In addition to providing an opportunity to obtain expertise outside of other positions, a side hustle, also known as a side company, can be a means of increasing revenue beyond what is obtained from another work. Many people launch side hustle by doing something they are good at or enthusiastic about.

Starting a side hustle can help you earn extra money on top of your regular paycheck, lay the groundwork for working for yourself in the future while doing something you enjoy, or expand your professional skill set and career options for wealth creation.

These are some typical processes involved in beginning a small business, albeit not all of them will apply depending on the type of side project. In any case, before starting a business, it is crucial to thoroughly investigate and comprehend the tax, legal, and financial laws of the country or jurisdictions in which the organization will operate.

1. Evaluate the Possibilities

In launching a side hustle, many people start by evaluating their skill set, interests, or lifestyle. Often, finding an overlap between a product or service that is in demand and a hobby or personal strength can be a lucrative place to start.

2. Research the Market

You’ll need to look at the competition and narrow down a target customer, both of which are important initial market research steps to take in order to confirm that there will be demand for a product or service and to understand how to price any given offering.

3. Write a Business Plan

If the side hustle will require investment, funding, or a partnership, a business plan is a must. Potential partners, investors, and financial institutions will want to see a comprehensive overview of the business, including the overall vision, your products and services, your marketing strategy, your financial plans, and any other important details.

4. Estimate Startup Costs and Determine How to Secure Funding

If there will be expenses associated with starting your side hustle, it is essential to create as comprehensive a list of them, then determine how they will be funded. Depending on the nature of the side hustle, startup costs can be quite low, but it is still important to estimate and plan for them.  

5. Choose a Location, Structure, and Name, Then Register If Needed

Determining where the business will be operating and how it will be structured has implications for taxation, funding, paperwork filing, and personal liability, so it’s important to consider this carefully. Federal and/or state registration of the business and tax IDs may be required as well.

6. Secure Any Licenses, Permits, Memberships, or Certifications

Depending on the activities of the business and the jurisdiction in which it is operating, federal and/or state licenses and permits may be required to maintain legal compliance. It may also be helpful to secure or renew memberships or professional certifications related to the business if these are required for operation. All of these will generally have associated fees that should be included as part of the startup cost calculation.

7. Set Up a Business Bank Account and Apply for Insurance

Keeping business and personal financial transactions separate is important for both accounting purposes and tax purposes, so it can be good to open a separate business bank account. It may also be prudent to apply for business insurance depending on the risks associated with the intended business activity.

Some other factors to consider before starting a side hustle include:

• The tax implications of earning additional income: For example, accepting over $600 from sales of goods or services via an online marketplace or payment app could result in receiving a Form 1099-K; profits from sales must be reported on a tax return. The IRS has a list of questions that can help delineate whether certain activities fall under the category of a hobby or a business.
• How goods or services will be marketed and sold: It can be wise to create a marketing and sales plan in advance of starting a side business to ensure that products and services reach their target customer. 
• The ongoing costs associated with selling goods or services: Look into whether there are fees, expenses, overhead costs, or any other financial obligations associated with things like licensing, shipping, warehousing, domain registration, online selling, or membership dues. 
• Cash flow planning: Earning an income from a business may not only be about collecting money; it may also entail paying suppliers, vendors, or employees and other bills. It’s essential to ensure that the timing of incoming cash is aligned with the payment schedule for various expenses.

Side Hustle Ideas for Wealth Creation

Almost everyone could use a little extra money, particularly in situations where a full-time salary is insufficient. A carefully considered side business can give you the extra cash you require. People from different areas of life work as side hustlers. They view scarce resources as an exciting challenge and are creative and open to trying new things. You too can take advantage of the potential of a side business by investing a few hours each week.

Read Also: The Role of Mindset in Wealth Creation

Whether your objective is to turn a pastime into a lucrative business or to create passive income, there is something for everyone on this list of side hustle ideas.

1. Monetize a YouTube channel

YouTube has a massive audience of 2.5 billion users, who watch a combined billion hours of videos every day. Tap into those views by joining the YouTube Partner Program, which lets you earn money from ads shown during your videos.

Keep in mind that it takes time to gather enough viewers to earn a lot from ads. That’s why many YouTubers look for other ways to monetize their content.

There are several ways to make money on YouTube that go beyond the Partner Program. For example, you could team up with brands to promote their products in your videos. They’ll pay you a fee or give you a cut of the sales. Another option is to direct viewers to buy products from your online store.

Start by making engaging videos and Shorts that appeal to your target audience. As you gain subscribers, explore monetization strategies such as joining the Partner Program, selling merch, and promoting affiliate partners.

2. Start a blog or newsletter

Blogging has long been a popular side hustle, but monetization can prove challenging. That’s why more and more bloggers are turning to subscription platforms like Substack, where independent writers can publish their work and get paid directly from their readers.

