How to Start a Side Business

If you've dreamed of starting side business for extra income or to pursue a passion, be sure you're prepared with the right business setup, the right tools, and the right attitude.

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Sandra Beckwith

Sandra Beckwith has been writing for traditional and online publications since she sold her first magazine article while still a journalism student. Her articles in business, consumer, trade, and custom magazines; in corporate, alumni, and nonprofit organization publications; and on websites and blogs help readers learn more about successful initiatives and interesting people, or about how to do something better, faster, or smarter.The author of three traditionally published nonfiction books and a past contributing editor of three trade journals, Beckwith writes frequently on small business, logistics, supply chain, and work-life balance topics.She is also a national and regional award-winning former publicist who teaches authors how to market their books. Her book marketing website, BuildBookBuzz.com, has been recognized for excellence by four organizations and is ranked in the top 10 globally for book marketing blogs. She has served on the board of directors of the American Society of Journalists and Authors, where she remains an active volunteer and member. She is also a member of the Association of Ghostwriters. Beckwith is a graduate of Utica College of Syracuse University, a past member of its Raymond Simon Institute board, and a recipient of its Outstanding Public Relations/Journalism Alumna Award. A resident of a sweet little Erie Canal village in Western New York, Beckwith listens to audiobooks every evening while walking along the canal's original towpath for exercise. Her hobbies include eating, sleeping, and spending time with friends and family—but not necessarily in that order.

Find the right fit

As you think about side business ideas, consider what you're good at that people will pay for.

When Micah Redden, owner of Spire Property Solutions, helps friends and family brainstorm side business ideas, he asks them:

What are you good at doing right now?
What are the skills that someone you know needs right now?
What skills are worth money to someone you know right now?

"It's important to find the central overlap of those three elements," he says.

Make sure you enjoy doing it

You don't want to jeopardize your current employment by slipping in a little side hustle during your regular workday. Because of that, you'll likely be working a full day before spending time on a side business.

That's a lot of time spent working, so you'd better look forward to doing that second job.

"The only way to avoid burnout from this 'round the clock' working schedule is to enjoy the work that goes into your side hustle as much as you enjoy all of the things you've sacrificed to get your side hustle going," says Michelle Dees, who turned her Guinea Pig Owner side business into a full-time job.

Set goals

In addition to setting short- and long-term goals, add smaller weekly and monthly milestones so you see progress and spot trends.

"Did you plan on selling five products this month? Did you plan on making 10 pitches this week? What was the total website traffic last month compared to this month? says Aleka Shunk, who started her food and recipe website, Bite Sized Kitchen, as a side business four years ago. "Seeing your sales, traffic, job opportunities, etc. slowly but steadily increasing is vital to keeping you pushing forward."

Start small and validate

Avoid overspending or going into debt to fund your side business by testing your concept on a small scale first, perhaps with friends and family.

R.J. Weiss, founder of side-hustle blog The Ways to Wealth, notes that the quicker you go from the big idea to earning money, the quicker you'll get the feedback you need.

"I recommend people consider the option that gives them the best chance to make $100 this month. Then, put together a minimum effective product or service that allows them to make that $100," he says.

Hire freelance help

Reluctant to spend money on your side business before you're earning from it? Don't let that stop you from paying freelancers for tasks that require skills you lack. Initially, that could be a logo design or website copywriting. To find the right talent, ask friends or colleagues for freelancer referrals, or search project work sites such as Upwork or Fiverr.

"Determine which things in your job are the most tedious and taking up a large chunk of your time. Can these be hired out? Do they all need your expertise to get done properly? Most of the time, the answer is no," says Shunk, who wishes she hadn't waited two years to hire a content writer.

Just do it—but do it right

Analysis paralysis is real, but you have to take action to realize your dream.

"Build a small following on social media. Start that Etsy shop. You'll figure it out as you go along," says Nick Rowan, whose side hustle is Tiny Workshops, a website for creators.

Consult with an attorney, so you set up your side business appropriately. "An LLC may be perfect, a corporation may offer better tax advantages long term, or you may just need a sole proprietorship, but the key is setting yourself up at the start to avoid mistakes," says entrepreneur and investor Drew Laine.

Make sure you're not breaking any of your employer's rules, too, cautions Tyler Read, who started personal training company PTPioneer as a side business. "Check your employment contract and make sure it doesn't have any restrictions on freelancing or running your own business," he says.

Expect to make personal sacrifices and maybe even a few mistakes. But if you learn from challenges and persevere, your side business could blossom into a full-time endeavor.