Although many people are interested in taking on side hustles, far fewer actually succeed. What’s a sign that a side hustle is likely to do well, and why is that such a good indicator of its success?
These answers are provided by the Young Entrepreneur Council (YEC), an invitation-only organization made up of the world’s most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue annually and have created tens of thousands of jobs. More information at yec.co.
1. It ensures consistency
A side hustle that will likely do well is the one that promotes consistency. There is no such thing as overnight success; you will fail several times until you reach your goal. The reason most side hustles don’t make it is because people stop halfway through and don’t see things through. If you don’t mind giving 100% despite failing at something multiple times, you will eventually find a way to turn things around.
– Jared Atchison, WPForms
2. It is based on your expertise
A strong indication of the potential success of a side hustle is when it is based in your field. By sharing what you’re good at, you not only have the chance to earn an extra income, but you also deepen your knowledge of the subject. Teaching requires you to explore every aspect of your subject, keeping you engaged and pushing you to continually improve.
– Yuri Sokolov, Finazon
3. You have a well-defined business plan for it
A side hustle is likely to do well if there is a clear and well-defined business plan that describes the side hustle’s objectives, strategies, target market, financial projections and operational details. It helps the side hustler stay focused, make informed decisions, and navigate challenges effectively. A well-structured plan shows that the side hustler has thoroughly thought through his business.
– Kazi Mamun, CANSOFT
4. You’re passionate about it
Is it a job or a passion project? Are you pursuing it for the dollars it will bring? Or do you do it because you enjoy it? For any business to be successful, you must invest your time, energy and dedication. If you don’t enjoy it, you won’t stick with it long enough. Choose a side hustle that doesn’t feel like a hustle! Success and money will follow.
– Candice Georgiadis, Digital Day
5. It is cheap and automatable
Side hustles that can be automated and run at low overhead costs are more likely to succeed. A side job should take a maximum of five to ten hours a week, and anything longer starts to creep into the realm of part-time jobs. Before you worry about scaling up or investing more money, aim to generate a positive return on your investment within three to six months using a sustainable income plan.
– Ian Blair, BuildFire
6. It offers a unique solution
If you can define a unique value proposition for your side hustle, you know you can achieve success with it. Look for ways your users can benefit from your product or service. Is it different from your competitors? Does it offer a unique solution to solve your users’ pain points? These are a few questions that can help you identify your unique value proposition.
– Josh Kohlbach, Wholesale Suite
7. It attracts more and more customers
A promising sign of a successful side hustle is consistency, which increases customer interest and engagement. Whether it’s sales, inquiries or social media interactions, sustained customer engagement indicates that your offering resonates with people. It is a practical measure of market validation, which is crucial to the longevity and success of any business venture.
– Kyle Goguen, Pawstruck
8. It combines growing trends with your own interests
A side hustle is likely to do well if it covers a growing trend that happens to coincide with one of your interests. Starting a side job may sound fascinating, but people often don’t give it 100%. But if it matches your interests, work becomes fun. So you are more likely to commit to this, even after a busy day at work, day in and day out. That’s what guarantees its success.
– Stephanie Wells, Formidable Shapes
9. You did market research for it
People often pursue side hustles without careful consideration, and that is one of the main reasons why they fail. Market research is very important and provides you with relevant insights to make informed decisions. So, you need to consider several factors such as market demand and competition and make a careful analysis of your available resources before getting started.
– Chris Klosowski, Easy Digital Downloads
10. It has expandability and long service life
A key factor for a successful side hustle is its ‘expandability and longevity’. If your business can grow without a significant increase in effort or resources, it will likely prosper. It is also crucial that your side hustle is not a fleeting trend, but responds to a long-term need. This balance allows your side hustle to evolve over time, providing steady income and satisfaction.
– Vikas Agrawal, Infobrandz