The Art of the Side Hustle in Wisconsin: Turning Passions into Profit
Increased prices and a worsening economy have many Americans taking second jobs just to cover their bills. In 2023, 53% of Gen Z, 50% of millennials, and 40% of Gen X surveyed had a side hustle. As a state, Wisconsin ranks 24th in searches for side hustles.
As your financial ally, FVSBank is here to help you navigate the possibility of a new side hustle in Wisconsin. Whether you’d like to turn your hobby into a thriving venture or apply to an established side gig employer, we’ve got the small business tips you need. If you’re ready to begin on this exciting path, here’s the FVSBank guide to successfully starting a side hustle in Wisconsin.
What is a side hustle?
For full-time employees, a side hustle is an income-making endeavor that’s accomplished in addition to your main job. Side hustles are often freelance or entrepreneurial in nature. They can also involve working for companies that allow flexible scheduling such as Lyft, Uber, and Instacart. WIProud recommends the following side hustles for Wisconsin’s 9-5 workers.
- Delivery Driver
- Snow Removal
- Freelance Writing
- Landscaping
- Photography
What are the benefits of a side hustle?
If you have a passion for something outside of your 9 to 5, a side hustle can allow you to explore that opportunity and bring home some extra cash. Most side hustles offer these five benefits:
- Extra Income – A side hustle typically provides some extra spending money but doesn’t pay well enough to be your full-time gig.
- Part-Time Hours – A side hustle can fit into your current work schedule without disrupting your main source of income.
- Flexibility – The ability to set your own hours and work when you want is key to a side hustle.
- Entrepreneurial Starting Block – A side hustle allows you to test the waters of a new business idea without giving up your full-time income.
- Creative Outlet – Side hustles are great for monetizing a hobby or passion that’s different from your main career.
How much money can I make with a side hustle?
Before you commit to giving up your evenings and weekends, you may wonder how much money you can make working a side hustle. Keep in mind that some of the more popular side hustles, like driving and delivery, profit most in urban areas and dense populations. According to Indeed and ZipRecruiter, here are the average monthly incomes of four popular side hustles.
- Virtual Assistant: $5,575 average monthly pay
- DoorDash: $4,411 average monthly pay
- Online Tutor: $3,259 average monthly pay
- Uber Driver: $2,347 average monthly pay
Can I create a side hustle from my hobbies?
When you spend your free time creating jewelry, blogging, taking photographs, or exploring any other passion, you may start to wonder how to profit off of your hobby. Evolving a hobby into a side hustle takes time, skill, and dedication. If you’re not currently creating at a professional level, the first step to realizing your dream is additional training. Once you are creating professional products, follow these steps to turn passion into profit:
Find Your Brand
In order to sell your products or service, you need a company name and logo. Once you’ve picked your branding, you may need a website, blog, and social media presence. If you’re not familiar with building an online presence, you may need to invest some time in learning about websites and social media branding.
Choose a Business Structure
According to the US Small Business Association, business structure influences the amount you pay in taxes, your ability to raise money for your business, the paperwork you need to file, and your personal liability. Different business structures to explore include:
- sole proprietorship
- partnership
- limited liability company
- corporation
- nonprofit corporation
Build Your Connections
While it may not come naturally for you, networking is an important part of growing any business. Not only can you exchange ideas with other entrepreneurs, making business connections can open the door to new clients. Find networking events through social media and local business groups.
Write a Marketing Plan
In order to make money your business needs clients and sales. Research popular marketing strategies to attract the perfect customers for your endeavor. The right marketing strategy may include online advertising, word-of-mouth referrals. public signage, and social media marketing.
Grow and Expand
With the right strategy (and a little luck) your side hustle can grow into a profitable business. As your business grows you’ll face a new challenge – managing growth. To keep pace with customer demand you may need to hire employees, outsource tasks, and create a more efficient workflow. You may even decide it’s time to leave your full-time job and invest completely in your new business.
Tips for Starting a Side Hustle
Ready to earn some extra income? If you’re considering a side hustle in Wisconsin, you may want to think about how it will affect your finances. From taxes and insurance to business checking accounts, here are five things you should consider before starting a side hustle.
Plan for taxes: Depending on the type of side hustle you chose, taxes will inevitably follow. Income tax is nearly guaranteed but you also need to consider sales tax, self employment tax, and other possible tax implications. Carefully record your side-business earnings and any related expenses for tax purposes.
Register your business: Working for an established side hustle like DoorDash doesn’t require any special state registration on your part. But if you’re planning to start your own business or freelance as a sole proprietor or LLC, you should check your state’s business regulations. You can register your Wisconsin-based business and research small business requirements through the State of Wisconsin Department of Revenue.
Separate your bank accounts: The easiest way to organize your income and expenses for tax purposes is to open a dedicated side hustle checking account. Not only will this help you visualize the benefits of working a side hustle, separate accounts can help you organize your finances for tax time.
Secure the required insurance: If you are baking, repairing, or driving as a side hustle in Wisconsin, make sure you have the required insurance for your industry. If you are unclear about insurance requirements for your side hustle, reach out to a local insurance or regulatory agency with questions.
Hire a professional: Starting a new business comes with a variety of challenges. When you are focused on perfecting your product or service, financial details can fall to the wayside. A financial professional can help manage the business side of your new hustle while you focus on the creative process. Fox Valley Savings Bank can help you navigate your new side hustle and connect you to small business resources in Milwaukee and the Fox Valley Region.
FVSBank: Empowering Wisconsin’s Budding Entrepreneurs and Side Hustlers
With a deep understanding of the unique needs of small businesses and side hustlers in Oshkosh, Waupun, and Fond Du Lac, FVSBank offers tailored solutions to help keep your personal and business finances organized. From business checking accounts to small business administration (SBA) loans, our commitment to supporting businesses of all sizes makes us an ideal partner for your side hustle journey.
Embrace your entrepreneurial spirit and let FVSBank help nurture and grow your side hustle into a successful and fulfilling business. Start your journey today and see how FVSBank can make a difference in your success story.