Starting a side hustle is a smart decision for just about anyone; generating an extra stream of income is never going to be a bad thing. Whether you use the money to help pay off debt more quickly, to allow you to make more savings or just to have an alternative source of money to turn to if needed, a side hustle is the perfect way to do this.
It allows you to build your skills doing something you enjoy, and is something you could do in your spare time outside of your regular working hours. But before you get started, here are five things to consider to ensure you’re ready to get going and are following the law.
A place to work
First things first, you’ll need a suitable place to work from. If the work is online/ office based this could be a spare room turned into an office. If it’s making physical products then a shed turned into a workshop could be the way to go, or for something like a baking company it could be an area in your kitchen specifically dedicated to your business.
Tool, Equipment, and Materials
Turning a hobby into a side hustle is a great idea, since you already have the skills and experience needed. However, when it comes to your tools and equipment, what you’ll need to enjoy a hobby compared with what you might need to monetise what you do could be a lot different. Make sure you have the right tools and equipment to safely and efficiently create the products or services you want to sell. Consider where you will source your materials from, you’ll need to ensure that they meet safety regulations, that ingredients are properly disclosed and that they’re from a reliable supplier to be able to provide you with what you need on an ongoing basis.
Insurances
Having the right insurance is vital. If anyone is injured as a result of what you do or sell it could lead to ending up in serious hot water. The right insurances will protect you financially, hopefully you’ll never need to claim but are essential to have just in case. Use a company like CommercialInsurance.net to find the best prices and get the right cover depending on what you do or sell.
Transportation
Will your side hustle involve needing to move around? If you want to do something like mobile hairdressing, start a cleaning company, do tutoring where you attend your clients home or anything else that involves needing to get around then it’s important to consider transportation. You will need to check if your current car insurance covers you using your vehicle in this way.
Taxes
Finally, don’t forget to register as self employed so you can pay the correct taxes. You can be employed and self employed at the same time, you will pay for your side hustle taxes separately from what your employer pays for your regular job. It’s important to get this right so that you’re not breaking the law and paying the correct amount.