Turning a great idea into a thriving business might be easier than you think. A side hustle stress test is a simple way to check whether your idea has demand, can make money and is worth your time before you invest too much in it.
With more than half of Australians earning money from a side hustle or considering starting one, turning that small idea into reality has never been more viable. Having an idea may be half the battle won but you also need an entrepreneurial mindset. “I know within five minutes of talking to somebody whether they’re going to start a side hustle or not and it has everything to do with their attitude,” says business coach Brook McCarthy from Hustle & Heart. “They’ve got a deep enthusiasm, the ability to spot an opportunity and the energy to actually act on that opportunity.” If that sounds like you, this could be your sign to finally act on that great business idea.
Step 1: Validate the idea
A lot of potential business owners get caught up doing extensive research and while that’s important, McCarthy suggests the best proof of concept is actually getting a sale. “You don’t need a launch party and a logo. You don’t need a press release telling the world about your side hustle,” she says. “Just get some cash in the door; start by securing a sale. It’s the only experiment that counts.”
McCarthy calls this a “paid live experiment”. “You need to get that minimum viable service or product out the door as quickly as possible,” she says. “People spend months doing market research, branding, website design and meeting anybody who looks sideways at them. Meanwhile, they’ve sunk all this time and money and got nothing to show for it.”
Finding your audience will depend on your service or product but this also doesn’t need to be overcomplicated. “I’m a huge fan of marketing but it’s not the first thing that you should be doing,” says McCarthy. “Pitching and reaching out and using your existing network is a great way to start. Finding an audience is about relationships.”
“Reaching out and using your existing network is a great way to start.” – Brook McCarthy
Step 2: Work out your pricing and cash flow
Once you’re confident in your idea, do the numbers. Decide how much you need your side hustle to be earning and the value of the service or product you’re delivering. Think about cash flow and then set your pricing. “It’s useful to do a profit plan,” says McCarthy. “I have a spreadsheet for the profit plans I do with clients but when I started my own business years ago, it was literally back-of-the-envelope sums.”
But a word of warning: be realistic. “A lot of new business owners make the mistake of going, ‘Okay, my old salary was this so if I’m going to make the same amount, I need to divide the working week by 40 and charge this much,’” McCarthy says. “Your capacity is way less than that – you’re not going to have 40 billable hours a week.”
