The pandemic fueled the side hustle culture in the US, making it more than a lucrative second-income opportunity. Many professionals adopted their side gigs as entrepreneurial ventures for the long haul. Years after the pandemic, the trend is still present, with 45% of working professionals reporting a side business. A side hustle can bring in an extra $686 a month on average for the worker.
If you have an entrepreneurial streak, you may want to think beyond extra income and build your second source as a full-time business. While this sounds like a lot of work, scaling your side hustle is absolutely doable. You only need a strategic plan, an actionable roadmap, and loads of dedication to materialize the goal.
In this article, we will share a few actionable side hustle growth strategies that aspiring entrepreneurs can rely on.
Define Your Goals and Strategy
Zippia states that 42% of individuals who create and record their goals are more likely to succeed in doing so. As frivolous as this approach may appear, in order to get off to a good start, side hustlers need to be clear about their long-term objectives and develop a well-defined plan.
Ask yourself a few questions to gain a view of your objectives:
- Do you want to only pursue a passion?
- Are you looking for an avenue to generate passive income?
- Do you aim to turn your side hustle into a full-time business?
Once you find the answer (the third one for budding entrepreneurs), develop a clear strategy and timeline for business growth. Identify your target market, learn about your competitors, define your unique value proposition, and determine key success metrics.
Build a Robust Financial Safety Net
Transitioning from a job to full-time entrepreneurship is a commitment to giving up on a steady paycheck. The financial impact may seem hard initially, even if your side hustle pays well. The best way to deal with the situation is by having a financial safety net before leaving your job and adopting your side gig as the primary income source.
Your financial safety net should be capable of covering your living expenses and startup costs for at least a few months. You can start building an emergency fund at least a year or two before making the switch. A well-planned financial decision keeps you comfortable while navigating the initial uncertainties of entrepreneurship.
Focus on Customer Acquisition
After the groundwork is done, you must focus on customer acquisition. A 2023 survey showed that 21% of Americans used the internet to search local businesses online daily. The number underscores the significance of having a business website, whether you sell homemade products, custom gifts, or services like graphic design and content writing.
Hocoos suggests DIY website building with an AI-powered builder. It can do all the heavy lifting, from designing your website to creating high-quality images and generating relevant content about your new venture. Besides creating a website effortlessly with an AI platform, you can build it on a shoestring budget.
After your website is operational, you need to spend money on marketing to draw in new clients. To make your website appear on the first page of search results, start with search engine optimization (SEO). To attract clients, you should also use email marketing, content marketing, social media marketing, and word-of-mouth advertising.
Prioritize Customer Retention
For a side-hustle-turned-business, customer retention can be the best survival strategy. After all, retaining current customers is simpler than gaining new ones. 60% of respondents to a survey said that providing excellent customer service is essential to keeping customers for the long haul. As a result, be prepared to provide even better service than before.
Besides ensuring that your core offering is of top quality, provide exceptional service and support to all your buyers. Additionally, put a lot of effort into developing strong connections to promote word-of-mouth recommendations and repeat business. Provide personalized experiences, loyalty programs, and discounts to reward devoted clients.
Scale Your Hustle Sustainably
Growth takes time, and striving for too quick progress could lead to burnout. Try scaling your side project sustainably as it expands to prevent burnout and preserve long-term profitability. Consider hiring people or outsourcing operations to handle increased demand and growing operational complexities.
At this point, you should closely monitor your financial performance and reinvest profits back into your business. Also, prioritize investments that will likely have the greatest impact on your bottom line. Staying agile and adapting to market changes is essential to build a thriving enterprise from a small side gig.
In summary, developing your side project into your ideal company involves more than just a flair for business. To overcome startup obstacles and start from scratch, you must plan, organize, and strategize. By using these growth techniques, you may increase your chances of success and get a head start.