Are you considering starting a side hustle?

December 08, 2020

You are not alone! In fact, you are amongst millions of American that are either considering starting a side hustle or have already launched one!

In 2019 57 million Americans freelanced either Full-Time or Part-Time (Freelancers Union).

That number makes up 35% of the total workforce in the United States!

Upwork, an application designed to help freelancers find work on a contract basis, reported that 2 million Americans started freelancing just this past year alone.

Why is there an increase in U.S. workers performing freelance work?

Both Full-Time and Part-Time gig work is a choice that workers make for several reasons, including:

  • flexibility
  • the ability to save on commuting by working from home
  • fostering a passion for creativity
  • and more.

Some of these freelancers may have other reasons to perform services as an independent contractor. This may include a desire to turn a hobby or a dream into a full-time job and business venture.

Technology has made much of this possible. As new industries and services are invented, additional jobs will be added that will be worked on a contract basis.

Before the pandemic, American workers wanted to increase their earning potential.

The additional income that part-time gig work added to their households may often have been used for personal expenses. Some freelancers perform additional work for extra money to enhance their lifestyle, perhaps enjoying nice vacations. Independent contractors may be using this additional income source to increase their savings for a major purchase, such as a home. Some professionals pay off debt, such as student loans, with the added earnings.

This past year, the pandemic resulted in record-breaking unemployment numbers, with a high rate of almost 15% in April (Bureau of Labor Statistics).

Some employees remained employed but experienced a decrease in both work hours and income. Family members became ill, resulting in additional expenses and a reduction of income. Many, of course, lost their job completely, either temporarily or permanently.

Some of these displaced workers decided they needed to quickly generate fluid income and sought out gig work to pay the bills.

Many of these workers turned to one of the most popular industry gigs, delivering food to customers’ homes.

Individuals working for Door Dash, Uber Eats, Instacart, and their competitors are working in one of the fastest-growing industries.

Contactless delivery became very popular during the pandemic. These companies began hiring in record-breaking numbers to keep up with customer demand.

Some of the other most popular side hustles include:

  • Resale
  • Blogging
  • Dog Walking
  • Graphic Design
  • Social Media Management
  • Tutoring
  • Crafting
  • Bookkeeping
  • Cleaning
  • Consulting
  • Ride Sharing
  • Virtual Assistant work.

*Most of these side hustles are completely independent of a third-party and can grow to something more.

When an individual adds additional income outside of their regular job, this is often referred to as a side hustle.

A side hustle is a flexible job that one works “on the side” to “hustle,” adding additional income in addition to regular employment.

For some freelancers, this new endeavor meets or exceeds expectations. If the service is in demand, more customers are ready to receive services than a freelancer’s bandwidth allows. If your side hustle provides a solution that enhances your business or lifestyle, this could lead to a very successful business venture shortly.

You may very well have such a demand that you may be faced with choices that may include dedicating more time to your side hustle and adding employees to fulfill orders and services. This may be the end goal all along, maintaining your full-time job while building up the business.

Some generations embrace the side hustle more than others.

The millennial generation really embraces this culture, enjoying the flexibility and often the ability to work from home. They often cite a side hustle as almost being necessary to support their goals. This is because they feel having two or more income streams contributes to financial stability.

If you have a special talent, there may be a side hustle that you can successfully develop.

If you have an idea to solve a problem and want to start a new business, you may decide to start this business on a part-time basis. When you generate enough customers to earn a full-time income, you will be able to quit your regular job.

To launch your business, you must first find customers. You may be able to do this by:

  • leveraging existing relationships
  • forming new ones to receive referrals
  • establishing a presence on social media
  • utilizing third-party apps, such as Upwork.

It is important to note that some of the biggest companies in the world today were started as side hustles!

Apple, valued at over 1 trillion dollars, is probably one of the best examples of a business that began as a side hustle.

Steve Jobs’s passion for computers and entrepreneurial spirit and his partner resulted in Apple’s creation. Apple was started in a garage!

Other amazing stories include that of Under Armour, which was founded by a University of Maryland football player. The player saw a need for the special fabric to keep athletes cool. He began his journey in his grandmother’s basement. Under Armour now has over 16,000 employees. They just created a spacesuit for Virgin Galactic.

Craigslist began when Craig Newmark started emailing friends about events in San Francisco.

His website launched into several different categories for online ads. Craigslist has since launched sites in several different countries.

“Craig’s” net worth is set to be over one billion dollars! The company that started with Craig sending emails now has 50 employees!

The possibilities are endless to begin a successful side hustle and add a stream of income!

If you are considering starting a side-hustle or know of someone that could use support as your side hustle grows, we would be honored at the opportunity to discuss payroll.

You may think your organization is too small to utilize the services of PaySmart, but that is not the case.

PaySmart supports small business, which often is companies that are the owner only.

We will be there for you when you start taking your first paycheck. We will be there when you add your first employee, supporting you every step of the way!

PaySmart is a payroll provider located in Mechanicsburg, Pennsylvania, supporting small businesses in the Central PA region. We are dedicated to helping small businesses take care of their payroll needs. To learn more information about how PaySmart may provide payroll solutions, please contact us at 717-766-1777. Our New Client Concierge is waiting for you!