One year prior, if we had compiled a list of industries we believed to be resistant to economic downturns, it would have featured movie theaters, dining establishments, food and beverage suppliers, as well as home renovation merchants. Fast forward to today, and it is evident that none of these sectors are immune to specific recessionary events.
How, then, can you ensure a steady income stream while establishing stability for your future and your family?
While we cannot promise absolute security, there is a method to gain greater control over your future: transforming your side gig into a primary career.
If you’re involved in ride-sharing or completing tasks, your extra income will typically stay as a side activity. However, if your side venture is scalable—capable of expanding efficiently while remaining profitable with your current time and financial resources—you could create a pocket of financial stability amidst widespread uncertainty.
The critical initial step is to identify the appropriate side hustle if you haven’t done so already. After that, follow these steps to convert your supplementary earnings into your main source of income.
1. Assess market need.
Before you fully invest your side hustle earnings into your primary venture, ensure that there’s sufficient demand. Are your offerings in high demand enough to sustain a full-time income? If you’re serving a local market and have reached your audience, can you easily scale up without significant additional costs? For online businesses, how much will it cost in terms of time, design services, and advertising to draw customers to your ads?
2. Establish a financial base.
If you still hold a main job, funnel as much money as possible into savings. This will mitigate the risk of dedicating more time to your side venture while reducing your hours at your job. Strive to accumulate savings covering three to six months of expenses, including those related to expanding your side hustle. If you must make this shift out of necessity and don’t have much to start with, consider setting aside a small percentage of each income to build an emergency fund. Even a mere 2% can accumulate: Save that percentage of $10,000 and you’ve secured $200 for unexpected circumstances. While it may seem small, we now have a strategy for utilizing that emergency fund wisely.
3. Scale up, but stay grounded.
You don’t require an elaborate office immediately or additional assistants right away. What you truly need to scale is a larger customer base. Identify avenues for expanding your reach and methods for connecting with potential clients. Increase your marketing and promotional efforts accordingly.
4. Optimize processes.
Welcoming new customers into your business can lead to issues if you don’t have appropriate systems in place to manage them. Consider hiring a virtual assistant, using accounting software, or setting up a customer service hotline to address the growing needs of your customers and escalating administrative tasks.
5. Promote your growth.
Lastly, inform others about your growth. Engage on social media with video content, allowing an inside look at the brand’s personality. Post frequently and interact with individuals who might seek your offerings. Avoid solely focusing on sales online; be a resource. Establish yourself as the go-to expert in your field.
If financial strain is a concern, intensifying your side hustle can feel pressing. However, this is often a gradual endeavor. To expedite your progress, prioritize quick wins: Reconnect with existing clients and try to upsell them additional services; reach out to past clients for referrals and testimonials that can be shared online; and cultivate relationships with business owners in similar industries who may be willing to assist you.
Q: I’m aiming to diversify my income by initiating a side hustle, but as a parent, I need to avoid wasting time and money on ventures that could fail. Any suggestions for low-risk options?
A: The positive news is that there are numerous opportunities for earning additional income. While any new project entails some degree of risk, with dedication, support, and the right skills, you can broaden your income sources and enhance security for your family. Here are some traits associated with low-risk side hustles:
Minimal skill requirements: Unless you’re entering the creative or consulting sector, a side hustle that doesn’t necessitate specific training tends to be the quickest route to additional income.
Broad consumer demographic: Just because you establish your venture doesn’t mean customers will flock to you—unless it offers something they genuinely want. Ensure you’re venturing into a sector with a large audience of potential clients.
Proven profitability: Your neighbor might suggest that affiliate marketing is the next big opportunity, but if their affiliate site has not achieved any search engine success in a year, that’s a warning sign. Seek a side hustle that has demonstrated success among individuals with similar skills, time, and resources as yours.
Availability of existing products or service structures: If you want to simplify the sales process, consider a venture that allows you to leverage other people’s products or established service models. Direct selling works particularly well for individuals who already trust a company’s offerings and want to generate extra income.
Access to guidance or resources: If obstacles arise with your new endeavor, who can you reach out to for assistance? It’s crucial to determine this early on. Look for a company that offers training resources while still allowing you to maintain an independent business.
