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Make a Plan

Common Financial Challenges of Side Hustles and How to Overcome Them

A side hustle can provide you with an extra income to help you pay off debt, boost your emergency fund, and make daily living expenses more manageable. But it can also come with a few challenges.

Here are three common obstacles with tips on how to overcome them.

Correct pricing

If you’re struggling to get off the ground, you might be under-pricing yourself. This may be because you’re trying to form a good customer relationship while giving them great value, and your pricing may not be a priority while you get your business off the ground. Building a strong customer base is important, but you can do that while charging the market price.

Helpful tip: Believe in your product or service, understand the cost of running your side hustle, and create a budget. The DirectAxis budget template can help you calculate your expenses. Once you have the numbers crunched, calculate how much time you spend on your side hustle as well as the market rate. This will help you price your offering accurately.

Meeting financial goals

One of the harsh realities of starting a side business is that you won’t always reach your money goals in the time frame you had planned. Unforeseen circumstances may hinder your side hustle’s growth and affect your profit. Remember that a side hustle takes a lot of time, patience, and hard work, which often doesn’t result in a huge cheque from the get-go.

Helpful tip: Market yourself and your business on your social media platforms. Ask friends and family to promote your business. Do research on business opportunities and the latest trends. Also, stick to your nine to five for as long as you can to ensure you still have a solid income in case your business takes a dip.

Overinvesting

No matter how much research you do before your side hustle kicks off, you may encounter some expenses that you hadn’t anticipated. For example, you may realise that you need specific equipment and this can be costly. In cases like these, a personal loan can come in handy to help you handle the costs.

Helpful tip: A DirectAxis Personal Loan can help you afford the equipment you need or cover more expenses while ensuring your business stays afloat. It offers you an affordable monthly repayment plan.

Starting a side hustle isn’t easy. We hope that these tips help you. If you need help with your side hustle, contact DirectAxis today and let’s see how we can help you reach your dream.

 

 
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