Nearly 40% of Americans now have a “side hustle” or outside source of income beyond their day job.
Why is a side hustle so appealing? Many benefits come with starting a business on the side. It is not only the flexibility that comes with being your own boss, but it can become a great source of income.
Many people have passions and ideas that can turn into their side hustle, but few people act on them. It may be because they do not know how to start, they lack confidence, or they are not committed to the business.
Here are some strategies and tips to get your side hustle off the ground and running:
How To Fund Your Side Hustle
Depending on your ideas, some side hustles will cost more than others. Regardless, the number one reason why new businesses fail is the lack of adequate funding. Since most people starting a side hustle are also working full-time jobs, it can be hard to take off work and dedicate time. Unless you have initial funding, many people have difficulty fully committing to their side hustle. Here are some ways to get started:
Start investing right now. Estimate how much money you need to get your business started. Next, start regularly investing a fixed percentage of your paycheck to eventually use toward your side gig. Another way to invest your money is by leveraging your cash back. If you are earning cash back on your credit cards each month, start investing that money instead. When you are ready to start your hustle you will be shocked by your investing results.
Apply for a loan or grant. In most cases, small businesses are eligible to receive capital loans from government programs. There are various types of loans and grants that you can look into. However, using a loan can be risky when starting a side hustle. Never borrow more than you can pay back, in case your business fails to take off.
Understanding funding does not come overnight. For some, it takes years to get funding for their side hustle. Create a financial plan and focus on your goal. It is essential to stay patient and understand that it will take a while to start noticing profit.
Early Stages of a Small Business
The first question you ask yourself before becoming an entrepreneur is, are you offering something customers need and want? Find the types of customers you are targeting and offer them your product or service for free. For example, if you are starting a coaching business, offer a free session to someone. There is a good chance if they are not interested for free, they definitely would not pay for it. Once you find your niche and know you will have potential customers, you can then start the creative process.
The Importance of Marketing
Now that you have started your side hustle, how will people know your business exists? It is necessary that you create a marketing plan, to ensure your product or service is out there. To build brand awareness for your small business you need to make connections and gain trust from your customers. If you are lacking funding for marketing, take advantage of owned and earned media.
Creating a website and connecting on social media platforms is a beneficial and cost-effective way to reach customers. To get your brand out there ask influencers to test out your product or service and promote it for you, sometimes they will do it for free! Try to figure out what will work best for your hustle and stick to your plan.
Avoiding Letting Setbacks Stop You
In the early stages of your side hustle, most people start strong. Unfortunately, they soon discover it is a long process before you see results. Once you start facing setbacks, they may seem impossible to overcome and you want to give up. It may seem unattainable to come back from these challenges, especially when you are doing it alone.
Although, when you have people that are dependent on your side hustle it can motivate you. Try to find a partner or a small team to help you start up your side hustle. When it comes time to face these inevitable challenges you will be able to encourage one another and ensure the business stays on track.
Understand That It Will Be a Major Time Commitment.
One of the biggest reasons side hustles fail is that people do not understand the time that goes into starting your own business. If you are starting your side hustle and also working another job it is crucial to manage time if you want the business to take off. When people do not dedicate time to starting up their side hustle they will quickly lose passion and interest. A great way to stay focused is planning out the number of hours you will spend each week on your side hustle and holding yourself accountable.
If you are unsure whether or not you want to start your side hustle, this is your sign! It can be a great opportunity to earn extra income, learn a new skill, and commit to a life-long passion. These strategies will help you begin your plan of action and allow you to start your side hustle journey. What are you waiting for?
To grow your business with GenTech Marketing, contact us today!