Follow this guide to start your business on the right track.

Starting a business is fun and exciting! The idea of being your own boss, creating your own schedule, and the chance to make millions sounds enticing. Telling your friends and family, you run your own business puts a smile on your face. But there are some questions you should ask yourself before starting your side hustle. I compiled the five most important questions you need to ask yourself.

Money

The cold hard truth is that you can't start a business without money. It is important to ask yourself, are you willing to invest money in your side hustle? There might be the possibility that you are not successful with your business and lose the money you put in. If you are not okay with losing money to making money, don't start a side hustle. There is no scenario where you can build a business from the ground up with no investment.

Depending on what type of side hustle you want to start, you can get started with a little amount of savings. From experience, I can tell you that you can start a website with a few bucks and an idea.

Tips on how to get started with little to no savings:

Start with small commitments like buying a domain address and a website host. Domain names on GoDaddy can start as low as $11.99 for the 1st year for a .com domain. So instead of buying a large caramel frappuccino at Starbucks, save the money and buy a domain.

Website hosting platforms typically offer a cheaper rate when you commit to signing up for a year. Squarespace, for example, costs around $18 per month if you commit to a year.

My tip: Before buying anything online, always check if there is a coupon code available. I know Squarespace is working with affiliates, so you can find a promo code that works and save additional dollars.

After you purchase your domain:

Start by creating your website.
Curate content.
Focus on growing your email list.

All of these steps can be achieved without needing money. Don't get persuaded to spend money on a fancy designer that designs your website or creates a logo.

While you work on increasing traffic to your website and getting started on your social channels, you can: save up money to utilize other tools such as an email program, advertisements, and production of your goods. In the beginning, your full-time job is going to support your side hustle. It's important to understand that and have a longtime vision.

Don't buy tools that your business does not need, at least not at the beginning. When you start, you will most likely have a few email subscribers on your list, so it wouldn't make sense to subscribe to a paid plan on Mailchimp designed for 5K email subscribers. I recommend upgrading to paid plans and tools when you actually need them, not because you think your business needs them.

Sole Proprietor

Do you want to start your side hustle on your own as a so-called solopreneur or with someone else? Do you want to hire an employee who can help you with specific tasks or do it on your own?

I wrote an entire blog post about how to get started as a sole proprietor. This blog post outlines the different business entities, required licenses, and other useful tips.

No matter what business entity you form, in the beginning, you need to have a business license and permits if required. Depending on each state, you need to file for these documents. Check-in with your local state website to find out more.

What do you want to sell?

Are you going to sell your expertise or a product? Before you start anything, you need an idea. It all starts with an idea. Stay away from sharing your business idea with too many people and instead only involve someone who can help you reach your goals. There are too many people that either don't believe in your idea or only have negative thoughts to add. That's not because they are trying to hate on your idea, but it is merely out of fear and sometimes jealousy. As humans, we shy away from the unknown because we can't predict the outcome.

Mindset

Being an entrepreneur is not easy. You will work long hours, make little money and fail many times. Being an entrepreneur is like riding a roller coaster. You have successful days and less successful ones. Especially at the beginning, you will have more days where you doubt yourself and your idea. I can assure you that I've been in the same position. What helps is to step away from the computer, workout, and spend time with loved ones. Surrounding yourself with fellow entrepreneurs also helps. It's always refreshing to bounce ideas and share your success (or failure).

One thing that you have to understand success doesn't come overnight. You have to work for it. You have to put in the hours and walk the extra mile.

Time Commitment

There is a difference between a hobby and a side hustle. A hobby is simply a way to relax and do something for pleasure, whereas a side hustle generates income. A side hustle requires more time commitment than a hobby. Roughly it would be best if you spent at least an hour daily to get your side hustle started, whereas a hobby you can work on whenever you feel like working on it.

So ask yourself the question: am I'm ready to commit my time after I came back home from my full-time job and my weekends to get my side hustle started?

If your answer is no or you hesitate and rather spend your free time and your weekend watching TV, then starting a side hustle might not be the right choice.