Life University (Life U) students, especially entrepreneurial business students, often like to get creative with an extra stream of revenue to bolster their résumé and their funds. This is especially appealing to busy students who want flexible working schedules to maneuver around class time, athletics, social events or even a more standardized work arrangement. The first hurdle, of course, is what to do and where to start.

Setting Up a Side Hustle

(Adapted from Investopedia’s “How to Start a Side Hustle”)

  • Consider your options. Think about your skill sets, interests, hobbies and lifestyle. Can any of those translate or overlap into a product or service in demand?
  • Research your area. You want to have an idea of the competition, where you might market your product or service, as well as your target customer base. Some market research is advisable in order to figure out if there truly is a demand for what you offer and what would be considered fair pricing. The scope of the research can likely be on the smaller side to start, interviewing people of interest or distributing a simple survey.
  • Make a business plan. For a small side hustle, you may very well be the only stakeholder, but it is still important to have a written idea of your goals with your small business, your marketing strategy, financial plans and other important factors.
  • Sometimes, you have to spend money to make money. You will need to think about the costs required for your side hustle, especially if you are providing a physical product. How much will your material cost? Is there a way to keep costs down, such as buying in bulk as appropriate? What about equipment costs? These costs will also help inform pricing, as well as how much time investment is involved.
  • Will you need an additional space to conduct your side hustle? For example, if you are making a product to sell and need space to keep it, you might require a storage unit. Alternatively, if you are making something and need space to create, that is another potential entry cost to consider.
  • If your side hustle is to become a legitimate business, you will need to set up appropriate licensure, mostly likely an LLC. You will likely need to create a business bank account as well to keep personal and business expenses separated. This is especially important for tax and accounting purposes. Business insurance might be a smart move if your business gains a large reach or if you end up including others in your venture.
  • The ideas above admittedly apply most for people attempting to set up a new kind of side hustle on their own, but there are some established side hustles that many college students take advantage of. A few examples include Uber or Lyft for driving services, Rover for pet sitting, Care for babysitting and various delivery services. Companies such as these drive clients to you, though they do take a noticeable cut from your take home pay for doing so. However, for those not ready or willing to build a side hustle from the ground up, it might be worth looking into.

Pros and Cons

Side hustles can be fun, but it is, after all, still work. You will want to weigh all factors before diving in too deep. Some advantages are working on your own timetable, the freedom to pursue a personal interest or passion, extra income, utilizing different skill sets, and exploring entrepreneurship. In the potential negative column, it could disrupt your work-life balance, perhaps take the fun out of a hobby when using it for a financial purpose, and pose risk related to finances, legal considerations and taxes. A financial advisor may be able to help mitigate some of that risk or help prepare for it, but every business venture comes with at least minimal risk. In general, it is advisable to start small and then scale up as you go.

We hope you have found this article helpful and informative. Best of luck on your path to financial independence.

For more information on a fulfilling career in business, visit Life U’s Bachelor of Business Administration (B.B.A.) page.

 

References

https://www.investopedia.com/financial-edge/0712/how-to-start-a-side-business.aspx

https://fourthwall.com/blog/how-to-make-money-as-a-college-student-10-successful-tips