During changing and uncertain economic times, many skilled professionals have been looking for new career opportunities. Whenever skill sets and roles could be transferred into a virtual workplace, people have settled in their home office. However, not everyone has been able to carry on his or her day-to-day job from home. Furloughed or unemployed professionals in the United States have been creative, launching small side hustles to make ends meet. Now, several months down the line, you may be wondering how to finance your side hustle to turn it into a full-time venture.
#1. Can I pay with my credit card?
It isn’t always a good idea to finance a venture through personal credit cards. Depending on your business plan, you may need to commit to large expenses to set your WAHWM business up. As a result, you could drive your credit score down or even risk maxing out your credit cards. Even if your costs can be covered by credit card borrowing, it is a good idea to keep a healthy credit score. As a result, you may want to spread out your business costs across a long period of time to reduce credit over utilization.
#2. Can the house pay for my business?
You could unlock your home equity to free up some much-needed financial resources. If you don’t want to borrow against your home, you can look for refinancing advice, which lets you find out a new mortgage deal on your property. Typically, the process means you can get a better interest term and rate, reducing monthly costs. Refinancing your home can free up cash to support your side hustle.
#3. Can I get a microloan for my venture?
If your side hustle has been in business for a long time, you could qualify for a traditional business loan. Yet, online lenders are comfortable dealing with new businesses. The Small Business Administration offers a microloan program that lets you borrow up to $50,000. It could be the financing option you need to turn your side hustle into a big venture.
#4. Can I use my savings?
Using your savings as a financing option can be tricky, especially during uncertain times. It’s not uncommon for new entrepreneurs to run multiple side hustles or accumulate small jobs before launching a full-time business. The process can let you build up enough savings to finance your business growth. Temporary side hustle jobs can supplement your income and provide more room for business budgeting. While it can be tough to maintain over a long time, you can run multiple jobs to make money quickly for a short period of time.
#5. Can I do everything myself?
One of the most important decisions you’ll have to take when you grow your side hustle is to figure out when to outsource. It is easy to build your website and social media presence as a side hustler. Yet, when you want to set up a full-time business, you’ll be saving yourself a lot of trouble and time by outsourcing to experts. Making your business presence look and feel professional is crucial to your growth. While professional services come at a cost, they will drive high ROI.
Transforming your side hustle into a full-size venture can be a challenging project. While obtaining a business loan can be difficult, there are other options to finance your growth and decide on the best investment strategy. Are you ready to move your side hustle to the next level?