When deciding to turn your side-hustle into a legitimate business, there are so many unknown variables that can sometimes drive you away from accomplishing it. Today, WTR welcomes Luke Peters, an expert in building wealth and a successful entrepreneur. In this podcast, we will discuss how side-hustling brings about a large amount of freedom and how to transform your side-hustle into a legitimate business with value.
[00:28] Kevin: Today, we're joined by Luke Peters. What we're going to be talking about today is thinking of your side hustle/business as an asset
[02:22] For some people that side hustle becomes, like Luke here, legitimate business in their way of life
[02:32] Can you talk a little bit more about where you came from and what inspired you to get to where you are today?
[02:40] Luke: My parents had always worked hard and always taught us to work hard (I got a good work ethic from my parents)
[03:10] An inspiration is that once you have a business, you kind of realize that you have more stability in a sense (you're in charge of the risk versus being an employee)
[03:22] And I enjoy the freedom, I'm not someone who likes to follow a lot of rules
[03:48] Everyone can be in business, you don't have to be just one type of individual
[04:14] Hiring good people is the best thing now. The sooner your business is making enough money to hire good people, good people are going to drive your business
[04:27] Kevin: Do you find that in today's world it's a little easier to outsource tasks (ex: Fiverr)
[04:55] Luke: For sure, in today's day and age you can do that, but you have to weigh both sides of it. You don't want to outsource things that are not making us money in the beginning
[05:15] You hire locally for the high-level talent (where experience makes a difference) and you outsource the tedious things you don't need to do locally
[05:30] Kevin: There's also the flipside to this and that is when you're starting out your side hustle, you're doing all those tasks and a lot of people say it's good that you do them in the beginning in order to learn it first. When you understand it better, you can outsource it better
[06:27] Let's talk a little bit more about why would our listeners want to change their mindset of thinking about what they're doing as a side hustle into a legitimate business?
[06:40] Luke: Let's first back up and look at employment. The days of people staying with the company their whole working lives is past us now and it is a very competitive world
[08:01] When you work for someone else, first of all you need to be motivated (flexibility to make their own decisions)
[09:23] Is there free time and are we spending it wisely? And if not, that's the time people can spend on their side hustle
[09:36] Kevin: You mentioned spending time with your family. Once you change your mindset of taking your side hustle into a legitimate business, can this (entrepreneurship) benefit your family?
[09:46] Luke: I think so because when you think about it, yes, it does take you away from family time, but you can still be very active in your family's lives all while doing this side hustle
[10:18] Really disciplined time spent (a couple hours a day) is enough time to start a side hustle
[11:46] I think it's really positive for the family to be talking about business. It opens up their eyes to opportunities
[12:57] Kevin: I think a lot of people have this pervasive idea in their heads that in order to try to do a side hustle as a business they need to be going at It working late every day and maybe that's intimidating
[13:25] Luke: I think the biggest thing is that people don't know where to start. My only answer to that is you just have to start. You have to sit down and start doing work while asking yourself "what can I build or offer that's valuable that a customer will buy?"
[13:42] And then you literally have to just go and sell and if you have a certain service that you want to sell, you have to create email offers (cold-emailing) and get your customer and figure it out
[15:10] Kevin: Let's talk a little bit about the transition going from a side hustle to the next step of a legitimate business?
[15:20] Luke: I don't necessarily know if there's a firm line there, once you have clients you'll need to establish some sort of entity. But you could start out as a sole proprietorship and then eventually convert to an LLC or a partnership
[15:45] Once you're collecting money, you're a business and you're going to have to pay taxes and keep books, but at the same time when you're small, I guess the key things is to keep track of your expenses that are associated with that business
[16:38] What people really want to think about with the business is it is an asset and it's something that holds value for you. Most businesses when you stop working, they don't stop
[17:22] You're building something that's only going to increase in value
[18:24] Kevin: Before we close, I'm going to ask you for our WTR value bomb, which is something in your experience our listeners should look to avoid and what they can do about it?
[18:37] Luke: Things to look to avoid specifically in business is to not feel like you have to sign contracts and if you do sign them, understand that everything is editable and variable
[19:30] I would advise against hiring in family but there's so much work you can find on other sites