If you work full-time but want to make more money or simply have an entrepreneurial itch, it makes sense to pursue a side hustle. While I have made money a number of different ways over the past couple years, I started to focus primarily on blogging and online income recently for a number of reasons.
That’s not to say you shouldn’t pursue other side hustles. It really depends on each individual and what their goals are for their side hustle and what they hope to accomplish. Some may want to turn a passion into side income, like how Lisa from Lisa vs. the Loans teaches dance.
Here are a couple characteristics that I look for in a side hustle:
Location-Independent
Having a location-independent side hustle is very important to me. I already have a job that requires me to be in a certain location five days a week. If i’m going to spend my “free time” working I want it to be work that can be done in the comfort of my own home or local coffee shop, or perhaps down the road from a beach in Hawaii ;)
This is one of the five reasons I think blogging is the ultimate side hustle. I personally like the idea of making money online and the fact that you can work on it from pretty much any location that has internet access.
That’s not to say blogging is the only side hustle that is location-independent. I know a number of people who have location-independent side hustles such as those who have Etsy sites, create graphics through a graphic design business, or who work in spreadsheet or database consulting. There will always be location-dependent work that is needed, but if this is your spare time you might as well choose something that can be done from anywhere.
Ability to Outsource and Sell
When I say ability to outsource I don’t necessarily mean outsource to India, Pakistan, etc., but more so the ability to hire people to do the work versus having the work be dependent on me. The very term “side hustle” implies you will be stretched for time, so it’s difficult when you can’t leverage the talents of other resources.
Allow me to explain. There are a number of blogs out there that I know were started by someone other than the current owner. In some instances they’ve outsourced 100% of the work and simply take the profits off of the top each month. They not only own 100% of the website and could sell their equity at any time, they also receive a decent return on equity for little to no time commitment. That’s why I love the fact that I have two weekly writers on my site. Yes, outsourcing cuts into profits but ultimately it frees up time for me to work on other aspects of the business or even start new websites down the road.
Especially if you work full-time and are trying to create a side income, I definitely advocate creating something that you can sell down the road. It’s hard to sell a business if it’s entirely dependent on you, and the equity you create will be greater if you can create a system that generates profits with or without your involvement. There may be some strategy that will allow you to sell a consultancy you started, but it’s difficult for an investor to get excited about something that hinges on your unique knowledge and relationships you’ve established.
Final word: If you’re going to go through the trouble of setting up a side hustle, you might as well create one that you can not only gain an income from but also that you can sell.
Have you considered pursuing a side hustle or do you currently pursue one? What characteristics do you look for when deciding on what type of side hustle to pursue?
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Photo by Jeroen Bennink
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Recently I’ve been thinking to become a re-seller and sell stuffs like clothes, shoes and bags. I had a friend that encourages me to become her re-seller and she is based in Bangkok now where there are lots of low prices stuffs with good quality.
Clarisse @ Make Money Your Way I know someone in Kenya who travels to China once a month and brings back a TON of wholesale inventory and then sells it. It sounds like a lucrative opportunity!
Any side hustle I do would have to require not leaving my home. I don’t want to be away from my kids in my free time because they’re so young.
Holly at ClubThrifty Great point and something I haven’t thought about (but probably should). I always wonder why people pursue things like wedding photography when they are in their 20s. Why would you want to be gone nights and weekends when your kids are out of school? Makes no sense to me.
Location independence is really important to me as well. I would like to eventually work full-time at something I can do from anywhere, or at least anywhere with a good internet connection.
Matt @ Mom and Dad Money Looks like we have similar goals!
That’s a great point on outsourcing so you can free up more of your time. If you work it right then it can allow you more time to work on other things and thus increase the amount your able to make over time. Location independence is a must have as well. Of course blogging is and our business, for the most part, is as well.
FrugalRules I love the idea of freeing up time and providing work for people. There’s so much work for any given blog that I think it’s essential to move towards outsourcing, even if slowly, to free up your time to start a second site or focus on marketing/monetization.
Great post. Its so amazing how you can really make a lot of money online with little to no start up cost. When I tell people I’m thinking of doing an ecommerce n niche site, they automatically think its unrealistic because they feel it costs money. But actually you can start one of those sites with less then ten bucks n with ecommerce sites you don’t even have to carry inventory when there’s dropshipping services.
MonaSez Thanks Romona! I also love the idea of an ecommerce site and it’s incredible what’s possible today with almost no startup costs and a little ambition.
I think as time goes by and a blog starts to earn more and more money outsourcing can be very wise. But, really only if you want less of your voice or want out of blogging. A couple of the blogs I write for I am the only writer on the site. So the owners pays me a little to write each month but then the y earn 4-5 times (or more) of what they pay me. Nice profit! Hopefully I can manage this with a few blogs one day!
