Are you itching to turn your passion into a successful business? Whether you're dreaming of launching a new tech service, becoming a handy person for hire, or even starting a catering company, the journey from starting a side business to a full-fledged practice can be incredibly rewarding.
Taking your business to the next level can be daunting, but there are plenty of avenues for new entrepreneurs to achieve their dreams. Let’s break down some helpful steps on how to start a side hustle.
Identifying your side hustle
The best place to start a new business is coming up with what you can offer. You can start by asking yourself some critical questions like what are you passionate about? What skills do you possess that others might find valuable?
If you enjoy working outdoors and have a knack for landscaping, a side hustle in lawn care might be a great fit. Similarly, if you love cooking, catering could be a lucrative practice. Whatever your business venture is, make sure you pick something you enjoy but also offer something unique to that industry.
Once you’ve identified potential side hustles, it’s time to dive into market research. Figuring out your target audience will help you produce a business plan. Research local competitors and see what they charge, what they offer, and what they lack. This information will aid with understanding market demand and finding opportunities to differentiate yourself.
Examples of successful side hustles
Since the pandemic, many Americans have turned to a side hustle business or freelance opportunity to make extra income. Some of the most popular jobs for new entrepreneurs are:
- Mobile car detailing: If you’re meticulous and enjoy working outdoors, car detailing could be a successful avenue for you. These services provide vehicle cleaning directly to the customer’s location. With a growing trend towards convenience, mobile detailing is a booming business that lends a necessary service to drivers nationwide.
- Pet sitting and dog walking: Need flexible hours? Providing a dog walking service for your neighborhood can be a worthwhile side hustle while making your own schedule. You can also transfer this service into pet sitting, providing at-home care for pet owners who have business trips or vacation plans.
- Handyman services: From fixing leaky faucets to assembling furniture, handy people are always in demand. Though this side hustle requires a certain skillset, flexible hours and good money make this an excellent side hustle.
- Catering: Perfect for those who love cooking and entertaining. A catering business is a lucrative opportunity for those with organizational skills and food experience.
- Landscaping: From mowing lawns to creating beautiful garden designs, landscaping is a popular side hustle. A premier landscaper likes working outdoors and having a flexible work schedule.
Setting clear goals
Now that you have picked the industry you’d like to enter, it’s time to set clear, obtainable goals for your side hustle. Start by distinguishing between your short-term and long-term goals.
Short-term goals might include gaining your first customers or setting up a website. Long-term goals could be expanding your service area or increasing your revenue. These milestones help keep your side hustle on track and growing.
SMART goals
SMART is a business acronym for specific, measurable, achievable, relevant, and time bound. Breaking down your goals into these five categories can help you find direction and set achievable intentions for your new business. These five categories are:
- Specific: Clearly define what you want to achieve. For instance, making a social media page, gaining your first customers, or creating marketing tools.
- Measurable: Track your progress and plan for further growth. State how many customers or new clients you want in the next month or year to help find an achievable trajectory.
- Achievable: Set realistic goals. Look at market demand for your business and see what other competitors are achieving or making in revenue.
- Relevant: Ensure your goals align with your overall business objectives. Define what your ultimate goal is for your business to ensure it connects with your other objectives.
- Time-bound: Set workable deadlines. For many, operating a small business means becoming your own boss, but don’t let that stop you from creating a schedule. Put forth deadlines for your goals to make sure you’re fulfilling your monetary and entrepreneurial wishes.
Time management and work-life balance
If you have a full-time job, balancing your new side hustle can be challenging. Create a schedule that allows you to dedicate specific hours to your side hustle without overwhelming yourself. Try scheduling clients during evenings or weekends to ensure you’re not burning yourself out.
To curb unnecessary stress, prioritize your side hustle’s tasks based on their urgency and importance. Use tools like to-do lists or project management apps to keep track. Remember, burnout is a real risk when juggling multiple responsibilities, so make time for rest and relaxation to maintain a healthy work-life balance.
Building your brand
Your brand is more than just a logo—it is your business's identity. What makes your service unique? Maybe your mobile detailing service uses eco-friendly products, or your catering business specializes in organic ingredients. Highlight these unique aspects to attract and retain customers.
Consistency in branding and service quality is key. In the age of social media, ensure your branding materials, from your personal website to Instagram page, reflect your brand's personality. Deliver high-quality service consistently to build a strong reputation and earn loyal customers.
Financial planning and management
Creating a budget will help you manage expenses and track profitability. Include costs for materials, marketing, transportation, and any other expenses related to your side hustle. Mapping out your financial needs will help you better understand your expenses and ensure your customers are paying the right price for your services.
To manage your finances, keep a virtual or written record of your income and expenses. This will help you understand your financial situation and prepare for tax season. Utilize accounting software or apps to simplify this process.
Ensuring proper insurance
Insurance is a crucial aspect of financial planning. For side hustles that need a vehicle like mobile detailing, handyman services, or pet care, commercial auto insurance can cover damages to your car and can help pay for broken equipment.
Insurance companies that have auto insurance policies can typically provide coverage for landscaping vehicles, delivery trucks, and cargo van for business purposes. If you’re using your own vehicle to make deliveries or drive to and from various job sites, you’ll want to have commercial auto insurance to help prevent financial issues in the event of a covered accident.
Scaling up your side hustle
If you’ve gotten your side hustle off the ground, you might want to consider scaling up. Scaling up is the practice of investing in your business when you’re generating more money and have a steady stream of clients. This can look like increasing or improving your work site, investing in better equipment, or expanding your team.
As your side hustle grows, you might need additional help. Decide whether to hire freelancers, part-time, or full-time employees based on your needs and budget. Each option has its benefits and considerations, so choose what aligns best with your business goals.
Transitioning to a full-time business
You’re working both your side hustle and regular job, but you’ve realized that your entrepreneurial work is taking off. You’ll first want to evaluate your side hustle’s performance to decide if it's time to transition to a full-time business. These factors could include consistent profits, steady client base, and your personal readiness.
Ensure you have financial stability before making the leap from your standard job to your start-up. This might involve putting away savings or seeking funding options. There are various government resources that entrepreneurs can investigate for further funding. Assess your financial situation carefully and plan for any additional costs that could be associated with running a business as your main job.
Transitioning to a full-time business does involve legal requirements. Obtain necessary licenses and permits and review your insurance needs before making the occupational leap. If you use vehicles for your business, looking into comprehensive insurance coverage, including commercial auto insurance, can help cover your assets.
Overcoming challenges
Challenges like financial constraints, competition, or time management issues can arise. Address these obstacles by staying adaptable, seeking advice from others in your industry, and continuously improving your skills and services.
In the face of financial strain, you’ll need to maintain motivation by celebrating small victories. Look at your list of goals and stay focused on those achievements. Resilience is key for new entrepreneurs; learn from failures and setbacks to build a stronger business instead of letting it control your success.
Every setback is an opportunity to learn. If you lose a customer or sale, analyze what went wrong and apply those lessons to future endeavors. Keeping a proactive approach will turn challenges into growth opportunities.
Contact Infinity Insurance Agency for an insurance quote
Ready to take your side hustle to the next level? Ensure your practice is set up for success with business insurance coverage. Contact Infinity Insurance Agency, Inc. today at 1-855-478-3705 to help you find a policy that fits with your entrepreneurial journey.