What Is Difference Between a Side Hustle and a Small Business? (What You Need To Know)

People often use the terms “side hustle” and “small business” interchangeably, but there is a big difference between the two.

In this blog post, we’ll explore the differences between a side hustle and a small business, including what type of work each one entails, how much money you can make, and when it’s time to take your side hustle to the next level. Stay tuned!

Answer To The Question What Is The Difference Between a Side Hustle and a Small Business:

A side hustle is typically a way to make some extra money on the side, without quitting your day job. It might be something you’re passionate about, or it could be a way to earn some extra cash. You likely won’t need to invest much money into a side hustle, and it can be a great way to get your feet wet in entrepreneurship.

A small business, on the other hand, is a for-profit enterprise that requires more time and effort to get off the ground. You’ll need to create a business plan, find financing, and build a customer base. A small business typically requires more of a time commitment than a side hustle, but it can also be more rewarding. If you’re thinking about turning your side hustle into a small business, there are a few things to keep in mind.

1. Time commitment:

A small business requires more time and effort than a side hustle. You’ll need to create a business plan, find financing, and build a customer base.

2. Money:

You’ll likely need to invest more money into a small business than a side hustle.

3. Passion:

Make sure you’re passionate about your small business idea before taking the plunge. It’s important to enjoy what you’re doing, as you’ll be spending a lot of time and energy on your business.

4. Planning:

Thoroughly plan out your small business before getting started. This includes creating a business plan, researching the industry, and understanding the financials.

5. Customers:

A small business relies on customers for its success. Make sure you have a solid marketing and sales plan in place to attract and retain customers.

6. Employees:

If you’re planning on hiring employees, make sure you’re prepared to be an employer. This includes understanding the legalities of hiring, managing payroll, and providing benefits.

7. Flexibility:

Be prepared to be flexible with your small business. Things will inevitably change, and you’ll need to be able to adapt to the ever-changing landscape.

8. Risk:

Starting a small business is risky. Be prepared for long hours, little sleep, and plenty of stress. But it can also be immensely rewarding.

Can a Side Hustle Also Be a Small Business?

In a lot of cases, small businesses are side hustles performed at a larger scale. For example, someone who sells handmade jewelry at a local farmers market may eventually open up an online store or a brick-and-mortar shop. When this happens, the side hustle becomes a formal small business.

What Are Some Side Hustles That Have The Potential To Turn Into a Small Business?

Here are a few examples of side hustles that could turn into a small business:

1. Personal trainer

Being a personal trainer at first is a great side hustle, but if you’re looking to turn it into a small business, you’ll need to get certified, find clients, and build a reputation.

One good reason to turn your personal training side hustle is because you can get it going online, which is very scalable.

2. Freelance writer

If you’re a freelance writer, you can start by writing articles for a low amount of money and then over time increase your prices. Eventually once you have the experience you can charge people around $100 per 1000 words and with the right amount of clients you can make a full time income easily.

3. Youtube Channel

A youtube channel is a great side hustle that can be turned into a full time small business. If you’re able to get a following, you can start making money from ads and sponsorships. You can also create and sell products, like an eBook or course.

4. Blog

Starting your own blog takes a while to get going to a stable income. If you dedicate yourself enough and diversify with multiple sites you can easily scale this side hustle into a full time business.

5. Social media manager

If you’re good at using social media, you can start out by managing the accounts of small businesses for a fee. Once you build up a portfolio, you can start charging larger businesses

How Do You Start a Side Hustle With No Money?

Offer a service that doesn’t have any upfront costs. Writing is a good example when it comes to this. As a freelance writer, if you already have a smart phone or laptop, you don’t need to invest any additional money to start your side hustle. All you need is your time.

Other examples of side hustles with no money that come to mind are:

Becoming a pet-sitter or dog-walker.
Offering your time to do odd-jobs like mowing lawns or shoveling snow.
Doing research or administrative tasks for small businesses or entrepreneurs.
If you have a creative talent, you can start selling your artwork or handmade goods online.

Conclusion

A small business requires more time and effort than a side hustle, but it can be immensely rewarding. If you’re thinking about turning your side hustle into a small business, make sure you’re passionate about the idea, and thoroughly plan it out before getting started.

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