Five Reasons Businesses Should Consider Having a Side Hustle
The idea of a side hustle traditionally applies to individuals who take on additional work or start a small business alongside their main employment to earn extra income. However, the concept can also be applicable and beneficial for established businesses. A business side hustle involves creating a new revenue stream that is ancillary to the core business.
This might be tantamount to treason for the legion of business gurus that preach ‘focus, focus, focus’, and disciples of the The One Thing, a best selling book written by Gary Keller. This viewpoint overlooks the fact that businesses come in all shapes and sizes, and the different stage of the business lifecycle that every business exists in. For example, a mature business in an industry experiencing slow growth might want to put real consideration into the thought of developing a side hustle. It’s a diversification strategy that can offer several benefits.
Here are five reasons why businesses should consider having a side hustle.
1. Diversifying Revenue Streams
Diversification is a cornerstone of solid financial strategy, applicable to individuals and businesses alike. By developing a side hustle, businesses can diversify their income streams, reducing their reliance on a single source of revenue. This can be particularly useful in volatile markets or during periods of economic downturn. If one segment of a business faces a slowdown, other areas can compensate for this loss.
2. Stimulating Innovation
A side hustle can often lead to innovation. It pushes businesses to think outside their usual parameters and come up with new ideas. This can be a launchpad for new products, services, or ways of doing business that could eventually become a primary source of income. It also offers an opportunity to explore ideas without risking the main business operation, which can create a safer environment for creativity and experimentation.
3. Enhancing Brand Image and Market Reach
A well-chosen side hustle can complement a business’s main offering and contribute to strengthening the brand image. It can provide a chance to reach new audiences or provide a different type of value to existing customers. For instance, a restaurant could start a cooking class or a gourmet food product line, promoting its culinary expertise while reaching a new market segment.
4. Staff Development and Engagement
By involving employees in a side hustle, businesses can offer their staff an opportunity to learn new skills, engage with different kinds of work, and feel more invested in the company’s success. It can act as an exciting project, sparking motivation and creativity, which can ultimately lead to increased job satisfaction and productivity.
5. Risk Management
While businesses can be negatively affected by various risks, having a side hustle can help mitigate some of these. For example, if a company’s main line of business is seasonal, a side hustle can help even out cash flow throughout the year. Furthermore, a side hustle can act as a buffer in times of unexpected events, such as a sudden shift in market demand or disruptive technological advancements. In essence, a side hustle can serve as a built-in insurance policy for a company.
In conclusion, side hustles aren’t just for individuals looking to earn extra money. Businesses, too, can reap significant benefits from adopting this entrepreneurial spirit. Whether it’s diversifying revenue streams, promoting innovation, enhancing the brand, providing staff development opportunities, or managing risks, a business side hustle can be a powerful tool for growth and resilience. Before diving in, however, it’s crucial for a business to conduct thorough market research and consider how the side hustle aligns with its core values, mission, and capabilities to ensure a smooth and successful integration.