In the new gig economy platforms make it easy to sign up and work a side hustle. Many people either already have a side hustle or are looking to get one. After all, it can be tempting to join in on the entrepreneurial spirit and make a little extra money on the side to supplement your income.
Although the idea of starting a side hustle can be attractive, there is no guarantee your side hustle will be successful or even unsuccessful for that matter. But there may be a few common reasons why your side hustles are failing.
Before you dive right into your next side hustle or put all your effort into making your current side hustle successful, try to understand and avoid these top 8 reasons why side hustles fail.
1. You have not done enough research for the business
One of the most important things to do when considering a side hustle or working to improve your current side hustle is to do research.
This research could include who your target audience might be, why they might want to use your service or product, or how much of a product you would have to sell to break even with your starting costs.
Questions like these are important to explore so that you understand what it would take to be successful.
Starting a business is also very difficult. That’s why it is so important that you don’t underestimate the amount of effort you need to put into researching how to run your side hustle.
With proper research and effort, you can run a successful side hustle, but it takes work.
2. Why Do Side Hustles Fail – Failing to set priorities on tasks that have a higher ROI
Setting priorities is definitely important when it comes to side hustles. It may be tempting to start tasks that are more fun or easier to complete first, but you should always prioritize those that have a higher return on investment.
If you don’t, you may end up having a hard time earning back the money you have put into your business.
3. Not following your passion
Side hustles are a great way to explore your passions, whatever they may be. A side hustle can be anything from walking dogs in the evening to doing voiceovers as a freelancer.
Whatever it is you choose to do as a side hustle, you should make sure you enjoy doing it. Because if you just follow what you think will make you money, the small amounts of money you make in the beginning will not feel worth it if you hate what you are doing.
By following your passions, working a side hustle will not feel tedious. This is important since your job will likely be around 40 hours a week and if you have to do something you hate with your limited free time, you could start to resent your side hustle and stop putting in the work.
By hating your side hustle, it would likely be doomed to fail. But instead, if you are passionate about your side hustle, it would be fun and feel like you are enjoying a hobby after a long day of work.
The perfect side hustle is something you would love to do for the rest of your life.
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4. Why Do Side Hustles Fail – You try to be someone other than yourself
It is always best to be yourself when representing your business. You can take inspiration from other people, but you should ultimately remain true to yourself.
Who you are is part of your personal brand. If you are not a big social media influencer, there is no reason to pretend you are because by being yourself, you can find your own path to success.
You don’t need to pretend to be someone you are not. Always run your business in a way that presents who you are.
5. Why Do Side Hustles Fail – Burn out – do not set aside time off
If you don’t set aside time to rest and do the things you love outside of work, you could easily burn out. This is especially common among side hustlers since they also have to work 40 hours a week at their main job and whatever time they put into the side hustle.
Working too much can lead to exhaustion and cause you to have mental and physical health issues.
6. Quit too early
Quitting too early is a common mistake amongst people who have side hustles. Most businesses and side hustles start out small. And that can be discouraging for someone who thinks they can get rich quick by starting their own business.
When starting out, it is important to remember that every business has to start somewhere and it often takes a bit of time to become successful. Be patient and make sure you give yourself at least a year to see if your side hustle is profitable.
7. Why Do Side Hustles Fail – You are not focusing on tasks that make you money
Sometimes the stigma that it is bad to focus on money can affect the way an individual looks at their side hustle. They may feel selfish for prioritizing their monetary needs. But the truth is, striving towards financial freedom is anything but bad.
Another reason why not focusing on tasks that make you money can cause your side hustles to fail is that some people get caught up in the details.
They may end up spending all their time designing the most beautiful website or focus on the packaging of their product instead of tasks that bring in the money such as the actual product.
8. Lack of separation between personal and business finances
They say never to mix business and pleasure and that is definitely true when it comes to money. By keeping your personal and business finances separate, you can protect your personal assets.
Otherwise, if your business runs into trouble, you can be sued personally. If you are personally sued, you could lose everything you own. This would be a sure way for your side hustle to fail and for your life to fall apart.