What Is A Side Hustle

This video is super fun. It's what is a side hustle? This new term that just kind of arose out of COVID, I call it. But you know, a side hustle has a few huge mistakes going on. So let me talk about what it is and how to avoid those costly mistakes. This is going to turn out to be the ultimate side hustle guide. So in this video, I'm going to talk about five things. What is the side hustle? What should you do? When should you start it? Do you need a business plan? And to what degree do you need a business plan? Number four, what happens when that side hustle becomes the hustle? And then I'm going to share the most overlooked mistake that most people that begin these side hustles make. So let's begin. So number one, when you're going to start a side hustle, right, let's just kind of define that. I'm sure you can look it up on your little friend there called the internet. But what I define as a side hustle is something extra, right? It's what's that extra thing that you could do that you could hustle to do and create more money, right? So some people, you know, used to call it, you know, make your hobby a business. I wrote a book and put more cash in your pocket. I called it the 21st century lemonade stand, just something fast and quick. You don't need a huge business structure for it. It's, you know, how do you put in your pocket? So when I think side hustle, I'm thinking 500,000 bucks, right? That kind of money, just how do you do it? Right? So they say, well, what should I do? First, look at your skill sets, make it easy. This is not the invention time. This isn't the patent time. This is, I'm going to go raise capital. Those are hustles, big hustles, big companies. This is just that extra money. So what do you know? Like, what could you do? I mean, are you a great chef or cook? Could you write some recipe books? I have a woman in Australia, love her. She actually allows you, this is her side hustle, to send her recipes and she will redo the recipe based on your new criteria. So maybe you want it gluten-free, you might have allergies. I don't know, whatever the thing is that you need, you want it to be sugar-free and they don't know how to fix the recipe. So very quick, I think for 50, a hundred bucks, she changes an entire recipe, sends you back exactly the ingredients and what they need to do. So just super fun, right? She just knows how to recipes and she took that and made it a side hustle. I know when my mom first started, ended up in a catering business, but she did a side hustle way back when I was just like exiting into college, leaving high school and she would decorate cakes, right? The good old Nebraska farm kind where, you know, it's on an entire table and it could feed like 400 people with all the ice sculptures and all that stuff. So that was a side hustle. So I don't know what your side hustle is, handyman services, maybe fix somebody's car mechanic stuff. These are just extra things that you know how to do that you're not going to build a huge infrastructure for. You're just going to make some cash, 500 to a thousand bucks. Now your definition of when a side hustle becomes a hustle, we'll get to that in a moment, but let's go to when you start now, right? The number one complaint I hear from everybody, and you can put it in the comments right now, is how often during the month do you complain that you need extra money? Right? So let's just solve that and create a way that you can take the things you know how to do, love to do. I have tons of people that love dog sitting, dog walking, they take in, you know, cats. Believe it or not, people do like to clean a house. That would not be me, but there are people who will do it. So they can set up, you know, house cleaning. I have some teenagers that are actually doing car cleaning and car detailing. They're actually really good at it. I think they need to make it the hustle. But what to start? Up to you and your skill set. When? Now. Unless you are flush with cash, this just gives you that awesome, you know, you can turn it on, turn it off, you don't have to do it all the time, right? You can make it like a holiday lighting, like Christmas tree lights, holiday lights, huge business in that. Put them up, hire somebody else to take them down, or you can do both sides of it. So I just wanted to give you some fun ideas what to do, when to do it. So now let's get into the next steps. Do you need a business plan? Do you need the business licenses? Do you need all these things? This is getting a little more serious and it also leads you to the number one mistake people make. So how much money are you making? You do need to do a little bit of projections. I have a very simple business plan product process, takes about four hours. At the end of the video, I'll tell you how to go get just to listen to it, even if you don't write it all up. So I'm going to say, yeah, you need some guidelines. Do you need a full business plan? A full business plan is your vision, your mission, your strategies, your tactics, your revenue model, your marketing plan, your sales plan, your team, your return on investment. If you actually have investors, I mean, a business plan can go from a very small guideline is what I'm asking you to do. Like what are the things, a minimum, you got to know what are you going to sell and what are your prices and how are you going to market it and get the word out, right? There's a whole bunch of different social platforms. A lot of businesses, side hustles can be run just from Craigslist or eBay, just posting a bunch of stuff. So think about, you know, in the scope of a business plan, you know, what do you really want to do and how much will define how deep you go into the planning process. As far as getting like retail sales licenses, they're going to be necessary in your county. You just go down to the county office, make it simple, ask the county clerk. I'm going to do this little side hustle. If I make a thousand a month, that's 12,000 a year. Will I need a business license? Will I need to get a retail sales tax license? So it'll depend on county by county, but check in with them because that will become important as you get to the end of the year, into the next year, it'll affect your taxes. So other things to consider in the business plan is do you need equipment, right? And especially for a side hustle, could you buy used equipment? A lot of people, they get so excited in the beginning, they go out and they buy new equipment. I would never tell you to buy new equipment. I mean, I don't even tell you go buy new cars and I own a car dealership. You say, well, where do I find some of this? There's somebody that's already doing what you want to do. So I would go either apprentice, go look around, take them out for a coffee, really understand what's necessary in the business you're starting. Do you need licenses? Again, you know, if you're in insurance, finance, planning, real estate, obviously those are not side hustles. They're the hustle. You're going to need a license to be able to do that. So, and then technology, you know, what technology are you going to need? And can you use your home computer setup? Are you going to need another setup? Which means