How to Start a Side Hustle in 7 Steps
Investing in your career is the smartest financial decision you will ever make. Why? Because it has a lasting effect on your earning power. And investing in your career can mean creating additional or multiple sources of income. A part-time job can be the first step to significantly increasing your wealth: part-time jobs give you the opportunity to learn new skills and explore new career paths while also building an additional source of income.
I talk about starting my business in my new book, Clever Girl Finance Choosing Success: Overcoming adversity, breaking out of comfort zones, realizing life and money dreams (opens in new tab). The steps I am sharing with you were crucial in the early stages of building my business, which I started in 2015. As you read, you’ll find that “breaking out of your comfort zone” is a key theme in starting a side hustle because it means adopting entirely new work habits and ways of thinking that differ from a traditional full-time job.
If you want to start a part-time job, it’s certainly possible. But getting your new side hustle off the ground can be challenging. If you’re having trouble getting your side hustle off the ground, follow the steps below. With the right framework, your new business could boom faster than you think.
Step 1: Evaluate your options
When starting a side hustle, it’s important to find one that matches your interests and availability. Otherwise, you could face serious hurdles trying to get the deal off the ground.
Be realistic about the time you have for a part-time job. Look for gaps in your schedule and ask yourself when you will have the time to make that dream come true. Some jobs are more flexible than others. For example, the graphic design can be done remotely at any time and within deadlines. But a marketing consulting job might require some face-to-face meetings and conference calls during the traditional 9-to-5 work cycle.
Beyond your time constraints, find a side hustle that excites you. If you are not interested in any aspect of the business, you are less likely to invest time. For example, if you don’t like the inner workings of the human body, then building a medical writing business, no matter how lucrative, is probably not a good fit.
Step 2: Create a business plan
Once you have an idea for your part-time job, it’s time to create a business plan. A business plan serves as a guide to your goals. Before you shy away from writing this document, remember that it doesn’t have to be very long. Even just writing down realistic goals for your business is a good start. If you really want to get your feet wet, research your competition, visualize prospects, and choose an operating model that works for your goals. Also, make sure to specify your first products or services.
Step 3: Explore the business entity options
Before you start selling your product or service, pause to determine the correct business unit structure. Without the right legal form, you miss out on legal protection and tax advantages.
The main options are: a sole proprietorship; Partnership; Limited Liability Company (LLC); or corporation. Each offers a different level of legal protection and has different tax implications. A sole proprietorship offers the least personal liability protection, but is inexpensive to start. Corporations offer their owners the greatest legal protection. But the set-up costs and ongoing legal administration costs are higher for corporations. As a business owner, you need to decide what balance of legal protection and costs is right for you.
Step 4: Take advantage of free resources
When you start your side job, learning is the name of the game. Knowledge really is power when you embark on this journey. The good news is that there are tons of free resources out there for side-hustlers. With the help of the internet, you can find out about almost every topic under the sun, e.g. B. how to start a clothing line, a podcast or a grocery store. Take this opportunity! Whether you want to learn new skills or understand the basics of business structure, look for free resources right at your fingertips, including blogs, podcasts, and YouTube channels. There are also free online courses, webinars, and full-day conferences on specific topics. Look at learning-oriented platforms such as general assembly, the SBA (Small Business Administration) Learning Centerand Fiverr blog (opens in new tab).
Step 5: Find funding
Whatever side hustle you build, you’ll likely need some funding to get started. In some cases, you only need a few hundred dollars to get some basics like a website rolling. But other side hustles, especially those involving property, materials, and equipment, can be more cash-intensive.
Self-financing is the first option to consider. If you can avoid debt, your business will benefit. Consider setting aside some of your regular income to build your part-time job.
But self-financing isn’t the only option. Crowdfunding is a useful way to get the funds you need while testing a product idea. You can also raise money from family, friends, and angel investors. Or you decide to take out a bank loan. But that too comes with risks. Some of the risks to consider when hiring friends and family and/or angel investors include:
- Depending on how much money you raise, you may have to give up a significant portion of ownership and even controlling interest in the company.
- When things don’t work out, you risk strained relationships with your friends and family and/or investors.
The right financing option depends on the side hustle you choose.
Step 6: Set a schedule
A realistic schedule is key to building a side job. Without a set schedule, finding time for your new venture will be difficult.
Start by determining how much time you can realistically devote to your part-time job. In addition to your daily work, you have to think about your other responsibilities like caring for a family, a pet, a household and most importantly your own wellness and health programs, be it cooking for yourself or exercising. Find out what will work for you. For example, you may find that you can only devote time to your side hustle in the evenings or on weekends. Or you might decide to buy new time by getting up earlier each day.
Try to be realistic about the time you have in your week. If there isn’t room for your side hustle right now, think about what you could cut from your existing commitments to make room. But do not forget the importance of having a private life and hobbies. Once you have an idea of the number of hours you can work, use a calendar to plan your days. If you have a date marked on your calendar to work on your part-time job, it will be easier to stick to the schedule.
Step 7: Stick to the side hustle
When you start a business, it can take some time to get going. Although everyone wants to be successful overnight, it’s not always feasible. Don’t give up your part-time job too quickly! Set realistic expectations for benchmarks you’ll need to hit on your journey to dream big.
For example, let’s say you are starting a service-based business. You could set a goal of getting a customer in your first month. Of course you have plans to keep growing. But ticking off smaller goals along the way can help you stay motivated.
Side hustle ideas to get you started
The amazing thing about side hustles is the sheer number of options. You can turn almost any interest under the sun into your side hustle.
It is best to combine a personal passion with your best and current skills. Some popular side hustles are:
- dog walk
- babysitting
- Freelance Writing
- web design
- advisory
- Hosts on Airbnb
- Deliver groceries with Instacart
- cleaning of houses
But less common side hustles can still be lucrative. For example, as a side hustle, you could sell jewelry on Etsy, teach English, or give music lessons. Take some time to brainstorm and pick one that will pique your interest while you work to get it off the ground.
The final result
The steps above serve as a great framework to build your side hustle. But you also need the right mindset to stick with your plan. If you need inspiration on how to chart a new course and start your own business, be sure to use these essential tips.