Are you starting a side hustle? Read this first

Today, many people are starting a side hustle, either to generate more income or to test the waters on something they would like to turn into a full-time business. If you are on the sidelines thinking about whether a side hustle is right for you, Melisa Sloan says there are some things to consider.

Do something you enjoy

You are going to be spending an inordinate amount of time on your hustle so make sure it is something that you love and you are passionate about. If these fundamentals are not there you may struggle to push through when the going gets tough. It takes a degree of obsession to be a business owner, it’s hard work and you need to be committed, so you need to enjoy your hustle.

Know your client

You need to intimately know what your client needs are and what their pain points are, so that you can develop products and services that people actually want. There is no point spending countless hours building a side hustle thinking you have the best product or service offering in the universe, only to late come to the realisation that there is no demand for your offering. Do your research and take the time to objectively assess if there is a demand for your service or product.

Find a role model business you can learn from

Invariably there are business that you admire. They don’t have to be the same kind of business as yours or even the same industry. They just seem to be extraordinary at whatever they do. Use them as a role model. Study them, buy from them and learn anything you can about them. Having a really good role model business helps to hold us to a higher, more aspirational standard and that’s a very good thing.

Know your financials

Side hustles can be an enormous financial commitment and it is important to know your costs and expenses down to the cents. How much is it going to cost to develop your product or service and what are the ongoing costs?  It’s also important to value your product or service and charge accordingly. If your prices are too cheap, your hustle will not be sustainable, and you will find yourself losing money rather than building a successful side hustle. Cash flow really is king in any business, so make sure you keep on top of any money owed and keep on top of your financials and figures on a weekly basis. By doing so it means that if something is not working you can get on top of it and put corrective action in place immediately, whether that be changing prices, elimination costs or other mechanisms.

Protecting your brand and ideas

If you are going to build your own business, it’s important to protect your intellectual property. It’s a competitive market out there and some people like to take the easy option and copy someone else’s brand and design, which is incredibly distressing if it happens to you when you have worked so hard of your business. Intellectual property is an important asset of your business and includes trademarks, patents, copyright and designs. An intellectual property lawyer will be able to assist you in protecting your intellectual property.

Get the right advice

It’s important to get the right advice on structure, accounting, legal and tax. Getting these fundamentals right in the first instance will hold you in good stead in the long run. Having a strong team who you can go to for such advice will give you the confidence that you are on the right track and will be beneficial to you and your business.

If you are sitting on the sidelines thinking about starting your own hustle, I encourage you to do the research, put a business plan in place, seek the advice of mentors and others in the industry, and if it’s still something that you aspire to, leave your comfort zone, take the leap of faith and do it. What’s really the worst thing that can happen? In the end we only regret the chances we didn’t take.

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