In an era with a shifting job market, rising economy, and rapid technological advancement, the traditional path of securing a 9-to-5 job post-graduation is no longer the only route to success. For young adults, side hustles and entrepreneurship present a horizon of new opportunities to generate income, pursue passions, provide flexibility and the chance to charter their own path to success.
According to Lending Tree, 55% of Gen Zers and Millennials have a side hustle in 2024. There’s unprecedented access to worldwide markets and resources at their fingertips like: E-commerce platforms, freelance marketplaces, and social media platforms. Making it easy to launch a business venture. With so much potential in their hands, how does one leverage the opportunity to boost their income and financial independence through a side business?
Define Your Side Hustle Goals
Consider how much you’d like to financially make, what type of skills you’d like to develop and whether you’d like for this venture to be part-time or full-time in the future. A good way to keep yourself accountable is to set S.M.A.R.T. goals (targets that are Specific, Measurable, Attainable, Relevant and Time-bound) that you can refer back to weekly, monthly and annually.
Develop a Business Plan
Every business needs a solid plan. Note your consumer audience, build your brand identity and strategize the channels you will use to market your business. Also take the time to research your competition. If you find your prospective field is oversaturated, it may be best to make alternative plans.
Consider Legal Matters
Is your side hustle a 1099 independent contractor classification? Or are you launching your own business and establishing a legal entity? Research any necessary registration, permitting, insurance, and compliance required for your prospective side hustle.
Stay On Top Of Your Finances
A successful business is financially fit. First, create a detailed budget. Then make sure to regularly track and review your expenses and revenue. A business will also need special business accounts separate from your personal finances.
Manage Your Time Wisely
Set a dedicated schedule to working on your venture and make sure it does not conflict with your current job. Juggling both your main job and side hustle can be time consuming, so make sure to keep a work-life balance by giving yourself periods of rest in order to avoid burn out.
Network
Build relationships with other entrepreneurs, mentors, and potential customers. You never know what insights and connections you will gain from networking. A valuable way to build your network is by attending your local Chamber of Commerce’s regular networking events and educational workshops. You can also invest in a networking membership that will open your business to new marketing opportunities, possible collaborations and build rapport within your community.
Understand the Risks
There are risks with launching and maintaining a successful business or side hustle. You may need to invest a substantial amount of unpaid time to get your vision off the ground. You also need to research the tax implications and legal responsibilities, which can vary based on your business’ entity structure or if you are acting as a 1099 contractor if you’re participating in the gig economy. The IRS website is a great resource, and it’s a good idea to consult with professionals to make sure you’re on the right track. In addition, understand any unique costs of business or insurance needs you may have. For example, Uber drivers must pay for rideshare insurance and plan for maintenance and vehicle wear and tear related to their side hustle.
Ready to take the next step? The SESLOC Business Services team is here to help!
