Making Money on the Side – Legitimate and Profitable- Side Hustle or Business - Freelance - Independent Contractor - Planning

Starting a small business or a side hustle is an effective way to generate extra income. Discovering a legitimate and profitable business, without initially spending a lot of money to get started, is the difficult part. Times have changed to a digital way of life, leaning towards selling digital products, digital marketing, affiliate marketing, social media management, or online tutoring. Freelancing such as writing, graphic design, web development, tutoring, online classes, podcasts, or virtual assistance can be a profitable side hustle.

For those who are not computer or digital savvy, physical side hustles are the way to go, but require more work such as handmade crafts, lawn service, landscaping, plumbing, HVAC, electricians, construction, handyman/Home Services, real estate, administrative support, photography, bookkeeping, blogging, freelance content writing, reselling, delivery or Uber driver, clean houses, house or pet sitting. These types of services can be very profitable, but require more tracking, warranties, liability insurance, workers' compensation for employees to help, and even a physical storefront.

Either way, any of these types of businesses are legitimate and profitable. However, be careful not to invest a lot of money as a startup business. Remember, it may take a while to start your income flow to balance the initial investment. It is better to start small and work your way to expansion slowly. Be prepared. Startup businesses have great ideas but struggle to get clients or customers and exposure.

This is important to remember. Don’t get sucked into ads stating how you can make $3,000 a month or $1,000 a day, etc. This is called a “Marketing Strategy.” They ask you to listen to their free tutorial and then charge you a fee to continue with their program. You convince yourself that this is what you need to get started with someone assisting you. Now your investment has started, without planning your strategy for your own side hustle.

Don’t get me wrong. Educating yourself and doing research is good, before you start your own business. However, there are dangerous schemes out there that tempt us or convince us that this side hustle will make us a lot of money, especially when we have debts to pay and are desperate.

Step 1: Planning, strategy, how to pay back the initial investment, and a plan “B”, if things fail.

Business Planning, Strategy, Investment, Profitability

Most businesses fail within the first 5 years without the initial planning processes. It doesn’t matter whether your venture is a side hustle, small business, medium business, or large business. It all works the same way in the beginning.

You have an idea. Now, you need to create a business plan. This business plan will be lengthy, about 30 pages. It contains your idea, products and services, strategy, how many employees are needed, targeted customers, location, marketing plan, financial plan, layout of the business, how you will repay a loan, and a plan “B,” if your business fails. After completing your business plan, you will have a clear picture of your side hustle or business, to determine if your business is needed in your area and if it will be profitable. This business plan is for your personal reference.

If you are planning to get financial assistance from a bank or loan agency, you will need to prepare another business plan. This business plan is a summary of your lengthy business plan. Financial institutions don’t have the time or want to read a 30-page business plan before deciding whether to approve your financing. This business plan will be about a 10–15-page summary of your side hustle or business. They only want to know a little about your products or services offered, how you intend on marketing your business, the financial report to prove you have done your homework and can repay the loan, and if the type of business is needed in your local area or the targeted customers you want to serve. Loaning money to others is a risky business. This business plan needs to provide the financial institution with specific facts to reassure them that you can repay the debt.

Sole Proprietor, LLC, LLP, or Corporation

Unless you are starting a business that needs the protection of a corporation such as an LLC, LLP, C Corporation, or an S Corporation, being a sole proprietor business is okay.

As a Sole Proprietor business, you only need a tax EIN registration number.

Step 2: Marketing and Advertising

How do you gain customers?

How do you let people know you exist?

How do you let people know what products and services you provide?

What is the cost to market your business?

Do you outsource your marketing and advertising needs?

Do you need a website?

Marketing and Advertising - Business Exposure

Ask yourself these questions:

Do you have the knowledge, skills, and time to market and advertise your side hustle or business?

Be honest with yourself. Do you want to concentrate on your business, do everything yourself, or delegate responsibilities to others such as a family member, friend, or outsource your business needs?

There are several ways to market and advertise your business, products, and services.

Little to No Cost:

• Social Media - Facebook, Instagram, X, Tick Tok, LinkedIn, and Word-of-Mouth.

• UpWork and Fiverr – Freelancers with clients for various tasks

• Toptal – High-quality freelancers in tech and related fields, requires a screening process.

  
  

• People Per Hour – Similar to Fiverr with a focus on hourly rates and a broader range of services

  
  

• Guru – Professional and curated experience with a focus on project-based work and hourly rates

  
  

• Freelancer – Wide range of freelance opportunities including fixed-price and hourly rates.

  
  

• 99designs – Graphic designers and logo designers. The platform is designed to connect with clients.

  
  

• Truelancer – Wide range of services and lower prices

 

Small Fees:

• Ads on social media – Pay per click or cost per click. Advertisers pay for each click on their ad or have the option to pay for impressions (views) or other actions like reactions or installs. Ads are specifically targeted to specific audiences based on demographics, interests, and other factors.

