I’ve had my hands in a few different side businesses over the last 8+ years. It’s been both rewarding and frustrating. One never became profitable, one became so big I had to sell it off, a few landed somewhere in the middle – and three continue on today.
I hear from bloggers and girl bosses all the time about their struggle to have it all. They don’t want to detract from time with family and friends or be perceived as not giving as much as they should to their full time job. It doesn’t have to be a choice through!
Truth be told, a full time job and a side business (or two or three) does take balance, a lot of planning, and a whole lot less free time. I’ve always found enjoyment in the mental challenge – but I know it’s not for everyone. If you’ve considered taking the plunge into building a side hustle or already have, here are a few tips I’ve learned for balancing it all without burning out.
TIP 1 // Develop a clear focus
Depth is the enemy of success when you’re trying to balance a full-time job, personal life and side business. Developing a business plan with a clear focus first will keep you on target later. Ask yourself:
- What am I doing this for? Are you building a side business so you can someday quit your full time job? To pursue a passion? To eventually sell the business to someone else to operate? To drive static income?
- Who am I doing this for? Think carefully about unmet needs and envision your target customer.
- What offering is most likely to meet their needs, and mine?
Rather than trying to launch a business with 10-20 products or a portfolio of services, start with a focused offering that’s most likely to help you hit your goals. You can always expand your scope later!
TIP 2 // Emulate, don’t replicate
The biggest mistake I see people make when starting a new business is to try and replicate an already-successful business, selling the same products as someone else, the same way. You could try to come in at a lower price, however starting a price war will only eat into your profit margins, requiring you to sell more to achieve the same take-home pay.
Instead, look for what’s successful about that business and try to emulate that. Design your own variation of a product, sell niche services that remedy an unmet need, leverage marketing techniques of big companies to bring customers in to something that’s uniquely yours.
That’s not to say you can’t jump in and succeed in an arena where others have already been successful. One of my side businesses is a SeneGence distributorship. There are hundreds of thousands of SeneGence (LipSense) distributors, all offering the same products at a controlled price. The logic above would say that’s a risky business to invest in – however the market is still on the increase and projected global expansion has the potential to spur growth in the thousands of percents! In my LipSense business, I attempt to differentiate myself by building content personally (versus resharing content built by others) that’s consistent with my personal brand and target audience. This uniqueness drives my business – and is what I coach the girls on my team to do as well!
When you’ve found something that’s unique, it will be easier to market your side business and compete without working so hard!
TIP 3 // Carve out separate space
Pick a spot in your home that can double as the headquarters for your side business. If you’re a blogger, photographer, or offer consulting or design services, set up your calendar and computer workspace on a small desk that’s not in your main living area. If you’re selling products online, dedicate a dresser or closet to storing your inventory. Keep it out of the line-of-sight of the spaces you’re apt to be in during “non-working” hours so you can fully separate when you need to.
I work from home when I’m not traveling as a consultant, and only have one home office. I keep my side business contained in one corner and my desk on the other side of the room. I can focus more easily on my “day job” when my other ventures are not sharing the same space.
TIP 4 // Minimize the initial investment
I’ve seen more businesses than I can count fail, not because the idea wasn’t amazing, but because the break-even point was far into the future. When I started my first side business (selling consignment handbags on eBay), I began with inventory I already owned, then moved to buying at thrift shops, before diving into luxury brands on consignment. The logic was simple – if I didn’t sell a bag I already owned, I wasn’t out thousands.
There are lots of great ways to test the waters first. Buy samples of merchandise and offer a discounted presale. Rent or use equipment you already own before purchasing everything you need for your business. Do everything yourself before you hire staff. Your business may not generate the returns you want as fast as you might want them, but lowering your risk initially also can increase the likelihood of success, especially when operating with limited time and capital.
TIP 5 // Set realistic goals
It would be great if all small businesses created sustainable sources of income with minimal time and capital investments – but we know that’s not true! Yes, some people succeed immediately, but for most, success is earned over time. Set goals for yourself over several time spans. Remember that they don’t all have to be revenue-based! For example,
- 30 days: Build a website, test offering with 5 potential customers and collect feedback.
