Yahoo Finance The 5 Biggest Barriers to a Successful Side Hustle and How to Fix Them
For many Americans, side hustles are not just a way to earn extra cash for discretionary purchases — they are a financial lifeline that helps pay the bills. A 2023 study from LendingClub and PYMNTS.com found that nearly half of employed consumers hold some kind of side job. Of those who are struggling financially, more than four in 10 said they hold a side job to make ends meet.
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A more recent study from Adobe Express, released in January, found that more than half (56%) of those surveyed said their biggest motivation for getting a side hustle is financial security. That ranked second behind a desire to establish multiple streams of income (59%). Other top motivations are the desire to be your own boss (43%), supplement insufficient wages (40%) and get a more flexible schedule (39%).
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Top Five Struggles Related To Starting a Side Gig
Adobe Express also looked into the biggest struggles people have when starting a side hustle. Here are the top five:
Lack of capital: 44% of respondents.
Lack of time: 42%
Uncertain business plan: 41%
Less work-life balance: 35%
Juggling multiple jobs: 35%
In its research, Adobe Express consulted with veteran entrepreneurs to learn now people can overcome these struggles and barriers. If your problem is a lack of capital, experts recommend minimizing expenses wherever possible. For example, if your side hustle involves purchasing equipment, then you should be creative about scoring discounts or scouting out less expensive used items via online marketplaces.
If one of your barriers is a lack time, one thing you could do is automate certain processes. You should also be diligent about setting priorities to improve your time management and creating schedules that free up enough time for your side gig.
Consulting with financial advisors can help you develop a more focused business plan. In many cases you can get free advice by networking with veteran side hustle experts on LinkedIn and other platforms.
Another barrier to successful side hustles, cited by 15% of the Adobe Express respondents, involves ineffective marketing efforts. To deal with this problem, 70% of experts said you should define your target audience, while more than half (58%) said you should increase your social media presence and create content tailored to your customer base.
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This article originally appeared on GOBankingRates.com: The 5 Biggest Barriers to a Successful Side Hustle and How to Fix Them
