The concept of a side hustle gave rise during the pandemic, when the economy as we knew it immediately transformed, and most jobs were in some state of overnight transition. As life returned to a new definition of normalcy and markets rebounded, stabilized and even flourished, the side hustle economy continued to grow alongside it, becoming more popular and financially significant. That trend has carried forward to today, with CBS News reporting that nearly half of America’s workforce has a secondary source of income or their own side hustles.
Tech platforms such as Uber and Postmates have promoted youth-based side hustle economy expansion. But there’s more to the story than that. In fact, according to Side Hustle Nation, 46% of side hustlers are 35-plus years old. In addition, side hustles aren’t solely for the financially challenged; over 40% have household incomes of over $100,000 and 78.4% stated that they aren’t struggling to make ends meet.
Related: 44 Side Hustle Ideas to Make Extra Money in 2023
The bottom line is that side hustles are becoming more widespread, diverse and meaningful. Thus, today’s entrepreneurs have the opportunity to view them through a different lens, reframing from a small ancillary income supplement to an impactful means to own their careers and/or finance other ventures. But to do so effectively, today’s entrepreneurs must create and manage their side hustles with intention.
As you, the entrepreneur, consider building your own side hustle, here are seven key steps to take in order to create lasting value:
- Identify your purpose. The truth is, there is no one-size-fits-all side hustle, and with the expansion of the side hustle economy comes the opportunity for side hustles to serve different entrepreneurial purposes. For some, a side hustle may only operate as a supplemental income boost to a full-time paid role. Others may dive in with the goal of that side hustle becoming their full-time hustle, eventually replacing their day-to-day position. Yet, others may use a side hustle as a means to an end, with the purpose of paying off debt or funding their own start-up. Before identifying your target side hustle, it is important to first outline your reason for pursuing it.
- Identify your leverageable talents and supplement them with training. Once you’ve narrowed your purpose, it’s important to identify any leverageable talents or inclinations. For example, you may be a graphic designer who can take clients on the side, a writer who can easily serve as a freelance editor, or a creative director skilled in photography who can moonlight as a wedding photographer. These correlations provide the grounds for natural transitions with opportunities for speedy revenue generation. And whether you have naturally leverageable skills or not, consider investing in yourself and taking additional training to hone your expertise. Not only will this make you more marketable, but it will also enable you to charge more for your services.
- Determine your definition of financial success and align your financial targets with appropriate opportunities. It is important to align your purpose and talents with your definition of financial success. Map out your target earnings goals and ask yourself if these three ingredients are a match. For example, you may be inclined to become a piano teacher but realize that you will likely make less than your target amount, given the number of hours you have available to allocate. Other hustles, such as a social media influencer or vlogger, will not have the same scale constraints and thus may present a higher financial ceiling.
- Develop an achievable side hustle calendar. A side hustle can easily turn into a no-hustle if you aren’t purposeful in allocating hours to it. It is, therefore, important to determine how many hours per week you can allocate and block intentional chunks off of your calendar to carry out the work. It is also imperative that you select increments that do not interfere with your current day job and make sure that the role you are pursuing aligns with this schedule.
- Create a scale timeline with key metrics of success. We talked about your ultimate definition of financial success, but we also need to drill down into the when and what to get there. As such, you should create a timeline for the next year, allocating key growth (e.g., followers, billable hours) and financial (e.g., gross dollars earned, profit) goals. It is important to identify a timeline that you deem achievable so that, as an entrepreneur, you are setting yourself up for success. Timelines also keep us organized. A side hustle means toggling between different occupations, and thus, it is even more vital to be organized.
- Identify a side hustle champion to hold you accountable. Many side hustles are carried out independently, with little accountability. We have coaches for sports, teachers for academics and instructors for the arts. But it’s rare that we have an outside resource keeping us going for our own independent workstream. Identify an independent guide who can commit to serving as an advisor, keeping you honest and on track. For some, this may be a subject matter expert versed in the area you are pursuing. For others, this may be a co-worker or affiliate whom you’ve developed trust with and can count on. To increase your mutual skin in the game, consider paying your side hustle champion a success fee or percentage for helping you increase your revenue and efficiency.
- Course correct where necessary. The truth is, side hustles are trial hustles, and you might not get it right the first go around. In conjunction with defining your target timeline and success metrics is clarifying what’s working and what’s not and course correcting where necessary. You may find, for example, that you love hosting a podcast channel but are making very little money doing so, despite a valiant effort. Perhaps this should become a hobby, not a hustle, or perhaps you should realign your plan to target a stronger growth platform. Either way, know that it’s okay to periodically reevaluate and change course if necessary.
Side hustles are on the rise, and the data suggests they are here to stay. According to McKinsey’s Opportunity Survey, 36% of employed respondents representing 58 million Americans identified themselves as independent workers — up from 27% in 2016. For entrepreneurs, this translates to a unique growth opportunity. There exists broader access to supplemental revenue streams, and the income generated from such has become more meaningful. The challenge has thus shifted from exposure to focus and intention. However, with proper structure, planning, and assessment, your side hustle can be met with success.
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