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Side hustles are a great way to fuel your passions and make extra cash on the side. However, they often aren’t seen as a real job or taken seriously, even by those doing them. It’s because of this that many don’t succeed. Unless you invest the time, money, and resources that a business needs, it simply won’t survive. By treating your side hustle as second-class employment, you limit your own achievements. With that in mind, here are six huge side hustle mistakes to avoid.
Picking The Wrong Idea
Running a business isn’t easy, even if you only do it around your full-time job. You have to love what you do, or you’ll give up the moment things get tough. Rather than picking a job you think will make lots of money, therefore, you should consider side hustle ideas that revolve around your passions. Make a product or service you’re crazy about, and you’ll feel motivated to work hard.
Failing To Secure Permits
While it would make life easier if you could, you can’t just pick a business idea and start working with it. Before you do this, you will have to secure the appropriate permits and licenses. Not all small businesses require a license, and you may be able to trade without one. However, if you don’t get what you need, you could be fined or even sent to jail, so it’s always best to check.
Investing Too Much Money
A successful side hustle can bring in a significant income. But, it is best to prove that your idea is profitable before you invest too much money. If a van is needed for your work, opt for a used one, from a company like Manchester Van Sales, rather than a brand new vehicle. Whenever you can, you should use the tools and equipment you already have access to, instead of buying new.
Violating Your Employment Agreement
Although a side hustle could become a full-time business, you don’t want to be fired from your day job because of it. You can avoid this outcome by reading any hiring documents you signed, as well as the employee handbook. If you’re unsure where you stand after doing so, then speak to an HR manager. Even if the company allows side hustles, you can’t work on company time.
Keeping All Transactions Together
Many freelancers have a single account for both business and personal use. At first, you might think that this makes things more convenient, but when it comes to tracking expenses, you’ll find that the opposite is, in fact, the case. Rather than wasting time sifting through bank statements to separate your transactions, you should open another account for business use alone.
Setting Below Market Rates
Far too many freelancers accept any job that they can, even if it’s low paying. You might think that earning less is better than earning nothing, but, in the long run, it just isn’t. After all, if you were ever to turn your side hustle into a full-time business, you wouldn’t be able to make ends meet. Accepting low offers hurts other companies too, as it suggests that yours is the going rate.
To make a success of your side hustle, be sure that you avoid the mistakes above.