Side hustle culture is real and growing. It’s normal to see a post on Instagram or TikTok where someone brags about the 6-figure monthly income they make working 12 minutes a day on their “side hustle.” It’s common to see posts about these people on mainstream sites, like CNBC or Medium. Here’s the thing: a story only makes headlines when extraordinary. Have you noticed the lack of stories about people who started a side hustle and failed miserably? That’s the norm; failed side hustles are common, and you never see a single story about the thousands who fail. Why?
Everyone loves a winner.
This doesn’t help most people looking for something that consistently makes some extra money or could allow them to leave their jobs and replace their income. Most people who want to take control of their lives and incomes face a few challenges:
- Fear of failure.
- They have never launched a business and don’t know where or how to start.
- They don’t have the time or money to launch a business.
- There’s too much competition.
- They don’t know what kind of business to start.
- A friend or family member’s business failed.
The global economy is shifting. Inflation is present around the world as prices increase on most items. For most people, real wages, calculated as wage increases minus the inflation rate, have not increased since before 2000. The only major group of people who have increased their wages are successful entrepreneurs. If you want wealth and financial independence, it’s time to ditch the side hustle, launch a successful business, and make the money you deserve.
Technology has made building a successful business possible for anyone if they understand how to leverage their time by using technology. Let’s break down each fear and how to get you on a path to business success.
Fear #1: Failure.
The fear of failure stops most people from taking that idea they’ve been bouncing around their minds and making it a business. It’s a legitimate fear. You can do everything perfectly, and your business could still fail. Ask yourself two questions:
First, how is your fear of failure different from the fears your boss has? He or she worked for years, building the company you work for. That company could be legislated out of business. Or a lawsuit could bankrupt the business, or a competitor could swoop in and wipe out your customer base. Nothing in life is guaranteed except death.
The person who owns the company you work for makes 20 times your income, can afford an amazing car, and has enough money saved to live three lifetimes and take care of their family without worry. Is that something you want for yourself?
Second, what would you do if you knew you could not fail? Failure isn’t something to be feared. Elon Musk has failed multiple times, sleeping in his office, homeless, to realize his dreams. Most successful people have suffered multiple failures. It’s what has taught them how to succeed. Failure isn’t bad. It’s an opportunity to course correct, take the lessons you’ve learned, and build something stronger and more successful than you had initially planned.
Never fear failure.
Fear #2: Not knowing what to start or how to get things going.
Another common obstacle is not knowing what kind of business or how to start. This is one of the things that makes network marketing and “side hustle” offers so compelling. They offer a “ready-made” solution, where you add that one missing ingredient and unlock your financial fortune. For most people, these “solutions” fail miserably.
When looking for a business to start, you have two main options:
Start a business you’ve been thinking about for a long time. You might want to rethink your ideas if you’re thinking about a restaurant, a retail store, or some health and beauty offering. These passion projects can be successful but require a lot of capital to launch and usually don’t give good returns until they reach maturity. Write down a list of 20 different business types that grab your attention. The first 10 should be easy, and the last 3 will be hard. This exercise digs deep into your subconscious mind, forcing your best ideas to the surface. It’s an old technique, but very effective.
Look around, see what businesses are making money, and then see how to claim your piece of that market. Scroll through Instagram, Facebook, TikTok, or any other major site and see who is advertising on those sites. Ask yourself if you could see yourself making a competitive offer to what you’re seeing. Alternatively, you might notice that the ads you’re seeing are weak and not appealing.
There is no shortage of viable business ideas; pick two or three and investigate them to see what makes the most sense.
When it comes to the nuts and bolts of launching a business, you can do everything by yourself, including making all the common mistakes new business owners make; you could take a course and gain some knowledge and insights, you could buy an established business, or hire someone with experience to help you launch your business.
Doing everything by yourself is hard. There are numerous small pitfalls business owners get stuck on. With the depth of knowledge available, reinventing the wheel may not be the best idea.
Taking a course is always a good idea for expanding your knowledge. Most courses, especially online, present some of the best ways to make money – for the person you buy it from. Online courses have a 5%-15% completion rate; out of those people, only 5%-10% take action. Your strategy is brilliant if you are researching ways to structure an online course delivery business. If you want to use the knowledge to launch your business, you should reconsider your approach.
