So you want to start a side hustle? Here’s what you need to know – Part 1

Dreaming of starting your own side-hustle? Well, you’re not alone, with the latest findings in the nbn Side Hustle Report sharing that 1 in 4 Aussies have started a business on the side. [i]

It’s a fast-growing trend that is seeing ordinary Aussies giving their skills and passions a red hot go while making extra cash on the side. And with 80% of Australian’s looking for fulfilment outside of work, it’s no surprise that many are jumping on the bandwagon.[ii]

But before you start setting up your market stand of cupcakes or offering your handyman skills, let’s take a look at what you need to know to start a successful side-hustle business.

1. Know the market

Conducting a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of your business can help save you time and money, for the long haul. Whatever your side-hustle is, doing your research helps you to know who your competition is, what they are doing in your industry and importantly what you need to do to stand out from the crowd.

Ask yourself the following questions:

• Is there a demand for your product or service?
• How much are your competitors charging for a similar product or service?
• Will you be making any profit?

Understanding your industry and the demand for your products or services might be able to even uncover a niche that will excel your business. Win-win!

2. Make the connection

Word-of-mouth is crucial when it comes to increasing awareness and generating leads for your side-hustle business. Connecting with other side-hustlers, leaders in your industry, online communities and marketplaces are just some of the great ways to get your name out there.

Participating in online forums and groups helps create valuable connections which can help grow your business and learn new skills. Business.gov.au has a resource to connect small business owners with business experts in their location and specified profession.

3. Upskill

There’s no such thing as having too many skills, and with many courses now offered through online institutions, it has never been easier to learn more.

Online educational providers like Udemy and SkillShare offer a range of free and paid courses to help further your skills in areas like business, marketing, languages and much more. Whether it’s perfecting your current talents or learning new business skills to run your side-hustle, the opportunities to expand your knowledge base are endless.

4. What it’s worth

Investing in a side hustle not only takes time and passion but it requires money. Make sure you do the math by doing some calculations and budgeting around necessary expenses to get your business up and running. Key areas you may need to factor in funds for include:

• Marketing– How much will you need to invest in printing business cards, a banner for your market stall, social media adverts etc.?
• Tax and accounting– Will you need to hire the professional skills of an accountant or tax agent to assist with managing your finances?
• Products– Does your business require stock? How much will you need to buy and will you need to rent a storage space to keep it?
• Insurance-Have you arranged your business insurance policies to financially protect your business from potential risks?
• Travel– If your side hustle involves travelling long distances have you factored in the cost of fuel/ commuting?

Launching a side hustle is exciting and working out what you may be up for before diving in, could save you financially in the long run, especially if you are relying on savings to fund your start-up phase.

5. Start your hustle

That first step of starting a side-hustle is a satisfying journey and one which will have its ups and downs. By following a few simple steps, taking a leap of faith and having the knowledge on where to find the right support for when you need it, the world is your oyster.

To arrange business insurance for your side hustle, the team at BizCover are a few mouse clicks or a phone call away and can help get your business insurance sorted in minutes.

Read Part 2 here.