5 Questions to Ask Before Starting a Side Hustle

Whether you want to pay down debt, increase your savings or build a cushion in your budget, the extra income you earn from a side hustle could make a difference in your finances. Before you invest your time and possibly money in a new opportunity, ask yourself these questions.

A side hustle can change your insurance needs. For example, you may be storing inventory in your garage, meeting clients at your home or using your personal vehicle for business purposes. Talk to Farm Bureau to see if you need to make any changes to your coverage.

1. What Are Your Goals?

You’ll want to figure out what you’re aiming for with your side hustle. Are you hoping to launch and grow a business that could one day replace your regular job? Or do you have some spare time you’d like to fill with income-producing activity? Knowing your goals can help you make sure your side hustle meets your needs.

2. How Much Time Do You Have?

When you’re considering how to start a side hustle, take a realistic look at the time you’re currently spending on your job, home and family responsibilities and other commitments. How many hours per week can you dedicate to your side hustle?

Launching your own business can take a lot of time. If you don’t have much time to spare, or your free hours fluctuate, you’ll want to factor some flexibility into your side hustle.

3. What Gap Can You Fill?

What is a good side hustle? It’s an opportunity where you can use your skills and interests to earn extra money. You might love playing the guitar, but if you don’t want to give lessons or join a band, it’s not a side hustle; it’s a hobby.

Think about what you’re good at and what you like to do and then brainstorm ways you can monetize it. You can browse online freelance sites like Upwork and Fiverr and search on Google Trends to see what’s in demand.

4. What Will You Need to Get Started?

For some side hustles, you may already have the equipment and qualifications you need. For example, you can launch an online business with a laptop and an internet connection. You can drive for Uber with a driver's license, some driving experience and an insured, four-door car.

Still, you may need to set up things like:

• A website
• An online store if you are selling physical goods
• A way to accept payments

5. How Will You Measure Success?

Starting a side hustle isn’t a “set it and forget it” activity. Whether you’re looking for how to make money with easy side hustles or you’re intent on building a business that becomes your full-time job, you’ll want to track revenue, expenses, time and other factors that show your progress.

Making sure you have targeted metrics in place means you can focus more of your side-hustle efforts where you’ll get the biggest payoff and make adjustments in the areas that aren’t working as well for you.

Start Your Side Hustle With Professional Guidance

If you’re thinking about launching a side hustle, reach out to Farm Bureau. From making sure you have the insurance coverage you need to strategizing your extra income, our services can make a difference in your success.