What’s In It For Me?
What if you could create an additional income stream without giving up the security of a full-time job? A side hustle has the potential to do just that, and in fact many people with a side hustle are able to take more risks in their day-job because of having multiple income sources. Even if you enjoy your job, It goes without saying that multiple income sources create more options in life. More importantly, unlike quitting your job and going all-in on an entrepreneurial endeavor, there is limited downside in starting a side hustle. A good side hustle can support your life, but it doesn’t have to be your entire life. In fact, many side hustlers are able to enjoy more of their life because of the project they have built.
“Everyone should have a side hustle. Even if you love your job, having more than once source of income will give you more freedom and more options.” Side Hustle p.3
The Big Idea
Inspiration is good, but when combined with action, is much better. Although there is no single “right way” to start a side hustle, having a game plan can help. Having successfully launched more than a dozen side hustles over his career, author Chris Guillebeau provides a step-by-step guide that takes you from idea to income in 27 days.
Week 1: The first week will teach you how to generate side hustle ideas that actually work and fit for your lifestyle.
Week 2: After you have a list of multiple ideas, you need to be able to identify the best ones.
Week 3: Once you have settled on your idea, you need to know who your ideal customer is. You will learn how to help your ideal customer understand why they cannot live without your product/service.
Week 4: Typically the best time to launch your side hustle is before you feel 100% ready. You will learn selling techniques and the importance testing and asking people for help.
Week 5: As you learn more about the initial response to your side hustle, you can take note of the most critical metrics and take action by improving on what you have learned. Identify what is working and do more of that.
Key Concept #1
Idea Generation and Selection
The author provides a high-potential idea checklist:
*Can you describe how to turn the idea into action in one sentence?
*Is there an obvious way to make money with this idea?
*Does the idea solve a problem for someone?
*Can you figure out how to make this idea happen quickly?
*Is it relatively low maintained?
*Can you get paid more than once for this idea?
The more you are able to answer “yes” to the questions above, the more potential your idea has.
There are three broad categories of side hustles: you can sell a product, a service, or you can be the middleman.
The book challenges readers to think of “next level ideas.” As an example, driving for Uber or Lyft is a common way people get started with side hustles, but it is has the severe limitation that money can only be made while driving. A real life next level idea was created by Harry Campbell, who created an online community called The Rideshare Guy which allows him to earn money from serving as the expert commentator and coach on the booming rideshare industry.
Once you have a few ideas narrowed down, learn how to rank your side hustle ideas by focusing on five key qualities:
Feasibility: The ability to begin turning the idea into action in a short period of time
Profitability: The potential to make money from the idea, also in a short period of time
Persuasion: Not only is it a good idea, but it is a good idea now
Efficiency: How quickly can this be executed?
Motivation: How excited are you about this idea?
To make an immediate comparison between your ideas, rank them as high, medium, or low on the five qualities above.
Key Concept #2
Your Ideal Customer
A common misconception many people have when starting a first side hustle is they think by targeting a wider range of customers, they will increase sales. This could not be further from the truth. The author suggests the best approach is to specifically define your customer and you need to think of these target customers as “your people.” You may be familiar with demographic data, such as age, gender, and education level, but sometimes products and services cross demographic lines and are enjoyed by people from a variety of backgrounds. That is why it is important to create an avatar (one single ideal customer) that will allow you to dig deeper on get more precise on whom you are planning to serve.
Before fully committing to an idea, take some time to research what other successful businesses in your field are doing. Visit their websites, read their customer reviews, check their social media postings, or maybe even try out the service yourself. Write down the names of the other businesses and then think about how your idea will be better or different. Your business does not need to be better at everything, but when you closely observe the competition you may be able to pick up on some things that they either have not noticed or have not had the time to address. The goal is to figure out how you can adopt and improve on the strategy of your competition. The author even suggests setting up a Facebook account to validate a potential idea.
Key Concept #3
Create Your Origins Story
“…the more you can inspire your potential customers to root for you and your mission, the easier it will be to turn potential customers into paying ones.” Side Hustle p. 93
The book describes a successful side hustle started by a young couple selling cashmere shawls. This may sound like an ordinary business, but the history behind how the business was formed created an additional appeal. Canadian David Venn fell in love with a woman from Nepal when he was traveling abroad. After honeymooning in Nepal, the couple planned to settle in Canada. David noticed that cashmere products in Nepal were much cheaper than anywhere else he’d seen, so Corala Cashmere was born. David and his wife met with local suppliers and partnered with a company that would make women’s shawls in Nepal and then David and his wife would sell them in Canada . The business was quickly profitable, in part because a newspaper ad wrote a story about the origins of Corala Cashmere. Additionally, Corala Cashmere donated a portion of the profits to benefit schoolchildren in the Himalayan mountains. Corala Cashmere is a great example of how impactful an origin story can be to the success of a side hustle. It can act as a real competitive advantage against large corporations that often try to play up its modest “mom-and-pop shop” beginnings in an attempt to come across as the scrappy underdog.
To create your own origins story, first consider why you are pursing your particular side hustle in the first place. It could be something you have always been interested in, or a particular frustration you have experienced by a product or service.
Key Concept #4
Focus On the Most Important Tasks
“No matter what your hustle is, you should always focus on improving the experience for your customer.” Side Hustle p. 141.
