A guide to freedom and more cash

At a time when many are struggling to make ends meet, more Canadians are starting their own side hustles to bring in extra income.

A side hustle is a gig (think walking dogs, babysitting, starting a YouTube channel) that brings in extra money outside of someone’s full-time or part-time job, which is still their main source of income.

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In a 2023 survey from RBC, 88 per cent of respondents agreed that one income isn’t enough thanks to inflation and a side hustle provides income that gives them more financial freedom and security. That’s a 10 per cent increase from 2022’s survey results.

Having a side hustle comes with a lot of benefits, including the freedom to work around your own schedule and unlimited income potential, says Roger Pierce, Toronto-based entrepreneurship expert and host of “The Unsure Entrepreneur” podcast. Then there’s the autonomy. “The ability to make your own decisions without a boss is very appealing for a lot of aspiring entrepreneurs.”

Brad Poulos, a lecturer in entrepreneurship at Toronto Metropolitan University and author of “The Small Business Operator’s Manual,” says it’s important to assess how much time you can dedicate to your side hustle without compromising your main job or neglecting family and self-care.

Take stock of your skills, interests and hobbies

Then, think about any passions you’d like to pursue, whether it’s music, art, language or flower arranging. Pierce suggests taking stock of your skills, interests and hobbies.

Finally, you’ll need to assess demand. “Does anyone want what you’re selling?” Poulos asks. Before making a big commitment, spend some time doing customer discovery and find out what kind of market exists, Poulos suggests.

You’ll also want to consider the “unit economics” of your idea, which means looking at price, costs, and figuring out how much you can realistically make.

When it comes to expenses, a lot of side hustles require little to no cash for startup. A web developer, for example, can simply put up a free ad on a website such as Fiverr. “You can likely get success faster if you buy some ads and get your own website, but you don’t need to,” Poulos says.

“It’s a great time to be an entrepreneur because you don’t need a whole lot of money,” Pierce echoes. Consider opening a small business bank account to keep your money separate from your personal banking. And use an accounting software service so you know how much money you’re making. “It’s very important to keep track of your numbers from the beginning.” 

Keeping financial records will be key for tax time, too; you’ll need to report and pay tax on all self-employed income. You’ll be able to claim expenses as long as you keep receipts. And remember, if you earn more than $30,000 with your side hustle, you may have to register for, collect and remit GST/HST.

‘A great way to test the waters of entrepreneurship’

There are businesses that require certain equipment or permits, or services that will cost money. “This is something an entrepreneur needs to scope out on their own before making the jump,” Poulos advises.

If it’s a product you’re selling, Pierce suggests looking into an e-commerce company like Shopify to see what packages they offer for setting up an online store.

Many side hustles are easy to run after hours and on weekends. “It means you’re going to be working a lot of hours in your life,” Pierce says. “But what a great way to test the waters of entrepreneurship and see if you’ve got a viable business. You’ve still got your day job to back you up. It’s a win-win situation.”

Nathalie Hebert, 49, started working as a freelance translator two years ago when she noticed her services were in demand. She works full-time as a professional translator, but when she and her partner bought a house in Bradford, they needed extra income. “We were making it paycheque to paycheque,” she says.

In 2022, Quebec introduced new rules that said enterprises must ensure their websites are available in French. COVID increased the demand of online purchases, Hebert says, which meant a ton of companies suddenly wanted their websites translated. “It was booming,” she says. “So I jumped on the opportunity.”

Hebert reached out to a translation agency that was recruiting freelancers on LinkedIn, which led to a weekly contract. She’s also part of Facebook networking groups, but word-of-mouth has been one of the most powerful tools for her.

‘Whatever happens, I will survive. I have a safety net’

In addition to the extra income, Hebert is grateful for the job security that her side hustle provides.

“Translation is easily outsourced,” she explains. “In my full-time role, I was always stressed wondering if I was going to be in the next wave of cuts. Now I have peace of mind knowing that whatever happens, I will survive. I have a safety net that I can build on.”

Today, Hebert works 40 hours a week at her full-time job as a translator for the provincial government and dedicates around 30 hours a week to freelancing during evenings and weekends.  

While Hebert capitalized on an existing skill to kick off her side hustle, others have launched successful businesses by following their passions.

Sarah Taylor, 49, was inspired to become a personal trainer after she was fat-shamed while working out at a gym. “I was like, ‘I’m not the only plus-size girl who wants to feel comfortable in her skin at the gym and not feel shamed for it.’”

