Tips to create a profitable side hustle

Even if you’re happy with your current career path, a side hustle can be a great way to pursue something that you love, flex your business acumen, and make extra cash. From cooking to gardening and writing to clothing design, more and more Australians are transforming their side hustle into a profitable venture that maximises their earning potential and creates significant wealth. What’s more is that they are doing so with the help of AI! Read on for help to get your idea off the ground or scale your existing small business and cement its longevity.

However, please keep in mind that the ideas and information below don’t take your personal circumstances into account, and you may wish to seek professional advice before making any decisions. Also, keep in mind that AI doesn’t always give accurate information and to always do your own research. There may also be data privacy issues so be sure to take steps to protect your intellectual property and safeguard your interests.

This article is not a guide – it is just a starting point to get you thinking about what could be beneficial for you.

How common are side hustles in Australia?

Whether it was due to the rise of the gig economy and accelerated advancement in technology or a generational shift towards entrepreneurship, a growing number of Australians are looking into the potential of side hustles. In fact, the Australian Bureau of Statistics revealed an estimated 986,400 Australians were multiple job-holders in the 2024 September quarter, with a 2.8% growth from the previous quarter. This is more than any other time previously recorded since the Bureau started keeping records in 1994.

While side hustles usually require a time investment outside and above the hours you put into your regular job, with hard work and careful planning you could become far more successful than you ever imagined. If you have niche skills that could fill a gap in the market, they could be used to create a profitable source of income if you market yourself well and utilise the resources at your disposal, especially AI.

Tips to get your side hustle idea off the ground 

If you are just getting started with the idea of building a side hustle, it can be an exciting but also intimidating time. While it’s true that almost half of all new businesses in Australia fail within the first four years, it may help relieve pressure if you shift your mindset and see your side hustle as a fun adventure and a learning exercise. 

It’s also important to spend time preparing for all eventualities. That way, you can determine whether your side hustle is a feasible financial idea, or whether it’s best to keep it as an enjoyable hobby.

Four tips to get your side hustle off the ground

You may need to dedicate a reasonable amount of time to get your side hustle up and running, especially at the start-up stage. Here are four tips you should take before starting your side hustle. You can also harness the power of AI platforms like ChatGPT to help you at every step.

1. Identify the skill set you’d like to capitalise on: Take stock of your skills, whether it’s the ones you already use as part of your current role or ones that you reserve for your interests and hobbies. It may be creating art, experimenting with recipes, creating animation, spending time with your pet, web designing, or interior decoration. You may also want to improve your skills and even get formal certification. For example, if you are good at web designing using plug-ins or apps, you may want to build on this by taking a coding workshop to understand the mechanics of building websites. Or if you are a naturally talented baker, you may want to do a baking and patisserie course to learn new techniques and earn a qualification to gain more credibility with your customers. Upskilling yourself may also help you secure a higher price point for your products.
2. Conduct your market research: Evaluate the demand and supply of the market you’re considering entering and see if there is a market gap that your skills can help fill. Use government resources to find data to understand market trends. Read articles on emerging trends in Australia and what’s taking off in similar markets overseas. Also look at your potential competitors and what they are doing well and what you could improve to give yourself a cutting edge. Don’t forget to identify your target audience. Will you be pet sitting in affluent areas or offering online tutoring to kids in remote or regional towns? Will you be drop-shipping raw materials to other creators (jewellery makers, candle makers, soap makers, etc) or will you be offering graphic design services to small businesses (café owners, florists, fashion designers, etc)? Research is the key to creating a business plan and accurately projecting your potential earnings.
3. Look at the legal requirements: Whether it’s registering your business name, setting up an ABN number, or applying for any necessary permits and licences – be sure to do your research. Australian Business Licence and Information Service (ABLIS) is a good place to start. You can also find out about any relevant industry association you can join to protect your interests and be across the code of conduct as outlined by the Australian Competition and Consumer Commission (ACCC). It’s equally important to work out your tax obligations and take advantage of any tax breaks available to small business owners.
4. Complete your financial planning: Look at how much capital you need to get your idea up and running and use an online budgeting tool or downloadable software to monitor your expenses and revenue. This will help you work out whether you are making a profit, loss, or breaking even. You may also want to look at grant programs for sole traders and small business owners that may be available to you. There may be federal government-led initiatives as well as corporate grants that you could apply for. You can search for funding options with help from the Australian Government’s grant finder tool. All state and territory governments also have grants programs available to small businesses that meet their growth criteria. Even local councils may have a small business budget set aside. Be sure to explore all venues open to you.

Tips for making your side hustle more profitable

Once you are up and running, your next – and arguably greatest – challenge is to find customers and start making money. While you might be able to manage every aspect of your side hustle, from creating and managing your social media outreach to sourcing suppliers and shipping your product, others will want to focus on one particular area. For example, if you are a great people person but not overly creative or technical, you might need to outsource certain tasks to specialists in their field while you manage the sales and marketing. You can also lean on AI platforms to help you find solutions in areas outside your comfort zone.

Manage your time and energy

Balancing a side hustle with a full-time job can prove challenging, but with the right strategies, you can find a balance that works for you. Here are six tips to manage your energy, effort, and time:

1. Set clear goals: Define what you want to achieve with your side hustle. Having clear, specific goals will help you stay focused and motivated.
2. Prioritise tasks: Identify the most important tasks and use tools like to-do lists or apps like Notion to keep track of your priorities. Instead of multi-tasking, manage your efficiency by monotasking.
3. Create a schedule: Use a planner or digital calendar to block out time for your side hustle. Schedule specific hours each week dedicated to working on it and stick to this routine as much as possible.
4. Lean on technology: Leverage productivity tools and apps to streamline your work. Tools like Trello, Asana, or Google Calendar can help you manage tasks and deadlines efficiently.
5. Set boundaries: Be clear about your availability with both your employer and clients. Setting boundaries ensures you have dedicated time for your side hustle without compromising your full-time job, all the while managing your wellbeing.
6. Protect your health: Don't forget to prioritise self-care. Make sure you're getting enough sleep, eating well, and taking breaks to avoid burnout.

Learn more: Tips from successful entrepreneurs on starting a new business

Tips to use AI to improve efficiency and grow your side hustle

AI can significantly boost your side hustle by increasing efficiency, productivity, and even opening up new opportunities. You may be a team of one, but with AI as your helper, you can scale up your business without huge overheads, while still prioritising your customers and business’ reputation. Here’s tips:

1. Data analysis: Tools like Tableau and Google Sheets with AI integration can help you analyse data more efficiently. This can be useful for tracking your side hustle's performance, understanding customer behaviour, and making data-driven decisions.
2. Customer Service: Implement AI chatbots to handle customer inquiries and support. This can save you time and ensure your customers receive prompt responses, even when you're not available.
3. Automation: Look at how you can integrate AI into your day-today operations to streamline it to work more efficiently and increase your productivity. Tools like Zapier can connect different apps and automate workflows, freeing up your time to focus on more strategic aspects of your side hustle.

Stay savvy

A side hustle can help you create the life you’ve always dreamed of for yourself and your loved ones. It’s important to stay financially savvy and protect the life you’re building for your family. As part of that you may want to weigh up your insurance options before making a decision that suits both your financial and life goals, and consider whether Guardian Life Insurance or Guardian Income Protection Insurance can help.