If you are considering a side hustle, it means that you already have a main source of income. Perhaps, you are thinking of what to do with your 13th-month salary, bonuses, and extra cash coming in, or maybe you need an additional source of income and thankfully, ‘Detty December’ is over.
There is no better time to start than now. However, we need to acknowledge that deciding on what side hustle to venture into and carrying out due diligence on how profitable the business can be isn’t the easiest part. Here are three steps to help you:
Identify what your interests are
To be honest, this may not apply to everyone. I have heard people say making money spurs their interest even more than the business itself. Guess what, some of these people have gone on to build successful businesses. So this step is debatable.
But if you are like me – who would rather turn a hobby to a business – then this piece of advice is for you. Make conscious efforts to identify the things you’ve developed a keen interest in and make money out of them. It could be interior design and decor, photography, cooking, and so on.
Understand the business dynamics
This will include identifying who your possible customers will be and where you can find them. How much will you charge them? What is the cost of running the business? Who is your supplier(s)? How do you intend to manage this side hustle so it does not interfere with your main work?
Identify how the business will be financed
At the initial stage of the business, you will begin to think about raising capital, how much capital is needed to start the business and how to find an affordable supplier(s).
In the process of putting plans in place, an interesting part is to randomly ask friends and family if they have any need for your product/service. This helps to know if your business would be seasonal or one which runs in and out of seasons.
Remember this: the purpose of starting a business in the first place is to be profitable. Always bear this in mind when thinking of the side hustle to venture into.