Do you ever admire people who start their own small businesses? It’s nice isn’t it to have a passion project of your own that brings you income every month?
A side hustle doesn’t always have to be a physical form of a product, it can also be considered as selling a service.
Some people start a side hustle because they are in a tight spot and their full-time income is not enough to sustain their needs.
Whereas some people start a side hustle because they are passionate about something and would like to monetize their passions.
Whatever your reason may be to start a side hustle, I recently started freelance writing and would love to share with you some helpful tips on starting a side hustle of your own!
You don’t need a business or economics degree to tell you this (although my economics degree has given me an advantage) – educate and research before you pour everything into a business.
The first thing you should do is seek knowledge. If you want to sell handmade earrings, you must first learn how to make these earrings.
If you want to sell your social media management packages, you must first learn how to manage social media accounts.
Besides obtaining knowledge on the skill you would like to monetize, you will also have to look into the industry and do some market research.
It is of no use to have knowledge on how to make earrings but not knowing what type of earrings to sell, to whom you should be selling to and at what price point.
Some things that are included in market research are:
- Demand – consumer research.
- Supply – competitor research.
- Price point.
- Resources needed (time, money, labour, land).
- Target market
- Potential To Scale
Cost-Benefit Analysis (CBA)
To simplify, cost-benefit analysis is basically looking at your costs and how you can benefit (profits) from running this side hustle.
So yes, this is where you take into account the financial costs, revenue, and how much profit the business will generate.
Sometimes, we are so engrossed with figures and numbers that we tend to forget there are other intangible costs that should be considered too.
Cost you should take into account – your time, energy, mental health, environmental impact, and also how your business may impact the people around you.
Get Test Clients/Customers
At this step, you know what to sell. But you might not be getting clients or customers as fast as you’ve wanted to.
So what do you do in this initial stage of your side hustle? You find “beta clients”.
Beta clients or customers are people who are from your target market that is willing to test out your product or service at a lower price point or sometimes, even for free.
Why is this important?
To get feedback and improve your business.
If the beta client is happy with your product or service, after the contract expires, they might want to purchase your products again at full price.
This is also a great way to collect testimonials and be referred to other clients.
Analyze What Works and Repeat
Now that you already have feedback from your beta clients, you will be able to analyse the pros and cons of your product or service.
With this, you can make adjustments to improve your products before successfully launching your business.
The idea here is to do more of what is working and improve on what is not working or discard it.
Allocate Profits For Expansion
Once you have successfully launched your business, don’t forget to invest profits back into the side hustle so you can further scale up your business.
If you own a product business, you can invest by creating more of the products that are already selling well, or you can start a new line of products.
Sonia Singh is a content writer under Headliner by Newswav, a programme where content creators get to tell their unique stories through articles and at the same time monetize their content within the Newswav app.
Register at headliner.newswav.com to become one of our content writers now!
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