6 Steps to Starting a Resume Writing Business as a Side Hustle

I was asked a question today about starting a business as a side hustle (in addition to a 9-to-5 job). I'd estimate about 75% of resume writers get started in business this way. I know I did, more than 20 years ago.

I put together this list of advice for getting started. If you’re thinking of starting a resume writing business as a side hustle and you have questions, leave me a comment below or contact me!

Step One: Avoid Conflicts

First step is checking your current contract (if you have one) to make sure there is nothing that prohibits side work. Most important, if you’re doing work that relates to your 9-to-5 job, you want to make sure that you wouldn’t unintentionally be giving your current employer the rights to your side hustle work (or clients). That can really happen.

You also want to make sure that you’re not using company resources for your side hustle. So you wouldn't want to use your work computer for your business, for example. Or, if you have a company-provided cell phone, get a separate one for your business. (That’s smart anyway, so you can answer calls with your business name. “All About Resumes, This is Jan!” Or have your voicemail reflect your business: “Thank you for calling All About Resumes. If you want more information about how we can help you meet your career goals, visit our website, allaboutresumes.com, or leave us a message and we’ll get back to you.)

Step Two: Identify Yourself

Step two is coming up with a business name. You do NOT need to incorporate as an LLC at this point. It’s not necessary and is a lot of paperwork and expense that isn’t required.

This article explains why:

LLC vs. Sole Proprietorship: Which one is best for your business?

As a small services business (under $100K in revenue to start), your legal liability risk is low. If you want to shield yourself, an E&O policy (errors and omissions) would be sufficient (and probably overkill). If you do choose to pursue E&O insurance, check out Hiscox or your homeowner’s insurance. (If you’re seeing clients in person at your home or an office, also ask your homeowner’s agent about a business liability policy.)

Get an EIN from the IRS:

https://www.moneyunder30.com/benefits-of-getting-an-ein

Here’s how to get one (it’s free):

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Step Three: Establish Your Business

The next step is opening a business checking account. All your income and expenses should be run through this account. It can be as simple as “Your Name dba as ___” (dba = "doing business as"). My first sole proprietorship was “YD Creations” (my maiden name is pronounced “Why Dee” — like the letters Y and D). So my bank account was “Bridget Weide dba YD Creations.”

Start as a sole proprietor. Your income and expenses will be reported on your personal tax forms. 

Register your business with the state. Google “start a business in ___” (your state). 

For example, I live in Nebraska:

https://www.nebraska.gov/osbr/index.cgi

You also want to check into whether you will need to collect sales tax on your sales.

Your state’s department of revenue can help you identify the specific services that are taxable.

Again, here’s my state’s guidelines:

https://revenue.nebraska.gov/businesses/starting-business-nebraska

This is especially important if you are providing taxable services. In some jurisdictions, resume services are taxable. In others, they aren’t. Sometimes they are taxable if it leads to the creation of a physical product (resume printouts) but not digital files. It’s important to get this right from the beginning, so don’t skip this step.

You may also need to register your business with your local city or municipality. Check to be sure.

Step Four: What Will You Sell?

Next is figuring out what services you are going to offer and your pricing for each. Will you provide resume development only, or also provide interview coaching? How about salary negotiation services? Career coaching?

Will you bill by the hour, by the project, on retainer, by results generated, or other?

Step Five: Getting Paid

The next step is figuring out how you will accept payment. You may want to set up a Square account (or similar third party service). Your bank may use Zelle but your customers would need to also. You probably don’t need a credit card (merchant account) at this point. Keep your expenses low to start.

Step Six: Now It’s Time to Make Yourself Known

The final step is all about marketing. Register your business domain (www.____.com). Set up an email (and website, probably). Register your social channels if you’re going to use them. Put the word out to your network and contacts that you’re “open for business.” Reach out to anyone who had inquired about you doing work for them in the past.

Starting a business can be daunting, but starting as a side hustle can give you the security of your regular paycheck with the ability to start growing your business on the side. These six steps will help ensure you get off on the right foot.

