Side hustles have become the new money makers. The pandemic created a wave of entrepreneurs turning their vision into a profitable business. Seeing an economic boom, entrepreneurs have made it to the other side of the pandemic and are no longer succumbing to the trenches of traditional 9-5 jobs. Those still considering making the switch may only have a short time to take advantage of the many programs and incentives geared towards taking side hustles to the next level.
During the pandemic, those who lost their jobs were put in dire financial straits. Suffering the consequences of a crashing economy, families were pushed to the brink and forced to think of ways to survive. Though federal funds helped to create a cushion for some, others turned to side hustles to create new streams of income.
Known as the gig economy, freelancers, contract workers and under-the-table employees are all a part of a booming operation which gained traction during the pandemic and has continued to shift the employment market. Those who drive for ride-share services, rent out their homes for travelers and vacationers or launch a small business are all considered a part of the gig economy. These have been known to bring in major bucks and help families stay afloat during unsure economic times.
As the end of the pandemic seems near, tips for transitioning into a full-time entrepreneur are available from others who have paved the way.
Focus on your personal strengths:
Everyone is good at something and oftentimes, these can be turned into ways to make additional money. Passion points will help to fuel the fire on late nights and early mornings. This is also a great way to increase natural abilities.
Social media is your friend:
Reels, videos and other social reach methods have been key in pushing small businesses over the edge to success. Many people spend a substantial amount of time on social media, so why not use it to your advantage? Platforms like Instagram and TikTok have changed the way businesses are marketed. Allowing for in-app shopping, entrepreneurs can leave it up to their social media pages to do all the hard work of advertising and selling while business owners think of creative ways to display their products. Building a social following helps to expand on the largest and most effective form of marketing- word-of-mouth.
It takes money to make money:
Though some investing will be involved in getting a small business or side hustle off the ground, it is key that potential entrepreneurs do not spend so much up front. Making it hard to recoup funds, business owners are encouraged to engage in businesses that require little or low commitment up front. The point of a side hustle is to bring in as much money as possible, so it would be counterproductive to spend it all in the beginning.
Don’t get discouraged:
Remembering entrepreneurship is a marathon and not a race, business owners are encouraged to consider it a long game. There will be good and bad business days, but entrepreneurs must stick to the plan in order to see the fruits of their labor.
Pay your taxes:
The IRS has also issued tips to be sure gig employees do not fall victim to tax debt. Because side hustles are not taxed, entrepreneurs are responsible for calculating their anticipated tax bills to avoid a large debt at the end of tax season. Quarterly tax payments are recommended each year and the IRS provides tools for business owners to predict the amount owed.
The IRS also suggests keeping records of business expenses so they may be deducted from total costs each year. Travel, electronic purchases such as computers or business lines and all other items associated with the business are able to be deducted. The IRS also wants accurate records of funds earned from the side business.
Keeping these tips in mind can help aspiring entrepreneurs create multiple streams of income potentially forgoing the traditional 9-5.