Financing Your Side Hustle: 5 Funding Options To Explore
The way of working has been reestablished in a way that has never been possible. Long gone are the expectations of getting a job and staying in it for 40 years and that being you’re the only line of work and welcomed are the illustrious side hustles. It is no secret, that the way to achieve wealth is to establish multiple sources of income. Whether that be passive or active, people are setting up their side hustles outside of their primary source of income as a way to secure themselves or pursue what they are passionate about and after the last year can you blame them?
You may already be on the path to establishing your side hustle, or perhaps you need funding to get started. Whether that be content creation or selling a product or service, levelling up your business to make you profit normally doesn’t come for free.
Crowdfunding is a method of gaining funds, by raising awareness about your side hustle and can result in an impressive amount of money. It works by providing details of your side hustle and people can choose to donate towards your business. This method of raising money works best if you have a specific goal in mind and are specifically navigated towards funding a particular product or service rather than the basic costs of your business as a whole.
Crowdfunding platforms such as Go Fund Me can be used as a way to facilitate crowdfunding and often has a charitable notion or offers something with a story. For example, if you are working on a new healthcare product and need the funding to make it to a wider audience you can tap into what good your product will do for a community. As this type of crowdfunding is based on donations, you must be transparent about what you are using the funds for.
Platforms such as Kickstarter or Patreon may be more suited for your side hustle. These types of sites allow people to provide funds in exchange for a share or a subscription for your content or product. It is also important to be transparent here as people will be parting with their hard-earned money because they love your content or believe in a product.
(Image Source: Statista)
There are many global grants that award innovation and good ideas and you need to be in to win it. If you believe that your side hustle fits the criteria of a certain grant, then creating a detailed presentation could bag you the money you need to take your side hostel to the next level, or even invest in something that you need for your side hustle. By simply doing some research about the grants in your area, you can find the grants that you feel are the most suited to the needs of your business and submit your application for them.
Loans are something that people often shy away from us you are also signing up to the commitment of having to pay them back. However, there are an array of loan options that you can commit to instead in the form of microloans. A microloan is designed for those who are seeking a limited amount of funding on the smaller scale side of things. Although, this is smaller than a typical loan you should still approach with caution and ensure you have done research surrounding your loan before committing to it.
Budgeting to the Extreme
This option is extreme, but could your current lifestyle be downgraded in any way to use that outgoing to out towards your side hustle? Starting small, by cancelling memberships and limiting nights out could be a start, but freeing up some serious money could come in the form of moving to a smaller house for the time being as a way to invest that money into your side hustle. If you are not in a position to commit to downsizing your home, you could start by decluttering it and selling excess that you don’t need and using that money to put towards your side hustle fund.
Other Side Hustles
Taking up some part-time work outside of your primary source of income could work as a means to an end. Whether that be working a few hours a week for a remote part-time gig, or taking a short retail shift, if you have a finite amount of money that you need to invest into your side hustle, this could be an option for you. Although you will have to commit more time, if this is doable for you, and you find a part-time gig that works for you, this could be all it takes for you to make the money you need for your side hustle.
There are an array of options you can try as a way to secure funding for your side hustle, you just have to find the one that works for you.
This guest post was authored by Daglar Cizmeci
Daglar is a serial investor, founder and CEO with over 20 years’ industry experience in aviation, logistics and finance. Graduated from Wharton School and MIT. He also runs a personal blog where he shares actionable business management and funding tips.