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Wondering how you can build a profitable side hustle? Once you’ve chosen your passion project, you’ll want to do some research.

If you are, in fact, looking to turn your passion project into a profitable side hustle, it’s important to do a healthy amount of research to ensure you’re set up for success. 

You’ll want to consider factors such as the demand for your product or service, the cost of entry, and your own skills and experience.

In this article, you’ll learn some killer research tips that will help you build a profitable side hustle.

By the way, this article is part 2 of a series of articles that are designed to help you successfully identify, build, and launch a profitable side hustle. You can catch part 1, Passion to Profit 101: How to Choose a Passion Project here.

Preparing for the Research Phase: 3 Simple Steps

Prior to starting the research phase, you’ll want to consider a few things, such as the following to help you build a profitable side hustle:

1. Identify your passion. 

While you may want to do some research prior to committing to a passion project or side hustle, it’s helpful to have an idea about what you’d like to start.

Before getting too deep into the research stage, I suggest reading Passion to Profit 101: How to Choose a Passion Project.

2. Choose a niche

It’s not enough to simply choose a passion project, you’ll also need to consider your particular niche.

Consider the audience you’d like to attract to your new business. Who would you like to work with? Who would make your passion project worth pursuing?

Once you’ve chosen a niche, you can start doing some research to learn more about the market and your potential customers.

3. Assess your skills and experience. 

It’s important to be realistic about your skills and experience when choosing a side hustle. If you’re not good at something, it’s going to be difficult to make money in your newest pursuit

Psst… if you need some insight on your innate strengths, I suggest reading Strengths Finder, which comes with a free personality quiz when you buy the book new!

Tips to Build a Profitable Side Hustle: Beginning the Research Phase

In the research phase, you’ll want to consider factors like the following:

The market. 

Once you have a few ideas, it’s important to research the market to see if there’s a demand for your product or service. You can do this by talking to potential customers, surveying people online, or conducting market research.

There are a number of ways to conduct market research. You can start by talking to people who are already in your niche. You can also read industry reports and articles, and conduct surveys and interviews. The goal of your market research is to get a better understanding of the demand for your products or services, as well as the competition.

The cost of entry. 

Before you launch your side hustle, you’ll want to consider the cost of entry. This includes the cost of materials, equipment, marketing, and any other expenses.

Your passion project may have a minimal cost of entry, potentially even being free, but you’ll want to consider any business costs you’ll incur once you start.

For instance, if you choose to pursue furniture restoration, then you’ll need to consider the cost of materials like paint or furniture.

Even a simple writing business can incur expenses if you’re purchasing services like email marketing support.

You may not know all the costs you’ll need to incur over time, so ask other professionals if you’re not sure.

Industry trends.

Is your passion project on the rise or on the decline? Is the competition stiff, or is there ample opportunity?

If you’re not sure, you can use tools like Google Trends, or even just ask around.

Your business plan. 

As you’re doing your research, save any tools or materials that will help you build your business plan.

While you don’t necessarily need to have a formal business plan (unless you’ll be reaching out to investors to secure funding), it is a good idea to think about what you’ll want to include.

Your business plan can help you map out your goals, strategies, and timeline for your side hustle so that you can build a successful, profitable business.

By considering these factors as you complete your research, you can increase your chances of building a profitable side hustle.

Ideas to Support Your Research Efforts

Here are some additional tips as you’re doing your research:

• Talk to people who are already doing what you want to do. 

They can give you valuable insights into the industry and the challenges you’ll face.

• Read industry publications and blogs. 

This will help you to stay up-to-date on the latest trends and developments.

• Attend industry events. 

This is a great way to network with other professionals and learn more about the industry.

• Keep track of the progress toward your goals.

The research phase can be a big commitment as you work toward building a profitable side hustle. Make sure you keep track of the progress you’re making, and celebrate your successes!

Psst… need a tool to help you track your progress toward your goals? I recommend using ClickUp.

Additional Tips as You Build a Profitable Side Hustle

• Be realistic about your goals. 

Don’t expect to become a millionaire overnight. It takes time to build a profitable side hustle.

• Be patient. 

There will be setbacks along the way. Don’t give up if you don’t see results immediately.

• Don’t be afraid to ask for help. 

There are many resources available to help you start and grow your business. Don’t be afraid to reach out for help when you need it.

By doing your research, you’ll be well on your way to turning your passion into a profitable side hustle.

Turning your passion into a profitable side hustle is possible with the right research and planning. By following the steps outlined in this article, you can increase your chances of success. So what are you waiting for? Start your research today!

Think building a profitable side hustle will FIRE Your Life? Check out the posts page for more ways you can FIRE Your Career and achieve financial freedom.

FIRE Your Career: Achieve Financial Freedom Through Your Career & Spend MORE Time Doing What You Love.

Products I recommend in this article:

Strengths Finder (book to uncover your innate strengths)

ClickUp (my recommended project management tool)