Side hustles are basically options for spending time in a positive manner. No matter the investment you start with, it is essential for the side hustle to be accountable. Businesses perform efficiently in an economic environment.
Side hustles are a great opportunity for having fun. However, it is essential to keep a track of the finances. This will not only provide an idea about the income but also the expenditure happening. You will therefore be able to take the next development step for your side hustle confidently.
When you use marketing strategies for growing your side hustle, why do you not also use tracking methods for finance? The most useful and highly efficient method is having a separate account. This will avoid any confusion as well as makes the process simple. Further, having separate accounts will also help in compliance and taxation, if applicable.
Need for tracking finances
Although a side hustle starts as a simple method to spend your free time in a positive manner, there are options for continuous improvements. Therefore, it becomes imperative to have proper marketing strategies to ensure a smooth flow of income and expenditure.
Although the purpose for starting a side hustle may be for fun, the process gets serious as the days go by. As more and more customers start coming in, there are chances for confusion. In this world full of competition, a competition-friendly economic environment is essential for development.
After starting a side hustle, over time the income gradually increases. At one point it becomes imperative for you to pay taxes as well. There are other compliances that come into play. Therefore, having a proper way to track your financial flow is essential.
Software for keeping track of the finances
There is no need for investing big in the tracking process. The growth rate of a side hustle is generally slow and steady. Very few rare businesses show rapid growth. So it is possible to use simple software to keep a record of the income. These may include –
Spreadsheets
One of the most simplest and efficient methods is using a spreadsheet. Google sheets, and Ms Excel are easy and free-to-use applications. It is possible to store and calculate any number of calculations using this software. Further, it is possible to work on this software from any location. Also, there is no professional training required for using them. With a user interface that changes as per individual requirements, it is easy to have complete control over your finances as well as the software.
Accounting Software
Another option for managing finance from your side hustle is by using the software. There is specific software that is specifically designed for the purpose of managing finances. Software like Quickbooks and Xero are used by businesses for managing their marketing strategies. Such software is easy to use and provides a wide variety of options for managing tough calculations.
Personal Finance Software
These are the other applications that are generally used by individuals. This helps people in managing multiple accounts in one place. Having separate accounts also increases liability. Therefore, tools like Mint or Personal Capital help in improving efficiency. Having a single database for all your different accounts also minimizes confusion.
Differentiate Between Needs and Wants
An important aspect of the successful growth of a side hustle is understanding the difference between needs and wants. When you start approaching your side hustle just like your full-time business, there is a guarantee for success.
For example, your full-time office may look classy with high-end technology. But it is not essential to have the same cutting-edge technologies for your side hustle. The focus here is concentrating only on things that the customer can see.
Another mistake that a lot of people make is starting a side hustle just for using new equipment. People buy large workshops or other machinery. But there is a difference between collecting things and working on a side hustle. It makes a major impact on the economic environment.
Understanding all such differences is essential for the successful growth of the side hustle. Although people make a proper time schedule for a side hustle, the growth is comparatively slow. This is because of limited investments and few working hours. There is no need to rush. Enjoying the process is highly important.
Concluding Thoughts
My experience over the years has been mostly focused on my 3 companies. It takes a huge deal to manage 3 different companies working in completely different realms. However, I enjoy what I am doing.
The reason behind this is because of my financial management. I take great pride in saying that my finances are well in sync with the marketing strategies. Right from my childhood I wanted my name Anek Bedi to have a unique individuality. This helped me in establishing – VO logistics, Virtual Healthcare, and VO IT. Also, with proper management, I am doing really well and performing more than my expectations.
To survive in this economic environment, it is essential to make proper plans and ensure steady growth. There are various technologies to help you in the process. Everything basically depends on your approach.
FAQs
What is a side hustle?
A side hustle is something that you have an interest in. It could be anything. It is not necessary for you to generate revenue from the side hustle. The main motive here is to have fun and enjoy the process.
Can a side hustle become a full-time business?
After regular and steady growth, a side hustle can become a full-time business. Successful businessmen generally spend more time on the business than working in it.
Can I take a loan to start my side hustle?
This is not recommended. A side hustle should be taken up for relaxing. Taking a loan will increase the liability which may make it a stressful process. The best way to start a side hustle is with minimal investment of finance, and maximum investment of efforts.
