10 Tips For Perfecting A Side Hustle

Whether it’s a yearning to exercise creativity, or a need to increase monthly income due to the cost of living crisis, many of us are starting up side hustles in an effort to create a little extra pocket money. According to a recent survey by finder.com, around 43% of Brits currently have an extra way to earn money.

But building a new business takes more than just passion and commitment, a sound plan is needed if you really want it to thrive. Ritchie Clapson is a veteran property developer, an author, industry commentator, and co-founder of the leading property development training company propertyCEO. He knows exactly what it takes to build up a successful business so Belle spoke to Ritchie and gleaned his top tips for optimising your earn-more-money activities:

Just Get Started

There’s one thing that every side hustler in the country has in common: they somehow managed to get started. So, if you want to start a side hustle but feel anxious about jumping in, please don’t worry. If nearly half the population have already done it, you’re in good company. The best advice is to realise that almost everyone else had those doubts before they started and that it’s perfectly natural.

One way to build confidence is to connect with communities in the same niche you’re looking to get into. Connecting with others on the same journey as you can be incredibly empowering and may help remove some of those fears. Plus, you may also glean some good advice. Accountability can also help, albeit it’s more stick than carrot. Tell everyone you know you’re going to do it, and you won’t dare back out due to the loss of face. It’s crude but very effective.

Avoid Perfectionism

We all want to do a good job, but the old 80/20 rule usually bites perfectionists on the backside – they spend 80% of their time perfecting the last 20% of their work. This problem can particularly affect those just starting who want to make their product or service as perfect as possible when they launch. The reality is that it’s far better to aim for good rather than great and get your productivity rate up – or even just get the business launched in the first place.

The other problem is that you’ll only truly learn from experience, so you should embrace the Lean Start-up approach, where you learn as you go. Just get started, learn from what happens next and then pivot accordingly. Too many people aim for perfection at the outset and never get out of the blocks.

Avoid Burnout

Do you have any plans to be the wealthiest person in the graveyard? There’s no point in working all hours on your side hustle if you don’t enjoy the fruit of your labours. You need to avoid burnout. Be sure to set limits on how much time you spend on it, and carve out time to spend with family, friends and on good old R&R. Also, make sure that your side hustle doesn’t compromise your day job. You might enjoy it more, but don’t forget which one pays the bills, at least initially.

Outsource when you can

Outsourcing can often make good financial sense. Websites such as fiverr.com, upwork.com, and peopleperhour.com allow you to tap into the global gig economy. If there’s a part of what you do that could be done by someone on the other side of the world for a fraction of the cost, it frees up your time and increases your overall productivity. I’ve met several people who have outsourced their entire operation; they simply do the marketing and sell something produced or delivered by people working in the Philippines or India.

Know Your Market

A little research can go a long way. Make sure you understand who your competitors are and what they’re offering. How will your offer be different? Also, make sure that there’s a market for your product or services. Depending on your hustle, consider running some dummy ads before you start to check out demand. Also, if you’re going to be working with organisations that will help you earn money, make sure you check them out thoroughly first. There are plenty of rogues out there whose advertised returns can be unbelievable, so see if you can google other customers to find first-hand experience.

Separate Your Personal and Business Finances

Set up a business bank account and ensure that all the transactions relating to your side hustle go through it – not through your personal bank account. This applies to both your income and expenses. Ultimately, you’ll pay yourself the profits, but make sure the money goes into your business account first. This will make it far easier to manage your business effectively in the long run. Also, make sure you have a rainy-day fund for emergencies, and take advantage of the many online software tools that are available for managing your finances – they will make life a lot easier for you.

Pay Your Taxes

Depending on how much money you currently earn, you will likely owe taxes on any side hustle profits. While some may be tempted to ‘forget’ to declare it, the last thing you want is an unexpected tax bill. Automatically set aside some of your profits to pay tax and do your research to understand what tax is payable. Ideally, speak to an accountant to get a professional opinion – it won’t cost a fortune and they may even be able to save you tax.

Set Realistic Goals

Set annual and quarterly targets for your business and let these guide your weekly activity and goals. Track your progress and be realistic about your expectations – it can take time to build a sustainable business. Also, celebrate your successes as you go, as this will keep you motivated. You’ll invariably have bumps in the road on your journey but don’t let that put you off, they happen to everyone.

• Interested in learning whether small-scale property development could be their perfect side hustle? Click here to find out more.