Tag Archives: entrepreneurs

How to Monetize your Creative Hobby as a Side Hustle

Image Source: Pexels

By Beau Peters

Special to the Financial Independence Hub

Side hustles are becoming more popular than ever. As technology advances, e-commerce stores and selling platforms like Etsy have made it possible for people to monetize their creative hobbies and turn them into viable businesses.

Even if you don’t want to run a full-fledged business, the hobby you love could end up becoming a successful side hustle if you’re willing to put in a bit of time and effort. Whether you want a little extra cash each month or you’re trying to build a brand name for yourself, selling your creative products online can help you find financial independence: and have fun doing it!

So, whether you’re into photography, pottery, crocheting, or drawing/painting, chances are there’s an audience out there that would love to purchase your creations.

Let’s take a closer look at how you can monetize your creative hobbies and make a profit doing what you love.

Think of yourself as a Business

The best thing you can do as you work to monetize your hobbies is to think of what you’re doing as a business. Even if you’re only working on it part-time for a little extra income, you’ll end up being more successful with a business mindset. That includes understanding things like:

  • Finances;
  • Marketing;
  • Sales
  • Customer service

You’ll also want to make sure you understand how creative operations work. Even if you’re doing everything on your own, creative operations will make it easier for you to manage your workflow and optimize every step of what you’re doing. When you’re putting time into a side hustle, every second counts. Creative operations make it easier to produce high-quality work as efficiently and effectively as possible.

Consider whether you can commit to the business side of your side hustle. You don’t need to devote all of your time to it, but if you want to make money and build up a following, having certain business practices in place is important. It’s also crucial when it comes to keeping things organized and keeping your finances in order. You don’t have to have a marketing degree to market your side hustle. However, if you’re not sure about running your side hustle like a business, consider hiring someone on a part-time basis to keep things moving forward and to ensure you’re staying organized.

Find Financial Freedom

It’s estimated that 40% of Americans currently have a side hustle. The uncertainty of the COVID-19 pandemic caused many people to start freelancing or forced them to look for ways of bringing in extra income. Even in a post-pandemic society, the popularity of side hustles continues to grow, especially for those who love what they’re doing. Continue Reading…

How to avoid the 7 Biggest Mistakes that Entrepreneurs Make

9 ways Entrepreneurs finance their Startups

As an entrepreneur, how have you financed your startup?

To help finance your next startup, we asked business professionals and leaders this question for their insights. From crowdfunding to savings from a full-time job, there are several ways to fund a startup.

Here are 9 ways entrepreneurs finance their startups:

  • Look into Commerce Authority Programs
  • Partner with Others
  • Finance with Commercial Bridge Loans
  • Connect with Local Non-Profits and Support Networks
  • Raise from Crowdfunding
  • Apply for Small Business Grants
  • Pitch to Potential Investors
  • Ask for Support from Family and Friends
  • Save Your Full-Time Salary

Look into Commerce Authority Programs

I’ve bootstrapped the financing of our company for 10 years, but programs from a local commerce authority can certainly help support and fund new initiatives. For example, the Arizona Commerce Authority offers programs such as the Small Business Capital Investment Incentive Program, where the ACA may certify up to $2.5M [US$] in tax credits each fiscal year, or the Rapid Employment Job Training Grant, a reimbursement for training and development expenses. Look into the programs at your local commerce authority, as many small businesses and startups may discover funding and grant incentives designed just for them. — Brett Farmiloe, Markitors

Partner with Others

Financing your business with partners to fund your growth in exchange for special access to your product, staff, distribution rights, ultimate sale, or some combination of those items using strategic partner financing is the best strategy to finance your startup. I’ve noticed that this option is often neglected. Strategic investments are similar to venture capitalism in that it is typically a stock sale (rather than a loan), yet it can also be royalty-based, in which the partner receives a portion of every sale, in my opinion. Partner financing is a great option because the firm you partner with is likely to be a huge corporation, and it may even be in a similar industry or one that has a stake in your company. — Carey Wilbur, Charter Capital

Finance with Commercial Bridge Loans

We like to overcome the obstacle of financing small businesses by bringing innovative solutions to the table. One such solution is our commercial bridge loans, which are flexible short-term financing options for commercial real estate properties. This might be a great option for fast growing businesses as they continue to grow and scale their operations.

As loan experts, we commit to truly helping clients as advisors. If you’re just starting a business, consider consulting a lending expert. Make sure your needs are heard and that you are provided with affordable options to choose from. — Allan J. Switalski, AVANA Capital

Connect with local Non-Profits and Support Networks

In addition to bootstrapping, local not-for-profit organizations and networks that support female entrepreneurs are some great ways to fund your startup. You can find funding and investors through these kinds of organizations like we did when we found Beam. One of the other great things about organizations like Beam is that you will become part of a network you can lean on for support and can also find mentorship from business professionals in your area. This mentorship can make a huge difference in helping you grow your business. Also, there’s a lot of grants out there that support female-founded businesses which require a little extra upfront research and work but another great avenue to fund the business.

— Sara Shah, Journ

Raise from Crowdfunding

Crowdfunding may be an alternative if you have a hot idea and are good at social media. When crowdfunding platforms like Kickstarter and Indiegogo were launched, there were a lot of enterprises that had significant success raising funds through their reach.

