Choosing a side hustle has become popular over the last two years. Why? Because the recent global pandemic was a wake-up call to pursue financial independence. And having a side gig is a low-risk, highly profitable way to build wealth.
There are many side gig opportunities available that you can start part-time. For the beginner investor…the main questions I hear about choosing a side hustle are
What is the most profitable side hustle?
How do I know I am choosing the right side gig?
How do I make my first sale and then continue making sales?
How much commitment in time and money do I have to put into my side hustle?
Know the type of business choosing a side hustle
If you are starting a business and want to know what side gig to start… you must understand that there are three business categories: services or consultancy, retailing, and manufacturing.
Starting a service or consultancy business requires a small start-up cost and expertise. The service business models can be operated from home or remotely. Done correctly, you can grow a service business to generate a six-figure side hustle. A few service businesses include dog grooming, Uber, Airbnb, bookkeeping, virtual assistance services, resume writing, and cleaning services.
A retailing business involves the buying and selling of goods for a profit. Starting a retail business requires a more significant amount of money for the start-up. You can either have a physical shop front or do every transaction online. One of the keys to a successful retail business is an efficient delivery process to your customers. Examples of retail businesses include dropshipping, amazon e-commerce business, dress shops, and selling farm produce.
A manufacturing business is the most capital-intensive of the business models. It takes more time to build a manufacturing business. You can manufacture hard or soft goods. Tangible things like a widget and food products are hard goods. Intellectual property products (Apps, software, music, and e-courses are soft goods).
You can check out some of the best side hustles compiled by Grant Sabatier for millennial money.
You have to know the side gig cold.
The secret to having a successful side hustle is that you must know the business. What does knowing your business mean? You must know how the business makes its first sale…that is how it acquires its first customer. This is the first secret of every business.
In other words, how do I start generating customers without going broke developing them? I wish I had known this business secret before I started my first business that ended up in failure.
Bestselling author Mark Ford in his program, The Seven Years to Seven Figures Systems says “the first sale is paramount. Because you must know if the business is viable and can make sales.”
Mark Ford, who has a track record of growing several multimillion-dollar businesses from scratch, says you must spend most of your time making the first sales and acquiring the first customer. He advises that it’s time to rethink the business if you find you are not making sales with your effort.
The Backend
The second thing you need to understand is how to turn your side gig customers into multiple buyers. Turning a business’ customers into multiple buyers is called the ‘backend.’
Let me explain the back end.
For example, you may decide that choosing a side hustle selling fashion books is your best bet. Your potential customers may also be interested in buying fashion accessories. The process of turning your potential customer into purchasing fashion accessories and, in particular, more expensive products is your back end. Successful backend sales mean you will likely have higher margins and a higher lifetime value for each customer.
In summary, starting a side hustle may be the most critical wealth-building decision you’ll ever make. Before you choose your side gig, you must know the kinds of businesses available. Then make a decision and choose the right one for you.
You need to understand the core of the business you want to start. This means you must understand the insider secrets of your side hustle…that make it profitable. In other words, you must know these two things about the business…You understand how the business brings in its first customer and generates profits from that customer, by backend sales.
If you know these two things – getting your first customer and keeping them as buyers in your business, you can start any business and make your side gig a low-risk and highly profitable business.
