I Got Rich From Side Gigs: Here's What I Look for in a Side Hustle
If you're thinking about eventually breaking free from your 9-to-5 job, but you need a successful side gig to help you do it, you're in the right place. Aligning your personal passions with smart business sense can help you kickstart a small project into a significant income source.
Here, experts who have "been there, done that" outline the key signs of success to look for in a potential side hustle.
It Aligns With Your Interests and Passions
James Watts, a side gig expert in the course creation space and founder of the community platform Teach.io, said that the first sign that a side gig will be worth it is when you truly enjoy the work and can visualize yourself doing it full time.
"A side gig that aligns with your interests and passions will likely keep you motivated and engaged," he said. "It will never be smooth sailing all the time, so passion is a good fuel."
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However, there are also other benefits to choosing a side gig that you're passionate about and have interest in.
"Pursuing opportunities that align with your skills, knowledge and passions not only enhances job satisfaction but also increases the likelihood of delivering high-quality services, fostering repeat business and positive word-of-mouth," said Misti Morgenstern, the founder of Elevate Events. She transitioned her event-planning side hustle into a full-fledged business.
It's Financially Viable
According to Watts, the second sign to look for in a side gig is financial viability. "Look for strong demand for your product or service," he said. "If people are willing to pay for what you're offering, and you start seeing consistent income — that's a fantastic indicator. If demand exceeds your capacity to supply, it may be time to consider scaling up."
Morgenstern offered this additional tip: "Conducting thorough market research to identify underserved niches or areas where you can differentiate your offerings from competitors is crucial for sustained success."
It Has the Potential To Scale
Watts said it's crucial to assess whether your side gig can grow without requiring a proportional increase in your time. He added that investing in systems and tools for automation can help.
"For example," he said, "in the course creation space, once you have created a course, it can continue to generate income with minimal ongoing effort. Your role then shifts to nurturing your community, updating content and identifying new ways to add value.
"Plan out how to scale your side gig profitably. It can be via automation, outsourcing or expanding your product line. But having a strategy for growth can turn your side gig into a substantial income stream."
Morgenstern said that, at first, Elevate Events was a side gig that brought in modest monthly revenue of $1,000-$2,000 while she continued to work a full-time job in the restaurant industry. However, once her website gained traction and started appearing in search results, she began attracting larger clients and more lucrative opportunities.
"The ability to scale operations beyond a one-person endeavor is essential," she said. "Event-planning services allowed me to expand my team, take on multiple projects simultaneously and accommodate increasing demand as the business grew."
It Allows for Recurring Revenue Streams
The more income you can generate, the better.
"Establishing recurring revenue streams through long-term contracts, retainer clients or subscription-based models provides financial stability and predictability, enabling reinvestment in the business," Morgenstern said.
It Requires Minimal Startup and Operating Expenses
"Successful side gigs often have minimal startup and operating expenses, allowing a greater portion of revenue to be reinvested in growth and minimizing financial risk," said Morgenstern.
Final Thoughts
"Transitioning a side gig into a full-time venture requires patience, perseverance and the ability to adapt to evolving market conditions," Morgenstern said. "However, by identifying opportunities that possess scalability, recurring revenue potential, low overhead costs, alignment with your expertise, market demand and online visibility, you increase the likelihood of transforming your side hustle into a financially rewarding and sustainable business."
Watts had similar thoughts.
"A side gig that you're passionate about, that shows financial promise and that has the potential to scale efficiently can become a significant source of wealth," he said. "It can be something you pour your heart and soul into."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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