Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
Curious about how to start a part-time job? You're not alone!
“Side hustle” refers to a side business or part-time job with the potential to generate additional income. Current data suggests that approximately 39% of working adults in the U.S. currently have a side hustle, a sharp increase from the number of adults who had a side hustle before 2020.
A quick search online brings up endless lists of side hustle opportunities, but there aren't that many resources for getting started with a side hustle.
So we'll walk you through the steps of starting a side business for yourself and helping you get it up and running, as well as all the other things you should keep in mind as you venture into new territory.
Find out what you are good at
No matter your reason for wanting a side hustle, make sure it aligns with your skills and interests. If you don't focus on this right from the start, you may quickly lose interest and motivation in the work you once wanted to do. Really think about where you enjoy the work and what you can offer others.
These questions are a good starting point:
- Why do I want to do this?
- What am I good at that I can capitalize on?
- What and where is the need for my skills and interests?
- How can this help me grow and/or achieve my long-term goals?
- How will this affect my everyday life and routine?
- What is my schedule for this work?
A quick analysis of the market you are interested in will reveal what the demand looks like for you today. If you can, focus on where that demand intersects with your top skills and expand from there.
Don't ignore an opportunity just because you find that particular task easy or enjoyable. Just because you find it easy doesn't mean everyone does. In fact, a task that comes easy to you could be the perfect part-time job. It may mean that you are uniquely qualified.
Create a business strategy
Once you have answers to the big questions, you can devise a plan to get your newfound ideas off the ground and into the hands of others. If your side hustle requires investment, financing, or a partnership, you should definitely create a business plan. Even if you aren't seeking funding or a partnership, it can still be helpful to lay out your overall vision for your side hustle.
Not sure what to include in your business plan? Start here:
- Identify your goals for a part-time job.
- Describe what products or services you want to offer.
- Set a time frame for getting started (and for achieving your goals if you have a specific schedule).
- Use market research to determine the need for your skills and the areas of greatest opportunity.
- Identify the tools, software and technology you need to succeed.
- Create a budget that you can work within.
- Create a plan to market yourself.
Remember, this doesn't have to be a formal 10-page paper? Even if you use your monthly budget, you can set a goal of how much money you want to make, then three ways you can achieve it, and the time frame – perhaps a month.
You can simply research online, see if there are tools that make it easier, and then get started!
Many side hustles require no upfront investment other than a working cell phone or computer.
Know your time commitment
If you're venturing into the side hustle territory, it's likely that you still have a full-time job (or school) to take care of. When you're looking forward to something new, like starting your first part-time job, it can be tempting to spend more time doing what makes you happiest. But that's not the best way to kickstart your new job.
While there is no one-size-fits-all way to divide your time between jobs, there are a few strategies that have helped others stay motivated and on track while transitioning between the two jobs. For example, some people only pursue their part-time job in the morning, late in the evening or only on weekends. Others find it best to utilize the downtime they have between work tasks during their daily work. Personally, I like to spend a full day or a few half days working uninterrupted.
Whatever you choose, make sure there are clear boundaries about when you are “on” and when you are “off.” Carefully manage the time you spend focusing on your day job, rather than the “free” time you need to devote to other priorities.
And don't forget to check in with yourself. Are you getting enough sleep too? Have you been outside lately? When was the last time you were fully present with friends or family? Don't wait until it's too late to take care of yourself! Learn what burnout looks like for you and implement strategies to maintain balance in your life so you can continue to enjoy your side hustle.
Check out our table of the best side hustles where we compare time commitments:
Keep learning and growing
Depending on your side hustle – and how competitive the market is – you may need to improve your skills and competencies before you can market yourself. But even if you started your part-time job with a lot of skills, it's still not a bad idea to continue looking for new ways to grow and learn.
Many people start a side hustle with the intention of just keeping it that way, but then their business grows to the point where it becomes their full-time business. You never know where it will take you!
Consider these options to hone your skills and market diversity:
- Invest in a course or certificate to formalize your knowledge.
- Subscribe to industry news to stay up to date on trends and best practices.
- Join the local chapter of a relevant professional network.
- Get creative in developing your skills to strengthen job security.
- Seek mentorship from friends, colleagues or colleagues.
Another important point here is the need to network. Whether you're just starting to think about a side hustle or are in the process of growing your brand, you can gather a lot of information by talking to friends and family. You probably know at least one person with a side hustle; Not only can you share how they got started, but you can also help brainstorm ways to use your skills.
The Internet is another great place to turn. As you think about what you want to do, you may also need to think about how you will network more broadly. How do you present your product or service and what value it brings to others? What do you need to attract and retain customers? There are tons of opportunities to market yourself through online and offline channels, so take advantage of them.
What are the tax implications?
Earning extra income every month sounds great, but for many of us, having a part-time job is breaking new financial territory. The obvious difference is that you become a freelancer and work for a company on a contract basis or through your own company. This means you need to understand your new tax situation. Here are some pro tips for financial success as a freelancer:
Reserve 20-30% of your additional income for taxes. If you are self-employed, there is an additional tax on top of your normal federal income tax rate. And taxes are not withheld as a freelancer, as is the case with a traditional 9-to-5 job. This means it's your job to report your additional income and pay the taxes owed on that income.
You may have to pay estimated taxes. The IRS prefers that you pay taxes as you earn income throughout the year, rather than in a lump sum at tax time. If you expect to owe more than $1,000 in taxes from your side hustle, you must pay taxes quarterly. (If you only bring in a few hundred dollars more per year, you can do without it.)
Related: How to pay estimated taxes quarterly
Track gig earnings separately. Since you can usually write off some of your side hustle expenses, you should track your gig finances separately from your personal finances. This coming tax season, sorting through bank statements and recalling specific expenses will be much easier.
You may also be wondering whether you should form your own LLC (limited liability company) for a side hustle. The short answer? No. You don't have to form an LLC to take on additional work, but there are some benefits to having one.
The main benefit is liability protection. Unlike sole proprietorships, an LLC provides security by separating your personal assets from your business liabilities. This means that if your company is sued, the suing party can only rely on your company assets and not your personal assets.
However, there are advantages to remaining a sole proprietorship: It's simple, it keeps costs down, and you can still deduct certain business expenses. You can always reevaluate your needs as your business grows.
The abstract
Despite what it may seem, starting a side hustle isn't always easy – and it's not for everyone. Don't let hustle culture change your idea of ”happiness” and “success,” especially if you're just considering a side hustle because they're popular. For every person who works part-time, there are two or three others who do other things in their free time.
However, if you want to start a side hustle, be clear about your “why.” Invest some time and energy in planning your path, talking to other side hustlers, and researching market needs. A part-time job can be a great way to generate additional income, develop new skills and find a creative outlet.
When you're ready, read through the many ways you can make extra income and then follow the steps listed here!
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
