How to start your side hustle for extra income

How to start your side hustle for extra income (Photo: iStock)

With many Kenyans seeking ways to supplement their income during these challenging economic times, the need for guidance on side jobs is clear. Finance coach and advisor Margaret Njeri offers her expertise on navigating this path.

HOW DO PEOPLE GAUGE IF THEY CAN START A SIDE HUSTLE?

They can assess responsibilities like work, family and personal time to see if they have extra hours weekly to dedicate to a side hustle. They can also ask themselves, “Am I physically and mentally ready to take on an extra venture? Do I have a skill or passion to monetise?” A career coach gives guidance on this.

ARE THERE ANY FINANCIAL PLANNING ACTIONS TO CONSIDER?

Yes. Review the budget to see how much money is left to invest. Put aside a business emergency fund and a personal emergency fund in case of risks. Open a business bank account to manage the side hustle’s income separately.

WHAT WOULD YOU SAY TO PEOPLE LOOKING TO INCREASE THEIR INCOME THROUGH A SIDE HUSTLE?

The best bet is to do what they enjoy that is in line with their skills and knowledge. Find out the needs in the market and aim to solve them. They can start small and scale it. Treat it like a business through consistency and tracking of income and expenses. Surround yourself with people in the same line of business to learn.

HOW CAN THEY MAKE SURE THAT A SIDE HUSTLE ALIGNS WITH PERSONAL VALUES AND WELL-BEING?

Firstly, choose a hustle that aligns with your beliefs, interests, or purpose. It shouldn’t drain your energy but serve your mental health. Fulfilment should be a part of the journey; therefore, go for something that gives you a way of expressing yourself.

ARE THERE SPECIFIC SIDE HUSTLES THAT OFFER STRONG POTENTIAL FOR INCOME GROWTH?

Yes, but it equally depends on skills and passion. Some of the ventures are beauty, hair, baking, coaching, online stories, virtual assistance, online tutoring, freelance writing and affiliate marketing.

WHAT ARE SOME WAYS TO GET CAPITAL FOR A SIDE HUSTLE?

Through personal savings and SACCO loans. Besides, people should start with what they have: a skill, a tool, a phone for YouTubers, a kitchen for baking and so on. They can also look for investors to pour money into the business or cost share.

DO YOU RECOMMEND THAT PEOPLE REINFORCE THEIR SIDE HUSTLES AS BUSINESSES?

Sure, once they get to a certain level of consistent income for about 3-6 months, if they have a clear target market or foresee growth of the business. Some clients enter into contracts only with a registered company; therefore, this is something worth considering if it resonates with their field. They can also hire and partner with others to advance the business.

HOW CAN THEY ENSURE THAT THEIR SIDE HUSTLE INCOME SUPPORTS THEM?

Set savings goals and track income and expenses. And when they start earning more, they can reinvest wisely in the business or in improving a skill.

HOW DOES ONE PROTECT THEIR PRIMARY INCOME SOURCES WHILE ENGAGING IN SIDE GIGS?

Get into it at times that don’t interfere with their jobs, like early mornings, late evenings, or weekends, while avoiding burnout.

WHAT ARE SOME COMMON MISTAKES PEOPLE SHOULD AVOID WHEN STARTING A SIDE HUSTLE?

They need to shun mixing business and personal accounts, underpricing their services or products to attract more clients, relying on one client, not having a clear budget or plan, overspending on equipment, space and logos and not remitting taxes.

WHAT FEARS HOLD PEOPLE BACK FROM STARTING SIDE HUSTLES?

Fear of losing money or not making any, fear of debt or investing, worry of judgment and feeling like they are not qualified enough to charge for their skills.

HOW CAN A SIDE HUSTLE SPEED UP FINANCIAL GOALS?

It can be used in many ways, like debt repayment, investing in SACCOS, retirement planning, building an emergency fund, financing lifestyle goals, and reinvesting in the same side hustle.

HOW CAN PEOPLE ALIGN SIDE HUSTLES WITH THEIR CAREERS?

Pick a path that aligns with their careers, like a teacher can tutor online and a journalist can be an MC. The hustle should allow them to network smartly, meet clients, and advance their careers.