Many individuals consider franchising as a side hustle, especially in the current economic climate where inflation and the rising cost of living make it feel risky to rely solely on a new business for income.
What is a Side Hustle?
A side hustle is a secondary job that provides an additional income stream. This allows people to maintain their regular paycheck from their primary job while working on a self-employed business during their free time, such as evenings or weekends, to earn extra money.
Challenges of a Side Hustle
Balancing a full-time job with a side business can be challenging and may affect family life, particularly during the initial phase of setting up the side business. Additionally, you will need to invest your own money to start the business, with no guarantee of success.
Advantages of Franchising as a Side Hustle
There are significant benefits to choosing a franchise as a side hustle. Many franchises, like those in cleaning, bookkeeping, and pet care, are well-suited to fit around an existing career, family, and lifestyle, often with low startup costs. This means you can manage your initial investment effectively.
Opting for a franchise as your side hustle gives you access to training and marketing materials from an established brand, which can help you gain recognition in your local community faster than starting a business from scratch.
Key Considerations
When starting a side hustle, you will likely work more hours and initially have less disposable income compared to solely being an employee. To turn a profit, you need to invest both time and money into building your side business, attracting customers, and fulfilling orders. Providing excellent customer service is crucial for turning first-time customers into repeat clients.
Service-based businesses often generate returns faster than product-based ones, as selling goods requires more investment in inventory, storage, and distribution.
Utilize social media to increase your visibility and let potential customers know about your business. The quicker you start earning, the sooner you will see a return on your investment.
Remember, any income from your side hustle is taxable. It’s wise to set aside 30% of your additional earnings for taxes. To maximize this money, consider placing it in a high-interest savings account until you need to make your annual tax payment.