Steve Russell/Toronto Star

Etobicoke resident Sarah Taylor, 49, became a personal trainer seven years ago to follow her dream of helping women gain confidence. After winning Miss Plus Canada in 2014, she became a part-time content creator, sharing her story online, speaking at events and working with brands. During the day, she worked in the non-profit sector doing fundraising. “I knew that I wanted to work with women in some capacity as part of my purpose. And I was like, ‘how am I going to do that?’”

In 2017, Taylor was inspired to become a personal trainer after she was fat-shamed while working out at a gym. “I was like, ‘I’m not the only plus-size girl who wants to feel comfortable in her skin at the gym and not feel shamed for it,’ ” she says. Taylor was certified as a personal trainer by the end of the same year.

Her original plan was to pursue personal training on the side through one-on-one coaching, but then the opportunity to train clients in a shared studio space popped up in 2018 and soon, Taylor was training part-time. The following year, Taylor opened her own gym and quit her other job to train full-time. Then COVID shut everything down and Taylor, sadly, had to close her gym permanently.

‘I burnt myself out working 18-hour days’

Pierce says Taylor made a good move keeping her full-time job while exploring personal training on the side at first.

“The most dangerous thing to do is jump in with both feet and quit your day job, hoping the money will be there in two or three months,” he says. The reality is that it can take six months to several years before a business becomes profitable.

The financial pressure Taylor faced after closing her gym felt insurmountable. She pivoted her business to online, running it part-time while looking after her toddler daughter as a single mom. Today, she’s back to working full-time in software and runs her personal training business on the side, doing one-on-one coaching for 10 to 15 hours a week.

One of the earliest lessons Taylor learned was the importance of maintaining a healthy work-life balance.

“I burnt myself out working 18-hour days. My physical and mental health paid a price and so did my relationships,” she says. “I’ve learned that if I’m going to do this long-term, it has to be sustainable.”

These days, she works out at 5:30 a.m. before her two-year-old daughter gets up and they spend time together before work and daycare. Taylor focuses on her personal training after her daughter goes to bed at 7 p.m.

Poulos says it’s important to think about work-life balance when considering a side hustle. “To avoid burning out, set boundaries for yourself,” he says. “Establish designated work hours for your side hustle, and make time for relaxation and the important people in your life.”

‘I accept jobs according to my schedule’

Hebert, who has also suffered from burnout, tries to keep things balanced. “I hit a wall last month, burning the candle at both hands.”

There is an unpredictable side to Hebert’s freelance business; she doesn’t know what’s coming her way, other than one regular weekly client. Luckily, she’s at a point with her business where she can pick and choose the projects she wants. “I accept jobs according to my schedule,” Hebert says. “I have the luxury to be able to negotiate the timeline with a client. I make sure that I have time with my boys, my partner and my friends.”

She plans to pivot to full-time freelance translating in seven years, but for now, Hebert is focused on supporting a son who is about to start university and another who’s starting high school. “We’re really focused on that extra income,” she says. “The money is great.”

Taylor hopes to do personal training full-time some day but in the meantime, she’s not ready to give it up. “I take pride in what I do,” she says. “I know the impact that it has on women and representation matters. There’s value and purpose in this work — otherwise I wouldn’t have kept going for six years with no paycheque.”

When asked for advice for other potential entrepreneurs, Taylor says you need to get connected to your purpose before starting. “That’s what’s going to keep you going when things get tough.”

Poulos recommends would-be entrepreneurs listen to podcasts, sign up for webinars and read up. In addition to his own book, he suggests “The Lean Startup” by Eric Ries and “The Startup Owners Manual” by Steve Blank and Bob Dorf, which are all about “lean startup principles.” This research will help you understand your target audience, competition, and industry trends.

He also suggests looking into local entrepreneurship centres, which are usually run by local municipalities.

‘Break it down to small, tangible steps’

“They often have all kinds of free programming and will sometimes even provide free office space and other resources like printers, and meeting rooms,” he says. Networking is also key — “in person if possible, or virtually using online forums, etc. where you’ll find mentors and colleagues who can be helpful in many ways.” Poulos says it may also be worth it to seek out government grants for your industry or small business. “These come and go, and are often regional, so you have to do your own research in your area.”

Pierce emphasizes the importance of surrounding yourself with entrepreneurs who have done it right. “Some of my best friends have come from small business networking meetings and small business groups,” he says. “The relationships and support you get from that kind of community is going to help with any fears or hesitations.”

And don’t be afraid, Pierce says.

“Break it down to small, tangible steps. Think about what you can do today, this week, this month.” At the end of the day, he says, he would hate to see an entrepreneur who really had it in them but didn’t take a chance.

“I don’t want someone to look back at their life 40 years from now and say, ‘I wish I tried that idea.’”

Originally Appeared Here