Results of a 2017 study revealed that 44 million Americans take on extra work to make extra cash, in addition to working full-time. This is generally known as having a “side hustle.” The study identified millennials as the largest group of side-hustlers.
What are some of the most common side hustles? U.S.-based research tells us that doing the following activities allow people to earn cash on the side.
That said, what differentiates a side hustle from a part-time job?
“A side hustle is not a part-time job. A side hustle is not the gig economy. It is an asset that works for you. Picking up a few extra hours at the factory or at the coffeehouse is not a side hustle. Jumping on TaskRabbit or Uber when you feel like it isn’t a side hustle, either. The problem? Someone else can pull the plug. Gig economy businesses have literally folded overnight. If the intention of a side hustle is to create financial independence, then working within the gig economy is a walk in the exact opposite direction.” – Chris Guillebeau
Now that we’re on the same page about what a side hustle is, let’s tackle how to do it well. The secret is to figure out how to turn something that you love doing, like a hobby, into paid work that you can do on your own terms.
Why a hobby? According to Mark Zuckerberg, having a hobby outside of work is one of the best ways to cultivate your passion, leadership skills and technical abilities. Having a hobby is considered so important by Zuckerberg that Facebook’s hiring managers ask job candidates about their hobbies during interviews. What was Zuckerberg’s personal hobby? Last year, he figured out how to build an artificial intelligence (AI) system to control his home.
It’s easy to see how mastery of this task could result gaining a skill set that a person could monetize in a side hustle by offering a service that makes other people’s homes AI-friendly. (On a side note, you could also apply the knowledge gained from the experience to your full-time role for a potential career boost if it’s relevant to your job.)
But, before you get started with your own side hustle, check out my five tips below for transforming a hobby into extra cash:
Tip 1: Follow your passion – By turning a hobby that you were formerly doing for free into something that’s paid, there’s a better chance that you’ll love spending your non-9-to-5 time doing the work.
Tip 2: Use skills you already have – Understand your existing strengths and think about what people would pay for. Can you repair smartphone screens? Do you have a passion for personal training? Are you able to consult as a communications advisor? Any of these services could provide value to customers.
Tip 3: Manage your time – One of the downsides of having a side hustle is the potential for burnout. If the income from your side hustle work supplements the income from a full-time job, don’t jeopardize that full-time role. Find a balance between the two positions. Understand how long each side job will take so that you can over-deliver to your side hustle customers, while ensuring that the time spent on your side hustle doesn’t compromise your performance at your full-time job.
Tip 4: Build your network – How you connect with others to promote your side hustle depends on what product or service you’re offering. If you fix and sell used bicycles, you can connect with local customers on Kijiji or Facebook Marketplace. If you provide a consulting service, you can reach customers through social media channels and word-of-mouth. Get creative about how you reach your customers to get maximum exposure.
Tip 5: Set a goal – Think about why you’re spending your free time on your side hustle. Decide what you want to achieve early in the process. Whether it’s a saving a certain amount of money or completing a specific number of jobs, knowing you’re getting closer to your goal can provide perspective when you’re putting in extra hours every week. Learn about setting SMART goals here.
What other tips do you have for a successful side hustle? Share in the comments.
Image credits: Credit Loan, Pixabay.com.