How side businesses fail
Did you know that 70% of people who start a side business fail within the first year?
And so did I. I failed miserably.
In 2021 I jumped into the online course creation business and my idea crashed and burned. I spent over $10K on step-by-step launch courses and came up with nada.
I was so disappointed that I labelled the whole internet business as a scam.
Then I came back to it again, and now love every hour I invest. What changed?
But first a backstory. I had over 20 years of experience, getting better titles, higher salaries and wearing pocket squares.
Nothing wrong with pocket squares, by the way.
It wasn’t until my son was born that I started to feel that every day I make a trade-off:
- Stay later in the office and finish a presentation or
- Go home to see my little guy before his bedtime.
I wanted to be great at both, and I was failing at both.
Then came the money squeeze. With my wife on mat leave the financial picture changed. I did not know it at the time, but my budget changed forever.
Then I was in my 40s and could not for the life of me articulate why I was doing what I was doing.
I wanted out. Away from the days that blended into weeks, and years. Away from hopelessness about the future. Away from considering what I buy.
I just wanted everything to be “the way it was”.
And I knew damn well – it ain’t going to be the way it was ever again.
My job with a great company under the leadership of a truly one-of-a-kind manager was not going to provide financial freedom, not without asking me to invest more than I cared to.
think about a side business as an extension of your chores.
I found a way out.
Come along, I will show you.
You have 168 hours in a week:
- Sleep at least 7 hours (and I hope you do – for your own sake) = 49 hours
- Your job easily takes another 40 hours
- Everything else (food, shower, kids, chores, TV, commute, friends, family, etc) = 79 hours
I discovered that 1 hour (9-10 pm) on weekdays and 4 hours across Sat/Sun is enough to start a side hustle (I prefer, side business) – that’s 9 hours or 11% of the 79 hours.
In this post, I will share with you:
- How I started a side business while still working full-time,
- How do I define “successful”, and
- How you can (should) do the same.
One of the biggest obstacles that stops people from starting a side business is time. How do you find the time to work on your passion project when you already have a full-time job, family, and other commitments?
However, consider the alternative.
If you don’t start a side business, you will miss out on the opportunity to create an additional income stream, pursue your passion, and potentially achieve financial freedom.
the objectives
You will also continue to be stuck in the rat race, trading your time for money, and living paycheck to paycheck. If you are still reading this, you know I am right.
My start came due in large part to frustration and desire to:
- Better myself
- Be able to tell an awesome story at bring-your-parent-to-school day
- Rent a luxury yacht and take my parents on a trip of their lives
For you, dig deep find a motivation, and pin it where you can see it every day. And start tomorrow.
Success definition
My success is “freedom”. What I mean by that is:
- I want to be able to go on a two-day trip without asking permission
- I want to take long walks in the morning before the summer heat kicks in
- I want to see my son participate in all his activities
- I want to eat out without “considering the budget”
- I want to NOT be stressed about money and mortgage
My success is not monetary, but it is enabled by money.
Now for those that are nodding along, there are 4 steps to starting a business online in earnest.
They are here below.
starting a side business with Guidance?
However, if you want to explore these concepts in more practical terms I have a short course with specific and practical guidance.
I will teach everything I have done and will help you plan every day with a short focused task. I am not rolling in millions yet, but I am just one step ahead of you and happy to lend a hand.
You will discover the secrets of:
- Forming a profitable idea,
- Creating a compelling offer,
- Setting up systems, and
- Marketing your business on social media.
You will be ready to launch your MVP side business in less than a weekend. Ping me.
4 steps for DIY side business.
These are the four steps | The Lean Startup.
Step 1:
The first step of the process is to find a problem for your side business to solve. This is crucial because it will determine the demand, competition, and profitability of your business.
To find a profitable niche, you need to do some market research and identify a specific problem that a group of people have, and that you can solve with your product or service.
Best if you have already encountered an inefficiency that companies or people put up with. Solve that!
You can use tools like Google Trends, Amazon, or Reddit to find out what people are searching for, buying, or talking about online.
Create a list of at least 10 potential niches/problems that you can choose from.
You can then use a simple formula to rank them based on their:
- Profitability
- 10 – any inventory-related business;
- 50 – any business with a profit margin of 40-60%;
- 100 – online knowledge business with a profit margin >90%
- Passion
- 1 – I know nothing about it;
- 100 – I want to work on it all day long
- Skills
- 1 – never done this before;
- 50 – I have a good idea of how to start;
- 100 – I have years of experience in this
The formula is (Profitability + Skill) x 2 + Passion = Niche Score.
The higher the score, the better the niche/idea.
Step 2:
The second step of the process is to create a compelling offer for your side business. This is important because your offer will determine the value, differentiation, and conversion of your business.
To create a compelling offer, you need to craft a unique selling proposition (USP) that highlights the benefits, features, and guarantees of your product or service.
You also need to create a landing page that showcases your offer and captures the email addresses of your potential customers. You can use tools like Canva, WordPress, or ConvertKit to create your landing page and email list.
By the end of this step, you should have a landing page that looks professional, persuasive, and attractive. You should also have the tools needed to grow an email list.
Step 3:
The third step of the process is to market your side business on social media. This is important because social media is one of the best ways to reach, engage, and convert your target audience.
To market your side business on social media, you need to create a content strategy that educates, entertains, and inspires your followers. You can use tools like Buffer, Missinglettr, or Typefully to schedule your posts and track your performance.
By the end of this step, you should start growing a loyal and engaged fan base that trusts you and your brand. In time this will convert into a steady stream of traffic and leads that you can nurture and convert into customers.
Step 4:
The fourth step of the process is to launch your side business and get your first customers. This is the most exciting and rewarding part of the process, as you will see your hard work pay off and your side business come to life.
To launch your side business, you need to test your offer and get feedback from your potential customers.
You can do this by creating a minimum viable product (MVP) that delivers the core value of your product and offering it to a small group of people who have expressed interest in your landing page or email list.
You can use tools like Gumroad, WooCommerce, ThriveCart or Teachable to sell your MVP online.
By the end of this step, you should have validated your offer and received some positive reviews and testimonials from your first customers.
You should also have some revenue and profit from your side business, which you can reinvest in growing and improving your business.
Wrap-up
To close off – this is easier said than done. As I said above I am putting together a group of like-minded people, who are keen to get from 0 to 1. In 30 days, we will have everyone complete the steps above, so join us.
My takeaways & recommendations for you:
- If you listen to someone’s advice, make sure they are only 1-2 steps ahead of you.
- If you try and fail, write down what you thought was going to work and didn’t.
- If all else fails: Build an email list! (there are more ways to monetize than just with your idea)