My guess is that you’ve heard of starting a side-hustle.
And because of the internet, today you can start one while working in your pajamas. Yet, you’re clueless where to start. You feel overwhelmed with information.
Plus, it’s hard work on a side-hustle after working long hours in your day job.
So, you do nothing and time keeps passing by. Instead, take a different approach.
You need proven advice from people you can relate to. People who’ve built their side-hustles with little experience while juggling full-time jobs.
People like you.
I was fortunate to get to speak with Grant, a Millennial entrepreneur who went from $2.26 to a Millionaire. He recently wrote a book called Financial Freedom. Here he shares his blueprint to reaching financial freedom using a side-hustle.
In the end, that’s what you want. Whether it’s spending more time with your family or traveling the world–freedom is the goal.
In chapter 9 of Financial Freedom Grant covers how to start a profitable side hustle. After reading this chapter I’d realized that it would’ve saved me time. But, it’s still not late for you.
If you’re looking to grow your income this year then listen up. Here are Grant’s strategies on how to start a profitable side hustle.
Odds are that if you want to start a side-hustle you want to start right away, but hold on.
You need to do some planning.
Because you want to work on something you’ll enjoy enough to be consistent.
Grant mentions analyzing your interest and skills. This is important because you need to work on a side-hustle that’ll succeed in.
Draw a Venn diagram, and write tasks you enjoy doing along with the skills you have. Focus on the areas where your skills and interests overlap. Then rank your top choices focusing only your top 3.
Doing this simple exercise will increase your odds at building a successful side-hustle.
That’s because you’re narrowing your choices to ones that you’re most experienced in. Even if you don’t have experience in a topic you’re interested in, it’ll be easier for you to grow in this area. This is more effective than “following your passion.”
As Tom Bilyeu says, your passion isn’t something that’s discovered. It’s something that starts out of interest–whether big or small. If you have the grit to push through the boring phases of a topic, you’ve found something worth pursuing.
All side-hustles are not made equal.
You can earn extra money driving as an Uber driver, but you’d be trading your time for dollars. Instead, Grant encourages you to focus on side-hustles that generate passive income.
Take, for example, Matt, a 25-year old mentioned in Grant’s book, who’s in earning $55,000. With this income, Matt would be able to retire in 30+ years. But, because he has a dog-walking business, he’ll be able to retire in only five years.
Keep in mind that Matt is juggling a full-time job while growing his side-hustle. He’s not walking dozens of dogs each day nor charging an arm or a leg for his services. He’s able to do this because he’s scaled his side-hustle.
Matt has other people working under him, allowing him to earn income passively. But, growing your side-hustle isn’t always the answer. Start with knowing your values.
Here are some questions to help you decide how to grow your side-hustle:
Growing your side-hustle is great but you need metrics to know when you’ve reached your goals.
So, you have your idea, now you’re going to make money right?
Ideally, yes, but realistically, no.
Once you’re set on which type of side-hustle you’ll choose you still need to do some research. Grant covers many good topics to cover such as:
If you have high-demand skills such as content writing you can charge more for your services. This doesn’t mean that you can charge an absurd price. Research what your competitors are charging to help you determine what you’d charge.
For example, if you’re an online men’s vitamin store, do a Google search on “men’s vitamins.” Review top websites and take note of what they’re charging for the same product you’re selling.
There’s no point in starting a side-hustle no one wants. You won’t make money creating an online tomatoes course if there’s no demand. To know if a product is in demand find other businesses selling your product. A simple online search will give you an idea of other businesses who are making money on a similar idea.
Whichever product or service you decide to offer you need to decide how you’ll be better. Why would anyone want your product over someone else’s? You may be able to get away with a mediocre product, but you’ll pay the consequence with little to no sales.
Instead, find ways to offer more value. For example, if you’re a blogger write longer high-quality posts. If you’re a web design freelancer offer a free consultation.
Planning is the most important phase for your side-hustle. Although it seems unproductive at first, it’ll help you avoid wasting time.
Will you be working with customers or businesses?
Narrowing down your ideal customer is important.
