How to Turn a Side Hustle into a Lucrative Business
According to CNN Money, 34 percent of the workforce is participating in the gig economy, and that number is expected to be 43 percent by 2020. Further research by GoDaddy shows that 50 percent of millennials have a side hustle, as well as 24 percent of baby boomers. Although many people dream of making these gigs fulltime, GoDaddy found that the people only make $250 per month on average from their side hustles.
Still, it’s possible to turn your side hustle into a lucrative business. In this post, we’ll list six tips that will help you as you transition your side hustle into a full-time venture.
1. Adopt a Business Mindset
Many people treat their side hustle like a project that they’ll do only when they have extra time. This thinking is detrimental to your business. For your side hustle to grow into a full-time operation, you must have the correct mindset and treat it with the professionalism, dedication, and work ethic you would your full-time job. Just like any other business, you want to make sure your customers feel valued and are getting quality products or services. You also need to be available for customer support, and ensure any issues are resolved in a timely manner. Ultimately, if you’re still treating your business like a side project, you won’t be able to grow it into the venture you’re hoping it can become!
2. Write a Business Plan
Every company needs a business plan, and your side hustle is no exception. Business plans give your company direction, establish an overall strategy, and define goals. According to Entrepreneur, business plans should include a business description, market strategies, competitive analysis, design and development plan, operations and management plan, and a financial analysis. By writing an official business plan that you’ll follow, you can transition your side business into a legitimate company.
3. Market to Existing Clients
According to research by Neilson, 92 percent of consumers trust referrals from people they know, and people are four times more likely to buy a product or service when they’re referred by a friend. Asking your current customers to spread the word about your business could be more lucrative than you realize. By marketing to your existing clients, you can tap into a market that you wouldn’t have been able to reach otherwise. One way to do this is to create a referral program to reward your current customers and get new customers. For instance, you could give a free product or coupon to each person who refers a friend, and provide a coupon to the person being referred. It’s a win-win situation for all parties involved.
4. Find a Mentor
Network marketing companies are designed to have your upline (the person who signed you up to sell the products) mentor you and help you grow your business. This is helpful because you can learn about the products and how to market them. Even if you’re creating your own products or services, you can still find someone who already has a lucrative small business and ask them to mentor you. To start. You should write down specific expectations and roles you want a mentor to play in your career. Then, you can meet with a potential mentor and share what you’re looking for, to determine if they are the right person to provide you with insights.
5. Use Social Media
According to Sprout Social, 94 percent of small businesses use social media to market their products and services. By creating a Facebook page or Instagram profile for your product, you’ll develop a captive audience who wants to get product updates and learn more. Make sure you’re posting content that adds value to your customer’s lives, like ways to use the products and giveaways to keep them engaged. Your social media content should be a sales tool, but also a way to educate your customers about your products or services. If your customers are more educated, they’ll be more likely to understand different ways they can utilize your business, which could lead to more purchases and referrals.
6. Create a Budget
In business, you must spend money to make money. Creating a budget will allow you to understand how much you’re spending on operational costs like marketing, office supplies, and inventory, and how much you need to make to cover those expenses. This goes together with adopting a business mindset.
While it can seem risky to turn a side hustle into a full-time business, it’s certainly possible. With hard work, an engaging social media page, and a business mindset, you can turn your side hustle into a lucrative small business.
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