As the famous American investor and media commentator Steven Lawrence Rattner once noted, difficult economic conditions often lead people to embrace unconventional or extreme ideas. This observation rings true in Kenya today, where the combination of high costs and taxes has put the squeeze on salaried workers.
Many employed Kenyans have turned to side hustles to beat the high cost of living currently experienced in the country.
What is a side hustle?
A side hustle is any business you run in addition to your full-time job or day-to-day routine. The actual definition varies depending on who you talk to, but very broadly speaking, it could be anything from freelancing to running an online shop. Most people refer to it as “side business,” “second job,” or even an “after-hours endeavor.”
There are possibly several ways to make money through side hustles, including blogging, teaching coding online, driving for Uber, and more!
Starting a side business while working a full-time job can be a very good way to generate extra income and pursue your passions on the side. However, balancing both pursuits calls for careful planning and time management.
Steps to create a successful side hustle
Laying the groundwork
Before getting into a new side hustle, it’s important to lay the proper groundwork so you can set yourself up for success. Here are some key steps to take in the planning stages:
Evaluate potential business ideas
The first step is deciding what kind of side business you want to start. Brainstorm ideas that align with your skills, interests, and experience. Do you want to monetize a hobby? Offer freelance services in your field? Sell products online or locally?
It’s also important to research the target market and competitive landscape. Make sure there is demand for what you want to offer and few direct competitors. Opt for a business idea with relatively low start-up costs.
Make a business plan
Once you’ve settled on a side hustle idea, it’s important to make a business plan. This will assist you set goals, estimate costs and potential revenues, outline tasks and a schedule, and manage financial expectations.
Be realistic about how much time and money you can devote to your side hustle for now. List specific milestones you want to achieve in the first 3-6 months. Map out a routine incorporating regular blocks of time where you can work on your business.
Arrange legal requirements
Most side hustles need some type of formal registration and licensing, especially if you’ll have a physical product or storefront. Look into your local requirements for: registering your business name, Applying for relevant permits and licenses
Filing any taxes or insurance paperwork
This paperwork can take time, so start the process 1-2 months before your target launch date. Keep very organised and updated records of all legal documents and application fees.
Set up business operations
With the formalities adhered to, you can shift focus to setting up operational systems for your side hustle. Key steps include opening a dedicated business bank account. Keep side hustle income and expenses separate from your personal finances.
Getting any equipment your business requires. For example, a quality laptop and software for freelancers, commercial kitchen appliances for food businesses, etc.
Setting up a simple bookkeeping system to manage invoices, track income/expenses, and prepare taxes. Creating processes for core business activities like taking orders, billing clients, renewing inventory etc. Start basic and optimize over time.
Having these systems in place will make it much easier to balance your side hustle and full-time job as things get busier.
Manage your money
Keep a close eye on your finances when launching a side hustle. Track income and expenses separately from your personal accounts.
Market yourself
Finding customers is critical, especially in the early days. Leverage your existing network and social media to get the word out. Reach out individually to friends, family, colleagues, and past employers.
Maintain work/life balance
It takes immense discipline and energy to maintain a full-time job while nurturing a fledgling business. To avoid burnout:
Follow a consistent sleep schedule, even on weekends. Don’t sacrifice rest for extra work hours. Take regular breaks during work and side hustle time. Go for a walk, do a quick workout, spend time with family.
Let go of perfectionism. Don’t over-stress minor business hiccups or unfinished tasks. Outsource tasks whenever possible. For example, hire a virtual assistant for administrative work. Schedule free weekends or mini-vacations where you completely disconnect from work.
Consider next steps
As your side hustle becomes more profitable and demanding, reassess your options. Can you switch to freelancing or running your business full-time? Is it worth hiring employees so you can scale while remaining hands-on?
Keep your long-term goals in sight. Side hustles often turn into full-fledged small businesses given the right nurturing. But there’s no fixed timeline – grow at your own pace.
With consistent effort and patience, you can build a thriving side hustle while employed in Kenya. Just focus on incremental progress and don’t overextend yourself too quickly.