And someday, when you’re ready, you can make the leap to being a full-time career services professional (if you choose to!).

Unlock Your Potential as a Resume Writer

You are capable of doing amazing things, of achieving all of your hopes, dreams and goals and living the life you want to live. You were born with this ability. So what happened? Life happened. Along the way, you picked up a few limiting beliefs, behaviors and some negative thoughts.  It happens to everyone. The good news is, there's something you can do about it. Here are a few tips and suggestions to begin to unlock your potential.

Step One. Recognize negative thoughts. We all have negative thoughts. We think things like, "I'm bad with money," or "I'm just no good at ___" all the time. We do it automatically, without thinking. So, the first step is to begin to filter these negative thoughts. Start to recognize them. When you do recognize them, change them to be positive thoughts. For example, "I'm good with money," or "I am good at ___." 

If that feels to forced, then consider letting the negative thoughts go. For example, you can say to yourself, "I have had some trouble with money in the past, but I'm looking forward now and I am good with money now."

This strategy enables you to let go of your past mistakes — and believe me, everyone has made mistakes — and to positively focus on the future and what you're capable of.

Step Two. Assess your strengths. Have you ever noticed that if you receive 10 compliments in one day and one criticism, you focus on the criticism? It's our nature to focus on the negative and the areas where we're not so strong. However, focusing on our strengths is much more productive — and, quite honestly, your strengths are where you're going to achieve your success. So let those weaknesses go, ignore the criticism, and be proud of who you are.

Step Three. Be grateful. You may have heard this one too many times — however, gratitude really is a tremendous success tool. When you're grateful for what you have and for the mistakes and lessons you learn, then you're 100 times more powerful. Gratitude not only helps you take a positive approach to almost everything you do, it affects how people respond to you. They'll be significantly more likely to help you, to want to work with you, or to buy from you if you radiate a positive and grateful glow.

Step Four. Visualize what you want. Don't be afraid to ask for what you want and to visualize success right down to the nitty gritty details. Visualization is a powerful process used by the most successful business owners in the world, by athletes, and by spiritual leaders everywhere. Visualization helps your mind and body perform as if you've already succeeded.

Step Five. Let go. Let go of limiting beliefs, or the idea that you can't do something, that success isn't possible, or that you're just not cut out for it. When a limiting belief comes up, for example, the rich get richer, is a limiting belief if you're not already what you would consider rich, right? Explore why you have that belief, and if you really believe it to be true. If you don't, let it go, it's holding you back from achieving the success you desire.

When you're able to clear away negative thoughts and limiting beliefs and embrace your strengths and your ability to visualize and accomplish your goals, nothing can stop you. You really are capable of achieving anything you set your heart and mind to.

Yes, I Am A Resume Writer

Photo of me from 2001.

Twice last month I had the opportunity to talk to a couple of resume writing colleagues, and both of them asked, "Bridget, do you still write resumes?"

Of course! I started out as a resume writer, and I still write resumes. Not as many as I did a few years ago when I was a subcontract resume writer, but yes, I still write resumes, cover letters, bios, and even LinkedIn profiles.

I was reading an article in the February 2014 issue of Inc. about "origin stories" and thought I should share mine here, so you can understand where Resume Writers' Digest and BeAResumeWriter.com came from.

You probably already knew that I wrote my first resume at age 12, but you might not know that Jon and I started our business right out of college in the spring of 1996. In fact, I remember calling to arrange an appointment to see an office space while sitting in the hallway at the University of Nebraska at Omaha (my alma mater) between classes our senior year.

We started our business with the goal of serving SOHO clients -- Small Office, Home Office businesses. Soon, we'd change that to helping individuals and small businesses market themselves -- people with resumes, and businesses with newsletters and other print pieces.

