7 tips for starting a side hustle

Most people have a good reason for needing and wanting additional income, which is likely why 39% of U.S. adults report having a side hustle.^{Disclosure 1} And while side hustles are a great way to make extra income, 76% say they also love the work.^{Disclosure 2}

Side hustles can provide opportunities to develop leadership skills, strengthen your network, and continue learning—all things that can benefit your main job, mindset, and bank account.

If you’re interested in starting your own hustle (or you already have), here are a few tips to help light a fire under your side hustle idea.

The highlights:

• If you want to start a side hustle but don’t know what it should be, start by identifying your skills and passions.
• Connect your identified skills with actual products and services you can provide. Evaluating the market and competitors can give you ideas for pricing and marketing.
• Try a soft launch of your product or service to get feedback before going all in. 

1. Assess your skills and passions.

You’re probably amazing at something. Maybe you know it. Maybe your friends have told you. Now’s the time to own it.

“Side hustles are a ‘get to do’ versus most full-time jobs that feel like a ‘have to do,’” says Nick Loper, founder of Side Hustle Nation and host of The Side Hustle Show podcast. “After all, if your side hustle isn't fulfilling, you can just stop or try something new—which is much harder to do with your day job.”

Have you always had a knack for calculating the tip when you’re out with friends? Are you the first person someone calls when they need an outfit for a big event? Can you keep plants alive better than anyone else? Make a list of those standout skills and attributes that best define you, no matter how simple they may seem.

Beyond your skills, it can be helpful to identify your passions in order to narrow down a side gig.

• What ideas do you think about often?
• What do you look forward to doing after work each day?
• Are there aspects of your day job you really enjoy?
• When you hear "time flies when you're having fun," what's the fun?

For example, planning a trip may seem like something to distract you from work, but is your spreadsheet of restaurants and sights to see well-researched and elaborate? Maybe you’re checking stocks and creating investment plans in your free time. Take note of all these things that could be the answer to unlocking natural talent and happiness. One last thing: check with your full-time employer first to make sure there aren’t restrictions or a conflict with your current job. 

“Getting started is often harder than staying started. You’ll need to have a strong motivating ‘why’ behind your side hustle, and carve out the time to consistently make progress on it.”

– Nick Loper, founder of Side Hustle Nation and host of The Side Hustle Show podcast

4. Find your market: Who wants what you have to offer?

Consider your prospective customers. Are they in your geographic community? Your social feed? Do you have the tools to reach them? Is there a demand for your product? Is there room in the market for you, or is it already too saturated?

Do the necessary research to identify potential competitors. How you go about this may differ depending on your gig—you’ll need to identify other dog walkers, freelancers, or tutors and determine how your services differ. If you’re selling a product, do your research online to figure out how yours is different or better. Knowing your competitors is a key step that can make you stand out in a crowded marketplace.

5. Dip your toe in before you dive in.

One of the luxuries of the side hustle is trying new things and taking them at your own pace. For example, you can test different side hustle ideas before investing too much in one of them. “It's important to have some level of understanding of your market and target customers before you launch, but the trick is to not disguise ‘doing research’ as procrastination,” says Loper. “If you can validate your ideas with real dollars—pre-sell your solution—you’re in really good shape.”

Loper says one way is to start small with a limited run and tight customer base—get candid feedback and analyze how you can adjust your product or business model. If you feel like you’re onto something, continue testing with more and different customers.

6. Launch it.

It’s go time. Name your product or service, define your brand, and create a marketing strategy. Make it official and register your business name with the state. Obtain licenses or permits where necessary. Work with an artist to create a unique logo and branding elements.

Make sure people can find you and your side hustle with an online presence, by building a website or creating a profile on social media, for instance.

7. Take stock of the experience.

Remember, it’s okay if your side hustle stays a side hustle—in fact, only 19% of people said they want their side hustle to become their main source of income.¹ You may still need your primary job for the income, benefits, and overall stability.

“We often focus on the risks or the downside of starting a new project, but it’s equally important to ask, ‘What if this works?’ And if it does, would that be a win for you?” says Loper. “If the end result isn't exciting to you, the work required to get there probably won’t be exciting either.”

If it brings you joy, the extra income from a side gig might not matter as much. Consider all of the learnings. Are you meeting new people and expanding your network? Are you developing new leadership skills? Bringing new energy and knowledge from your side hustle to your primary job can be an important benefit. These returns on your investment could provide you with a greater sense of purpose, which is a key to happiness.

Next steps:

• If you’re on the fence about a side gig, talk to some friends or co-workers who have side work. Learn more about how they balance their time, and ask about the pros and cons of taking on extra work.
• Research competitors in your desired field. How would your services or products be different?
• Lay the groundwork to launch—consider opening a new checking account for your business, starting an LLC, or creating marketing materials.