A Simple Framework To Test Side Hustle Ideas Without Going Broke
According to a recent LendingTree survey, 33% of Americans reported having a side hustle, down from 38% last year and 44% in 2022. However, it’s worth noting that 61% of those with a side hustle said life would be unaffordable without one. With the average side hustle amount earned per month at $1,242, it’s more important than ever that you figure out how to maximize your side hustle earnings.
The following is a framework for testing side hustle ideas without losing a lot of money or taking on unnecessary risks so that you can maximize your earnings.
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Step 1: Try To Learn as Much as You Can
Teresa Tran, the COO of LaGrande Marketing, shared that her side hustles include providing administrative consulting to small business owners and offering content writing services. As she explained, she got started without risking a large sum of money because she was working full-time and couldn’t afford to lose money while figuring things out.
Tran said, “Something that I have done was find someone already doing what I wanted to do and study everything about how they operated.” She learned from others' failures and successes before even getting started. You can do this, too.
Before you test out any hustle, take the time to learn about it, so you know what you’re getting into. While it can be tempting to try to figure things out on your own, you have to remember that you don’t want to lose money from a side gig and end up in a worse financial situation.
Step 2: Ensure That There’s Demand
“My entire approach centers on testing ideas fast, keeping costs low and making smart moves before committing further,” said Khris Steven, the founder of KhrisDigital, a digital marketing agency that helps businesses improve their digital presence.
You shouldn't spend a dime until you’ve figured out if there’s market demand for your product. So, how can you look for demand?
List your services on a freelance platform to see if there’s any interest.
Look through freelance boards to see if anyone’s hiring for your service.
Send a message to ten people who could be potential buyers.
Create social media content and start sharing it to generate interest.
Tran added, “The risk is investing in infrastructure before you know if anyone actually wants what you're selling. A website, a logo, a scheduling tool, a payment processor; none of that is proof of demand. It simply delays the moment you find out whether the idea works.”
This leads us to the next point.
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Step 3: Sell Your Idea First
Steven once spent weeks setting up a niche site that didn’t gain traction, which led him to flip his approach. He explained that the safest way to test a side hustle idea is to get someone to pay you before you build anything.
“I also recommend running a strict 30-day sprint, tracking every dollar going out, and if nobody has paid you by day 30, treat that as your answer and move on," said Steven.
Step 4: Test Your Idea by Offering Your Services for Free
Tran suggested offering 10 hours of free service to 10 people to determine whether you’re even good at what you offer. Once you’ve ensured there’s demand, you can work on your package.
When Tran wanted to grow her business, she reached out to about ten people in her network and provided free administrative consulting and content writing. She had seven people take her up on her offer, and three became paying clients within the first month because the problem she solved was already saving them money and time.
Step 5: Ensure That the Income Is Consistent
The final step is to remember that you shouldn’t leave your job without a plan because this could create unnecessary stress.
Steven said that your side hustle should cover at least 75% of your current income consistently before you even think about making a bigger move. For example, he didn’t fully commit to his business until he had three straight months of consistent income.
“I tracked exactly how much each content piece earned me, and once those numbers held steady without me constantly pushing new work out, the decision made itself," said Steven.
You want to be 100% certain that there’s money to be made in this side hustle before you spend more or devote additional time to it.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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