During the pandemic a lot of people took up hobbies to keep busy during the frequent lockdowns. Now as the nation struggles through a cost-of-living crisis, many have turned this boredom busting hobby into a side business, more popularly known as a side hustle.
These endeavours range from selling handmade goods, such as jewellery and prints, to writing books to be printed and sold on Amazon and more.
Transforming your hobby into a side hustle is a logical way of navigating through the financial struggles many are facing today, and it could provide individuals with an opportunity to pursue their passions and talents beyond the confines of a typical 9-to-5 job. However, before you think about embarking on this journey of transforming your hobby into a business, it’s crucial to carefully weigh in on the different factors and considerations.
Nick Green, business expert, entrepreneur, and founder of Printed.com shares essential points you should consider before making the leap from hobby to side hustle.
Going From Bedroom To Brand
To begin, dedicate some time to think about the name of your brand. Avoid settling with the first idea that crosses your mind; instead, draw inspiration from the core reasons that motivated you to start in the first place, ensuring that your brand name is memorable, meaningful, intriguing, and distinct. Once you have your brand name you will need to think about your branding tactics which include brand strategy, brand identity, and brand marketing.
When introducing your brand, it should communicate the business values and areas of expertise effectively, so they know what to expect to cultivate the reputation you want from customers and clients. Making a memorable impression and showing your audience that you care can help gain trust and solidify a long-term relationship with customers. This approach sets you apart from competitors and provides a clear definition of what sets you apart.
As you move from bedroom hobbyist to businessperson, you will also need to consider how you present your brand physically too. Presentation of product and brand goes a long way towards building trust so be sure to look at packaging of products- but this doesn’t need to break the bank. If you are a jewellery maker, for example, bulk buying business cards which can be repurposed into earring backers, bracelet holders or even pin badge backers are a cheap way of elevating your offering for a smaller initial investment. You can also use free sites such as Canva to design these cards when starting out and needing to keep costs down.
Time Equals Money
Building your side business will require both time and dedication. Given that a full or part-time job will be occupying most of your time, not to mention home commitments, finding a balance may be challenging. To manage your side hustle, consider implementing dates to hold yourself accountable. This becomes crucial if you are offering services or working with clients, as you would want to portray that the business has a status of reliability.
When setting up either your Etsy page, or online shop, consider the feasibility of making and shipping times to make the side hustle manageable around your existing schedule. Figure out if you are going to make products in bulk in advance? Or are you going to make things as and when orders come in? Will you need to get your products printed/ made from a supplier? And if so, what is their turn around time? All these questions need to be considered before putting your business live.
Once you have worked out the process of your operation then you will be in a better position to both deliver around your current lifestyle and build trust with customers by managing their expectations when ordering from you.
Protect Your Side Hustle
Something many of these new side hustlers forget to consider is that side hustles are businesses and that means even side hustles require business insurance. However, the type of insurance depends on the nature of the products or services being offered. It's crucial to carefully consider the specific type of insurance required to protect your side hustle in case of any complications. The most popular types of business insurance are public liability insurance and professional indemnity insurance.
Professional Indemnity Insurance Professional indemnity insurance will protect your business from claims made by clients or third parties for financial loss or damage evolving from perceived negligence in your services or advice.
Public Liability Insurance Public liability insurance provides protection against claims for injury or damage they are legally responsible for. The policy covers claims from the public, clients, or customers who experience accidents or incidents on your business premises or elsewhere, for which you or your business is considered liable.
However, it is vital that side hustle owners speak to a business insurance provider to ensure that the insurance fits the needs of the business. For example, generic policies are unlikely to cover goods in transit, so if attending a craft fair or Christmas market with wares to sell and something goes wrong while out, it is likely not covered, which could lead to costly consequences.
Remember The Upfront Costs
Prior to launching your business, it is crucial to consider the initial cash injection needed to start a business. These upfront costs can vary depending on the business, but some costs to consider could include, branding materials, shipping costs/packaging, website hosting costs, materials, insurance, and any additional expenses that may occur during the early stage of your enterprise as it will take a little time to break even. Once you have a rough figure you can start to build a financial buffer. These funds will act as a financial cushion reducing the likelihood of being out of pocket to pursue the side-hustle.
Prudent financial planning and the allocation of resources for your business's early stages are investments in your future success.
A side hustle can be a great way to bring in extra money while doing something that you love, however, despite gains displayed on social media there are a lot of business elements people need to carefully consider before jumping in blindly.