At a time when the average sales price for a condo in Manhattan is $1.9 million, it’s no wonder that young people are constantly on the hunt for a side hustle. Of course, most young couples aren’t looking to drop $2 million on luxury real estate; they just want to keep their heads about the financial waters. Side hustles are a great way to make some extra money when your budget is tight. But just like any other business, your side hustle can suffer from challenges and even failures.
The good news is you’re not alone in these setbacks. Up to 70% of all business partnerships fail and 50% of startups fail in their first five years. And with failure comes the knowledge of how to do better and succeed on your next time around.
That said, consider the four common reasons why your side hustle may be flopping and how you can keep it from going under.
- You’re selling an idea, not a solution. A business looking for a problem to solve is like a punchline looking for a joke. Your business is what ought to be developed from a solution to a problem that already exists. For instance, if there aren’t enough hotels in a tourist-heavy area, a bed and breakfast side hustle is the solution to that problem. Don’t assume that a target audience will automatically appear for any product or service you provide.
- You’re not on the right platform. Many side businesses are digital because websites and online platforms are more convenient, less expensive, and easier to manage than a physical store or office place. But you may be using the wrong online platform for your side hustle. If your side hustle is a delivery service, it may be more beneficial for you to be on an app than a social media site. Likewise, if your side hustle is an online store, it may be more beneficial for you to be on Etsy or to make your own website.
- You’re not focusing on what makes you money. The reason you created your side hustle was to bring in extra cash. But sometimes you can actually cost yourself money because you’re not focusing on the right things. For instance, you may be worried about pricing your art commissions too high. But when you price them too low, you’re not only losing money but also devaluing your work. Likewise, you may be focused on delivering as many products to your customers as possible. But if you move too fast, you can end up losing quality in your products, which can cost you your customers’ experience.
Rocking a side hustle is no easy feat. But by following the tips above and planning ahead for potential setbacks, you can stay on the ball and keep your cash flowing.