Thinking of why you should start a side hustle? A growing number of middle-class South Africans are looking for a second income stream to get through the month, data from the Momentum/Unisa Household Index shows.
Data from the Momentum/Unisa Household Index shows that an estimated 14% of households obtain an additional income from a side hustle. The majority (88%) of these households have one side hustle, while 12% have two or more.
The most popular side hustles:
A vast majority fall into the trade, catering and accommodation industry, with many entrepreneurs selling produce or food – such as atchar, eggs, baked goods from their home or at the office – or clothing, jewellery, cosmetics, or similar products.
The second is personal services such as beauty salons, nail technicians, mechanics, garden, and maintenance services.
Data collected by BusinessTech also reflected that South Africans are looking at additional side businesses to help generate extra income.
What is a Side Hustle
A side hustle is a means of earning income on top of your day job. Some side gigs will always remain something small on the side. Others grow into great businesses once they’ve been running for a while.
Free course: 7Rs Of Wealth Creation: Multiple Streams of income
Reasons why you should start a side hustle
Side jobs aren’t just for covering expenses. There are several reasons why you should start a side hustle, even if you can live comfortably off of your primary income.
A great way to pay off debt
Paying off debt is, for many people, among the top reasons you need a side hustle. If you’re paying off debt and don’t feel like you’re making any headway, you may benefit from the extra money you can make with a side hustle.
Read: Can debt be a good thing
Read: Debt counseling vs debt consolidation
Helps build wealth
If you’re not working to pay off debt, then you may want to find ways to make time for a side hustle simply so you can build wealth faster.
Read: How much should I save for retirement
Helps build an emergency fund
The most prudent thing to do with the money you make from your side hustle is to save it. Finding a way to grow your income will help you build up your emergency fund more quickly.
Read: Why you need an emergency fund
You can earn passive income
Earning passive income helps you live the life you want. With passive income you can have money coming in even as you pursue your primary job, or if you’re able to build up a solid stream of passive income, you might want to kick back a little. Either way, a passive income gives you extra security.
Read: Types of stocks to invest in
Develop your skills and gain experience
One of the unspoken benefits of a side hustle is the skill and experience you’ll accumulate as you learn how to run your own business.
The more experience you gain with these skills, or whatever skills you develop from your personal side hustle, the more clarity you could gain on whether or not your current career is truly what you want to do.
Side hustle ideas
Lucrative side hustles:
1. Social media management
2. Digital marketing
3. Website design
4. Website development
5. Bookkeeping
6. Tutoring
7. Babysitting
Side hustles from home
– Proofreading or copyediting
– Transcription service
– Virtual assistant
– Dropshipping business
– Audiobook narrator
Creative side hustles
- Flipping furniture
- Crafting
- Photography
- Graphic design
- Writing
- Content creation
- Baking
Active side hustles
- Fitness instructor
- Dog walking and pet-sitting
- Referee or coach local sports
- Lawn care
Passive income side hustles
Some passive income businesses include:
- Writing an ebook
- Selling worksheets
- Rental income
- Investing in dividend stocks
If you’re thinking about starting a side hustle, first figure out why you want to do it, then make sure you’re ready for it. Which of the options below fits you best?
According to Forbes, you need to ask your this 10 questions before starting a side hustle:
- Can it become my full-time hustle?
- Why do I want to do this?
- What can I see myself doing long term?
- When do I want/need to start making money?
- How much time must I devote to it?
- How will this impact the flow of my days?
- Does this make the world a better place?
- What looks like work but feels like play to me?
- What can I offer that nobody else can?
- Am I able to find joy in the hustle?
A side hustle does not have to turn in a business however if your hoping to turn it into a business in the near future. Follow this steps
1. Create a good business plan for your side hustle
- Create an executive summary
- Identify your target audience and avatar
- Figure out your operating model
- Decide on what products and services you’ll offer
- Research your competition
- Calculate start-up costs and financing
- Figure out your cash flow and budget
- Outline your revenues and profit forecasting
2. Determine what type of business entity to set up
Before you start providing any services or earning any money when starting a side hustle, you need to ensure it is set up correctly both legally and tax-wise.
3. Decide what you will call your side-hustle
Before you decide on a business name, here are a few things to think about:
Will your business name appeal to your demographic?
How unique is it?
Is the web domain available?
Is your business name under someone else’s trademark?
4. Consider setting up business credit
Having a credit profile for your side hustle allows you to maintain a credit history for your business. This business credit profile is separate from your personal credit profile.
Read: First time credit card user
5. Create a plan to obtain funding for your side hustle if you need
Even if your business idea is great, you probably still need money.
Here are the different types of funding you should consider:
- Self-funding
- Ask your Family and friends
- Angel Investors
- Bank loans
- Crowdfunding
Need a loan? FASTA(Pty) Ltd is a dynamic Fintech business offering consumers a new payment method for their online and in-store purchases.
Manage your Side Hustle Money in Business Account. It’s a great way to keep your money and your business’s money apart.
If you’re thinking of going this route, know your why and have a clear mindset. A treat it like a business while having fun. Some times a side hustle is just meant to be a side hustle and nothing more. Start that side hustle.
You can enroll in any of our eight courses for free.
About Author
