From Passion to Profit: Navigating the World of Side Hustles. Times are tough – something of which you likely do not need reminding. Between stagnant wages and rising household costs, the average worker is being squeezed tightly for every last drop, with dramatic impacts on both short-term stability and long-term finances.
Whether you’re hoping to pad out your pension fund or create a little weekend spending money, one popular option in recent months has been to strike up a side hustle. But what would be the best way to approach such an endeavour?
Make Your Passion Work.
The first mistake that many make on their early forays into side-hustling is to pick something they think will be profitable, or easy. Firstly, as an amateur entrepreneur, there is no guarantee they are right on either account; secondly, a side hustle without the passion to make it work is dead in the water regardless – and mentally damaging for you to boot.
To get the most out of your side hustle without risking your stress levels, you need to be passionate about it. Monetising an existing skill or talent is much more tenable than seeking to teach yourself something entirely new, especially if you do not feel any especial drive to do so.
Keep Your Legal Obligations.
Starting a side hustle is not quite as simple as simply starting to earn from your passion. There are legal considerations to bear in mind, particularly about your tax obligations. As a sole trader earning a (eventual) profit from your side hustle, you will likely be expected to report your annual takings (and any expense incurred) each January for the April-April period prior.
At the start of 2024, new tax rules were also formalised with side hustles firmly in the crosshairs; HMRC can now corroborate tax return information with the information provided by digital platforms like Etsy and eBay. This makes it all the more important that you treat your tax obligations seriously, stay on the right side of the law, and avoid prohibitive fines.
Customers, Markets, Branding.
After thinking about the inner workings of your side hustle, you should turn your mind to the other side of the coin – that is, the market into which you’re selling. For one, can you identify a specific demographic for your product or service? If you can’t, you might not be able to guarantee a profitable venture; if you can, you can use this information to affect how you market yourself and your hustle, maximising opportunities to profit.
Setting Goals.
Side hustles are fine as backburner money-makers, but you shouldn’t expect anything life-changing from them unless you put some goals in place. Pie-in-the-sky goals won’t help you, though. Think SMART; that is Specific, Measurable, Achievable, Relevant, and Timely. With some realistic goals in place, you have something to work towards – and the chance to grow your hustle into something much greater.
Hope you’ve found our article, From Passion to Profit: Navigating the World of Side Hustles useful.
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