Today’s challenging economy prompts many Americans to explore side hustles and part-time jobs to earn extra income so they can afford travel and other luxuries — or even basic necessities, like rent or groceries. While side hustles often begin as a way to supplement income, many people are now discovering the joy and possibility of turning their side hustle into a full-time business.
In this article, we will explore the world of side hustles and why they matter and share some examples of side hustles that can potentially turn into profitable full-time businesses in today’s economy.
Benefits of a side hustle
As new graduates navigate a challenging labor market, exploring a side hustle beyond your 9-to-5 job does more than just provide you with extra disposable income. Taking a side hustle seriously often opens up more opportunities, ignites passion, hones your skills and helps you thrive as an entrepreneur.
Getting a side hustle helps you to:
- Create multiple income streams that can go toward your emergency fund, savings or a retirement fund
- Grow your network within your field of interest
- Explore more professional opportunities
- Monetize your passion
- Test the ground for full-time entrepreneurial plans
Gary Hemming, owner and finance director at ABC Finance, says, “If you’re too risk-averse when it comes to starting your own business, side hustles are your next best alternative in testing the waters.” He adds, “This allows you to explore the best formula for your business before turning it into a full-time career.”
Five side hustles that can turn into full-time businesses
Whether you want to turn your skills and talent into a side hustle or a profitable full-time business, here are some ideas you may want to try:
1. Professional coaching
The demand for the coaching industry is constantly increasing, with the rise of individuals seeking extensive and professional help in specific areas like finance, health and fitness, career or legal and business.
For example, a person well-versed in the finance industry could providing financial coaching for individuals looking to get out of debt, invest or plan financially. A corporate lawyer could even take on legal or business coaching to help small-business owners draft an LLC operating agreement or create a business plan.
With enough clients trusting your expertise, you could eventually turn coaching into a profitable full-time business.
2. Bookkeeping and tax services
If you are a CPA, corporate bookkeeper or tax professional, you could do part-time bookkeeping or help people file their taxes.
There is always a demand for financial and tax services, especially with the increasing number of small-business owners, such as people who own rental property. They can face challenges managing their accounts and paying property taxes on time.
3. Professional workshops
Offering professional workshops is also a great way to share your expertise with a larger audience and earn money on the side. For example, an HR professional with extensive career planning experience could hold career development conferences for individuals or effective hiring sessions for HR personnel.
4. Selling digital products
You could create digital products based on your expertise to sell to anyone worldwide. Some examples include:
- Online courses and study materials
- eBooks
- Digital art and photography
- Digital templates and tools, such as budgeting and financial planning templates
- Digital memberships for fitness programs, meal plans, educational courses
Jeffrey Zhou, CEO and founder of Fig Loans, says, “Over the years, the digital products business has become a lucrative source of part-time and even full-time income for many entrepreneurs because it requires zero to little start-up cost (and) doesn’t require rent or inventory.”
What’s the secret to creating a digital product that will sell well enough to turn it into a full-time business? Create products that make your customers' lives easier.
5. Drop-shipping business
The idea behind a drop-shipping business is simple: You make your products available online, then you have a third party produce them on demand and ship them to your customers.
Drop-shipping has become a popular business model mainly because it doesn’t require inventory management and requires minimal start-up costs. Finding the right product and effectively marketing it is the secret to turning drop-shipping into a full-time business.
However, Sabas Lin, CTO at Knowee, warns, “This industry has already become saturated with many aspiring entrepreneurs looking to make easy money. While drop-shipping looks and sounds (easy), it’s not easy to cut through the noise in an industry where almost everyone sells similar products.”
Why employers should not discourage employees from getting side hustles
Employers might think that employees having freelance careers on the side could threaten employee retention. But employers should not automatically dismiss side hustles. Rather, they could simply make it clear that the employee should ensure their side hustle does not affect their productivity at work. When employers discourage employees from having a job on the side, workers are more prone to calling in sick when they’re not and lying about their reasons for wanting to take time off.
Edward White, head of growth at beehiiv, says, “When employers allow (employees) to explore side hustles, employees can develop skills and abilities that can also benefit the organization. For example, employees with side hustles selling digital products made from graphic design platforms can help hone their graphic design skills, from which the company can benefit.”
Nothing comes easy as an entrepreneur, especially if you’re trying to turn your side hustle into a full-time business. However, with a suitable business model and enough experience, using your skills to create a steady income stream is not impossible.
