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Have you ever dreamt of turning that side hustle into your full-time gig, or even scaling it to a six-figure business? Well, today’s episode is all about making that dream a reality!
I’m going to dive into the smart money moves that helped me bootstrap my business from the ground up and how you can use those same strategies to grow yours.
Whether you’re just starting out or you’re in the thick of growing your side hustle, the practical tips and strategies I’m about to share with you can help you manage your time, prioritize your spending, and make savvy financial moves to propel your business forward.
Let’s dive in!
The Power of Bootstrapping
Bootstrapping means starting and growing a business using your personal finances and the revenue generated from the business itself, without relying on external funding.
I was a first-generation entrepreneur, and I didn’t have investors or loans to fall back on. I bootstrapped my photography business from the ground up, and it taught me invaluable lessons about resilience and adaptability.
I used my corporate job as a financial cushion while I built my photography business, which allowed me to live on a tight budget, allocating a few hundred dollars each month to invest back into my business. I didn’t pay myself initially; instead, I reinvested every dollar I earned from photography into essential expenses like equipment, insurance, and marketing.
If you’re currently working a full-time job and dreaming of starting a side hustle, know that you’re not alone. A survey by Small Business Trends found that 62% of entrepreneurs started their businesses while working full-time. This approach can significantly reduce financial risks and provide you with the stability you need to grow your venture.
And according to Gusto’s 2021 Women Entrepreneur Report, women are more likely to bootstrap their businesses, with 60% of women entrepreneurs relying on personal savings to start their ventures!
Time Management is Key
One of the most crucial aspects of balancing a side hustle with a full-time job is effective time management. I learned the hard way that prioritizing tasks and setting boundaries is essential to avoid burnout. When I look back at my younger self, I’m amazed I didn’t burn out sooner!
Prioritizing tasks and setting clear boundaries between work and side hustle can help maintain productivity and avoid burnout. Tying time spent to real results is a huge way to learn how to manage your time, especially when it’s limited.
A study from The American Psychological Association shows that women often juggle multiple roles, leading to higher stress levels; effective time management can help mitigate this.
To make the most of your time, focus on activities that directly contribute to your bottom line. It’s easy to get caught up in tasks that seem impressive but don’t yield tangible results. Instead, concentrate on actions that will help you generate income and grow your business!
Prioritize Needs vs. Wants
Another important lesson I learned early on is the distinction between needs and wants. I remember an interview where a guest asked, “Are you a real business, or are you focused on trying to look like a business?” This question resonated with me because many early entrepreneurs, myself included, often prioritize aesthetics over substance.
According to SCORE, 30% of small business owners struggle to identify essential expenses, which can lead to financial strain. This is why it’s vital to focus on what’s essential for your business to operate!
Early investments should be in essential tools, software, and professional services that support core operations. (So no, you don’t need business cards right away!)
For me, that meant having a camera and the necessary tools to deliver my services. I didn’t need a fancy website or a perfect logo right away. Instead, I focused on booking clients and generating revenue.
Get Professional Advice Early
As I was starting my business, I made a smart move by seeking professional advice. I remember walking into a small accounting office in my tiny Wisconsin village before I even earned a dollar as a photographer. I wanted to set things up correctly from the beginning, and I’m so grateful I did.
A study by Xero found that 90% of small business owners who worked with an accountant felt more confident about their financial decisions. Engaging an accountant early on can save you time, money, and frustration.
They can help you set up proper financial systems, understand your tax obligations, and provide guidance on budgeting and financial forecasting.
Invest in Learning
Investing in your education is another key strategy for success. Whether through free resources or paid courses, learning from those who have gone before you can accelerate your business growth.
Even after a decade in entrepreneurship, I still prioritize education. Just recently, I enrolled in an online course to continue expanding my knowledge!
According to SCORE, 70% of small business mentees report an increase in business revenue as a direct result of their mentorship.
There are countless ways to learn, from podcasts and books to online courses and masterminds. I encourage you to explore these options and find what resonates with you.
New Strategies for Modern Entrepreneurs
Now that we’ve covered some foundational strategies, let’s discuss what I would prioritize if I were starting my business today. Here are four modern strategies that can help you succeed:
1. Utilize Tools and Platforms
In today’s digital age, there are countless tools and platforms available to help streamline your business operations. I was a slow adopter of technology, but I’ve learned that investing in the right tools can save you time and improve efficiency. For example, using project management software like Monday.com can help you organize your workflows and keep track of your progress.
Additionally, tools like Canva can assist with creating marketing materials, while Zoom allows you to connect with clients and collaborators. Many of these tools are either free or low-cost, making them accessible for new entrepreneurs.
2. Leverage Social Media Marketing
Social media is a powerful tool for entrepreneurs. It allows you to connect with your audience and build a loyal customer base without significant upfront costs. If I were starting today, I would focus on identifying which platforms my target audience frequents and develop a consistent strategy for engaging with them.
Remember, the goal is to move your audience from social media to a platform you own, like your website or email list. This way, you can maintain control over your customer relationships and marketing efforts.
3. Try Subscription and Mentorship Models
As a wedding photographer, I experienced the seasonality of my business firsthand. To combat this, I would consider exploring different revenue models, such as subscription services or pre-sales. Subscription models can provide stability and predictability in income, making it easier to budget and plan for growth.
Pre-sales are another smart strategy, allowing you to gauge interest in your offerings before fully committing resources. By collecting payments upfront, you can validate your business idea and ensure there’s a market for your services.
4. Crowdfunding and Pre-Sales
Pre-sales are another smart strategy, allowing you to gauge interest in your offerings before fully committing resources. By collecting payments upfront, you can validate your business idea and ensure there’s a market for your services.
Platforms like Kickstarter or Indiegogo enable entrepreneurs to raise funds for their projects before they launch, validating their ideas while securing initial capital without giving up equity.
The Crowdfunding Center reports that women-led projects on crowdfunding platforms receive 20% more funding than their male counterparts, highlighting the power of community support.
Practical Financial Strategies for Early Entrepreneurs
Finally, let’s talk about the importance of budgeting and financial planning. I believe that every entrepreneur should have a solid understanding of their finances. A clear budget helps track expenses and manage cash flow, which is crucial for long-term success.
Managing cash flow is another critical component of financial success. As I mentioned earlier, my photography business was highly seasonal, which meant I had to be strategic about how I managed my income. I put myself on a consistent payroll, paying myself the same amount each month regardless of my income fluctuations.
This approach allowed me to save and reinvest in my business while maintaining a stable lifestyle. Understanding the cyclical nature of your business can help you plan for leaner months and prevent financial stress.
Lastly, I cannot stress enough the importance of having an emergency fund. Life is unpredictable, and as an entrepreneur, you need a safety net for unexpected expenses. Aim to save three to six months’ worth of expenses to protect yourself during challenging times!
Final Thoughts
I hope today’s episode gave you the clarity and confidence to make smart money moves that will grow your side hustle to new heights!
If you remember nothing else from this conversation, hear this: the key to success is not about having all the resources at your disposal up front; it’s about being strategic with what you have and making decisions that support long-term success.
When bootstrapping, it’s important to invest in the essentials and learn how to manage your time and cash flow, so that every step you take brings you closer to that six-figure goal.
Your side hustle can absolutely turn into the success you’ve been working for, you just need to stay consistent, focused, and trust the process. Every small, intentional move you make today is paving the way for tomorrow’s big wins.
Keep pushing forward, stay disciplined, and remember that it’s the long game that matters most!
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