Logo
    Search

    Rich Girl Roundup: How to Calculate Side Hustle Startup Costs

    enSeptember 25, 2023

    Podcast Summary

    • Determining Side Hustle Expenses: Start Small and Plan WiselyStarting a side hustle involves careful planning and budgeting, keeping initial costs low by using free resources and gradually investing as the business grows.

      Starting a side hustle can come with upfront costs, but it doesn't mean you have to break the bank before knowing if it will be profitable. During a recent Rich Girl Roundup discussion on The Money with Katie show, hosts Katie Gatti Tasan and Hannah discussed the dilemma of determining how much to spend on various expenses like website hosting, domain registration, logo design, and advertising. Katie shared her experience of starting Money with Katie and how she kept costs low by initially using free resources and gradually investing as the business grew. Hannah emphasized the importance of researching and planning to minimize unnecessary expenses. The hosts also encouraged starting small and testing the market before making significant investments. Overall, the key takeaway is that starting a side hustle requires careful planning and budgeting, but it doesn't mean you have to spend a fortune upfront.

    • Starting a Business: Initial InvestmentsStarting a business requires initial investments for essentials like a website, legal registration, and marketing tools, even without revenue or a monetization plan.

      Starting a business comes with significant upfront costs, even if they may seem insignificant in retrospect. The speaker shares their experience of starting a business with Katie, which involved registering a website on Squarespace for commerce, filing for an LLC in Delaware using Stripe Atlas, and paying for an email marketing provider like Flodesk. These costs amounted to around $800, and although it seemed like a large expense at the time, the speaker had no revenue and no plan for monetization. They needed these expenses to operate effectively. The speaker also reflects on the debate over the pronunciation of the word "infinitesimal," which adds a lighthearted tone to the discussion. Overall, the takeaway is that starting a business involves making an initial investment, even if it feels daunting at first.

    • Focus on doing the work first, costs can come secondStart by delivering your product or service, then worry about expenses and legal protection

      Starting a side hustle involves both necessary expenses for doing the work and potential future costs like an LLC. However, focusing too much on the latter can hold you back. Instead, prioritize doing the work and making yourself available to potential clients. Costs like domain registration and logos may seem important, but they can often come secondary to actually delivering your product or service. Additionally, building relationships and networking can lead to freelance work through word-of-mouth, reducing the need for extensive marketing efforts. As for legal protection, consider waiting until your side hustle starts generating significant revenue before investing in an LLC. This will help ensure that your personal assets are protected while minimizing unnecessary taxes.

    • Starting a side business: Investing in growthConsider potential income vs costs, cut expenses, view expenses as investment, potential tax write-off, decision depends on goals and potential ROI.

      Starting a side business comes with costs, but the potential return on investment can be significant. The speaker shares his experience of starting a side business without investing in a website or other marketing expenses due to reliable client relationships. However, he advises considering the potential income versus costs and cutting expenses from the budget to fund startup costs. He also suggests viewing these expenses as an investment in business growth and a potential tax write-off. Ultimately, the decision to invest in a side business depends on the individual's goals and the potential for significant returns. If the side business is a means to an end or a moderate success, the costs can be paid back many times over. Conversely, if one is trying to build a business as an exit ramp or career change, the costs could be the greatest financial investment one ever makes with a potential ROI of 1000%.

    • Evaluate costs and potential ROI before investingConsider ongoing and one-time costs when deciding to invest in a side hustle, as some may require significant upfront and ongoing expenses.

      Before investing in a business or side hustle, it's essential to evaluate the costs and potential return on investment. Some ideas may not require a significant upfront investment, such as transcriptions or dog walking. However, other costs, like ongoing website expenses or business licenses, can add up over time. It's crucial to consider these ongoing and one-time costs when deciding whether to invest in a side hustle. Ultimately, the decision to invest depends on the individual's goals and what they are willing to spend to grow their business or side hustle. Remember, it's an investment in yourself and your future.

    Recent Episodes from The Money with Katie Show

    BONUS: TradWives, Pop Culture, and Feminism with Caro Burke

    BONUS: TradWives, Pop Culture, and Feminism with Caro Burke
    While we’re technically in a bye week, we’re releasing a bonus episode with an unreleased portion of my conversation from last week with Caroline Burke. We cover a lot of ground, but mostly, we discuss her thoughts on the tradwife phenomenon, pop culture, and consumerism’s influence on modern motherhood. Transcripts, show notes, production credits, and more can be found at: https://moneywithkatie.com/tradwives. Learn more about your ad choices. Visit megaphone.fm/adchoices

    The Cognitive Dissonance of "Getting Rich" and Imagining a Better "American Dream"

