How to start a side hustle

With the ever-increasing cost of living, many South Africans have dedicated their extra time to starting side hustles as a way to stay afloat financially.

Side hustles gained much traction during the Covid-19 lockdown, when people were stuck at home or lost their jobs, and were forced to come up with innovative ways of making extra money.

Despite the catchiness of the name, not all sideline businesses are successful or lucrative.

Neven Narayanasamy, a loan provider at DirectAxis, took the time to canvas his expert colleagues to help make your business a success.

Use your skill set and interests to your advantage

There might be a need for a Grade 12 mathematics tutoring business within your community, but there is no point in starting one if you do not fully understand the subject and are more passionate about English instead.

You could be a magnificent baker, but if there is a thriving bakery down the road, there is only a slim chance your business would be able to compete.

Side hustles always stand a greater chance of becoming lucrative when people overlap their passion and skills with a need for a product or service.

Have a business plan
A business plan helps outline and summarise your goals, mission and aim of your side hustle.

Your plan should be inclusive of your target market and marketing strategy – use social media and friend groups to help get the word out.

In addition, start-up costs need to be taken into consideration. Many people opt for personal loans because the process is straightforward and quick.

Make sure your additional income is compliant

It is always advisable to start small.

Starting at a small and realistic scale will allow you to assess the market to see how quickly you want to grow your business.

While you are running a small business, it is imperative to comply with the regulations, legislation and licences for that particular industry.

There is no running away from the taxman. If your business earns enough and puts you into a new tax bracket, you must pay taxes.

“There are pros and cons to a side hustle, and before committing or borrowing money to get started it’s worth thinking these through. If you do, your chances of success will be incrementally better,” says Neven.

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