In high school, I had taken second place in the "Job Interview" category at the Future Business Leaders of America State Leadership Conference. Students were asked to write a resume and cover letter for a job at "Merit Corporation" and then interview with businesspeople who volunteered as judges at the conference. My "genius moment" was when I decided to specify what Merit Corporation was. Usually, students created a very generic resume and cover letter to this "mystery" employer. I decided it would be more effective to identify the type of business Merit was through my cover letter and resume so that the employer could have a more realistic interview. After all, he or she was supposed to be representing Merit -- and yet, most interviews were extremely generic, because neither the student nor the interviewer had anything specific to talk about. (Somewhere around here I have the floppy disk with the resume and cover letter I wrote.) In examining my scores from the judges, I learned that what kept me from winning the category was my attire -- my first lesson in the importance of dressing for success. (I wore a black-and-gold skirt and jacket -- the judges were expecting blue or black only).

Anyway, my Yellow Pages ad was a client magnet, and I was writing a couple of resumes a week. But I was young (21) and knew there was a lot I didn't know. In 1998, I wanted to pick the brain of some of the industry's leaders -- people like Wendy Enelow and Louise Kursmark -- but I didn't think if I just asked them directly that they would talk to me. (I have since learned that people in our industry are some of the most generous you'll find anywhere!) But at the time, I thought, "Well, I could interview them for a publication, and then they'll talk to me!" (I had a few magazine articles published in national publications while I was in college while I had majored in journalism/public relations.) So I decided to start a trade newsletter, Resume Writers' Digest, to get answers to the questions I had as a resume writer. In time, it grew to several hundred subscribers, paying $60/year for six print issues.

In 2004, I got distracted by other things in my life and business, and decided to stop publishing the newsletter. I brought it back as an occasional online publication starting in 2007, because I was still writing resumes … and I still had questions!

Then, in 2011, I decided to start a membership site for resume writers to share the content I was creating for my own clients. I figured other resume writers could use the information with their clients too — so I license the content to subscribers to use with their clients. Instead of starting from scratch, resume writers can take the Pass-Along Materials and use them "as is" or customize them. Most of the ideas for the Pass-Along Materials come from my work with my clients.

So yep, I'm still writing resumes.

Avoid These 7 Mistakes When Starting a Home-Based Resume Writing Business

© gpointstudio - Fotolia.com

Most folks getting started in the resume writing industry these days are starting a home-based resume writing business. When I started my resume writing business 17 years ago, my husband and I rented an office to work out of, but we moved it into our home 9 years ago, and haven't looked back.

I always laugh at the ads in the home-based business magazines. "Starting a home-based business can be an exciting venture. Get started cheap, and make big money overnight."

Starting a home-based resume writing business can be exciting, and you can get your start for under $1000. But it takes hard work to make big money, and you want to avoid some of the most common mistakes in order to see your home-based resume writing business succeed.

Here are some of the top mistakes:

Failing to do your homework. What's that old saying, "Those who fail to plan, plan to fail"? (One good resource is my "Ready, Set, Goal: Business Planning and Goal Setting For Resume Writers" special report.)  It's also important to research the industry. Here's the link to the results of the 2011 Resume Writers' Digest Annual Industry Survey, which outlines typical hourly rates and average package prices for resumes/cover letters.

Failing to choose a niche. Yes, you can be a "general" resume writer, but you'll be more successful in standing out from the crowd if you ALSO pick a niche. Your niche is what is going to help you determine who your target audience is (and market to your ideal client), and what kind of career services they need. Without choosing a well-defined niche, you'll find it harder to attract clients. (Especially online!)

Failing to legitimize your business. Many people start a business without getting the proper credentials and licensing. Check into what your city, county, and state require in terms of business permits and licenses. Get an Employer Identification Number (EIN), which is your federal tax identification number for your small business.

Failing to know the law. This is especially important if you are planning on offering career coaching in addition to resume services. Some states require you to be licensed to offer career advice. You need to know if that's a requirement in your state. Also, some cities have zoning restrictions on home-based businesses. Research the law in your area so you don't get shut down!

Failing to get involved in the industry. One of the easiest shortcuts to success in the resume writing industry is to learn from your colleagues! This is truly a business that sees other resume writers as colleagues, not competitors. Join one of the professional associations in the resume writing industry, and get involved in the e-lists. Consider attending a conference! (Jon and I will be at the National Resume Writer's Association conference in Chicago in September. I'd love to see you there!)

