With the cost of living on the rise, doing some freelance work is a great way to achieve your financial goals or generate a little extra spending money at the end of the week. So, whether you’re looking to make some extra money or just wanting to try something new, starting a side hustle is a great way to exploit your skills and bring some diversity to your career. To get started, it’s important you consider where your skills lie, where the demand is, and that you set up the right structure to get your new business off the ground. We have listed the top 5 steps to getting your own side hustle on!
Step 1: Find your niche
A side hustle takes time to set up, and persistence to pay off. As a result, you’ll want to focus your time on something that you are passionate about or have an existing network or skills you can leverage. The best place to start is by thinking about what you excel in. If you were a great football player in your youth, could you train young kids after hours? If you love cooking food on the weekend, perhaps a food truck is a good fit. Once you have narrowed down the list, you should assess what the potential demand could be in your area. If football is not popular in your community, and food trucks are out of fashion, then you’ll obviously want to focus on something else. Once you have identified your niche, it’s time to set it up.
Step 2: Create a business plan
Once you have an idea on the type of side hustle you want to focus on, you’ll need to develop a business plan. Your business plan should include a summary of your products and services, as well as your marketing strategy, financial projections, and operations plan. Your business plan should be linked to your long-term business objectives and career goals. Remember, your business plan should not be a ‘set and forget’ activity. You should review the plan on a monthly or quarterly basis. That way, as you learn new things, or see actual performance, you can adjust your strategy accordingly.
Step 3: Sort out the ‘business stuff’
One area often overlooked by side hustlers is the administration aspect of running a business. When setting up your side hustle, it’s important you get the right structure in place from the beginning. To get started, you’ll need to decide on what type of business you want to set up. Most side hustlers will commence their business as a sole trader, but there are legal and tax benefits to registering a company, if you expect your business to generate a lot of income. You can register your business by creating an Australian Business Number (ABN) online in a few minutes. After that, you can then open a business bank account. Opening a separate account makes it easy to track your side hustle income and expenses, separate to your personal transactions. This can save you a huge amount of time when it comes to lodging your tax at the end of the financial year. Finally, you should arrange for insurance to protect you in the event something goes wrong. Reach out to an insurance broker online, and they’ll be able to get a quote arranged for you in a few days.
Step 4: Build your brand around you
Incorporating your personality and style into the brand is not only an effective strategy but can also be a lot of fun. When creating and promoting your brand, incorporate your name (or nickname), favourite colours, and be authentic to your personal style. Building the brand around you creates a uniqueness and community feel, that will bring you closer to your customers, and create a style that people will remember and love.
Step 5: Get the word out
Creating a strong online and social media presence is essential for any side hustle. A cool website or blog will give you a platform to share your ideas and connect with potential customers or clients. Be sure to choose a catchy name and design that reflects your brand identity. One of the best ways to attract attention to your side hustle is to create helpful content that solves problems or provides valuable information. Tap into your network, family and friends as well. Many of your first clients are likely to be people you know, or people you get introduced to from your network.
Starting a side hustle can be an exciting way to explore new interests while bringing in extra income at the same time. By finding your niche, honing your skills and promoting your business, becoming a successful side hustler is well within reach.
This article has been provided by Michael Nuciforo. Michael is the CEO and Co-Founder of Thriday. Thriday is an all-in-one financial management platform for small businesses. Thriday eliminates time wasted on financial admin by automating banking, accounting and tax.