Side Hustle Businesses
One of the best aspects of my business is that I get to work with hundreds of entrepreneurial business owners and catch a glimpse of their vision and the business solutions they use. In each Blog post, I will expose you to different ideas. None of these ideas are hard fast rules as every business is different and unique. So pick the nuggets that you can use, whether now or in the future, or implement your own variations.
According to a 2024 MarketWatch survey, 54% of working Americans have taken on at least one side hustle in the past 12 months. This includes 59% of men and 49% of women. 57% of people who live paycheck to paycheck also have extra income opportunities. 48% of people who aren't living paycheck to paycheck have the same (Taken From Market Watch)
With 54% just in the last 12 months, add in the others that have been doing side hustles for years, and that equals to about 75-80% of Households with a side hustle as a second job. Side Hustles are the new small business. Some do it on a barter basis trading service for service and many donate time to their community.
Most side hustles are a single-person operation and can grow into a larger business. Side hustlers earn money in a thousand different ways, but every one is just a version of one of these eight ways of making money.
Earned Income From working a Job or Business
Profit Income From buying low and selling higher
Interest Income From lending money and charging interest
Dividend Income From owning stocks and equities
Rental Income From renting things you control (not just own)
Capital Gains When your assets increase in value
Royalties Income from others using your licensed work
Endorsements Advertising or Affiliate agreements
One of the problems with a side hustle is that they are not always profitable. At the beginning, jobs are often quoted at a low rate and in many cases to put food on the table.
When something goes wrong they are not always protected in the right manner. I see a lot of the problem side as I deal with insurance claims.
For instance, most people think that if they use their personal tools on the job, their homeowner’s policy will cover the loss if they get stolen or lost.
That is not the case, in fact, if the tools were stolen from their garage or truck the Insurance adjuster’s first question is “Do you use these tools to earn money in any way?” When you answer “Yes” then those items are now Business personal property - not Personal property and there is limited or no coverage.
And what about a side hustle like making signs with a CNC? Is the machine covered? “No it’s not.” What about my EBay and Etsy inventory in the closet? “Not unless you add coverage.” My vendor tent when I set up at a show? “Nope, not that either.”
There are bigger problems when it comes to liability:
The sawdust from my CNC caught fire and burned my garage and damaged the house next door. Am I covered? “Not if you had a business on the premises.” Homeowner policies exclude businesses and only a handful will add coverage for limited types of business.
If you are a Hairstylist and one of your clients gets a rash from one of your products or trips and falls on the wet floor, are you covered?
Your neighbor sues you because of the noise or all your customers parking in front of their driveway, are you covered? Etc, Etc.
Wondering what coverages your side hustle needs? Call us and we can put together a policy to fit your particular needs with coverage that grows as your business grows.
As you grow your business, set up your advisor team with licensed professionals such as CPAs, Insurance and Real Estate brokers, and legal counsel. Find people you trust and ask them what they think about things in their field, then you can make your educated decisions as you go along.
Every business is as unique as the owner that runs it. I talk more about building a free advisor team in the “Time vs Money” post, subscribe to our newsletter so you don’t miss it.
Enjoy creating and building your business. “If it’s Fun - it’s Not Work.”