A home-based side hustle can be a lucrative endeavor, but you’ll need to be organized and show some business savvy to make the most of your efforts. After all, what starts as a small side hustle can blossom into a full-fledged business when you’re smart about the logistical details. And working from home can save you money and offer the flexibility you crave.
If you’re not sure where to start, you’ve come to the right place. We’ll cover everything from branding to workspace setup considerations so you can build your business. Keep reading to find the best tips that help you set up your home-based side hustle the right way.
Find Your Business Niche
It’s always best to articulate your overarching business concept before you launch a side hustle. For example, what are you aiming to sell, and who is your target customer?
Ultimately, you want to offer a product or service that fills a niche or solves a problem. And, of course, you’ll need to figure out how you can deliver what you’re providing. Maybe you want to appeal to people in your community with a specific service, like dog walking.
On the other hand, if you’re entering the e-commerce landscape, you could be selling products, like used handbags, to people around the globe. When you can write down your intentions in a few sentences, you’ll help clarify your direction as a business.
Build the Perfect Workspace
One of the best things about a home-based side hustle is that you don’t have to battle traffic to head to the office each day. And you can work from home whenever you want. Even so, you’ll want to give your home-based setting some structure so you can focus when it’s time to buckle down and work.
Designate a specific work zone for your business. That way, you can stay in that area and you won’t be tempted to engage with distractions. And you’ll be able to set a clear boundary with family members or roommates so they know when you’re at work.
Give yourself a quality chair that offers ample back support if you’ll be sitting a lot, and invest in good lighting so you’re always alert. Use storage containers to keep your workspace organized, too.
Are you good with time management? Many side hustles involve managing lots of moving parts and meeting tight deadlines to ship packages. As a result, using Google Calendar or other organization apps can help you stay on track.
Tackle Legal Logistics
A side hustle can be fun and rewarding, but you’ll need to make sure your business is operating legally. For starters, that means registering your business and determining if you’ll be a sole proprietorship or opt for an LLC. If you’re offering home decor consultations, for example, you can start as a sole proprietorship and grow from there.
If you’re baking out of your home, you’ll need to check local regulations regarding kitchen use. Or, if you’re planning to start an in-home daycare, you’ll need to meet state guidelines.
It’s always better to ask on the front end than get penalized or lose the ability to do business. And if you’ll be using a bank account for your business, be sure to get an EIN (Employer Identification Number). This number will be used for tax purposes, so you can stay compliant.
Streamline Invoicing
When you sell a product or service, it’s an exhilarating moment. But don’t let the excitement distract you from forming a reliable and simple payment system. You want to make it as easy as possible for customers to pay you. Then you’ll have an easier time tracking income and cash flow.
Plan on establishing a business bank account that is separate from your personal account. Use an invoice PDF template at Invoice Simple to make creating and sending payment requests quick. When customers receive a professional and well-designed invoice, they may be more inclined to do business with you again.
Even better, add your logo and contact information for consistency and a higher level of polish. Indicate your accepted payment methods and the deadline by which you expect to receive the payment. Making everything clear can help avoid payment delays or conflicts.
Create a Unique Brand
Think of your brand as your visual presence in the world. You may think only larger organizations have slick logos and branding materials. But even solo side hustlers are upping their game with branding to stand out from the pack.
As you determine your company’s image, choose a memorable name that people will be able to recall quickly. Choose a cohesive color scheme to include in your logo, social media presence, invoices, and any other documents you distribute. You can use free design apps like Canva to create a logo, or hire a professional with branding experience.
Make your presence known with a professional website where you display product photos or outline your services. Create an About Me page, too, to help add a more personal touch to what you’re doing.
Sometimes people will be more eager to support a small business. And leverage social media to promote what you do. Regular posts and well-chosen hashtags can lead to organic gains in engagement, but paid ads can be worth the investment for a visibility boost.
Stay on Top of Paperwork
Setting up a bank account and designing professional invoices are good steps toward building a solid business as a side hustler. But your work won’t stop there.
You’ll want to develop smart habits to track expenses so you’re always aware of your financial situation. You don’t want to hurt your personal finances on account of a struggling business.
You can use apps or digital platforms to upload all receipts and invoices. Create categories for expenses like equipment purchases or marketing. Track mileage, too, if you’re on the road frequently. It may feel tedious to do this, but it’s worth the extra time so you don’t encounter financial surprises. You’ll also be able to evaluate your finances more easily on a monthly or quarterly basis. You may uncover areas to slash costs or decide you can afford new supplies.
Block Your Time
A side hustle is a time commitment in addition to a day job or family responsibilities. To maximize your time management, stick with a schedule. Block your time so you can be more productive.
Stringing out responsibilities in small chunks of time may derail momentum. Instead, aim to work from 7:00-8:30 each night, for instance, to make consistent progress toward completing a task.
Sometimes it can be helpful to batch tasks, too. If you’re prepping product photos for your website, devote an hour to touchup work in Photoshop. Or if you’re lining up social media posts for the month, spend the next day’s work time doing that.
Set goals to help fuel your work. When you’re spending your off hours trying to grow a business, it’s critical to make sure it’s time well spent. Set goals for sales or inventory production and assess your progress each month. And reach out to peers in your field for advice.
Grow Your Side Hustle
Starting a side hustle can be a great opportunity to turn a passion into an income. Creating a successful home-based business starts with determining your niche and setting up a good workspace.
Then craft a memorable brand that you can share across social media outlets and your website to begin nurturing interest in your offerings. Get your logistical details in order, too, and be mindful of how you block your time. Once you gain a little momentum, the sky’s the limit!