Pitfalls to Avoid When Starting Your Side Hustle

If you're thinking about starting a side hustle, you're definitely not alone. In fact, according to a recent survey, more than 44 million Americans have started a side hustle in an effort to make some extra money. While there are certainly many benefits to starting your own business, there are also a few pitfalls that you need to avoid if you want to be successful. In this blog post, we will discuss the most common mistakes that people make when starting their own side hustle and how to avoid them!

Not Enough Research

A side hustle can be a great way to make some extra money, but it's important to do your research before getting started. Otherwise, you might find yourself falling into one of the many traps that can trip up new entrepreneurs. Not enough research is one such pitfall. Without a solid understanding of your industry and your target market, it will be difficult to create a successful business plan. Additionally, you'll be at a disadvantage when it comes to marketing and sales. If you're not sure where to start your research, try talking to people who are already successful in your field of interest. They can provide invaluable insights that will help you avoid common mistakes and set your business up for success.

Factoring In Costs

When starting a side hustle, it's important to factor in all of the costs associated with getting your business up and running. For example, if you're planning to sell handmade jewelry, you'll need to factor in the cost of materials, tools, marketing, and shipping. It's also important to factor in your own time and labor. If you're not charging enough for your products or services, you may find yourself working long hours for little pay. This can quickly lead to burnout and cause you to abandon your side hustle altogether. Therefore, it's essential to take a close look at your costs and make sure you're charging enough to cover them. Otherwise, you could find yourself regretsing starting your side hustle in the first place.

Losing Time At Your Job

When you're starting a side hustle, one of the potential pitfalls you need to avoid is losing time at your job. If you're putting in extra hours to get your side business off the ground, it's important to make sure that you're not neglecting your regular job. Otherwise, you risk burning out and potentially losing your primary source of income. Instead, try to strike a balance between work and your side hustle. Dedicate a set amount of time each week to working on your business, and make sure not to let it interfere with your job duties. With a little planning and discipline, you can successfully manage both your side hustle and your regular job.

Not Having a Business Credit Card

When you're first starting out in the business world, it can be tempting to try to do everything on your own. However, one of the pitfalls that you should avoid is not having a business credit card. A business credit card can help you manage your expenses and keep track of your spending. It can also help you build your business credit history, which can be helpful when you're trying to secure a loan or line of credit. Furthermore, a business credit card can give you access to valuable rewards and perks, such as cash back or travel points. So if you're thinking about starting a side hustle, make sure you get a business credit card first.

Tax Issues

When you start a side hustle, it's important to be aware of the potential tax implications. Depending on the type of business you're running, you may be required to pay self-employment taxes, income taxes, and/or sales taxes. Failure to comply with tax laws can result in hefty penalties, so it's important to do your research and make sure you're correctly filing your taxes.

Another pitfall to avoid when starting a side hustle is not keeping accurate records. Not only do you need to keep track of your income and expenses for tax purposes, but accurate records will also help you run your business more efficiently. Make sure to keep receipts for all purchases and track your income and expenses in a spreadsheet or accounting software. By staying organized from the start, you'll save yourself a lot of headache down the road.