Standing out as tough times push more to side hustles

Side hustles, also known as gig work, have become increasingly popular in recent years. Statistics show that one in four millennials works a side hustle. This means that in addition to their primary source of income, they have an extra job to boost their earnings.

This appears to contradict the popular opinion that millennials are lazier than older generations. For most millennials, these side gigs are small businesses, although most of them lack proper business structures.

According to US statistics, women are more likely than men to have a side hustle. Thirty five percent of have a side hustle compared to 28 per cent of men. One of the reasons for this disparity might be due to pay differences between men and women.

With the economic impact of the Covid-19 Pandemic, even more people are looking to turn to side hustles to earn extra cash. If you’re one of these people, you might be wondering where to start. The following tips will help you get started:

Know your why

Working on a side hustle isn’t as easy as it sounds. If you work on your regular 8-5 job, some of the free time you’ve been used to will have to go towards your side hustle. You will have to give up some nights and weekends work as you pursue the side gig.

To be able to stick it out, it is important to define the goals you want to achieve with the side gig. Why do you want a side gig? Do you want the extra cash to put aside for a specific goal? Is it something you want to do short term or long term?

A good side gig should be something which can get you paid quickly. But a great side gig also has the potential to scale up even if it doesn’t generate immediate income. If you need a side gig to meet a short term financial goal, such as paying off debt or buying an appliance, go for a gig which pays immediately. But if your goal is more long term, such as retirement, go for something which has the potential to scale up.

Good examples of short term gigs include being an Uber driver or running errands for pay. Long term side hustles include blogging, being a You Tuber, or running a small business.

Stay in your lane

To survive in the gig economy, it feels like you have to wear different hats. Avoid the trap of being a jack of all trades. You run the risk of being merely “good” at the kind of work you produce. In today’s cut-throat marketplace, you’re unlikely to be successful by just being “good” enough. You have to be “great” to succeed.

You are more likely to succeed by mastering the core skills required in your side gig. Instead of learning new skills from scratch, look at what you already have.

One of the biggest mistakes you can make when choosing a side hustle is to go for something which doesn’t fit your current skill set. List all of your skills and find a side hustle which aligns with your strengths.

It is a great idea to opt for a side gig that complements your main job. This will offer you the opportunity to fine-tune your skills in a specific area and advance your career in that direction. For example, if you’re an accountant, you can have a side gig where you help small businesses and individuals to do their taxes. Eventually, you can quit your main job and make the side gig your main source of income.

Have a niche

Don’t pick a side hustle just because it’s what everybody seems to be doing or it makes good money. Remember that people buy value, and the money you earn is just a byproduct of offering a good product or service. Think in terms of how you can provide value in the marketplace.

Once you’ve identified a category which fits your skill set, go a step further and look for a niche. As Pat Flynn says; “The riches are in the niches.” Having a niche is your side hustle differentiates you from other people in the industry.

It makes it easier for your potential clients or customers to understand what problem you can solve for them. If they can easily associate you with a certain niche, they’re likely to choose you over a competitor who doesn’t appear to specialize in the niche.

Understand the time investment

How much time do you have to spare for a side gig? Many people underestimate the kind of time they will have to put into working on their side hustle. You can easily find yourself worn out and depressed from overworking. Even worse, the side hustle might not even be compensating you enough for the time you’re putting in.

To avoid this mistake, determine how much time you have to put towards a side hustle. For example, you might find that you only have eight hours a week to dedicate to the side hustle. Therefore, choose a side hustle which doesn’t demand more than eight hours. Make sure that your side hustle still leaves you enough time to hang out with friends and family, enjoy your hobbies and relax.

Bear in mind that you will still be competing with people who have dedicated their entire lives into that pursuit. Therefore, the side hustle shouldn’t be too time-demanding. Before you even start ask yourself: Can this side hustle succeed with part-time involvement?

Be patient

There are some side hustles which can earn you quick money. But generally, such side hustles tend to be short term in nature. However, more substantial side hustles, such as building a business, takes time and plenty of effort.

To be successful in your side hustle, you should have the patience to build and strategically grow it into a viable income-earning opportunity. Having the right mindset is important in achieving success in any side hustle.