    The Cognitive Dissonance of "Getting Rich" and Imagining a Better "American Dream"
    I recently wrote an article reflecting on the fact that an awareness of the systems you exist within can empower you to make even savvier individual decisions for yourself. But sometimes, when you’re carving out a safe, secure, full life under capitalism, the thing that’s better for you makes things worse for others. So it leads me to this question: How do we have a good relationship with money in an uncertain world, and how do we stay true to our ethical code while taking care of ourselves and our futures? I wanted to invite two people I admire—feminist writer Caroline Burke and author, artist, and bookkeeper Paco de Leon—to talk about it more.  Transcripts, show notes, production credits, and more can be found at: https://moneywithkatie.com/cognitive-dissonance-wealth. Learn more about your ad choices. Visit megaphone.fm/adchoices

    Beauty, Botox, and Bleach: The Hot Girl Hamster Wheel in 2024

    Beauty, Botox, and Bleach: The Hot Girl Hamster Wheel in 2024
    For this week's Rich Girl Roundup: After a few Rich Gals wrote in looking for an update on our Hot Girl Hamster Wheel episode, we decided to sit down again and talk through how we’ve adapted our routines since seeing through the glossy, Sephora-sponsored matrix. How have we adjusted our own routines and spending over the last two years? Rich Girl Roundup is Money with Katie's weekly segment where Katie and her Executive Producer Henah answer your burning money questions. Each month, we'll put out a call for questions on her Instagram (@moneywithkatie). New episodes every week. Transcript, show resources, production credits, and more can be found at: https://moneywithkatie.com/hot-girl-hamster-wheel-2024. Learn more about your ad choices. Visit megaphone.fm/adchoices

    Yes, You Might Be Saving *Too Much* for Retirement

    Yes, You Might Be Saving *Too Much* for Retirement
    You might be saving too much for retirement, if you aren't factoring in Social Security. But Social Security is the subject of a lot of pessimism, with many claiming "It'll run out by 2035!" The problem with this sentiment? It’s actually misleading. So what are the implications for your future, and more importantly, your financial independence number? We'll dive into the future of Social Security, how it works, and whether you’d be better off taking home those wages and investing them yourself—and you'll probably leave you feeling really good about your own progress.  Transcripts, show notes, production credits, and more can be found at: https://moneywithkatie.com/retirement-social-security. Learn more about your ad choices. Visit megaphone.fm/adchoices

    Will the Election Influence Your Finances? Our Attempted Nonpartisan Discussion to Figure It Out

    Will the Election Influence Your Finances? Our Attempted Nonpartisan Discussion to Figure It Out
    For this week's Rich Girl Roundup, Rich Humans McKynna and Jake wanted to know: "Will the election impact our finances? How much does the president actually affect our money?" So we're attempting to talk it out in the most nonpartisan way possible, and digging into some of the listener feedback we received after our episode on private equity. Rich Girl Roundup is Money with Katie's weekly segment where Katie and her Executive Producer Henah answer your burning money questions. Each month, we'll put out a call for questions on her Instagram (@moneywithkatie). New episodes every week. Transcript, show resources, production credits, and more can be found at: https://moneywithkatie.com/election. Learn more about your ad choices. Visit megaphone.fm/adchoices

    The Cost of Ambition and the Myth of "Making It"

    The Cost of Ambition and the Myth of "Making It"
    There’s an expectation on women that we should be constantly striving to “have it all.” But as the pandemic laid bare, “having it all” usually just means “doing it all,” and doing it all...just doesn't work.  Samhita Mukhopadhyay, former Executive Editor of Teen Vogue and author of The Myth of Making It: A Workplace Reckoning, joins me this week for an honest conversation about where we go from here—and what type of reckoning our workplaces and family lives face as women respond to structures that no longer make (never made?) sense. Transcripts, show notes, production credits, and more can be found at: https://moneywithkatie.com/having-it-all. Learn more about your ad choices. Visit megaphone.fm/adchoices

    Navigating Health Issues in the Workplace? Consider This

    Navigating Health Issues in the Workplace? Consider This
    On this week's Rich Girl Roundup: If you're dealing with chronic illness or mental health issues, how do you strike the best balance between work and health? What kinds of flexibility or accommodations can you ask (and advocate) for? Rich Girl Roundup is Money with Katie's weekly segment where Katie and her Executive Producer Henah answer your burning money questions. Each month, we'll put out a call for questions on her Instagram (@moneywithkatie). New episodes every week. Transcript, show resources, production credits, and more can be found at: https://moneywithkatie.com/health-work. Learn more about your ad choices. Visit megaphone.fm/adchoices

    How to Break Up with Your Financial Advisor (and What to Do Next)