Failing to market the business. Without a marketing plan you cannot have a successful home-based resume writing business. You might get away with that a little bit with a brick-and-mortar business in a busy mall, but you cannot get away without marketing if you're home-based. If you don't market, prospective resume clients won't know you exist. (Use the search box in the upper-left hand side of this blog -- type in "Marketing" and check out the blog posts that relate to marketing your home-based resume writing business.)

Failing to persevere. A home-based resume writing business can take time to build, and you'll need to actively work on your business each day in order to make it happen. Many resume writers -- including me! -- started by working part-time in their resume writing business before making the leap to full-time.

By avoiding these mistakes often made by home-based resume business start-ups, you're more likely have a profitable business that you can be truly proud to call your own!

Pros and Cons of a Home-Based Resume Writing Business

Starting a home-based resume writing business can be an exciting and profitable venture. It can also be a good lifestyle choice -- for example, if you're thinking of starting a family, a home-based business allows you to be home with your children. It's also a good choice for military spouses (resume writing businesses can literally be run from anywhere in the world), and those who are thinking about semi-retirement. But a home-based resume writing business isn't just for moms, trailing spouses, or those who eventually want to be self-employed.

But it's not for everyone. Having worked from home for the past 9 years, I want to share some of the pros and cons of a home-based resume writing business, from the perspective of someone who can "tell it like it is!"

Pros of a Home-Based Resume Writing Business

• You can get started building a home-based resume writing business in your spare time. Many resume writers get their start this way. Work a full-time job, and write resumes at night and on the weekends. This allows you to develop your skills, build a client base, and get experience without needing the resume writing business to provide all of your income (and benefits).
• Low start-up costs. If you already have a computer and word processing software (Word is the industry standard), you've got almost all the tools you'll need. With free and inexpensive website design/hosting software, you can quickly establish an online presence. Once you start generating income, you can join a professional association in the resume writing industry, and pursue certification.
• Low operating costs. You already pay a mortgage or rent and you already have utilities (and probably, Internet access), so your operating costs really won't change at first just because you have a home-based resume writing business. You may at some point invest in some extras, but you can keep them lean and mean by only purchasing what you must have.
• No commute. Wake up, walk 10 feet and you're at work. No need to drive to work and spending money on cars, gas and work clothing. Because I live in Nebraska (hello, snow!), I love working from home for this reason.
• No childcare. Technically you can work on your business while your kids are playing, napping, or with their other parent. This advantage varies depending on the age of your children and the willingness of your spouse to assist. (I can't speak to this one personally, as I borrow "my" children from their real parents, and then return them when they are all sugared up and I'm worn out.)
• Flexible working hours. This is probably the biggest reason why I am self-employed. Being a home-based resume writer has allowed me to take care of ill family members (including helping my Mom take care of my Dad before he died last year), be there for my niece's and nephew's school events, and follow my favorite college hockey team on the road, while still getting my work done.
• Professional satisfaction. Running a successful home-based resume business can give you the same professional satisfaction you had at a job, only better, because it's all yours. And most resume clients don't care where you work from -- you'll be working with them via phone, Skype, email, Google+ Hangout, etc.

