Starting your own ‘side hustle’ can be an exciting project and a great way to see if your new business idea has legs in the current market.
But could your side hustle actually turn a profit? And is there a demand for the product or service you're offering?
Five important questions to ask yourself before launching your side project
1. Is there a demand in the market?
For your business to function, you need paying customers. Start off by researching whether your target customer audience exists and if this demographic is willing to pay for your solution. Go beyond polite feedback from friends; look for hard evidence like pre-orders, competitor engagement or active search traffic for your product or service.
2. Is the business financially viable?
Work on the numbers to make sure the finances add up. This means checking that your pricing strategy comfortably covers things like direct expenses, software subscriptions and any future tax obligations. A side hustle must generate enough revenue to turn a true profit after accounting for all recurring operational costs.
3. How much will it cost to acquire customers?
People need to know your business exists, so marketing is essential. Think about a realistic budget and the potential time required for marketing, advertising and organic content creation. You need to know exactly how much it costs to acquire a single customer to ensure your promotional costs won't instantly drain your startup capital.
4. What’s a realistic profit target?
To make your side-hustle efforts worthwhile, you’ll want to know that your side project can actually turn a profit. Set a realistic net profit goal based on running the business as lean as possible to begin with. Aim to clear your initial baseline operational costs within the first six to twelve months, and set yourself a clear profit milestone to hit in the longer term.
5. How much time will your side hustle take up?
Starting a side project while still working another job can be a major time commitment. Look at your existing weekly schedule to confirm you can realistically commit 10 to 15 hours for operations, customer service and admin. It’s also vital to check that this extra workload can be sustained without causing burnout or compromising your primary employed role.
Let’s make your side hustle a business reality
If you’ve got an idea for a side project or second business, come and talk to our team.
We’ll help you work out the financial viability of the business and build a business plan that factors in your marketing, customer acquisition and revenue generation factors.