you're going to need to start spending a little bit of money on some of that equipment, technical equipment, licensing, and those things. So again, what to do will depend on what you really need. As far as a business plan, when to start, I'd say yesterday. And a business plan, you need it for a guide. Minimum, I'll tell you the one minimum thing you need on a business plan is you got to know what you're selling. We call it your funnel and you got to know your prices. People cannot buy from, I don't know, let's talk about it. You need to say, this is what I offer. This is my price. This is how I can fulfill it. So you have to know at least those things in, in its basic form. As you get into this and you start making thousands of dollars, you do need to consider being incorporated. And that I think is a real, you know, touchy subject for a lot of people who are just in this just for the light, you know, make some extra money. And this is money that people are going to be paying you. You're going to have to report it as income. So then I'm pretty aggressive about saying, go put it in LLC and S-corp, get it inside of a company, depending on what state, or if you're in another country listening, put it in a company. Why? Because you get all the deductions. You get in America, 81,000 pages of tax code, even if it's a side hustle. Even if you say, I'm only making a thousand a month. You know what? The deductions still stand because you're inside of a company and it gives you more credit, gives you ability for funding. So, you know, there's this thing about the side hustle being this light and easy thing, but then you, and you really get to it and you've got to look at the taxes and filing taxes. I'm going to lean you towards getting incorporated because you know what you could actually inside of one company, just call it ABC LLC. This year, it could be cleaning houses. Next year, it could be cleaning cars. Next year could be a handyman business. The next year you could do videography for, you know, YouTubers like me. So each year you can change the thing inside your side hustle. And I don't think enough people tell you that you can most, you can repurpose the use of that entity by using what's called the DBA of doing business as, and then as people write, you know, and pay you, they can pay to that company. So you can change the DBA. Don't ever take that entity down. So that would be my advice on a side hustle. It's just use it as a lifelong structure because now you can live corporate life the way that I have taught. So if you haven't been watching me, want to watch more, understand what I mean in the tax strategies, I have a lot of videos, lots of videos. I need you to subscribe to my channel, hit the little bell. So you get notifications that, um, you know, I'm up again and we have more content. So you can look around in the search for that topics. If you really want to understand why to get incorporated and how it's going to benefit you, I have a lot of video about it. So I always will lean towards that even if it's a side hustle and that'll also change your business plan, it will change your tax structure for you and your family for the rest of your life. When a side hustle becomes the hustle, that's up to you. I'm going to say when you hit six figures, actually, I might even take it down to about 75,000 because at some point when your side hustle makes more money than you're making it a job, it's going to make sense to probably quit. Now I can coach you through that. I have some formulas on when you quit, how you quit. You just don't jump out of a job casually and think the side hustle is going to be the one to pick up revenue. There's some patterns that we're going to want to see in the revenue, in the cashflow and your spending that are actually solid before you jump out of a job. But all of you, you can take your side hustle to a hustle like that. As far as the number, that's really up to you. You know what your numbers are. If you're only making say 40, 50,000 as an employee, and you know that you can get this to 60, 70, 60 is only 5,000 a month. That's 1,250 a week. I think most of you can do that. 250 bucks a day. So be thinking that way. If you want to move from side hustle to hustle, what are you willing to do during the day? How much time are you committed to doing this? Are you willing to work on some of the weekends or evenings and all of that? So I would say, what do you do? Do what you love and know how to do. When, now, business plan, at least some guidelines to it, and check out the intention of going side hustle to hustle. Now let's talk about the number one thing that everyone does wrong when they jump into this side hustle conversation. So the last and final thing I want to talk about for today is the biggest mistake most people make. I kind of alluded to it, but let's talk specifically to it, your taxes. So no matter how much money you make, unless you're paid in cash, and then I still think you're going to have to report some of that because if you don't report any income, you can't take the deductions. And I have so many beginners that are doing side hustles. They say, well, if I'm paid cash, then I don't have to report it. Well, on the other side, you can't have no income and then all of a sudden take 81,000 pages of tax code. So you're going to have to income to offset with all the deductions you're taking. So again, getting incorporated, preparing properly for a tax event in the side hustle. And again, here's what I'm really going to tell you the secret. It's just as easy, if not easier to go for the hustle, let's get past six figures, then just kind of limp around doing a side hustle and making thousands of dollars. I want you to make a lot of money. So you get to live the life that you want, have the finances, have enough money that you can start investing so you can make it and keep it and become the millionaire that I'm kind of gearing up for all of you to do. Now, inside of my description, I have a link and it's going to take me a minute to describe it. It's what's called a financial personality quiz. It takes you back to my core website, IntegratedWealthSystems.com and you're going to take a quiz. And the quiz puts you in one of four categories and it tells us a lot about you. So for those of you who are stuck and saying, what should I do for a side hustle? If you take the quiz, I'll kind of know who you are, right? Do you have stagnant cashflow? Do you always have stagnant cashflow? Are you someone who has a big lifestyle spending habit? Well, then for sure you need to do a side hustle to keep paying for what you want, which I'm a fan of, you know, have the life you want, go make the money to create it. So it's a quiz. It's going to take you like 30 seconds, go through it. It'll put you in one of the categories. I pop out on a video and tell you how to fix those solutions. And then we can continue our conversation. So again, as you're subscribed to the channel, you'll get notifications and then come back over and comment after you took the quiz. Let me know what your personality is. And that'll give us some ideas on how to help and take you to the next step. Look forward to working with you. Start a side hustle today.