Cons of a Home Business

• You're always "at work." When your work is at home it can be hard to separate yourself from it. You can never really "leave" the office, even if you stop working for the day. This is probably the biggest misconception I hear about working from home. People say to me, "I'd never be able to work from home because I'd just end up in front of the TV all day." For me, the opposite is true. I'll "check my email real quick before I go to bed" at 10:30 p.m, and the next thing I know, it's 1 a.m.
• Family and friends may not understand you're working. Once you're not working a job anymore, your friends and family may often start relying on you to do all kinds of things for them now that you "don't work." It may be difficult to explain to them that you do indeed work. My former sister-in-law was famous for this. My mom came over to watch my youngest niece while my brother worked (from home) and his then-wife taught preschool in the morning. She was supposed to be home by noon, but would frequently call and say she was running late and to just leave my infant niece with my brother to take care of … even though he was on deadline. You have to set your boundaries…and enforce them.
• Undefined working hours. Sometimes when you work from home and switch hours around to accommodate the needs of the family, it can feel like you never get off work, that you're always at work, and it can get quite frustrating. See Cons #1 and #2.
• Lack of benefits. You will not have health insurance, paid vacations, and other benefits that you get at a job. If you want them, you'll have to pay for them -- and that means charging enough to make a decent living…including benefits! You can build in your own paid days off as you generate more profit.
• Loss of social contacts. You'll spend an enormous amount of time alone working from home. You may start to feel isolated. Here again is where your network of other professional resume writers can help!
• Your motivation must come from you. There will not be anyone to force you to do the work and no threat of being fired if you don't. If you're not the type of person who is intrinsically motivated, self-employment may not be for you.

Regardless of the pros and cons of having a home-based resume writing business, the decision is up to you. Any of the cons can be turned into pros with just a little forethought and planning.

How I Got Started in Resume Writing

I've been writing resumes since I was 12 years old. I wrote my dad's resume when he was looking for a new job, after leaving a family business owned by my uncles. I was in sixth grade. Ironically, it was my first federal resume (they didn't actually have a federal resume format back then, because Kathryn Troutman hadn't created it yet).

In high school, I joined my school's Future Business Leaders of America chapter, and this is where I really developed my resume writing skills. As a senior attending the State Leadership Conference (SLC), we were allowed to compete in a Job Interview contest. You would prepare a resume and cover letter for a fictional company and they would bring in real HR folks and hiring managers from businesses in the community to interview for this job. The top candidates would receive awards, and one lucky contestant would compete at the National Leadership Conference (NLC). I'm sorry to say that I didn't win the Job Interview competition (I think I came in fourth ... due to wearing a black-and-gold interview outfit, instead of a black or blue suit ... oh, what I know now!!), but my scores did qualify me to place very high in the Ms. Future Business Leader competition (I think I was runner-up) ... this was 20 years ago, don't quote me!

But in putting together my resume and cover letter, I learned that I enjoyed writing resumes -- and I was good at it. In fact, I came back every spring for the next 5-6 years and taught each year's class of seniors how to write their resume and cover letter for the competition, and basic interviewing skills. I'm thrilled to say that several of my candidates WON the job interview competition ... and my younger sister was even selected as Ms. Future Business Leader [Nebraska] (and competed at the national competition, coming in fourth in the nation).

As I was getting ready to graduate from college, my then-boyfriend (now-husband) and I were thinking about starting a business. We were getting our degrees in journalism/public relations and we wanted to work with small business owners. (A futile effort I detail in this post.) Anyway, when that market failed to materialize, I decided to write resumes. I joined PARW, read "How to Start a Home-Based Resume Business" (1st edition), and dived in, with a Yellow Pages ad.

I've been writing resumes now (as a paid resume writer) for 15 years. I've written resumes from A to Z (an accountant I'm currently working on a resume update for, to a zookeeper at Omaha's Henry Doorly Zoo). For a period of time, I subcontract wrote (for an individual writer as well as for CareerPerfect). And, in 1998, I decided to publish a newsletter for other professional resume writers.

That's how I got my start in resume writing!

I'm A Guest Author!

As you know, from time to time, I feature guest authors on this blog. Now I've been asked to be a guest author on another blog, Teena Rose's "Start, Operate, Profit!" blog for resume writers. I invite you to read my first post, where I select my "TOP 5" favorite posts from Teena's archive.

Teena's blog focuses primarily on start-up issues for new resume writers -- a natural, considering that she's the author of a book on the subject, "Starting a Home- or Office-Based Resume Business."

Teena also has a much stronger grasp of the ins-and-outs of online technology, and I'll be drawing on her expertise in the next few months to help my readers understand more about this, and how they can incorporate in search engine optimization and other techniques to help them generate new customers.