- 60 days: Generate first sales; cover costs of next planned investment (inventory, equipment, etc.).
- 90 days: Have sufficient profits to invest $XX back into the business, and pay yourself $XX.
- 6 months: Generate revenues of $XX per month, with a profit margin of at least XX%.
TIP 6 // Chart out your objectives each week
Think of this like your high-level action plan. What are the key activities you need to complete to reach your goals, and how do you space them over time? You can’t do everything all at once!
As other ideas or activities arise, ask yourself, is this something I need to prioritize now, or can I table it after these other activities? What will I have to give up (personal time, family time, sleep) to add this to my list of objectives? Your choice isn’t as basic as “do this” or “don’t do this” – with a side business, you have the luxury of time because you have money flowing in from other places. It’s okay to defer something to next month if it fits into your plan better!
TIP 7 // Map out time
This is the biggest challenge when running one or more businesses while working full time. It’s way too easy to try and take care of business midday or let it overwhelm your entire Saturday. Before you get too invested, sit down and determine what is a reasonable amount of time to invest in your side business (noting it may change over time). Then chart out how you’ll fit in those hours.
For me, the question really came down to how much time I had available to invest – 2 evenings per week while traveling and a 3-4 hour block on weekends – and whether there were other commitments that required more frequent engagement. Filling orders, for me, isn’t terribly time consuming but does have to be done at least every other day, so I scope out 15 minutes before my usual workday begins to do that. When the time block ends, my computer goes up (I keep a separate computer just for my side business) and my attention shifts to wherever it needs to be.
TIP 8 // Stay organized
The administrative side of a business can quickly spiral out of control if you’re not careful. Ensure you have a clearly mapped out process for tracking customers, managing expenses and sales (especially if you want to avoid a frantic rush at tax time), responding to emails, and managing tasks.
I’ve found Google Drive to be an effective tool for managing my side businesses because I can create folders for each company (or different drives, if they have different emails) and have all the data at my fingertips no matter where I am. My “working time” on my side businesses often happens at night in hotel rooms, in Uber’s, and on planes so accessibility via both my phone and laptop are key.
I try and develop a routine for when those working blocks open. First I check and sort emails, then check inventory levels and place orders, and log those expenses and sales before I move to marketing activities (which tends to be more fun and what I always want to start with).
TIP 9 // Manage perceptions at work
I’m a huge advocate of keeping your day job separate from your side business. Who would want their success in the thing that pays be bills to be limited by an assumption that you’re unfocused or not dedicated?
It can be tempting to market what you’re doing at work, especially if your coworkers fit into your target market. Shift those opportunities outside of work. Say, “I’d love to talk with you about this great product I started selling – maybe we can grab coffee before work tomorrow” or “Yes, I have some great recipes like this on my blog. I could email the link to you when I get home tonight.” Even lunch hour can still be perceived as “working time”!
Perceptions can be as impactful as reality, so always test whether someone could misconstrue an action as a distraction – like prescheduled Facebook marketing posts that go live during working hours, or walking away to take private phone calls when you’re on the clock even if they’re really about repairs to your car. Share what you’re doing if there could be a question (“Excuse me, this is my child’s school calling. Let me take this quickly.”).
TIP 10 // Develop a contingency plan
The reality is, a lot of small businesses fail. Thinking through what you’ll do if yours does helps you manage your upfront investment and makes it easier to balance the time you put in (you shouldn’t have to give up everything for a good idea). Ask:
- How will you offload inventory? Personally, I don’t bring in anything that I couldn’t sell for what I paid for it or return (the inventory buyback is part of what sold me on my SeneGence business).
- What will you do with your supplies? Do they have any resale value and if so, is there a market for them?
- Are you in any long-term commitments you would still be on the hook for or have already paid for, including building leases, software subscriptions, and staff commitments?
- What will be the implications on my personal brand if I don’t succeed? If your business is closely linked to something else you do, like a clothing store linked to your fashion blog, it may be harder to unwind the store by selling items at a deep discount without your readers noticing the liquidation.
Already have a side business? I’d love to support you – just share the link below in the comments!
