As I’ve mentioned in the past, I’m all about making side income. One of my favorite things about side hustles, side income, and small business in general is that there is always room for improvement. Limited resources forces you to pick and choose what you invest your time and money on, and there are definitely a never-ending number of things you can do to improve your business.
Today I want to share five ways to make your side income more legit. Some of these are basic, others may still be on your “to do” list, but overall they should all improve your business.
1) Get a website and professional email
Nothing makes you look more amateur than having your business email as a Gmail, Hotmail, or some other generic account. Registering for a domain name is relatively simple and getting web hosting is easy as well. Once you have a domain and website set up, you can change your email to [Insert Name]@mywebsite.com. I have advertisers contact me on this site from gmail accounts and I just have to shake my head. I’m much more likely to work with someone who has a professional email with an actual website for their business.
2) Professional Logo and Web Design
Once you have a website for your side hustle/small business, consider getting a professional logo and web design. At the time of this writing, I am considering investing some money (or time) into a site redesign. While ultimately with small business it comes down to your work and how much people value it, having a website that looks professional definitely can’t hurt. Logos also are relatively inexpensive to have done these days.
3) Register your business
There is a ton of good info out there on how to register a company, and there are many potential benefits if you do decide to register. For example, there is protection of personal assets, transferable ownership, and separate credit rating. There are a number of different business structures you can pursue when registering your company, such as sole proprietorship, limited liability company (LLC), or a partnership. Each has their pros and cons and should be researched thoroughly before going through the paperwork and fees involved with registering your business.
4) Get Your Financials in Order
The last thing you want to be doing at tax time is going all the way back to the beginning of the year to see what revenues and expenses you had for the past year. While I do sometimes agree with people who say “I’m too busy making money to keep detailed records” (a good problem to have!), at minimum you need to keep records that will help you calculate your revenues, expenses, and subsequently profit from the past year.
5) Look into Legal Issues
One of the biggest things I learned from my first freelance job was that I should always have a contract in place so that there is a legal agreement as to how long I will be working on the project, what my compensation will be, what followup support I will provide, etc. Now when I take on projects, I make sure it’s clear what is expected from me and what is expected from the person contracting my services. While there will always be lawyers who are willing to explain legal issues to you, write up contracts, and generally be a resource to you, if you spend some time here and there looking into legal issues related to your business you may be able to save a significant amount of money versus contracting out all the labor to a lawyer.
____________
As I said in the beginning, there are an unlimited number of things you can do to improve your small business. Especially if your business is a side income, making it appear legit can bring in more business.
What would you add to the list? How do you make your side hustle more legit?
____________
Photo by daveynin
Check out some of our favorite personal finance resources:
Are you getting the best credit card rewards? Check out the top cash back credit card offers (updated daily)
Make extra money: 15 ways to make money from your computer
Get the First Chapter Free!
Join our online community and get the first chapter of the book Student Loan Solution absolutely FREE!
These are definitely all great tips. I’m currently working on a more professional web design :)
@SenseofCents Awesome! I think your site looks great as it is, but there is always room for improvement : ) I’m focusing on content for the most part right now, but would like to do a full-blown professional makeover of the design at some point this year.
These are all great tips DC! Legal issues are huge and having those contracts in place, especially for brand new clients, is vital. I would also add networking into the mix. The more people you meet & know, the more you open yourself up to. This is a two way street though and should always be willing to help others out.
@FrugalRules Definitely agree with your networking suggestion. The people who have helped me out the past 9 months or so since I started the site are the people who I would be most willing to help with no questions asked.
Great tips, I totally agree about the e-mail thing. It’s something so simple but makes so much difference.
Totally agree about the the email, such a small thing but huge impact.
@PlungedinDebt And how many people are stuck in the gmail ghetto even when they are trying to present themselves as a professional? I just have to shake my head sometimes when I get an email from some business and it’s their first point of contact with me and they have a GMAIL. It’s usually someo business/person I’ve never talked to who are at the same time trying to prove their professionalism and sell me on an idea/product/etc.
Yup. I always try to check out company’s websites. I also would suggest getting a few reviews on public sites like Yelp (as that’s the second place I’ll check).