Because your ideal customer will wither make or break your financial goals. For example, let’s assume you want to earn $1500 in monthly income from your side-hustle. It’ll be challenging to do so charging $50 for your product or service.
You’d need to work on 30 different projects to generate this income. If you’re averaging 4 hours to produce your product/service, you’d need to work 30 hours each week. Even though this is possible, it’ll be a stressful way to earn extra income.
But, what if you worked with a client who’d pay you $500 for your product or service? You’d now need to work on 3 projects per month, requiring 15–20 hours of your time. A good rule of thumb to follow is that bigger businesses will pay more than smaller ones.
If you work hard and do your best, you can achieve anything. –Erin Heatherton
It’s true hard work pays off–at least most of the time.
You see, you can work hard on the wrong tasks and still make little progress. You may even take a few steps backward. So what can you do?
Grant states that making money isn’t only about how hard you work—it’s about maximizing the perceived value of your work.
The trick is to offer enough value so others will perceive they’re getting more than they’re paying. Once you’re able to do this you can charge a premium for your product or service. But, it starts with getting your first client.
For your first few clients, it’s ok to charge a lesser amount, but Grant mentions to not undervalue yourself.
If you get first few clients from sites like Upwork, eventually look elsewhere. More often than not it’s a race the bottom. Most freelancers here will often compete to offer the lowest price.
Once you start making money with your side-hustle you still have more work to do.
Grant kept increasing his retirement contribution until he was investing 40%! If financial freedom is your goal, then you too should invest as much money as possible. That’s the beauty of having a side-hustle because you can save most of the money you earn.
Make your money to work for you. Most of the time this will mean investing in index funds. Other ways include investing yourself. You can build a successful business in 10 years or save time by learning from other people’s mistakes.
But, you’re probably wondering how Grant and others are able to have the discipline to save so much money? Do they have a special gift?
The truth is that the same way Grant was able to build discipline, so can you. Grant was one day contemplating how he’d arrived at the point of only having $2.26. It was at this moment that he’d decided to save $1 million and to retire as fast as possible–this became his burning desire.
This is the secret you’ll need to build discipline. Find your burning desire to reach financial freedom. Soon you’ll save more money and hustle harder.
All the chapters in “Financial Freedom” will help you re-think your financial capabilities.
Chapter 9 is all about side-hustles and is one of the important chapters. Think of this chapter as your step-by-step guide in building your ideal side-hustle. By having a side-hustle you’ll earn more, save more, and retire faster.
From this book, you’ll get down-to-earth advice from someone who knows how it feels to be in a financial mess. And, you’ll become inspired along the way.
The truth is building a side-hustle isn’t as simple as most people make it seem. It takes months, sometimes even years to start earning a sustainable income. But, once you’re earning extra income, you’ll be on a faster path towards reaching financial freedom.
If you’ve ever read online posts about starting a side-hustle and had more questions–you’ll enjoy reading chapter 9.
Financial Freedom isn’t your ordinary finance book.
It’s a book designed to help you retire earlier than you’d ever imagined possible. It’s designed to motivate you to not settle for average.
I recommend this book to those who want to improve their financial situation. This book will make you rethink what’s possible. More important, it will give you a blueprint towards reaching financial success.
Although I’ve been working hard on my side-hustle–I became motivated to hustle harder the more I’d read Grant’s book. Grant started several side-hustles including designing websites, flipping domains, and more. He was hungry.
And so are you.
You want to live life on your own terms.
This life can be yours if you’re willing to hustle. I’ve only covered a glimpse of one chapter in Grant’s book. Imagine how much you’ll learn in all 14.
Investing in yourself is the best investment you can make.
And there’s no better way than books.
They’re affordable and accessible to most people. But, a book is only a book. What matters is what you’d do with the information you’ll learn.
How will you build a side-hustle to reach your financial dreams?
You don’t even need to know. You only need a burning desire and a next step to take.
Make “Financial Freedom” your next step.
Chris writes personal finance and productivity articles for software companies. He gets fresh ideas through continuously investing in himself and interviewing successful entrepreneurs.