SingleMomIncome Well, I definitely don’t want to lose my voice or want out of blogging, but I want to have time to work on developing new sites from the ground up. I think my current setup is pretty nice as I have 2 out of 5 days accounted for with writers on Tue/Wed, but I still write a majority of the posts on the site.
I hope that I can manage that as well! I would love to have a few websites that are bringing in decent profit, at least enough to have me quit my full-time job and work on that solely.
Location independent is crucial for me. So much of my life as an actor is traveling, so being able to take my “hustle” on the road is crucial.
brokeandbeau Great point! Also if you are making some additional income from a side hustle there is less pressure on you to bring in $ from acting. I think that can be applied to just about any job, though. I feel like I would perform better at my job if I didn’t “need” the income.
Those points you outlined are important. I have a side hustle in video work which means it is 50% on location and 50% at home which is fine with me. However, I would welcome an online side hustle which I can run 100% from my apartment .
BorrowedCents 50/50 certainly isn’t bad and video work will always be in demand.
The big thing for me is flexibility, and the ability to put as much or little of time into it as I have available, as well as to fit it into my schedule where I have holes of time. blogging and mystery shopping fit that to a ‘T.’ :)
DebtChronicles I hear you! It can be tough working a side hustle where you need to schedule blocks of time with clients, mainly because your schedule is already pretty limited with only nights and weekends open for most people. Even then I’ve found that you do have a life outside of work that takes up some of that time ;)
Very interesting points, I had never thought to explicitly consider the characteristics of a side hustle before. Your point about having an exit strategy for online businesses is a very interesting one, that I hadn’t considered at all before.
I’m looking for more passive pursuits, myself. Front load the work and then get to a less work intensive maintenance stage.
Ugifter I spent over a year debating whether to start this site, so I had time to think about everything ;) I like the idea of creating a business, an asset, that is transferable. That way all my hard work on my side hustle can not only give me income but will (hopefully) give me a decent lump of cash when I do want to move on.
I agree that location independent is ideal, as many people are already commuting to their normal jobs, and don’t want to add another route onto their day. I would much rather come home and work on the blog, or write, than have to rush to eat and head out again. There’s just so much more flexibility and freedom that come with being able to work solely online.
JourneytoSaving I agree 100%. If I’m going to hustle in my free time, I might as well do it from my home. Granted some extroverts really enjoy side hustles where they are out and about interacting with people, but I’m not an extrovert!
I’d really like to get into a profitable side hustle. I still have a lot of learn. Speaking of outsourcing and selling, I was just reading about people who make websites to flip them. I don’t have the skills to do that, but I considered buying an existing site with traffic, etc. But honestly I wouldn’t know how to analyze whether a website was a good one. Like Mona, I’ve considered e-commerce but that probably requires more risk such as inventory…unless you use a dropshipper…but then it is hard to differentiate your site from others. It’s something I need to stop thinking about and start doing, but haven’t had the time or knowledge to pursue.
Andrew LivingRichCheaply There’s nothing wrong with continuing to learn. I spent years learning about blogging and making money blogging before having a successful site. I would like to have a spreadsheet consulting business but it could be years before I have the expertise necessary to do it on a wider scale (I only have one client right now, and haven’t had a big project for months).
Location independence is a huge plus but it’s only really feasible if the creation medium is portable. Things like blogging and graphic design can be done anywhere because a laptop is portable. If you want to do wood working or quilting though, it’s harder to do it outside of your designated workshop. Although at least with those pursuits you can operate in the comfort of your own home.
MicrosMissions There are pros and cons to a business being location-independent. There will always be demand for things that need to be done in a particular physical location.
Great points! Very advantageous to have your side hustle mobile so that you can take it anywhere you may be!
MoneySma1 Yep, that’s definitely one of my pre-requisites.
I have a few side hustles going on right now, and none of them are ideal :( I do some contract legal work and it pays well, so it’s hard to justify the hobbies-turned-side-hustles that pay a lower hourly wage, but they have their benefits. One is to sew ornaments and sell them at our church craft fair. The bonus with this work is that I can do it while I relax in front of the TV or even while my son is home and playing or when I’m waiting for an appointment or something.
Very true about the location independence. I do think it’s easy to get attached to your side hustle and no want to sell it but everything can be bought for the right price!
I started my blog as side hustle, but it sure takes lot of work and patience. I came from a side hustle that turned into full-blown business which was ecommerce, but it was hard work without much flexibility, but it did pay off right away every month. I guess there is always a trade-off.