Starting a business is costly. After you consider the costs associated with it – execution, hiring, research and development, payroll, taxes, location and many other related – the expenses can easily raise above your current income. So, to fill this gape, many entrepreneurs engage in a doing some extra work to generate more income. The main objective is to help offset the costs of new venture. Learn the top 5 tips regarding how a side hustle can help new business development and expansion.
From taking online surveys to freelance writing to couriering packages, the possibilities are endless. It can be of your expertise or you skill something new to give it justice. But, make sure that this should be smart work, not hard work. You need to space out your time between many verticals of your personal and professional life.
There can be financial risk and uncertainty in the path way of a new business. So, it is always better idea to put it all on pen and paper. Such framework and solid business plan will act as a guide as your go ahead. Your extra gig will help to generate a steady stream of income, which will be invested in the growth of the business venture.
1. Improve your credit score
Most lenders examine your business and personal credit score during underwriting or giving a loan. If your business is less than three years old, your personal credit history will impact the terms of your loan. Side hustles provide an additional money to support by this time.
Tax laws dictate how your income is reported to taxing agencies. Multiple transfers in and out of your accounts can negatively impact your credit rating. These practices and laws varies as per genre of your business. For example, if you are to become a driver to support your business needs, you may need to provide the lender with additional documentation, such as an Uber verification of employment. If you want to go for a helping hand in a shop / bar / mall, your documentations will differ.
2. Increase personal wealth
Developing a budget for your business is critical to ensuring the long-term success of it. However, some emergency situations can decrease your available cash flow. A personal emergency fund allows you to be prepared in such events. Make a habit to put some portion of your existing salary aside for such cases. Amount can be a small, but it becomes a huge in long term, with benefit of cumulative interest.
You should take a help of financial advisor to understand various investment tools. Do compare them with your goals, investment years and assured rate of return. You can do a mix portfolio which invests in multiple verticals of debt, equity and government bonds / securities. Such balanced portfolio will become your helping hand even in the worst time of market or recession.
3. Set your schedule
As you know, getting your new business up and running requires your dedicated time. Side hustle or new gigs need a lot of it. As an example, if you work in a local fast-food restaurants, the demand of availability and a minimum number of working hours must be set first. You need to make sure that it don’t get clash with your schedule of existing job timings. Such planning is one of a crucial way for growth hacking of your new business.
If your business operates during traditional hours of a regular job, consider gigs that allow you to work in the evenings or at night. These opportunities include:
- Produce podcasts
- Sell handmade products online
- Sublease a spare room in your home
- Transcribe notes, phone calls, or videos
- Write a blog
- Become a freelance writer
4. Learn new skills
With every new opportunity comes the chance for you to learn a new skill. While some side gigs can be tied to your profession, many are entry-level positions that do not require extensive formal education. However, many jobs can teach you the soft skills that benefit your entrepreneurial career. After some experience balancing your new business and side hustle, you will be better at time management, goal-setting, and customer service.
New experiences and learning opportunities help you become a more creative thinker. These skills allow you to develop unique ways to handle the challenges that face your business. You must have a budget for learning new skills. You can learn from YouTube or many other channels like Udemy and more. Such certifications will also help you in your future. Such validations are always considered.
5. Grow your network
Building a strong professional network and finding a mentor can be especially helpful to your business. Gigs that allow you to personally interact with individuals of various backgrounds help you build a stable support system. For example, if you are delivering lunches to offices, you can learn about vendors or service providers. While you must follow the guidelines of the side hustle company, you may be able to distribute and collect business cards with potential clients.
You must participate in the relevant industry events to get updated with all latest news. You will learn all new developments and future predictions. To be in touch with a wide network, you can also join a professional organizations. Of course, it will cost you money. But, think it as an investment. In a long run, this practice will help you a lot.
Conclusion
You have come a long way to learn about how a side hustle can help new business. Starting a new business is like starting a new fight against your comfort zone. You need to work really hard and be committed to making it work. It can be tough to make enough money at first, so any kind of side hustle helps to make some extra money while you’re getting started. It can also help you learn new things and make new friends who can help you with your business. With good planning and time management, you can do both – new gig and your new current job.
Side hustles allow you to grow both financially and personally. Such second source of your income gives you sense of courage and pushes you to generate new ideas. Consider adding this strategy to your current business model and you will reap many rewards. We hope that our this article will help many entrepreneurs to balance their current job and new business. This way, you can make the most of both opportunities and have a better chance of success in your new business.