Back in 2008, I needed a way to make money.
I was in between jobs at the time, which is just another way to say I didn’t have one. As I tried to figure out what I could do, I noticed that social media was growing at a dramatic rate, and that it gave you the power to publish whatever you wanted.
And that’s how my side hustle was born. I started my website back in 2009 with a $10 investment and a lot of passion, but it wouldn’t be until a year later that it would really take off. During that time, I worked really hard, even waking up in the middle of the night just to post.
What I’m trying to say is that while side hustles can be incredibly rewarding, they require a lot of effort. This makes it crucial that you know exactly what you are getting into when you choose a side hustle, and that you know how to choose the right one.
And that’s exactly what we’ll tell you this week.
This week’s newsletter brings you:
- Trends. We bring you the latest trends regarding the side hustle industry, perfect for the data lovers out there.
- Strategies. This week we share with you the things you need to know before starting a side hustle, how to choose one, and even throw in some tips to help you figure out what your strengths are.
- Tools of the Week. Figuring out what you are good at can feel difficult, unless you have a tool like CliftonStrengths.
And now, without further ado, let’s get down to business!
Trends
If you’ve got no idea as to what to do for a side hustle, it can be helpful to start by taking a look at the most popular categories for side hustles and the fastest growing industries.
Our data nerds have covered both in the graphs below, along with some other interesting statistics that may influence your choice of side hustle. Enjoy!
Most popular side hustle categories
When it comes to the most popular side hustles, there were a few that stood out in these survey results collated by Self Inc. The most popular types of side hustles were related to online blogging and social media, with 16.6% falling into this category. The next choice was gig work, including working for platforms like Uber and delivery services.
These were closely followed by freelancing and running online shops which each took 13.4% of the share. As we can see from this data, many of the most popular side hustles are online-based or run by online platforms and apps. The less popular side jobs were more traditional, including babysitting and dog walking.
Fastest growing industries
Being aware of some of the fastest growing industries predicted for the next decade can help you choose a lucrative side hustle to pursue.
If you already have particular skills or are looking to develop new skills in a certain area, this data should give you some ideas.
Factors in choosing a side hustle
Despite more people using side hustles to make extra money, enjoyment and flexibility still reign supreme when it comes to what is most important when choosing a side hustle.
Sacrifices in starting a side hustle
Less time spent with friends and family isn’t the only sacrifice side hustlers are making. In this survey conducted by DollarSprout, 9 out of 10 people reported at least some level of sacrifice in pursuit of their side hustle endeavors, with most of them reporting multiple sacrifices. But that doesn’t need to be the case for you!
Hurdles in starting a side hustle
It’s pretty clear from these survey results that the biggest roadblocks on the way to side hustle success are finding the right idea and then finding the time to work on that idea.
Fortunately, the rest of this week’s newsletter has got you covered!
Strategies
Enough about numbers and preambles, it’s time to get down to business and figure out how to choose a side hustle.
Things to consider before choosing a side hustle
Before we even discuss how to choose the right side hustle for you, we need to talk about the core elements of a hustle that you need to be aware of. Starting with a side hustle will require time, passion, skills, and money, and these are all things you need to think about carefully.
Let’s start by taking a look at the different elements of the perfect side hustle:
You have to be passionate about the gig
Even if you are just in it for the money, you need to make sure that you choose something you like.
You must ensure that what you work on is interesting if you are going to spend a great deal of your free time on it. If you feel bored or unmotivated, you are more likely to give up on the gig.
Prior to choosing a side hustle, consider what things interest you. Do you have any hobbies? What are your favorite subjects? Do you enjoy doing certain tasks? You’re more likely to want to spend time on your side hustle or gig if it’s fun and exciting.
Do you have the right skill set?
The skills required for each side hustle are different. Take note of the skills required for side hustles as you explore them. By putting in the time and effort, you might be able to learn new skills. Other skills, however, may require more time and experience.
Outlining the skills you already possess can be helpful. Find a side hustle that will allow you to utilize the skills you bring to your professional and personal life.
Analyze the income potential
Not many people start a side hustle for charity. It’s in the name. However, there are different income potentials for different side hustles. It’s important to make sure you can bring in enough money if you want to make extra money to pay off debt, increase your emergency fund, or just have more financial freedom.
Assess each opportunity’s income potential based on how much money you wish to earn. Before you can make good money with some side hustles, you may need to put in a lot of effort and time.
What are the upfront costs?
It may be necessary to spend some money upfront in order to earn money from your side hustle. Equipment, tools, or training materials may be needed, especially if you’re developing a product.
However, not all opportunities are like that. There are many side hustles that don’t require any upfront costs or require minimal upfront costs (think freelancing).
Make sure you know if you have to pay money upfront before you begin, and how much so you can budget accordingly.
Determine how much time you’ll need
You should make sure you’re comfortable with how much time you’ll need to spend on your side hustle. Do you think the time commitment makes sense based on your other work and life responsibilities?
Side gigs take time and effort to build. I used to wake up at 4:30 am everyday to publish at Jeff Bullas.com. Not every gig will require the same level of commitment, but you need to know how much time you can dedicate to it.
There are many benefits to starting a side hustle if you have extra time and want to earn more money. Don’t just settle for any side hustle, though. Consider your options carefully and make sure the opportunity is a good fit for you.
And if you don’t have any time? Outsourcing is your friend!