The book describes the story of Oliver Asis, a civil engineer for the State of California. Oliver is also an amateur landscape photographer, so when a friend asked him to photograph her wedding, he happy agreed. No less than an hour later, he started to panic thinking about what he just committed to-he had never shot a wedding before, let alone attended many in the first place. The average person is this situation would have set out on a crash course to learn everything about wedding photography: read instructional books, attend a local college class, or read online tutorials. Fortunately, Oliver had a better idea, which exemplifies an important set for side hustlers. Oliver decided to invest his time by gaining actual experience by offering to shoot a wedding for a very low fee to the first couple who took him up on his Craigslist offer. To put it bluntly, he didn’t want to mess up his friend’s wedding, but realized if he messed something up for a stranger, he wouldn’t feel as bad. Oliver’s story is a classic side hustler narrative that illustrates the importance of being resourceful and doing more of what’s important, and less of what’s not. Oliver did not mess up the wedding, or his friend’s wedding, and with more experience and a portfolio, he now does at least one wedding a month for a starting price of $3,500.
There are two important focus areas to think about when running a side hustle:
Change Your Customer’s Life: A lot of people are looking for a “hack” or shortcut to make their side hustle more efficient. However, the best hack of all is to do something that makes a difference in people’s lives, or the life of your ideal customer. To improve the experience for your customer, focus on managing expectations, and then go above and beyond. It is also important to highlight positive results to show your customer how your service or product has benefited them.
Make More Money: There are many great reasons to have a side hustle, but never forget that money is one of them. Your side hustle must be profitable! Ways to make more money include:
Commit to a schedule of regular price increases, as people understand that most businesses increase their price over time.
Pursue incremental revenue. Once you are making money, think about other ways you can earn additional income with little additional investment of time.
Start a side hustle to your hustle: Most hustlers operate more than one side hustle throughout their lives. Once you have built a project, ask yourself what is next.
Key Concept #5
Launch and Sell Like a Girl Scout
It is important to start your side hustle before you feel completely ready. Proof of concept can provide important validation to prove you are on to something. Additionally, perfectionists do not make for good side hustlers. There is always the wanna-be author who every year talks about writing a book, but 10 years go by and they are still talking about it. Even if you do not feel fully ready to launch, you can always launch in beta. Doing so will allow you to continue working on your side hustle while also getting real-time feedback, and perhaps even some sales as well.
If you ever think you will use social media for your hustle, take the time to create a Facebook page, even before you make a website. As people begin to engage with your page, Facebook automatically gathers data about them that can provide valuable feedback. When enough visitors have arrived on your page, you will be able to access a section called “Insights” that provides detailed information that will help you better reach and serve your customers.
The author suggests developing a sales strategy that has a lot in common with the way Girl Scouts sell cookies. The point is Girl Scout cookies sell not because of a manipulative pitch or pushy sales tactics, but because people like them. Remember, the people who need your hustle want to be marketed to. Even if you have a great product, chances are your hustle wont’ sell itself. Do not be afraid to take a page from the Girl Scout playbook and set up a table on the proverbial sidewalk to invite people to buy.
When selling your product or service, make sure you lead with its benefits. How will it help people or make their lives easier, more fun, or more fulfilling? Keep the benefits clear, specific, and immediately obvious.
Apply It
The book gives several side hustle “starter kit” ideas:
Put Your Spare bedroom on Airbnb: This can be a turnkey income source, and once it’s up and running, responsibilities include responding to inquiries, welcoming guests, and dealing with any issues. To make your listing stand out, have professional looking photos and a fun description. Set the initial rates relatively low to make sure you can get quick bookings, and make sure your first guests give positive feedback to help your ratings. Eventually you can raise your rates as you learn the market and develop positive ratings.
Create a Pop-Up Shop: Pop-up shops can plug into an existing venue (i.e. shopping mall) or be organized independently. For buyers, there is a built-in sense of urgency since if they don’t buy now, it won’t be here tomorrow. Certain products work well in a pop-up format, such as fashion accessories or chair messages. Your payment system can be as simple as a tablet or phone equipped with a card reader. The downside to a pop-up shop is it doesn’t scale easily, and your success is largely determined by available foot traffic. At a minimum, you will learn a lot from your first pop-up experience, so even if it does not go well you can make changes to your approach.
Create and Sell Your Knowledge: Do you know how to do something that other people might pay for your knowledge? Whether it’s reprogramming your car stereo, making a website, or building a tiny home, virtually anything can be packaged together into a detailed blue-print that others can purchase. The detailed plan could be in written form, video, and once complete, can become a long-term asset earning money as long as the topic is still relevant, effectively creating passive income. The challenge with this approach is there may be free options or resources you are competing against, which could make it difficult for customers to pay for your knowledge. Nevertheless, if you create a differentiated offering that is valuable, people want to learn, and they will pay for the right materials.
Start a Subscription Site: A subscription site can be extremely profitable, but it is important to get clear and specific on your service. What can you offer people that will be useful over and over? You will need to make sure you consistently deliver new content or ongoing access to the service. Consider a free trial membership to get prospects in the door, and do everything you can to deliver an amazing customer service experience once people sign up.