This allows bloggers to build an audience over time and maintain a regular stream of monthly income, without having to rely on intrusive ads, sponsorships, or finding freelance writing gigs.

Once you’ve built a readership, consider selling products and merch to your fans. This is a great way to build awareness for your personal brand.

3. Record a podcast

Podcasting, like social media and blogging, has become a staple of the broader world of online content. In fact, podcast audiences have grown consistently over the past six years. Podcasting is comparatively cheap, too. A decent USB microphone sold specifically for podcasting can be purchased for less than $100, and recording platforms like Audacity are free and easy to use.

To start a podcast, find a theme or subject that resonates with a target audience. Record a few episodes in advance and plan your launch campaign. As you grow, incorporate ads or sponsorships to turn your podcast into a side hustle.

4. Participate in online surveys

There are countless companies and market researchers that want to know what people think of their products and services. Filling out surveys won’t pay your bills, but it can pad your pocket with extra money for the weekend.

Websites like Branded Surveys, Swagbucks, and Survey Junkie have tons of surveys you can get paid to take.

5. Get paid to test apps

Nothing will halt a business faster than a website riddled with issues or an app that doesn’t work. So developers get testers to go in and push all the links and play with all the buttons to make sure things work before they go live. Guess what? You can get paid for that. Some competitive gigs even offer $100 for a 60-minute test, so there is money to be made.

Matchmaking sites like UserTesting, uTest, Userlytics, UserCrowd, and Enroll can connect you with website and app testing gigs.

6. Secure social media sponsorships

If you have a niche hobby, start producing content on TikTok or Instagram that appeals to your community. Once you’ve established a loyal following, you can monetize your account through sponsorships, where brands pay you to promote their products.

7. Become an affiliate marketer

Affiliate marketing is when you advertise products or services on your platform and get paid a commission for any sales generated from your referrals (usually through a unique link or code).

If you have a podcast, are an influencer, or have a store of your own, consider trying affiliate marketing. It’s a great way to gain some passive income that you can reinvest into your content or business.

To get started, go to an affiliate marketplace like Leadpages, ConvertKit, ClickBank, or ShareASale and find the right products for you. If you’re a content creator or influencer working in the world of ecommerce, the Shopify Affiliate Program could be your next lucrative side hustle.

8. Sell digital products

Digital products are items that exist only online. Examples include downloadable or streamable files such as MP3s, PDFs, videos, and technical templates. Use your existing skills to start a side hustle creating digital products. That might mean educational ebooks for your industry, custom music or visuals, or different kinds of digital templates.

If you’re a graphic designer, think about how websites are always on the lookout for unique fonts and eye-catching page layouts to set them apart.

Once you’ve created your product, start an online store to sell to customers. Promote your products on social media with enticing incentives such as a free sample or discount code.

9. Start a dropshipping business

If you want to open a store but don’t like the idea of buying and storing inventory, consider starting a dropshipping business. Dropshipping is an online business model where a third party produces and ships products on your behalf. All you have to do is set up your store, price your products, and make sales.

Because products are only bought and shipped after they’re ordered, dropshipping is a relatively low-risk side hustle. With fulfillment handled by your supplier, you can focus on marketing to your customers.

Choose a dropshipping partner from this list of dropshipping suppliers.

10. Offer digital marketing services

The surge of online businesses has created a constant demand for digital marketing services. Founders often look for freelancers who can manage content creation, run social media accounts, optimize websites, and more.

Tap into this market by advertising your services on freelancer platforms. Consider creating a demo website to showcase your skills, or a portfolio containing your previous work.

11. Develop mobile apps

Developing mobile apps can be a profitable venture if you’re proficient in coding. Whether it’s a functional app or a fun game, the right app can generate significant income. And, as you’ll be working as a solo developer, you can channel focused hours during the evenings and weekends into your project.

Challenge yourself and test your skills by creating a simple app with a single functionality and releasing it on an app store.

12. Resell used or vintage goods

Another way to make a few extra bucks is by selling your used goods. You can sell items you’re no longer using on a local buy-and-sell group or on Facebook Marketplace. Level up by finding great thrift items and reselling them on a vintage marketplace. This is a fun side hustle idea if you have a great eye for décor or fashion.

If you have a knack for selling vintage clothing online, why not open an online store?

13. Advise eco-friendly businesses

Support businesses and individuals as they strive to become more environmentally friendly with a green business consulting firm, which helps balance profits with pollution reduction.

Build up your green credentials by volunteering your skills to local businesses and charities.

Bottom Line

One excellent method to experiment with entrepreneurship without making a significant commitment is to start a side business. To make sure it will be a good fit and live up to expectations, it’s crucial to weigh the advantages and disadvantages of a potential side business before committing. In order to ensure a solid grasp of financial, legal, and tax requirements and to lay a solid foundation for the expansion, sales, and marketing of the company, it is also a good idea to thoroughly investigate the business idea before beginning.