@PFinmario Yelp is great, but I think it’s more important for brick and mortar businesses like restaurants, coffee shops, etc. I haven’t used Yelp for an online service or business before.
@DC @ Young Adult Money For online-only stores, I’ve used resellerratings.com for years
@PFinmario Hmmm never heard of it.
These are all really good ideas. As a former Graphic Designer myself, I saw waaaaay too many “professional” people using a logo they designed themselves. You can always tell when someone designed their logo themselves. It just looks home made. Professional design doesn’t have to be expensive, but that bit about having a contract is super important when you are the client, too. We would typically design 5 logos for the client to choose from, after an initial meeting to get a feel for what they were looking for. 2 rounds of revisions were also included. After that, we started charging by the hour. You don’t want to think you are paying $500 for a logo, only to be handed a bill for $2,000 for all the changes and redesigns you thought were part of the original deal.
Networking is also huge, like Frugal Rules said. Join as many groups related to your business as you can. Find one or two that really fit with you, and attend as many functions as possible.
How about starting a blog, with information based on your type of business? Perhaps YOU could become a go-to source for information in your industry.
Thanks DC!
@Mrs1500 I think starting a blog with information based on your field can be a good idea, as long as you are VERY careful about not sharing confidential information. Everything has to be public.
Logos are so important and I definitely plan on getting a new one with my redesign (whenever that will be). I wouldn’t attempt to do one on my own, and it was one of my first expenses when starting this site. It actually introduced me to a personal finance blogger who I regularly talk to.
Excellent tips. I learned a VERY valuable lesson about having a clear SIGNED contract in place today. I should have known better and I’m actually a business owner already. Needless to say, my client ran off without paying me and I just worked for free. The cardinal rule in business – never work without a signed contract.
@ForHerByHer Unless it’s an established business I rarely trust them. There was someone brokering an advertisement from gmail who was trying to get paid after I posted their ad. I straight up told them – you are emailing me from gmail while I’m an established business and I would be happy to give you a list of references if you are weary of paying upfront.
Great post, DC. I want to second your advice about a professional logo: I was lucky to read early on Guerrilla Marketing, and found out that one of the best expenses for your business (and that you shouldn’t cut costs on) is a great logo. With a great logo you can look like a huge pro when maybe you’re working out of your basement!
I would love to have a professional redesign, but right now, the cost would probably not be worth it. When does it go from being my little pet project to being a real business? I’m not there yet.
@Eyesonthedollar Same thought here! I don’t want to half-ass a redesign so I’m kind of waiting it out to find a good time to really take the plunge and invest.
Contracts are so important even if you are working with someone you already know. We have quite a lengthy contract for one of our businesses and some clients balk at it until they read it and understand that it protects both them and us. Once they see that, they are happy to sign it.
@TacklingOurDebt Getting better at knowing what I should and should not include in contracts is something I would like to spend more time on the rest of 2013.
I would love to be able to invest in some of these things, but I’m not making any money yet. So far my blogging business is just a hobby. :)
@ayoungpro I understand, and it takes some time to make money blogging. The first six months should be more about establishing your site than making money, anyway.
We had a business mailbox that we were renting in downtown CBD, we would occasionally rent a meeting room there too, and meet our clients there. It looked better than meeting them at home or a coffee shop.
@RFIndependence Ah that’s a great idea! A good alternative to actually having an office as well. I figured if I ever did contract work full time I’d meet at the client’s workplace or a coffee shop, but finding a meeting place to rent out would be much better.
Does it cost money to have the @frugalportland.com email address?
@frugalportland Hmmm I don’t think so? I have mine set up through my host, Blue Host. It was really easy to set up. I’m not sure who hosts for you tho.
I’m still guilty of a few of these. I really need to stop using my Gmail for commenting and move everything over to my site e-mail. It’s just laziness really.
@JustinatTheFrugalPath I use my gmail for commenting as well. I think it’s more unprofessional when say, someone who brokers ads is emailing you from a gmail!
I have to agree, having your own email account that isn’t a freebie makes a world of difference to how professional you look.