Nowadays, everyone—including this blog—will advise you to create a side business if you want to be financially independent.
That’s great, but what does that actually entail? And how can you launch a side business while maintaining your existing position without going completely insane?
Although it seems difficult, I can assure you that it is possible. All you need to do is have a plan, prioritise your tasks, be patient, and exert a little hustle.
I’ll walk you through the process of locating the ideal second job and making additional money while maintaining a full-time work in this tutorial on how to start a side hustle.
Lets go!
What is a side hustle?
Although the phrase “side hustle” may be popular right now, the idea is not. People have worked on side projects to earn extra money or to finally become self-employed for as long as they have had jobs.
An enterprise or small business that you conduct in addition to your day job is exactly what a side hustle is.
There are numerous benefits to beginning a side business. It happens to many people since their full-time jobs don’t pay for all of their expenses.
Others are doing it to jumpstart a new career.
Additionally, some people simply don’t find their day jobs personally fulfilling. Consider graphic artists who sell their artwork on the weekends in order to satiate the creative desires that their desk jobs just cannot.
Having a lucrative side business can also help you meet some short-term financial goals. You can do things like pay off your credit cards and school loans more quickly by earning additional cash.
Side hustling vs freelancing
“Freelancing” is a term you may be familiar with. This idea is comparable to a side business, but with a significant difference: freelancing typically entails doing side jobs for other people.
You run a side business as the proprietor. You must adjust your mentality in this important way.
You must consider yourself an entrepreneur who is dealing with clients, even if your side job entails writing for clients or working as a virtual assistant. In a moment, we’ll talk more about this. But for now, believe me when I say that this mentality change will have a significant impact on your ability to succeed as a side hustler.
How to start a side hustle while working a day job
The most successful side jobs are handled like businesses. That is the case as that is precisely who they are.
You are an entrepreneur if you have a side business. You are a small company owner whether you work as a copywriter writer, a social media manager, or sell tie-dye clothing out of a van (don’t judge).
It also pays to be diligent when beginning a side business because you shouldn’t just jump into one at random.
Here are the actions we suggest you do to begin going:
1.0 Decide what you want to do, and why
First, take some time to reflect about your motivation for starting a side business. This will enable you to choose the kind of side business to launch. You should ask yourself the questions listed below.
Are you just looking for extra cash?
If your “why” is to earn a little dollars to cover an upcoming obligation or to pay off credit card debt, think about a simple side hustle that doesn’t require any initial investment. Flip some second-hand goods on Trademe, or start a dog walking business and advertise on Facebook social media pages.
Do you want to be your own boss?
Finding a sustainable side business that will eventually earn you a full-time income is important if your goal is to someday quit your day job and work for yourself.
Perhaps you already have an idea in mind, such as starting a bakery or training to repair motorcycles. It’s fantastic if you have aspirations for your future profession.
If not, think about doing freelance writing or creating a website to engage in affiliate marketing. There is a lot of potential for income here, believe it or not.
Are you looking to satisfy your creative needs?
Some of us want to start a side hustle just because we love it. Go for it if you have a passion for the arts or even a hobby you can turn into extra money while enjoying yourself. A excellent place to start selling your artwork or other homemade goods online is Etsy. And a lot of the individuals I know sell their songs on Bandcamp.
Consider establishing a podcast if you have a genuine passion for a subject. You might end up being the person who talks about Bigfoot and earns a respectable living.
Do you hate working?
Although it may sound absurd, many people wish to begin a passive income stream so they can experience financial freedom. With these side jobs, you may need to put in some initial work or money but can then just sit back and receive the money.
In this sense, buying dividend-paying stocks is a totally legal side business. Other excellent examples of passive revenue sources include writing and selling an online course, submitting artwork to a print-on-demand platform, or renting out spare space in your garage or home.
If you’re not sure what kind of side business you want to start, conduct some research on the top side businesses.
2.0 Make sure you can start a side hustle
I’m sorry to be a downer, but you need to be 100% positive that starting your second job won’t get you into trouble before you proceed to the next step.
Make sure it won’t result in you losing your full-time work first. You may have been required to sign a non-compete agreement by your employer. If so, you might be unable to launch a company in that industry.
Make sure your spouse or life partner is on board with your idea as well. You’ll be much more successful if you have emotional support because having a side gig can take up a lot of your free time after work.
3.0 Make a business plan
You’re probably thinking, boring, and I agree. If you’re merely going to use Uber to deliver quick food, why would you need a business plan?
Let me explain.
