5 steps to launching a side hustle in Australia

Starting a side hustle can be a great way to earn extra cash, but it can also grant you more freedom and opportunities than a standard nine-to-five job.

Whether you’re driven by the desire to try something different, search for new opportunities, explore a passion or interest, or just need a way to make some extra money, a side hustle can help change the way you think about work.

Why start a side hustle?

Some of the benefits of starting your own side hustle include:

• Financial benefits: Even a few hundred dollars a month can go a long way: helping pay down debt faster, topping up savings or giving you extra cash to invest.
• Personal growth and new opportunities: A side hustle is also an investment in yourself. You’ll develop skills that may not be part of your usual job, like marketing, customer service or financial management. Plus, they can also help expand your network, connecting you with like-minded entrepreneurs, clients or collaborators.
• Time and flexibility advantages: A side hustle can offer you more flexibility than taking on a second part-time or casual job. You decide just how much and when to commit, whether that’s a few hours on the weekends, in the evenings, or during your daily commute.
• Test ideas and interests: Side hustles also give you the chance to “test the waters.” You can experiment with a business idea, validate a product or build a client base without giving up the security of your main job.

5 basic steps to launching a side hustle

Whether you’re looking to start a side hustle from your own home, or if you don’t have any seed money to kick things off, working out a plan before you dive in can be helpful. Here are five basic steps to help get you started.

1. Research your market and competition

Before investing time or money, make sure there’s real demand for your idea. Look at trends, online forums or marketplaces like Gumtree, Fiverr or Upwork to see what services and products people are advertising already.

• Identify competitors in your niche. How do they price their services? What do they do differently?
• Find your unique selling proposition (USP) – that is, the thing that sets you apart.
• Define your ideal customer: their age, needs, pain points, and where they spend time (online or offline). Knowing your target audience helps you create offers that resonate.

2. Decide on a business model / structure

Not all side hustles look the same. Some people freelance (e.g. graphic design, tutoring), while others sell products, run subscription models or earn through affiliate marketing.

• Choose the business model that suits your skills and goals.
• Decide how you’ll package your service or product: hourly rate, project fee, monthly retainer or pay-per-product.
• Consider scalability: can this hustle grow if you bring on more clients, automate tasks, or expand into new markets?

3. Estimate costs and budgeting

Overheads are necessary and inevitable, no matter how lean your side hustle is. When considering costs and budget, start by mapping out:

• Initial start-up costs: Software, website hosting, marketing and equipment.
• Ongoing costs: Subscriptions, materials and utilities.
• Cash flow projections: how many clients or sales do you need to cover your costs and hit your income goals?

4. Banking, money flow and paying yourself

You may find that separating your side hustle finances from your personal account can help to makes your life easier.

• Open a business bank account to track income and expenses clearly.
• Decide how clients will pay you: bank transfer, Stripe, PayPal, or direct debit.
• Don’t forget to pay yourself. Even if it’s a small amount at first, set up a system to transfer profits to your personal account so your effort feels rewarding.

5. Upskilling and continuous learning

Every side hustle comes with a learning curve, even if you’ve decide to turn a simple hobby into a money-earning business.

• Identify gaps in your knowledge, such as marketing, bookkeeping, or web design.
• Explore affordable online courses, free webinars, or mentoring programs.
• Treat growth as iterative: each project teaches you something new and helps you improve.

Side hustle ideas to consider

In a recent BizCover survey on side hustles in Australia, we took a close look at what were the most in-demand side hustles as well as the most profitable side hustles. We divided the most popular side hustles into two groups: sofa side hustles (those that you can do easily from your own home) and traditional side hustles (which involve more hands-on, physical work). Here are the top 10 side hustles from both groups that we found were most in demand.

Sofa side hustles

1. Amazon reseller
2. Bookkeeper
3. Driveway/garage renter
4. Virtual assistant
5. Resume writer
6. Graphic designer
7. Copywriter
8. Proofreader
9. Digital marketer
10. Car renter

Traditional side hustles

1. House cleaner
2. Pool cleaner
3. Carpet cleaner
4. Tutor
5. Babysitter
6. Gardener
7. Handyman
8. Personal shopper
9. Nanny
10. Delivery driver

What is the most profitable side hustle?

According to the BizCover research, on average these were the most high-earning side hustle businesses in Australia:

1. Audiobook narrator: $200.00 p/h
2. Technical writer: $102.00 p/h
3. Business coach: $94.86 p/h
4. Life coach: $90.33 p/h
5. Face painter: $80.00 p/h

Practical key considerations

While side hustles offer exciting opportunities, it’s important to approach them with a clear, realistic mindset. Success rarely happens overnight, and ignoring potential risks can lead to burnout, financial strain or even legal headaches.

Be realistic about time and effort

A side hustle is not a magic money-making machine. Most profitable ventures take consistent effort over weeks or months before you see significant returns. Some hustles (such as consulting, freelancing or digital services) require substantial front-end work: think  marketing, prospecting, networking and building credibility. Remember that time spent on your side hustle comes at the expense of personal time or energy for your main job. Setting realistic expectations about what you can achieve each week helps prevent frustration and burnout.

Weighing the risks

Every side hustle carries inherent risks:

• Financial risk: Upfront spending on tools, software, or marketing may not always pay off. Some ideas may generate low demand, leaving you with little return on investment.
• Reputational risk: Delivering subpar work can damage your professional reputation and make it harder to attract future clients.
• Time risk: Overcommitting to a side hustle can interfere with family time, personal well-being, or performance at your main job.
• Legal risk: Think about your legal obligations: do you need a license or permit? Do you need to set money aside for taxes? Additionally, could your side hustle leave you exposed to claims?

Being aware of these risks allows you to plan proactively and make smarter decisions about which opportunities to pursue.

Business insurance may help to provide a safety net to cover some of the other risks you may face. For example, Professional Indemnity insurance is a policy often taken out by people who provide professional services and advice – such as bookkeepers, graphic designers, copywriters and other similar professions. Professional Indemnity is designed to help cover you for losses claimed by a third party and defence costs due to alleged or actual negligence in your professional services or advice.

Public Liability insurance is another type of cover that you could find beneficial, depending on the side hustle you want to pursue. Public Liability insurance is designed to cover legal fees and compensation costs if a customer, member of the public, or a supplier claims against you for injury or damage to their property as a result of your alleged negligent business activity. For example, if you’re working as a house cleaner in a client’s home and they trip over your cleaning supplies and injure themselves, then Public Liability may be able to help you handle the costs of a claim.

Ready to begin your side hustle?

Starting a side hustle can be one of the most rewarding decisions you make – not just financially, but personally and professionally. Whether you’re looking for a way to bring in some extra income, test a business idea, or simply explore a passion, the opportunities are wide and varied. From “sofa side hustles” like bookkeeping or virtual assistance, to more hands-on options like gardening or tutoring, there’s something for nearly every skill set and lifestyle.