In almost every meeting I have today, clients often ask for me for ideas about stopping the job they hate (even though it is paying them) and trying to figure out how to start that side business or hustle that fires them up to get out of bed every day. When reality sets in, most people realize they can’t quit the job they have today. However, getting multiple streams of revenue are one of the keys to increasing your chances for massive financial success whether that is rental real estate, passive investments, a business, or even your own little side hustle. So, here are five money tips for when you decide to turn that extra burst of energy into a money-making venture.
Make Sure You Have A One Page Business Plan
- How much do you need to start the business?
- How will it make money?
Remember, when you start this side hustle you don’t some 27-page business plan that you can present to a set of potential investors. Instead, make sure you have whatever capital on hand (if needed at all) to get the side business up and going and be clear about how your revenue will be profitable. Some people start up a side hustle that really just turns into hustling for nothing because whatever revenue you make turns into a lack of profit.
Make Sure You Value What An Hour Of Your Time Is Worth
- Have you ever considered what one hour of your time is worth?
- You can spend money, or you can spend time
It’s going to take hours of hustle to get that side business up and going. If the side hustle is about getting an outlet away from your day job, then don’t worry about your hourly rate or how much time you are spending on this because it isn’t all about money. But, if you want to make this a profitable part of your financial picture then think about your hourly rate at work right now to consider whether you are investing time or spending time.
Separate Your Business and Personal Expenses
- Get a business bank account
- Get a business credit card
I’ve stressed this to clients over the years, but you have to make a clean and distinct separation of church and state. Even if this business is going to make $10,000 or $20,000 a year, don’t blend the business in with your personal finances. It isn’t good for the short term, and if you have some success in the business it most certainly won’t help you to double work to fix bookkeeping problems down the road.
What Is Your Competition?
- Will you have a website?
- Did someone else have this side hustle down the street?
Outside of the world of the many multi-level marketing programs that are out there today, take a look both physically and on the internet to make sure there isn’t someone else in your backyard competing with the same side hustle. If you plan to sell antiques or do a side cleaning business, take stock of who your competition is so you can know where to price your services and products. You should also look at something like WordPress to set up a clean simple website as this will be the quickest way to drive business. Consider something mobile friendly and one that has a landing page, so you can capture leads from people who come to your site.
Get A Sounding Board
- This can be an existing professional advisor (like TedJ)
- This could be a family member or a co-worker
You may not know everything about the side hustle you just decided to start up. There may be a LinkedIn or a Facebook group to share and swap ideas or consider getting an advisor who you can bounce ideas off of when you start up a business.
If you want to set up a time to discuss starting a side hustle, please go to oXYGen Financial to set up an appointment.