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  • Writer's pictureNola Charkos

Thinking of starting a side hustle? Here’s what to consider.

Updated: Apr 3, 2023

If you’re looking to make some extra money, a side hustle may be the answer. While having an earner on the side might sound like a good idea, what should you think about before getting started?

More than just money

The motivation behind most side hustles is the potential to earn a bit extra, which you might use to improve your cashflow, save for your next holiday, or make extra super contributions.

Aside from financial benefits, a side hustle can help you pursue a hobby such as coaching a soccer team or playing in a band. You could also learn some new skills and test-drive a different career without giving up your current one.

Preparation is key

Despite the appeal of extra earnings, a side hustle isn’t a guaranteed money maker. Those that succeed often do so because of the planning and work they put in.

By starting with some thorough research and a business plan, you can make an informed decision and start your new venture confidently. Consider your market and competitors, how much money you hope to make, and how many hours you can afford to put in every week to achieve it.

Assess your costs

If there are start-up costs involved, you may need to invest money that can’t be recovered quickly. The path to success isn’t always fast, so being prepared with a financial buffer can help. You may think that start-up costs are minimal, but consider the cost of your time and whether the potential return is worth it.

Keep on top of tax

The income you earn from a side hustle (including cash) is subject to tax, so you’ll need to be aware of your obligations and keep accurate records so there are no surprises at tax time. The good news is you may be able to claim some additional deductions.

Avoid risks

Depending on your choice of side hustle, you may need insurance such as Professional Indemnity or Public Liability to protect against unexpected events or losses.

It’s also worth checking your current employment contract to make sure you’re not subject to any constraints or conflicts of interest.

Should you? Shouldn’t you?

Whether it’s the gig economy, affiliate marketing, short-term accommodation, or something else, a side hustle can be a great way to improve your finances and step into a portfolio career, but it’s important to know what you’re getting into.

In my experience, it’s critical that you actually enjoy it and don’t see it as a chore. So choose wisely. With passion and a bit of hard work, it might even grow into a successful and sustainable business.

I started my copywriting and award writing business two years ago as a side-hustle. Now it’s what I do full-time. If you want to know more about my journey, contact me for a chat.

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