Unemployment benefits are vital, especially when your side hassle can barely cater to your regular living expenses. However, there is a thin line between such a venture, a hobby and working as an independent contractor.
So, what is a sideline business?
This is a venture you operate on the “side” while still working elsewhere on a full-time basis. Typically, you are still eligible for unemployment benefits if you become unemployed but continue to run your side venture. You cannot be disqualified from obtaining unemployment benefits on the grounds that:
- The sideline venture has never been your main source of income
- You are still keen on finding work
- You still spend the same amount of time operating the side business, even after unemployment
Dive in, and let’s learn more about sideline businesses. But before we do so, remember that it is crucial to report your sideline hassle immediately your venture kicks off.
Sideline Business Benefits
Sideline businesses are a bit different from regular startup businesses. This is mainly because you will be working elsewhere on a full-time basis, and the new venture will be more of a side hassle. A business is considered a sideline venture when its returns are not enough to finance your livelihood fully. While this may be the case, such projects offer numerous enticing benefits. Some of the compelling reasons to give such operations a shot include:
- Minimal financial requirements
- Lesser risks thanks to the test phase
- Less time demanding than a full-time venture
- Generate extra income to supplement your regular employment earnings
Let’s have an in-depth look at the perks you will enjoy once your business is operational.
- Financial Freedom
Very few things in life are half as liberating as knowing you are not fully dependent on your employer. With a side gig that allows you to earn a little something outside your main job, you will gradually become less reliant on income from your boss.
Don’t get me wrong; sideline businesses are not solely meant for those who are unhappy with their main jobs. In any case, this is a venture you should consider if you don’t want to lose the perks of your regular employment. Research shows that about 47% of people running fairly successful side gigs are happy earning a steady salary from their current employers.
The whole idea is considering a side venture is to create a healthy source of income that offers you both stability and a means to explore your passion. Even adding a mere 20% of your regular earnings to your monthly income can go a long way in granting you invaluable financial freedom.
- Enjoy unlimited Earning Potential
If you are on a salary, this means you will only receive a specific amount of money each month. Running a small gig on the side ensures that the sky is your limit in terms of your earning potential. Working a little harder or putting in a little more time can earn you something extra each month.
- Explore Your Passion and Monetize It
Let’s face it; there are drawbacks and risks allied with starting a venture that you can hardly turn into your main gig. They include:
- Financial strains and inadequate securities
- Possible lack of expertise in the field of your new business
- Inadequate business-related tests of the concept
- Insufficient business network
While most side hassles are unrelated to one’s career, they always have the potential of earning you extra money. This is irrespective of whether you have a thing to make handmade jewelry, play an instrument, or even write blogs. Even though it is not always guaranteed that the venture will work, you have nothing to lose if you give it a shot.
- Try Out Self-Employment
Through sideline businesses, you have a virtually risk-free means of finding out whether self-employment is right for you. Get a feel of what it takes to work for yourself and whether the returns are worth it. Because you still have a salary, you have the freedom to start small and slow and see how a specific concept works.
Even flourishing enterprises did not start making massive profits overnight. Additionally, some businesses collapse eventually because of one challenge or another. By starting a sideline business, you can take a more cautious approach before ditching your main job.
Is It Safe To Turn Your Side Business Into Your Main Hassle?
Some people start a sideline business with the intention of turning it into a full-time job in the future. Then again, others begin the ventures with no intention of quitting their current jobs. What we can all agree is that all people consider side hassles with the hopes of creating an extra revenue stream.
Some of the best sideline business ideas include:
- Amazon Reselling
- Affiliate Sales and Marketing
- Commission-Only Sales
- Tutor for online courses
- Web design and development
- Social Media Manager
- House, baby, or pet sitter
- Art Collector
- Online survey
- Airbnb Host, etc
Your goals and aspirations should help you decide whether you should turn your side business into your main job. It would help if you also considered how much revenue you are making and whether you could scale up in the future.
Running a business calls for tons of financial and emotional sacrifices. The venture will also need your constant focus and efforts round the clock. In the end, you must plan strategically and follow through with different processes for you to generate enough money to sustain your lifestyle and pay the taxman.
There are more than a few good reasons why sideline businesses are gaining massive popularity. Such ventures allow you to monetize hobbies, earn extra income, get a taste of self-employment, or even explore your passion.
Now that you understand what is a sideline business, go ahead, get creative, and explore the endless possibilities side gigs have to offer. However, make a point of understanding the tax and legal implications of your new source of income. Take it from me; it never hurts to seek a little guidance from professionals.
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