How to Side Hustle Successfully: A Comprehensive Guide

As the cost of living continues to rise, more South Africans are turning to side hustles to supplement their income. According to the Old Mutual Savings and Investment Monitor 2024, over half of the working population in the country is now engaged in what is being termed “poly-jobbing”—taking on freelance work or running side businesses alongside their primary jobs. This trend has seen a notable increase from last year, with 57% of individuals across all age groups now participating in side hustles, up from 54%. The trend is particularly prominent among younger workers, with a staggering 73% of those aged 18 to 29 embracing side hustle culture.

If you’re considering starting a side hustle or already have one, here are some crucial aspects to keep in mind to ensure your efforts are both profitable and sustainable.

Commit the Time

Side hustles require dedication. Whether you can spare two hours a week or twenty, consistency is key. Keep in mind that the more time you can commit, the quicker you may see results. However, even with limited time, a steady and persistent approach will eventually pay off.

Find an Idea

Your side hustle should ideally stem from something you are passionate about or a skill you already possess. Some of the most successful businesses have been born from individuals identifying gaps in the market or simply wanting to make existing products or services better. Take time to brainstorm ideas that excite you and have potential demand.

Do the Research

Before diving into your side hustle, thorough research is essential. Understand the market, identify your competitors, and assess the demand for your product or service. Moreover, staying updated on industry trends is crucial to ensure that your business remains relevant and ahead of the curve. Adaptability can often be the difference between success and failure.

Value-Adds in a High-Inflation Environments

In a high-inflation environment, it may become necessary to increase your prices. However, simply hiking prices might drive customers away if not done strategically. Consider adding value to your product or service to make it more appealing than your competitors’. This could be through enhanced customer service, additional features, or by making the customer experience as seamless and convenient as possible. People are often willing to pay more for quality and convenience.

Manage Debt Wisely

While it’s ideal to save up before starting your side hustle, sometimes taking on debt is unavoidable, especially if you need equipment like a camera for a photography business. If you find yourself in this situation, shop around for the lowest interest rates and work on paying off the debt as quickly as possible. Avoid the temptation to stretch out repayment terms, as this can lead to paying more in interest over time.

Safeguard Your Side Hustle

As your side hustle grows, it’s important to protect it just like you would with any other valuable asset. This involves separating your personal and business finances, obtaining the necessary licenses or permits, and considering business insurance to protect against unforeseen circumstances. Additionally, ensure that your tax affairs are in order, as failing to comply with tax regulations could lead to legal complications down the line.

Plan for the Long Term

While a side hustle might start as a small, supplementary income stream, it could grow into something much bigger. Think about your long-term goals and plan accordingly. This might include scaling your business, reinvesting profits into further growth, or even transitioning to your side hustle as your main source of income.

Balance Passion with Profit

It’s easy to get caught up in the excitement of a new venture, especially if it’s something you’re passionate about. However, it’s important to ensure that your side hustle is also financially viable. Keep a close eye on your expenses and income to make sure that your passion is leading to profit, not just draining your time and resources.

Ready to take your financial planning to the next level? At Pogir Group, we understand the unique challenges and opportunities that come with managing multiple income streams. Our expert advisors are here to help you navigate the complexities of financial planning, ensuring that your side hustle not only grows but also supports your long-term financial goals. Contact us today to find out how we can help you achieve peace of mind with your financial future.

Adapted from Daily Maverick and IOL