What’s the disadvantage? Because many businesses seek funding through crowdfunding, you must build a lot of buzz in order to cut through the total signal noise. Unfortunately, it’s also easy to overextend yourself and irritate backers, which can lead to a lot of resentment before your firm even gets off the ground. — Veronica Miller, VPNOverview

Apply for Small Business Grants

I usually advise startups to consult small business grant administrators to fund your startups. Especially, when your new company is a pioneer and investing in innovative technologies and techniques, more funding opportunities arise.  What’s more, small businesses founded by women, minorities, or veterans are often eligible for grants from the Small Business Administration (SBA) and other organizations that promote entrepreneurship. If you fall into one of these categories, you should contact your local SBA branch or chamber of commerce to see if there is any local grant money available. — Spiros Skolarikis, Comidor

Pitch to potential Investors

We joined an accelerator program that connected us to investors. In turn, they take a share in the company in exchange for capital. The ownership-to-capital ratios are variable and are usually determined by a company’s valuation. I believe this is a wonderful option for companies who don’t have physical collateral to serve as a lien on a bank’s loan. However, it is only a good fit when there is a proven high growth potential as well as a competitive advantage of some sort, such as a patent or a captive consumer. Another advantage of working with investors is that they may give you a wealth of information, industry connections, and a clear path for your company. — Guy Katabi, Lightkey

Ask for support from Family and Friends

Borrowing money from friends and family is a traditional method of starting a business. While it may be more difficult to persuade investors or banks of the excellence of your idea, your family and friends will typically trust in your ambition.

They might be more willing to contribute to the funding of your company. If you do seek loans from friends and family, make sure that each of you has appropriate legal guidance, especially if the money is taken as a loan. However, what about the disadvantages? Borrowing money is an easy way to alienate friends and ruin family relationships. If you decide to go this route, go with caution. — Edward Mellett, Wikijob

Save your full-time Salary

I financed my startup with the salary from my full-time job. I was fortunate to have a good paying job as a software engineer, which enabled me to fuel my startup while it was just a side hustle. I’ve never been a big spender, and I live modestly:  this low-cost lifestyle left me with enough money to feed my business while getting it off the ground. I have since quit my job and operate my small business with the money it generates. –– Andy Kolodgie, Cash Home Buyers Georgia

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Can you afford to launch a startup? Yes!

By Emily Roberts

(Sponsored Content)

There is a common misconception that starting a business is an expensive proposition. You need equipment, a website, an office, and staff to get the venture off the ground. Sure, in some instances, you will need all that and more: but there are ways to minimize your expenditure and secure funding to help you get going.

Why start a business?

Whether you have been ‘packaged out’ or are looking to transition into a new career, there has never been a better time to start a business. Working for yourself gives you unprecedented freedom. You can work flexible hours, from home if you choose, and any profit you make is yours. For anyone tired of working for someone else, while they reap the benefits, there’s a lot to like about being your own boss.

Financial support for entrepreneurs

There is a ton of support available for entrepreneurs. Fundera recently compiled a list of 105 different ways to secure money for your small business. You might not be eligible for all of them, but it’s worth taking a look.

Look for free loans first. These don’t need to be repaid, so it’s a win-win for you. If your startup is in a tech, science, or health niche, there are Federal small business grants available. These include the Small Business Technology Transfer Program and the Small Business Innovation Research Program. Check grants on offer in your state too, as there is less competition for state funding.

To check the full list of available grants and funding packages, click here.

Tools and equipment

Many businesses need tools and equipment to get started. For example, if you want to set up a handyman business, you’ll need a truck, basic tools, and possibly gardening equipment. Some of these you’ll likely already have, but you may need to purchase other items. Continue Reading…

The 10 worst mistakes that new Entrepreneurs are likely to make

By Abby Vonda

Special to the Financial Independence Hub

When you’re starting your own business for the first time, it’s all about learning from your mistakes. But it can save you a lot of time, effort and money if you manage to avoid them altogether. Here are some of the 10 worst mistakes you can make as a beginner entrepreneur:

1.) Being too inflexible

Your business idea may look great on paper but in practice things rarely go as predicted. You may come across unexpected challenges and opportunities once your business gets off the ground. Don’t be so inflexible that you fail to recognise them.

2.) Forgetting your Vision

While flexibility is key, you don’t want to move in too many different directions at once. It will spread your time and resources too thinly. Keep your vision clearly in mind. It may adapt over time. But you should always have a reference point to come back to.

3.) Beating yourself up over Setbacks

When you’re just starting out, any setbacks can really dent your confidence and motivation. It’s important to remember that every business experiences these setbacks. And it’s learning to move forward and do things differently next time that will make your business stronger in the long run.

4.) Thinking you can do it all yourself

Very few people are able to master all aspects of entrepreneurship. Try to be aware of your own strengths and weaknesses. If you struggle with business administration or copywriting or keeping track of the numbers, get somebody on board to help you. This doesn’t even need to be a full time employee: freelancers and contract workers give you flexibility as well as the necessary expertise.

5.) Failing to consider Investment implications

When searching for initial investment, it can be tempting to jump at any offer. However, it’s worth taking your time to consider investment implications. What will it mean if investors have voting rights? And how would you feel if family members lose money, even in the short term, as a result of their investment?

6.) Keeping your idea too close to your chest

When you have a great idea, it’s tempting to keep it close to your chest. You don’t want anyone else to run off with it and get there first. But unless you are able to share your vision with others you may struggle to get it off the ground. Continue Reading…