Do you have a dream of starting your own business but don’t have the time or money to get started? You know you have a skill, and that skill is in demand, so you start a side hustle as the perfect way to get your business off the ground. Side hustles are popular because they seem like an easy way to help you make some extra money while keeping your day job. What happens when your side hustle begins to take up more of your time? Perhaps your service offerings were timed perfectly with the collective need. Now you must scale. That’s not the article I’m writing though. What I just described were ideal scenarios. Generic and universal, the basic facts are true. That isn’t the average experience. This article is about a small business owner who starts a “side hustle” like plumbing, housekeeping, or lawn care because they can’t get a “mainstream” job. The returning citizen (read: formally incarcerated) has been forced into entrepreneurship because, despite all the movement that has been made towards convincing business owners to hire people with a history of incarceration, approximately 15,000 returning citizens remain unemployed. This article is for disconnected business owners, those individuals providing a side hustle service that needs to be their ticket to financial stability.
What type of side hustles are you describing?
The cleaning lady who comes by once or twice a month, or only for special occasions. The guy who cuts your grass or cleans your gutters. The occasional handyman you hire from TaskRabbit or Handy. These platforms are designed for gig workers, people who occasionally pick up small jobs to earn extra money. The secret is that for most of the individuals advertising on those platforms, this is their only source of income. Whether by choice or by circumstance, if this situation describes yours, you are a small business owner. You are presenting yourself (and your company) to customers every time you accept one of these jobs. How you present your company during that interaction will determine whether they will become a repeat customer or a satisfied (read: referring) customer. Luckily, in business, you get two chances to make a first impression. The first is when you take the time to set your business up for success by ensuring you have a good foundation. The second is when you provide your service like no one else can.
A Strong Foundation
The first step to getting started with your small business hustle is to do some research to begin to envision your place in the market. This means you need to identify your competitors, your partners, your vendors, potential customers, and the community at large. This is known as Market Research.
A Note about Market Research
Not every business that provides similar services is a competitor. They are only a competitor if they serve your target audience. If you offer cleaning services in homes and apartments, you’re not competing against commercial cleaning services. The commercial cleaning services is a potential partner. People who live in homes, work in those commercial buildings. Contact the commercial cleaning companies in your area and negotiate a referral program or offer to become an affiliate of theirs. Likewise, you could purchase cleaning supplies from them or negotiate an agreement to exclusively use their products designed for home use. This “competitor” is now a partner and/or vendor. Many people scare themselves from starting during market research because the competition landscape looks so large. Think holistically while you’re doing your market research.
Next, you will need to create your business plan. There is no right-size business plan. Let’s keep this simple, shall we? Your plan needs to communicate what you’re doing, for whom and why, how much it will cost you to do it, how much you’re going to charge to do it, and when you’re going to recoup the money you put into start the business (profit!). Other relevant pieces of information include whether profit will be delayed by debt and if so, for how long. Are there assets that can be liquidated if the business shuts down (equipment, heavy machinery, etc.)? Think of your business plan as the table of contents for the book that is your business. The other foundational plans (marketing strategy, revenue plan, standard operating procedures, etc.) are all extensions of the basic facts of the initial business plan: what, for who, why, your cost, their cost, and income results.
Now that you have a firm understanding of your business and its place in your local business community, you can confidently go about the work of getting the necessary permits, licenses, and insurance. Set up your business bank account, and your website and put out your first ad.
The Importance of Planning and Process
During your market research, you’re going to take the time to create a plan and process for how you will manage your business. How much money do you have available to fund your business? How long can you reasonably run your business and take care of your home on the income that is provided by your service business? Use that anxious energy to ‘hit the ground running’ and put it into the intentional design of your new life as a business owner. How do you need to structure your business so that it thrives as an organic by-product of your natural time, talent, and ability? Perhaps you’re a parent and time with your family is important. You’ll want to ensure that your business practices support working families, starting with yours. This might be represented as unique working hours, such as weekends and evenings only, or creating a policy that specifies that the workday ends one hour before school lets out in your local community to ensure parents are home to greet their children after school. Here is where you tell me that it’s just you right now out so you’re going to grind and sacrifice to grow the business and then give all those good benefits to your employees when you can afford it. Your children will understand the value of hard work, blah blah.
Nope. We are not doing that. You are your company’s first employee. The best managers are the best modelers. You do not have to wait and pivot to become an evolved employer. You can decide you are one now and build your business as an evolved company.
You have enough to get started. Send me a message and let me know how it’s going. Schedule some time with me if you want to take a deeper dive into the ideas in the article. Fair winds my friends.