How often do you get advice from your parents and grandparents that starts with ‘Back in my day…’ or ‘When I was young…’ before they go on to tell you how much harder things were for them ‘back then’?

Well, it’s actually the other way around.

Past generations created wealth and a happy life simply by studying hard, accepting a lifelong job and buying a home. Job opportunities are now scarce and super competitive, incomes are flat, housing and the cost of living are through the roof and average job tenure is just 3.3 years. To succeed you need to empower yourself, leverage your talents and create choices and options.

Why not start a side gig?

Don’t know how?

The first step is to figure out what you’re good at and combine your skills with what you love doing.

For example, if you adore dogs and are an IT whiz you could start a local dog-walking service. As demand grows, why not add grooming and feeding services, sell pet products to clients and expand into neighbouring suburbs?

Most side gigs don’t require expensive infrastructure or equipment and can be built up progressively. It’s free to get an ABN, set up a PayPal account and just begin offering a service people want. Side gigs are great for generating extra income, creating options for the future and providing fulfillment. From running an eBay store to tutoring to photography, the list is endless.

These six rules will maximise your chances of success:

  • Don’t give up your day job: just because you’ve got a great idea, doesn’t mean you should hand in your resignation. Keep your day job for now.
  • Action Plan: summarise your idea and goals on one page and get an accountant or financial advisor to review your plan to ensure there are no unforeseen financial risks.
  • Minimise costs: keep a rein on spending when starting out by using savings or credit you already have access to. Take advantage of free business services and products and use your existing networks and social media to market your business.
  • Make a sale: now concentrate on making your first few sales to prove there’s a market for what you’re offering. Your aim is to establish yourself and slowly start earning an income.
  • Scale the sale: once you’ve built up a track record of sales, focus on decreasing your expenses and increasing your turnover. An accountant or financial advisor can help you identify ways to increase profits and maximise tax deductions.
  • Finance: you can grow your side gig by taking out a business bank loan, borrowing from family or friends or using crowdfunding platforms.

Starting a side gig is a lot easier than you think and Australia is one of the most tax-effective places to do business.

You really don’t have to have a lot of experience or a lot of money.

It’s harder to become wealthy working for someone else, so just go for it.

Dr Steve Enticott — Guest Contributor

Dr Steve Enticott is a financial advisor, founder of CIA Tax and author of The Man With A Plan.

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