Kickstarting a side project to earn a little extra income is becoming a huge trend across the globe. From freelancing, to home baked goods, to completing surveys, it is now very common to earn income on the side of your day job for a variety of reasons. If you have had an idea for a side hustle or project and don’t know where to start, here are some of our tips to help you.
- Ensure The Side Project Is Financially Viable
While everyone may have a dream idea for their side project, not every idea is financially viable. It would be wise to research into your chosen area and see what costs are involved, and if you have the means to cover it. You could use savings, apply with a credit union or research instalment loans to see if there was something that suited you. However, you should only apply for a loan if you are confident about making the repayments.
- Find A Gap In The Market
This may be easier said than done, but finding a gap in the market is a great way to start generating your business idea. If you want to stay local, look at what is available in the area and what you could offer. Maybe your town is lacking in fresh, homemade food delivery services? Maybe you are skilled in creating beautiful, bespoke flower arrangements? If you want to take your business national (or global), find out if there is a gap for your skills, whether that is for providing online services or via postal delivery.
- Research Into Tax
Before you start banking the money from your side income, you will need to understand the income tax thresholds. With self-employment, you will need to file your own tax returns or hire a specialist to help you, so it is key to know how much tax you will need to pay before making any earnings. There is plenty of information online to teach you how to file tax returns, but you can always seek help from an accountant.
- Use Your Skills And Knowledge
The basis for any good side hustle is to use your own skills and knowledge, rather than learning something new to sell. No matter what your skill is, there will be a way that you can put it to good use to make some extra income. Whether it is through online classes and tutorials, through freelancing, or through building a business where the products rely on your expertise, there will be several options available. It is about finding the gap in the market and forming the best idea possible around the skills you have to offer.
It is key to remember that most side projects are not profitable straight away, so spend time making sure you refine your idea and position it properly before launching. You will want to keep costs as low as possible in the early stages and work on generating interest to see what your numbers might look like.