There is no requirement that your company strategy be elaborate or formal. Heck, you could even write it down on a cocktail napkin (which is very suitable if your side business idea is to launch a vintage clothes company!).
Recognize that your company strategy is a living document. As you learn more about entrepreneurship and discover what works and what doesn’t, it will probably vary over time.
Here are the elements of a business plan that are most important:
- Executive Summary: A short overview of your plan. What exactly are you wanting to do? You should be able to explain it to someone in an elevator (also known as an elevator pitch)
- Business Description: Get down to business. Which type of business entity (sole proprietorship, limited liability corporation, etc.) would you choose? Do you work with any partners in business? Do you require distributors or suppliers? Who are your target clients or customers?
- Description of good or services: What precisely are you going to offer? Be as detailed as you can. Think about the costs or rates you’ll charge.
- Competitive analysis: It’s not necessary to start out with much detail. But consider who the competition is, what they’re doing, and how you can improve.
- Start-up costs and operating expenses: How much money will you need to invest to get going? Will a small company loan be required?
4.0 Get Legit
Before you earn a single dollar from your side business, choose the right business structure and set it up.
The IRD recognises the following types of business entities:
- Sole trader: People launching their own businesses or doing freelance work are considered sole traders. Many self-employed individuals, small business owners, and contractors start out as sole proprietors. It’s the least expensive and complicated alternative, and it can be appealing to you if you want to work as a contractor or follow your passion as a means of income.
- Companies: A business is legally distinct from its owners (directors and shareholders). Due to the reduced risk for the owners, many exporting enterprises opt to incorporate. Up to the value of their shares, shareholders are liable for the obligations of the corporation. However, shareholders also have a right to a dividend, which is a cut of the company’s profits. It may be more difficult to conduct business as a company than it is under alternative business arrangements.
- Partnerships: A partnership is when two or more individuals or groups come together to start a business. A partnership agreement outlines how they will divide work, debts, and earnings. Professionals including architects, attorneys, and accountants often form partnerships.
I can’t emphasise this enough based on personal experience: talk to a tax professional about the optimum company entity for you. They’ll also assist you in developing a tax payment strategy.
If you’re unprepared, self-employment taxes might appear incredibly harsh and potentially fatal. Get assistance in advance from a professional.
5.0 Marketing, marketing, marketing!
The “hustle” component of a side business. If you don’t inform people about your company, they won’t know about it.
Now, it’s fantastic if you’re utilising any of the well-known side hustle applications that connect you with employment, like Uber, Instacart, etc. But remember that you can still continuously market yourself by receiving positive client feedback.
Decide how you want clients and customers to find you. Consider creating a profile on Fiverr or Upwork if you’re a freelancer and begin looking for jobs. These websites take a cut of the money you earn, but they’re a terrific way to actively look for work and market yourself to potential clients.
Additionally, creating profiles on social media sites is worthwhile. This may be a fantastic, cost-free strategy to promote your work. I am aware of numerous musicians who have grown their fan bases and clientele exclusively as a result of social media posts on Facebook, Instagram, and even TikTok.
I advise investing as little money as you can while you’re just starting out on your side business. Therefore, there is no immediate need to start purchasing billboard space.
To promote your company, you may, however, need to create a website. If you don’t know how to use WordPress or one of the other popular website providers, think about hiring someone to help.
6.0 Get your first paying customer
The best step, and one that needs to be celebrated!
There’s nothing better than landing your first customer, and it’s extremely motivating to keep going.
Make sure to ask your first client for comments and feedback. Ask if you can use their recommendation for marketing, if they thought highly of you. Find out how you can improve the next time if they didn’t love you. Feedback is important.
7.0 Dont quit your day job (yet!)
Once you’ve established a lucrative side business, quitting your 9-to-5 job will be so enticing!
But until you can demonstrate that the revenue from your side business is sufficient to support you or your family, I advise against doing that. Even though you may have a significant earning potential from a successful side business, success takes time.
Before going into your boss’s office, my rule of thumb is to be sure your side business can sustainably account for at least 80% of your revenue.
In the end, quitting your full-time employment will result in the loss of benefits like annual leave, sick leave, ACC, Kiwisaver, and other overheads that are usually covered by your employer. Before making the plunge, be certain that you are well prepared.
In summary
Developing the perfect side business can be a terrific way to supplement your income, launch your own venture, or simply satisfy your creative itch. You must, however, treat it seriously.
Run with your company idea once you’ve found one that makes sense for you! Just remember to give your day job your all until you’re ready to quit.
