According to a MarketWatch Guides survey from earlier in the year, 51% of Americans have worked a side hustle in the past year, with 24% admitting that they did so to afford the cost of living. Another survey conducted by the American Psychological Association (APA) revealed that 39% of employees were worried that they could lose their jobs in the next year due to the changes in government policies.
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For those who are concerned about their job or just want to build a side hustle, here are some strategies that can improve your chances of becoming profitable. Here are seven different ways to ensure side hustle success so that you can turn your venture into a lucrative income stream.
Determine the Purpose of Your Side Hustle
You want to start by determining the purpose of your side hustle. If you wish to bring in a little bit of extra money in your spare time, you can offer dog walking services on Rover. If you want to turn your side hustle into a full-time income stream, you’ll want to consider building a digital asset or offering freelance services.
Here are a few things to think about:
- How much free time do you have to dedicate to this side venture?
- How much money are you hoping to bring in?
- What kind of skills and interests do you have?
Answering these three questions can help guide you in how to approach this project. Since a side hustle can take up a decent amount of time, you want to find something that matches your skill set.
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Create a Basic Business Plan
You want a blueprint to eliminate the guesswork, and this is where creating a basic one-page plan helps, serving as a road map for your journey.
Carrie Loranger, a business coach and creator of the 9-to-Thrive Newsletter, noted that the most successful side hustles address real pain points people will pay to solve. “Start by solving one problem with one solution, offering one service/product,” she said. She also stressed the importance of having an audience first and product second. You don’t want to build something and then hope to find customers.
Here are a few key points you’ll want to address:
- How will you make money?
- How will you promote this business?
- Where will you find customers?
For example, you may discover that you can list your extra space on a platform like Airbnb for additional cash. You may also realize that you enjoy creating video content for YouTube and Instagram, but offering editing services on a site like Freelancer.com is the best way for you to make money. The goal is to have a business plan so that you stay focused on creating a profitable revenue stream.
Focus On Building Assets Instead of Just Doing Tasks
“If you want your side hustle to truly grow, the most important change you can make is to stop just trading your time for money and start building assets that bring in income on their own,” said Steve Morris, the founder and CEO of NEWMEDIA.COM. “Too many people start out by doing things like driving for rideshare companies or picking up quick jobs on little task apps, where you only get paid when you’re actively working.”
Morris pointed out that many of these platforms set your pay and control your customer base. If you want to increase your chances of going full-time with your side gig, you’ll want to build assets.
What are examples of assets you can build through a side hustle?
- Digital courses that you’ll sell on a platform like Teachable and promote through Instagram.
- Physical products (like T-shirts, merchandise, handmade items on Etsy or another invention).
- Investing in real estate so that you have a property that you can rent out on Airbnb and other platforms.
The trick is to create something upfront that will pay you in the future so you’re not constantly stuck completing tasks for income.
Don’t Rely Only On Word of Mouth
Morris pointed out that many people getting into freelance work or a side gig hope word will just get around, but the harsh reality is that you have to promote your business if you want to find customers. “It might be uncomfortable for a lot of people at first, but promoting yourself doesn’t have to feel pushy. It could be making useful videos on YouTube, being a guest on podcasts or trying affordable paid ads if you can make the numbers work,” he said.
You want to treat your side gig like a real business from the beginning. This means that you’re going to have to take promotion seriously so that you get the word out and aren’t scrambling for work. You’ll want to find ways to consistently show up in front of new people to grow your business.
Create Helpful Content When Self-Promoting
Loranger pointed out that the best promotional content provides immediate value while naturally leading to your offer, as people do business with those they know, like, value and trust.
This means you’ll want to focus on creating helpful content on the platform that best suits your business model. For example, as a freelance writer or a graphic designer, you would want to display your best work on LinkedIn or Instagram to find new customers.
Diversify Your Revenue Streams
Loranger shared that successful side hustlers don’t rely on a single income stream because you never know what could happen.
The key is to explore various products, service offerings and ideas to ensure your side hustle generates a consistent income. As a writer, you could offer freelance services, consider ghostwriting and sell advertising space.
Keep Investing In Your Skills and Network
Jen Street, founder and creative director of Forged Flare, stressed the importance of consistency and community connections. “Before I even opened my online store, I took a business course specifically for handmade sellers, connected with other makers, and made ongoing education part of my routine,” she said.
If you want to become successful with your side hustle, you’ll have to invest money in your skills and your network to ensure that you’re growing. If you’re starting from scratch, it would help to spend money upfront on learning from industry leaders to increase your chances of profitability.
The experts agreed that consistency is key and that you’ll want to play the long game when building out a profitable side gig. Growing a side hustle into a profitable full-time venture could take much longer than you anticipated, but it could be the most rewarding thing you do.
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This article originally appeared on GOBankingRates.com: 7 Ways To Ensure Side Gig Success
