As you move forward, there will come a point where your side gig will demand more hands on deck. Though it might seem distant now, foreseeing a time when you might need assistance is wise. A virtual assistant could potentially lighten your load, helping you manage tasks more smoothly when the time is ripe.
So, as you stand at this juncture, ready to steer your side hustle into the vibrant sea of opportunities, remember that a well-planned schedule is your steadfast ally. It is the backbone that will hold your dreams and efforts, guiding you towards a journey characterized by growth and fulfillment. Now, it is time to carve out a schedule that resonates with your vision, a schedule that works, not against, but for you.
Conclusion on starting a side hustle
You now hold the guidebook to crafting a side hustle that stands firm. You are aware of the eminent ones out there. It is wise to commence with the groundwork that involves meticulous planning and arranging the financial backbone. Establishing your business ground rules comes next in line.
Once the groundwork is stable, bestowing a name on your side hustle follows. Here you take the decisive step of offering either a service or a product to your clientele. The side hustle universe is vast with an array of unique choices laying before you.
But wait, perhaps the suggestions above did not tickle your fancy. Do not fret. Books dedicated to guiding young entrepreneurs like you on side hustles or courses available online are your allies in this journey. They are brimming with insights and finer details to steer you in the right direction.
Now, the stage is set for you to chase those dreams and sculpt them into a grand reality. Fueled with determination and sustained efforts, building a side hustle that towers with success is not a far-fetched dream. A day might dawn where this side hustle takes the center stage, replacing your day job, becoming your mainstay. It is all within reach, with your hard work and persistence steering the ship to success. Remember, it all starts with that one step, that one brave decision to start. Let this be that moment of decision, embarking on a path lined with potential and bright prospects.
Frequently Asked Questions
Can I start a side hustle with no money?
Absolutely, venturing into a side hustle with no money in hand is very much a reality. You might find the assets needed are already in your possession. Side hustle options like dog walking or delivering food come with zero upfront costs. All you need to do is roll up your sleeves and delve into the world of business without a budget. Gather your resources, those that are free and at your fingertips, like YouTube for skills acquisition, or Canva for creating captivating graphics. Remember, as you make strides, putting aside a little saving will be a wise move to fuel future needs in your hustle.
Can I start a side hustle with no experience?
Launching a side hustle without any experience? It might seem daunting but it is doable. The key lies in choosing something that does not demand specialized knowledge or training. You could opt for house cleaning, being a pet sitter, or even partaking in surveys — simple tasks that don’t ask for a rich resume. Shun the thought that says “I lack skills”, and embrace opportunities where learning on the go is the norm.
Can I start a side hustle from scratch?
Building a side hustle from scratch feels like crafting art; it demands patience and the right strokes. Look for gigs that are easy on the pocket and don’t call for high-end equipment. You might find joy and earnings in activities like Uber driving or grocery delivery. If you are someone who wishes to invest time over money, writing e-books could be your calling. The gig world is vast, and finding your niche is about exploring the paths less trodden, coupled with the readiness to learn and adapt. Do not hesitate to seek inspiration and tips from resources that guide you on kicking off a business from the ground up.
So, as you stand on the threshold of starting a side hustle, remember it is a landscape rich with opportunities waiting to be seized. It’s about making the right choice and stepping forward with determination and optimism. It’s about starting with what you have, where you are. It’s all very possible, with the right mindset and the right hustle.