Side hustles are a great way to make money on the side whether you’re saving to buy a house or paying off credit card debt. In fact, there are up to 400 million entrepreneurs worldwide. But not every side hustle is created equal, and what works for one person may not work for you.
So how do you know when your side hustle isn’t working for you anymore and it’s time to move on to a new, more successful, endeavor? Here are a few signs your side hustle may be doing you more financial harm than good.
You’re not making enough money
Your side hustle is a business whether you’re putting in five hours a week or 20 hours. That means, in order for your side hustle to be considered successful, you need some form of revenue.
You can have a beautifully designed business, but make no money. In most cases, this is because you’re focused on the wrong things such as creating a website that has no traffic or making business cards without networking.
It’s true that you do need to spend some money to get a business going, especially if you need materials. For instance, if you were running a small manufacturing business, you might need to invest in materials like:
- Steel, 16% of which is used for mechanical equipment
- Fiberglass rope, which can be used in temperatures up to 1000F
- Polyurethane parts, which are made using two liquid components in RIM
Each of these materials would cost your small manufacturing business money, but those materials are necessary to create your products. However, the money you bring in with your products needs to cover the cost of those materials and then some to make a profit. If there’s no profit, or even a loss, it may be time to push your side hustle off to the side completely.
You’re not solving a problem
Unfortunately, you need more than a desire for entrepreneurship to have a successful side hustle. You need to have a problem that needs solving and a solution to that problem.
A business that doesn’t solve an existing problem is doomed from the start. Ask yourself what problems you want to solve before you create a product or service to run your side hustle on.
Do you want to make wedding planning that much easier for busy brides? Do you want to make task management that much easier for businesses?
When you know the problem that you want to solve you can begin creating the solutions that consumers will pay to have. A product or service that doesn’t solve a problem is doomed for failure.
You’re not consistent enough
Just like how a full-time business needs to take the time to pursue marketing, customer service, and manufacturing, it’s up to you to put in the time and effort to get your side hustle off the ground. For instance, it’s not enough to make a website for your business. You also need to ensure that the website is getting enough traffic.
If you’re not consistent with the amount of time and effort that you’re putting into your side hustle, it may be time to move onto something else. For example, an Etsy shop that never updates with new products is less likely to be successful than a shop that puts up a new product a few times a month.
Your side hustle is meant to help you bring in more money. When you’re spending more money than you’re bringing in, you have an investment issue and it’s time to move on to bigger, brighter side hustles.