  
  

• Google Ads – Pay Per Click. Advertisers bid on keywords to display on Google search results and platforms like Display Network or YouTube

  
  

• LinkedIn Ads – Ads are based on setting a bid, budget, and schedule that works for you. The cost is determined by an online auction system that allows you to place a competitive bid for your ads to win placement. When you run an ad, you compete with other advertisers who want to reach a similar target audience.

  
  

• Wix.com Website – Domain name has a fee. Upgrading the website has an annual fee.

 

Your online and external exposure is extremely important to be successful and to inform potential customers and existing customers of your products and services, specials offered, discounts, ask for referrals, and for you to collect information from people who respond to your posts. Collecting valuable information will increase your customer base and income when you successfully sell your products and services.

 

Build tools to gain exposure such as business cards, flyers, ads, posts, a vendor booth at an event, or offer a one-time free service or product. The more you do, the more exposure you have without spending a lot of money. Unless you have a money tree growing in your backyard, it will take a lot of time and effort on your part to be successful, especially in the beginning.

 

Are you dedicated to working hard at making your side hustle or business successful, or is your idea only a dream?

Step 3: Grow your network and Manage Your Time

Growing your network consists of your customer base, resources, business professionals, and contacts.

• Customers: You need repeat customers to have a steady income stream. Encourage referrals and word-of-mouth advertising. Give your customers an incentive for referrals.

  
  

• Resources: This network list consists of small business administration, SCORE, other businesses that can answer questions or partner with for products and services or share customers, online resources for templates, website support, marketing services, YouTube videos to refer to, or any helpful connections.

  
  

• Business Professionals: Accountant, Attorney, Advisor, Bookkeeper, Insurance Agent, Dealership, Service Technician, or any person you need to help you with your business.

  
  

• Contacts: Employee List, Emergency Numbers (police, ambulance, fire department, health department), Vendors, Shippers, Delivery Drivers, Trash Removal, etc.

  
  

Once you have completed your network, you need to manage your time. This can be done in several ways.

• Scheduling Software

• An Administrative Assistant or outsource someone to manage the schedule for you.

• Know exactly how much time it takes you to do the service, allowing extra time in case there are problems.

  
  

• Allow for time off to organize and invoice customers. This can also be done using an Administrative Assistant or outsourcing the work.

  
  

• Make time for yourself so you aren’t overwhelmed and want to quit what you started. Limit your work time to 40-50 hours a week with two days off to relax or have family time. Remember, your family comes first, before the business. If you neglect family time and time you need to spend with your friends, you might find yourself lonely someday.

  
  

• Work Smarter, Not Harder. Automate what you can. Delegate responsibilities and take advantage of outsourcing to relieve stress, so you can focus on your business.

 

To create a reliable and profitable business, it requires long-term dedication to be successful. Always do research and educate yourself to improve your business, your skills, and to make processes easier to manage.

 

Step 4: Know and Managing Your Finances

 

To be successful, you must know and manage your finances and expenses. If you do not have an accounting or bookkeeping skill, this needs to be managed either by a bookkeeper, accountant, or outsourcing this process. As a business owner you must look at daily revenue and weekly or monthly expenses.

 

If you consider outsourcing your business needs, S.R.R. Business Services provides bookkeeping services, business advisory services, content writing (products and services), business writing (contracts, agreements, manuals, training materials), and administrative support. The website to request a quote and free consultation is https://www.srrbusinessservices.com/services. Contact them directly by emailing srrllcbooks@gmail.com or call (765) 586-1687.

 

S.R.R. Business Services - Bookkeeping, Business Advisory Services, Content Writer, Business Writing, and Administrative Services

Whoever you hire as your bookkeeper, or if you do it yourself, be sure to run a minimum of weekly, monthly, quarterly, and annual reports, to stay on top of your income and expenses. Monitor your income to make sure you can afford the purchase before you buy what you need. Decide if the purchase can be delayed until next week, next month, or next year. Poor money management will cause your business to fail. This is the main source of your business. If you need help, ask someone on your resource list or a business professional. Just because you are a business owner doesn’t mean you have the knowledge or skills to do everything required for your business. It’s okay to ask for help.

 

Starting a side hustle or business is extremely rewarding and empowering. It provides extra income to pay down debts and to become financially independent. You will have the opportunity to meet new people, establish a good relationship and reputation with others, and live a happier lifestyle. Be proud of your achievements. You can do this with the support of others and the knowledge, skills, and experience you already have.

 

I hope this article has provided you with valuable information to start your side hustle or a new business. Check out our article about registering your business as a sole proprietor, LLC, LLP, C Corporation, or S Corporation. This will help you with your business.

 

Thank you for taking the time to read this article. Please share your thoughts and experiences with us and this article with others.

 

S.R.R. Business Services

Written by Marietta Smith