If you're a member of my E-List for new resume writers, you can expect that I will be asking for your help in the next few days to identify topics for future posts on Teena's blog.

Starting Up, Starting Over

For many years, in my daily planner (I love my Franklin Covey planner), I had a page I called, "If I Had to Do It Over." On it were the steps I would take if I were starting my resume writing business all over again. I get a lot of inquiries from new resume writing businesses, wondering about success secrets from those who are making it work.

Here are a couple of ideas for those who are getting started -- or thinking about reinventing themselves.

• If I were starting this business today, from scratch, what would I do differently?
• If I ran a competing firm, how would I beat us? How would I distinguish myself? What weaknesses would I attack? (Price, service, customization, turnaround times?)
• What are you known for?
  

$100 A Day

For a startup, the idea of making $2,000 a month can be overwhelming -- especially for a new resume writer. So make it more manageable. Focus on making $100 a day. Break the goal into small, specific tasks you can accomplish quickly. Ask yourself, "What can I do today to reach my goal?"

Measure your success using observable criteria. If you're trying to increase referrals from career coaches and mental health professionals, you need to increase your visibility with this audience. So your tactics may include sending one letter each day to a career coach or mental health therapist (you can find them in the Yellow Pages) to introduce yourself and ask how you can work together.

Consider subcontracting. Contact other resume writers in your area and inquire about taking on their overflow work.

Find opportunities to speak. Write articles. Increase your visibility.

Guide for New Resume Writers

I hope to eventually turn this into a full-fledged special report, but for now, here's the outline for "Bridget's Guide for New Resume Writers."

This is your to-do list:

• Join a Professional Association (Career Directors International, Career Management Alliance, National Resume Writers' Association, Professional Association of Resume Writers, Association of Online Resume Providers)

• Decide what services you will offer (Resume writing? Career coaching? Career testing? Recruiting? Resume distribution? Job search research?)

• Decide who your customers are (Local? Nonlocal? Specific industry? By gender?)

• Decide how you will work (In person? By Phone? Through Questionnaires?)

• Consider certification (Choose a credential and get started learning the craft)

• Save up to attend a conference.
  

Why Businesses Fail

In an article on the SCORE website, "12 Sure-Fire Steps to Improve Your Retail Sales," author Bob Nelson outlines five main reasons why most businesses fail. I'd like to address each of these areas and how you can position your resume writing business for success.

1. Lack of Industry Knowledge
It's not enough to just know the nuts and bolts of resume writing. You must also know how to manage clients, how to manage your time, and pricing strategies. Start by writing resumes for friends and family, and then for pay for the individuals they refer to you. Join a professional association and study what others do, and then adapt their methods and make them your own.

2. Lack of Vision
What do you want from your resume writing business? Extra income, a bridge to self-employment, or a full-time income? How are you going to get from here to there? If you want to launch a full-scale business, but don't want to invest in marketing and promoting your services, you will be sadly disappointed. I don't care if you create a full business plan, but at least think through your marketing tactics, income-and-expense projections, and pricing strategy.

3. Poor Market Strategy
Speaking of pricing strategy, what is yours? What kinds of clients will you serve? Will you be a general practitioner, or a specialist? Focus on one geographic area, or serve clients everywhere with your web presence? How will you find clients? How will you cultivate referral sources? Will the clients pay what you need to charge them?

4. Failure to Establish Goals
Where do you see your business in six months? A year? Five years? I had a five-year plan and it worked for 10 years ... but now I'm thinking I need to start all over again, and see what I need to do to prepare for the next year ... and five years from now. Set goals not just for income, but number of clients, referral sources you can cultivate, and plans for continuing education and certification.

5. Inadequate Capitalization
This is probably the thing that does most businesses in. You over-estimate your revenue, and underestimate your expenses. A crisis comes along (car breakdown, health issue) and you can't afford to be self-employed. Create a financial safety net with your savings, or by working a part-time job. Diversify your income by writing, or teaching, or subcontracting.