    How to Break Up with Your Financial Advisor (and What to Do Next)
    We’ve all been there, roped into working with our uncle’s best friend’s financial advisor who charges a 1.5% fee for some inscrutable but seemingly important service. What do you do when you think it might be time to sever ties? And how do you reconstruct your financial life after breaking up? Reminder: We are not licensed financial professionals; this is not financial advice. Please do your own due diligence. Transcripts, show notes, production credits, and more can be found at: https://moneywithkatie.com/financial-advisor-breakup. Learn more about your ad choices. Visit megaphone.fm/adchoices

    Dating Money Red Flags, Power Moves, and Money Dates

    Dating Money Red Flags, Power Moves, and Money Dates
    On this week's Rich Girl Roundup: How do you navigate the world of dating as an aspiring Rich Person? When's the right time to bring it up? How do we make checking in about money "fun"? Rich Girl Roundup is Money with Katie's weekly segment where Katie and her Executive Producer Henah answer your burning money questions. Each month, we'll put out a call for questions on her Instagram (@moneywithkatie). New episodes every week. Reminder: This is not financial advice; we are not certified financial professionals—please do your own due diligence. Transcript, show resources, production credits, and more can be found at: https://moneywithkatie.com/dating Learn more about your ad choices. Visit megaphone.fm/adchoices

    If You’re Not in the Top 10%, the “Economy” in Headlines Isn’t Yours

    If You’re Not in the Top 10%, the “Economy” in Headlines Isn’t Yours
    You might be familiar with the phrase, "In this economy?" But it turns out, there might be more than one "economy" out there. There's a deep disconnect between what we hear about in the headlines ("The economy is great!") and our day-to-day experiences affected by wage stagnation, inflation, and high interest rates. We dig into it with the help of Mark Zandi, the chief economist at Moody's Analytics, as well as Judd Cramer, from the Harvard department of economics. Transcripts, show notes, production credits, and more can be found at: https://moneywithkatie.com/economy-headlines. Learn more about your ad choices. Visit megaphone.fm/adchoices

    Related Episodes

    Planning to Make a Plan

    Planning to Make a Plan

    In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about planning for your plans, understanding that plans can go wrong, what things that can go wrong during retirement, and establishing a household budget.

     

    Episode Highlights:

     

    • 00:50 – Bill Bush and Andy Bush talk about the importance of planning.
    • 02:09 – The year 2020 has been unpredictable financially.
    • 04:00 – They discuss short-sided vs. long-term thinking.
    • 04:53 – Be prepared the best you can for the unexpected.
    • 06:40 – What things can go wrong in retirement?
    • 08:28 – Past performance is no guarantee on future gains.
    • 09:38 – Make sure you are controlling what you can control.
    • 11:00 – What progress can you make in the next three years?
    • 11:23 – Be intentional about having a household budget.

     

     

    3 Key Points:

     

    1. Short-term views worry about the news of the moment and its impact on the finances.
    2. Long-term views take into consideration the likelihood that things can and have gone wrong.
    3. Plan on your plans not going according to plan.

     

    Tweetable Quotes:

    • “Plans are worthless. But planning is indispensable.” – Andy Bush
    • “You can never predict what might happen.” – Andy Bush
    • “When there is a lot of uncertainty, there is typically a lot of volatility in the market.” – Andy Bush

     

     

    Resources Mentioned:

     

     

     

    Tina Seelig (Stanford Technology Ventures Program) - The Art of Teaching Entrepreneurship and Innovation

    Tina Seelig (Stanford Technology Ventures Program) - The Art of Teaching Entrepreneurship and Innovation
    Stanford Technology Ventures Program's Executive Director Tina Seelig shares rich insights in creative thinking and the entrepreneurial mindset. Her talk, based on her 2009 book, What I Wish I Knew When I Was 20, cites numerous classroom successes of applied problem-solving and the lessons of failure.

    #46: Great Planning is Great Business : Candice Bakx-Friesen

    #46: Great Planning is Great Business  : Candice Bakx-Friesen

    Driven Female Entrepreneur Podcast with Business Coach Melitta Campbell

     

    Welcome the Driven Female Entrepreneurs Podcast!

    The weekly show that helps you dream bigger and achieve more in your business, by learning what works from successful female entrepreneurs.

     

    In this episode

    In this episode of the Driven Female Entrepreneurs Podcast, I speak with Money Coach, Candice Bakx-Friesen.

     
    Growing up in an entrepreneurial family, from an early age Candice developed an interest in finance and planning, seeing it as an integral part of success. After studying to become an accountant, she made a switch and built a career in real estate. After 14 years in that industry, she saw that buying a house was only the start, and that many of her clients needed broader advice, which brought her back into the personal finance field.
     

    Listen to this episode to learn more about Candice's business journey, and how great planning has helped her build a successful business around her family of four.

     

    Highlights

    In this value-packed episode you'll learn:

    • What to focus on when you're in a competitive market.