How to choose a side hustle
Now that we’ve covered the fundamentals, let’s talk about finding the right side hustle for you.
Choosing the right side hustle will boil down to knowing what you like to do, what you are good at, and whether you can translate that into some cash.
While it’s important that you choose a gig that you like, you also need to make sure there’s money to be made there. Fortunately, you can monetize practically anything these days thanks to the rise of blogs, streaming, vlogs, and social media.
The sweet spot for a good side hustle.
If you are trying to find a side hustle that fits you, follow these simple steps:
- Identify your hobbies, talents, and skills: You should spend 10 minutes writing down everything you like to do and everything you’re good at. This can be anything from creative skills to organization to your full-time job or even something you’d like to learn more about. You need to be passionate about this. This requires dedication, excitement, and some good old-fashioned effort.
- Flexibility is key: Your side hustle should never get in the way of your main job. That’s why you should pick a second gig that offers the most flexibility in terms of scheduling and deadlines. That’s why we recommend digital side hustles, something that allows you to work whenever you want — for example, doing web design from home at night.
- Find a gig that offers growth potential: It’s not uncommon for a side hustle to become your full-time job. The side hustle you start later in life might be a good thing to carry into retirement, where it serves as an income source and keeps you busy. Therefore, it’s advisable to pursue a secondary gig with the possibility of ramping up. You can grow your graphic design business as more clients learn about you, for example. In contrast, if you snag a seasonal position at a local restaurant to earn some cash, you might not be able to keep it once things slow down.
- Get a job that pays (if that’s your motivation): Chances are, you’re doing your side hustle primarily to make money, not because you enjoy it. In other words, if you’re going to work a few hours per week, you might as well get paid for them. The point is not to say that you should do something you hate just so that you can earn more money, but if your chosen gig only earns you $2 an hour after subtracting your time and the cost, then it might not be worth it. Even if you enjoy a specific activity, you don’t need to do it for 10 hours a week. Find a nice middle ground, something that will improve your finances while allowing you to learn more and enjoy it.
What if you find that you hate your chosen side hustle?
Developing a side hustle takes a lot of time and effort, so it can be soul-crushing to realize that you chose something you don’t like, or that doesn’t have the income potential that you are looking for.
There’s no sugarcoating it, starting from scratch sucks. However, it doesn’t need to be the end of the world. Finding the right side hustle can take some trial and error, but that shouldn’t discourage you from trying different side gigs.
You could try a few gigs simultaneously, but that would probably take up too much time. Instead, make sure you properly analyze the potential of a new side gig, and be honest with yourself about your skills and interests.
Resources:
Tips to Choose a Side Hustle by The Motley Fool
How to Choose a Side Hustle by Gig Hustlers
101 Side Hustle Ideas by ConvertKit
3 Signs It’s Time to Switch Side Hustles by The Motley Fool
Developing your strengths
As well as improving the effectiveness of your side hustle, developing your personal strengths can help you learn more about yourself.
However, it can be hard to figure out your strengths on your own. Finding out what you are good at takes patience, self-introspection and a little experimentation.
The process of identifying your strengths can, however, be simplified in a number of ways. These tips will help you determine what your strengths are:
- Don’t limit yourself to what you are good at today: You can develop new strengths over the course of a career, which can last decades.
- Strengths can be defined in a variety of ways: As well as skills and abilities, consider relationships, resources, and reputation, as well as personality, cognitive abilities, and character traits.
- Your strengths are also determined by what you find energizing and motivating: In college, it’s possible to do well at a subject you’re not passionate about, but this is difficult to maintain for a decade or more. Is there anything that doesn’t feel like work (but is)? Passion is an important component of a side hustle.
- Feedback is important: The negative bias of familiarity blinds us to our strengths, so asking others about ourselves can be a very useful tool. Try asking your friends, family, and coworkers what they think are your biggest strengths.
- Consider your history, but don’t rule out any strengths too soon: Rather than focusing on your absolute performance, consider your rate of improvement with a skill over time. Review your own history. Did you find any activities particularly fulfilling?
- Compound and combine: Combining strengths can lead to rare but useful combinations.
Alternatively, you can try using a tool like the CliftonStrenghts assessment to help you simplify the process.
Tool of the week
The CliftonStrengths assessment, formerly known as Clifton StrengthsFinder, was developed by educational psychologist Donald Clifton. It was important for him to identify the strengths that distinguished top performers.
Using Positive Psychology, the tool assesses normal personality through a Web-based platform. This is the first instrument of this type developed specifically for the Internet.You can get started by purchasing the standard assessment for $19.99 or the full assessment for $39.99.
The CliftonStrengths pricing options
The CliftonStrengths assessment presents you with 177 items to describe yourself. The items contain a pair of potential but opposite self-descriptors, like “I like to take my time” versus “I prefer to rush right in”.
Descriptors are positioned at the polar ends of a spectrum. After choosing a descriptor, you should identify the extent to which that descriptor best describes you.
A pair of descriptors is presented to you for 20 seconds before another pair is automatically presented. Your results will be categorized in 34 different CliftonStrengths themes. These themes have to do with strategic thinking, relationship building, influencing, and executing.
Your top five strengths will be highlighted in an in-depth report after you complete the assessment. You’ll learn why these strengths are unique, how they can help you succeed, and how to maximize them.
That’s because this assessment isn’t only about learning what you are good at, but rather how you can make the most of your strengths.