How Much Money Do You Need to Start a Side Hustle?

Are you looking to start a side hustle to generate an additional income, but you’re usure where to start or how much money you’ll need for the side hustle?

Well, the money you need will depend on the type of business you’re starting. So, if you have digital skills, you could get away with starting the side hustle with almost no money at all, but if you want to sell products, you’ll need some start-up capital to get stock.

There are various factors to consider in preparing for how much you need to start a side hustle, and in this article, we’ll cover what you need to know.

Understanding the Cost of a Side Hustle in South Africa

The initial investment for a side hustle varies. Those with digital skills may require minimal capital, while those selling products will need start-up funds for inventory.

No-cost Side Hustles

Here’s a list of side hustles that cost little to nothing to start:

Freelancing: Offer your writing, designing, or virtual assistance skills online. This is a flexible way to earn extra income.

Take online surveys: One of the ways to make money online is to participate in online surveys; Earn small amounts by sharing your opinions on various websites.

Monetise a YouTube channel: If you’re creative and enjoy making videos, you can start a YouTube channel and earn money through ads and sponsorships. It takes time to build an audience, but it can be very lucrative.

Babysitting: If you have experience in child care, babysitting can be a good weekend side hustle.

Transcription jobs: If you’re a fast typer with a good ear, you can find transcription jobs online. These are typically part-time gigs, meaning that if you have a full-time job or a business that keeps you busy, you can work on this after hours.

Online tutoring: If you’re good at a certain subject, and have the patience and skill to teach children or older students, then online tutoring is a suitable side hustle.

Pet sitting: This is great for people who are animal lovers and have knowledge about caring for them.

Side Hustles That Need Start-up Capital

Here’s a list of side hustles that need some cash to start:

Become a reseller: There are big brands such as Tupperware, Avon and other emerging brands like Fine Fragrance where you can become a reseller. In this instance, you need a set amount of money to buy the products upfront, predetermined set prices that it is sold for and you earn a commission or keep the profit.

For instance, Avon has a discount structure with different pricing tiers from R 570 to more than R 7 800 for Beauty and Fragrance orders. The more orders you place, the higher your discount will be.

Sell homemade items: Selling homemade items will require you to have a budget to purchase the materials you need to make the items. You may also need an additional budget to market your product, depending on what your marketing plan looks like. Luckily, there are various low-cost marketing options you can explore.

T-shirt brand: You can sell branded t-shirts through an online store. This will require that you have initial capital for t-shirts, printing, packaging, and more. Luckily, if you decide to work on a print-on-demand basis, then you do not need to spend too much money.

Stocking t-shirts can cost you from R 60 per t-shirt to R 200, or even more, depending on the supplier and quality of the t-shirt. Printing a t-shirt can cost anywhere from R50 going upwards. It’s important to know that these prices are a general idea of what you might spend, but you would need to find clothing manufacturers for your brand and negotiate costs.

How Much Does it Cost to Register Your Business?

You can take your side hustle to the next level by registering it as a business. Registering your business has multiple benefits, including legal protection, increased credibility, and getting access to funding.

The minimum cost to register your business with the Companies and Intellectual Property Commission is R 175. R 50 is to reserve the name of your business and R 125 is for the registration of your company. If you plan to have a website for your side hustle, you can also register your domain name with the CIPC for R63,25.