    • To match your business and your clients to your personality.

    • Where to start when you begin your business.

    • The best approach for your sales calls.

    • How to change your mindset around your sales calls.

    • How to get stuff done when there is so much too do.

    • The key to getting consistent clients.

    • Why not every prospect is a good contact, and that's OK.

    • The importance of taking time in your sales processes.

    • The biggest misunderstanding when it comes to succeeding in business.

    • The role your partner and friends play in your business.

    • Why planning for your future needs from day one is so important.

    • Practical advice to stay on top of your business and your family.

    • Why what works for you, works.

    • Why clear communication is vital in every business.

    ...and much more!

     

    About Candice Bakx-Friesen

    Candice Bakx-Friesen is a money coach from Canada. She has a passion for helping people master and feel confident about money. From basic money concepts to advanced topics like investing in real estate- Candice has you covered!

     

    Connect with Candice

     

    www.investorsmarts.ca

    Instagram profile       Facebook Page   

     

     

    Join the Driven Female Entrepreneur Community

    Come and join like-minded women in the FREE online community for Driven Female Entrepreneurs. 

    You can expect many more tips, tools and insights to support you as you build and grow your business to 6 figures and beyond!

     
    > The Driven Female Entrepreneurs Club

     

    About Your Host, Melitta Campbell

    Since 1997, Melitta has been using her ability to spot gaps between a company’s goals and its strategy and positioning to help businesses become profitable and achieve growth - in as little as three months.

    By combining the insights gained from working directly with senior leaders for more than 20 years, her unique blend of art-school and business-school training, and her restless curiosity, Melitta has helped her clients identify new opportunities and develop creative solutions that add value in profitable and purposeful ways, that are straight-forward to implement and result in a clear competitive edge.

    After witnessing too many talented and passionate women fall short of their vision to make a profit and a difference, more recently, Melitta has brought her business, leadership and marketing expertise together with her personal experiences, to become a trusted advisor and coach for female-led businesses.

    Book your Free Business Clarity Call:

    www.melittacampbell.com

     

    Get More Clients with your FREE Listener Gift

    The number one question I'm asked is: How can I get more clients? 

    To help you market your business and attract more of your ideal clients, download your free eBook today:

    Download your FREE Gift: 100 Ways to Market your Business for Free!

     

    Where There Are Losses, There Is Steak

    Where There Are Losses, There Is Steak

    Today, we’re here to chat about what you may have been experiencing for the last couple months in this market, which is where there are losses, there's steak. Watch out vegans, this is not a vegan episode. (Just kidding). 

    There are lots of laws in the universe, and there seems to be a law that when the market goes down, your joker broker advisor wants to play golf or wants to meet you. Their relationship becomes really important all of a sudden! Oh my goodness, wait, the market's down. I should reach out to the Jones’ and to the Smiths… Right? Because they got you with the risk with a side of fees as the answer to everything. 

    When the market's going up, there's no reason really to talk, right? Nope. You're happy. Anyway, we talk about it all the time, all the evidence proves that if you don't use the joker brokers, you'd make more money just buying the index. Listen to this episode as we give our advice and some tips on what to do when the steak shows up!

    And, if you have any questions, we are more than happy to answer them. Just reach out to info@renovatingretirement.com, anytime!

    For more info, episodes, and notes, head on over to https://renovatingretirement.com

    Thanks for listening, and please subscribe to or follow the podcast wherever you get your podcasts from, and be sure to share with your friends and family as well. Thanks again!

    About Charlie Jewett

    Charlie Jewett is an author, speaker, recruiter, trainer, consumer advocate and investment advisor from San Diego, CA. As the “Financial Services Whistleblower” Charlie has been trying to change the way that industry professionals and consumers think about retirement since 2005. With considerable years of experience and an array of professional certifications, Charlie focuses on stock market alternatives combined with tax-free retirement income and provides educational materials that help people to create their ideal retirement plan. He is the host of two podcasts, Renovating Retirement and Target Practice for Advisors, as well as the author of “Renovating Retirement” and “Two Ways to Be Debt Free”, both available on Amazon Kindle.

    About Bobby Alford

    Bobby Alford has walked an unconventional path to becoming the CEO of Renovating Retirement. He spent 10 years in the US Submarine force, both as an officer and enlisted person, earning a degree in nuclear engineering along the way. Bobby then joined corporate America and worked for a Fortune 50 company in operations, finance, and sales management roles. After getting his MBA, he began working with military veterans to improve their retirement options. At that point he found Charlie Jewett and learned how to truly impact a person's financial life using the MERIT model of planning. Bobby joined Charlie and now uses his skills to grow their company toward achieving the goal of creating $1 billion dollars of annual tax-Free money for their clients.