6 Questions to Ask Before Starting a Side Hustle

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Are you thinking about starting a side hustle to supplement your income? Through ongoing interviews and surveys, SaverLife has learned that many members pursue additional work on top of their primary jobs to make ends meet and take steps toward their financial goals.

For SaverLife member Alizha, this looks like working part time at a coffee shop and running an online business selling false eyelashes. Her definition of financial health is being able to walk into a store, pick out anything she wants, and buy it without worrying about how it will impact her budget. She says she’ll have achieved this goal when her side hustle is her sole source of income and she’s saved enough money to give her son a strong foundation for the future.

Whether you’re trying to start a side hustle to bring in some extra cash or you’re hoping to eventually take your side hustle full time like Alizha, it’s important to set yourself up for success — now and in the future. Here are 6 questions to ask beforehand to see if a side hustle is the best option for you right now to increase your income and pursue entrepreneurship.

What’s Your Why?

One of the most important questions to ask yourself before starting a side hustle is: why are you starting it in the first place? Understanding why you’re starting a side hustle can help you determine the best next steps. It can also reveal if starting a side hustle is the right way to achieve your financial goals. Consider writing down responses to these questions:

  • Why are you starting a side hustle?
  • What are you hoping to achieve?
  • Are there any challenges you might encounter by pursuing a side hustle?
  • What does success for your side hustle look like?

Keep your answers on hand so you can routinely check in to make sure your side hustle aligns with your reasons for starting it. This will help keep you motivated and focused on your end goal.

Do You Have a Solid Idea?

Almost as important as figuring out why you want to start a side hustle is ensuring you have a solid business idea. If you already have an idea as you get ready to start a side hustle, great! If not, you’ll want to find one. You can consider the things you like to do or are good at. You may have a talent that others don’t, and you can use that as a piece of your side hustle.

If none of your interests lead you to a business idea, that’s ok! Look around you for problems you could offer a solution to. It’s not necessary to engage your passion in your business: you just want to be sure you have a solid idea to get things started. Once you have an idea, run it by friends or people in your physical or online community to see if others would be willing to pay for your services.

What Resources are Available to You?

When you start thinking about starting a side hustle, one of the questions you need to ask yourself is: what resources do I have available? Starting a side hustle will typically require you to invest some money upfront. This could be for:

  • A business license
  • A website
  • Products
  • Materials to make the products

As you consider starting a side hustle, it’s important that you know where you’re going to get this initial investment. It could be from your savings, an outside investor, or even a small business loan. If you do pull money from your savings, be sure to leave enough to cover emergencies that might come up for both your personal and business finances. If you’ll be quitting your job to start a side hustle, it’s also important to make a plan beforehand so that you can still cover your bills until the side hustle becomes profitable.

Money isn’t the only resource you need to consider when you’re thinking about starting a side hustle. You’ll also need to consider your availability. Your new venture will need you to put time into getting it off the ground. And if you’re already working a full-time job, this means you’ll likely be starting your side hustle during your non-working hours. This also means that other things you do outside of work might have to take a backseat temporarily until you establish your side hustle. Be honest with yourself and ask: do I have enough time to spend on a side hustle right now?

How Do You Deal with Change?

Like life, changes to a side hustle are inevitable. Before you start a new venture, ask yourself how you’re going to deal with unexpected change, either with your side hustle or in your personal life. You can do this by carefully considering how you normally deal with change and making a plan to deal with unexpected shifts. This is especially important if you’re someone who doesn’t adapt quickly or needs time to process changes.

If the change doesn’t feel like something you can get past, you can always make a few backup plans to adjust your side hustle. You don’t have to ditch your side hustle ideas completely, but knowing that you have another idea ready to go can make changes feel easier to deal with.

What Do You Need to Do to Get Started?

Once you have your idea, it’s important to understand the side hustle requirements in your city and state. Some of these requirements could include:

  • Applying for a business license
  • Forming a limited liability company (LLC)
  • Building a website to sell your product or partnering with a third-party supplier to get your products out into the world

Do some research on starting a side hustle in your area and see what are the best practices for setting it up. This can help you understand what to do next to make your side hustle a success.

What’s Next?

Once, you’ve taken the time to process these questions and you feel ready to start a side hustle ask yourself: what’s next? This final question is unique to your side hustle and financial goals, and it will require you to start mapping out your long-term plan and goals. This may seem daunting, but remember: this plan can change as you learn more about the work you’re doing. This final step will help you develop your vision for the future and get excited about the possibilities you can achieve! Plus, it’ll help guide you as you take the first steps toward launching your side hustle and getting it off the ground.

Remember that starting a side hustle isn’t without risks. You’ll need to be ready for what comes your way and to pivot if things don’t work out the first time. With a good idea and the proper planning, you can start a successful side hustle that can help you increase your monthly income and achieve your financial health goals.