FINANCIAL ROADMAP

When you embark on the journey to start and scale a side hustle, the financial roadmap becomes your trusted guide. This proven framework equips you with the tips, tools, and tactics to master the fundamentals, avoid pitfalls, bootstrap, maintain equity ownership, and adopt a social mindset while making a profit. The 10 essential steps of the financial roadmap are:

Defining Motivation

Identify your financial motivation for launching a side hustle, determine your SMART financial goals, and create a financial vision board and budget.

Generating Ideas

Brainstorm ideas for your side hustle based on the 6 Ps: pain, passion, pedigree, pet peeve, profession, and purpose, before you learn to organize idea by mind mapping.

Meeting Compliance

Follow good business practices, which include registering your side hustle, getting proper licenses and permits, paying taxes, and protecting intellectual property.

Structuring Business

Select the correct structure for your side hustle to minimize tax liability, protect personal assets, simplify financial management, and maintain 100% equity control.

Doing Good

Donate to nonprofits; sponsor events, teams, and initiatives that align with your side hustle's values; and participate in "days of service" in your local community.

Tracking Transactions

Understand how to manage cash flow, establish a budget, track capital accounts, and navigate accounting apps and workflows.

Managing Inflows

Understand how to fund your side hustle and establish pricing strategies.

Managing Outflows

Understand how to bootstrap your side hustle and avoid commingling funds.

Optimizing Taxes

Undertake tax planning to identify tax strategies to minimize tax liability.

Building Team

Find the best financial advisors and mentors, consider a partnership and alternatives such as JV, connect with your peers via masterminds, and recruit your clients as ambassadors.

Holy Trinity

There are three interdependent systems, referred to as the Holy Trinity of a side hustle, that are essential to achieving long-term success:

Marketing

Focuses on understanding customer needs, promoting products or services, and building a brand that resonates with the target audience. Key activities include branding, advertising, public relations, and sales promotions and campaigns.

Legal

Ensures that the business complies with laws and regulations, and helps mitigate risks. Key activities include contract management, regulatory compliance, intellectual property management, and managing legal disputes.

Finance

Ensures your side hustle has the resources it needs to operate, grow, and meet its obligations, while also managing risks. Key activities include budgeting, accounting, bookkeeping, managing cash flow, and tax planning and compliance.

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