Buying an established business can be a goldmine or a money pit. It’s a coin toss unless you have in-depth knowledge of the business, the market, and its potential. Buying a franchise is another route, but you never own a franchise. (If you think otherwise, miss a few payments to the franchisor and see what happens…) Franchising can be expensive, and there is never a guarantee of success. Starting your business is cheaper, more efficient, and often more profitable.
Hiring an expert to help you build your business is a new concept that makes the most sense. With technology integration, training, and support, you get a business ready to start making money in a few weeks. It’s cheaper than buying a franchise, eliminates the apathy risk of taking a course, and lets you bypass the most common errors. Working with the right expert gives you an advantage most competitors won’t have. This route gives you a clear path to success instead of running the risk of becoming a statistic.
Fear #3: Lack of time and money to start a business.
Ultimately, time is the only thing of value. If you stay in your job for another year, you are less likely to move to financial independence and be another year older. Starting a business is never easy and will take time. Allocate 30 minutes a day in your planning stage. Wake up 15 minutes earlier and go to sleep 15 minutes later. If you can focus intently on your business for 30 minutes daily, you will be amazed at how much you can accomplish.
Initial capital can be a real hurdle, but it isn’t impossible. Put together a well-researched outline of the business, what it does, timelines, and benchmarks for success, and review it with someone you trust. Ask that person to be a harsh critic. You need to be prepared to answer hard questions. Once you’re ready, bring your idea to people you know and trust who have funds and could be willing to invest in your idea. The number of businesses that get their initial start with $under $10,000 borrowed from friends and family is significant. Be prepared to answer hard questions and to hear no; it’s part of every business venture. Android was saved by a $10,000 investment before being bought out by Google for $50 million. Apple, Amazon, and Dell were all started with very small budgets.
Fear #4: There’s too much competition!
There are two ways to look at competition:
The market is too crowded, and there is no more room. If that’s true, find a different idea and investigate how to develop it into a profitable business.
The market is crowded, but none of the leaders are doing a good job. There is room for innovation. This is very common. One example is the iPod. The market had several MP3 players, but Steve Jobs reviewed the landscape and found room for a new, innovative product. He then worked to develop a product nobody knew they needed, the iPod. This is where the real innovation came in. Steve Jobs created a need that didn’t exist previously. He leveraged name recognition with sales and marketing to create one of the most successful products in history. What would happen if you could innovate a product and have only 1% of the iPod’s success? (It’s estimated Apple made about $90 billion from iPod sales)
Fear #5: What kind of business should I start?
This was touched on earlier, but it needs to be revisited to help you choose what kind of company to start. The first thing to decide is whether you want a corporation or a sole proprietorship. Depending on your location, there could be some advantages to using a corporate structure. Corporations also have the option to retain earnings, which could be taxed at a lower rate. A quick search online should clarify those details and set you on the best path. You should also weigh the benefits of running an online business versus a brick-and-mortar business.
Setting up an online business tends to be cheaper and faster but poses more challenges in brand recognition and client acquisition. A brick-and-mortar business takes more time to launch and establish, and the launch is generally much more expensive.
Whatever you choose, leverage your time, money, and resources with technology. Investing in the right technology can easily return 10 times your investment, possibly more. Use solution providers that give you projections and straight answers to your questions.
Fear #6: A friend or family member’s business failed.
Everyone knows someone who failed in business. Failure isn’t a sign they were incompetent, lazy, or stupid. They may have tried to launch the perfect business in the wrong location or 1-year too early or too late. Talk to the person and find out what went right and wrong if you can. Use that failure as a learning tool.
There is no shortage of get-rich-quick “opportunities.” Most of them work well, but only for the person selling them. What isn’t mentioned about side hustles is the failure rate, which stands at about 70%. That’s deceiving because only 5-10% of people engaged in side hustles make over $1000 monthly. Depending on your location, up to $500 would go to taxes. You’re better off sidestepping the side hustle and launching a business.