Side hustles have become incredibly popular nationwide–and especially among student groups. Not only do side hustles offer a way to earn some extra cash, but they enable young people to explore their passions and interests–and can help develop an entrepreneurial mindset. This can prove valuable as you graduate from college and enter the business world.
Ultimately, side hustles can offer immediate financial benefits to cash-strapped students. But these gigs can also help younger adults build essential skills and gain hands-on experience early in life.
Managing a side hustle can help a college student develop time management, financial literacy, and leadership skills–characteristics that are central to long-term success.
In this article, we’ll explain the primary benefits of starting a side hustle and some practical steps to take to ensure your business remains viable for the long term.
Why Students Should Consider Side Hustles
Side hustles offer students a great chance to grow personally and professionally while remaining flexible enough to effectively balance academic responsibilities.
Some of the main perks associated with side gigs include:
- The chance to develop time management and organizational skills. Students who have multiple classes to attend will have to make sure they remain organized and plan accordingly so they can make some extra cash and keep their grades up.
- Side hustles allow young people to earn extra income, which could make covering tuition, living expenses, or books that much easier. Running a gig on the side could also enable a student to start building their savings, which will be a bonus when they graduate.
- Beyond earning money alone, a side hustle can help a student learn about financial independence, including living on a budget, which is an excellent foundation for long-term financial literacy as an adult.
- Students can acquire real-world experience and skills that will prove valuable to future employers. Plus, many side hustles allow for professional networking, which can help students build connections that will benefit them when they go to look for their first job post-college.
Types of Side Hustles for Students
When one thinks of a side hustle, your mind might automatically drift to driving for Uber or delivering food via DoorDash. While it’s entirely accurate, there are other opportunities available for students that don’t require driving a car or riding a bike to fulfill commitments.
Consider the following opportunities:
- Freelancing and Gig Work: Creative students or those who have backgrounds in writing, tutoring, app development, and graphic design can find opportunities for both short and long-term contract work on Upwork and Fiverr. Students can find clients and manage projects that interest them on their own terms. This can help you gain valuable experience in the career path you might be aiming for.
- E-commerce and Dropshipping: Many students are interested in starting an online store on a platform like Etsy or Shopify, which are both user-friendly. You can sell handmade goods, vintage items, or even engage in product dropshipping (which means you don’t have to keep an inventory in your dorm room!). E-commerce can help students tap into a global market while also learning about sales, digital marketing, and customer service.
- Social Media and Content Creation: For students who are interested in content creation, YouTube, TikTok, and Instagram offer some pretty serious potential. For instance, through the creation of a personal brand as an “influencer,” you have the chance to monetize the interesting content you make and secure sponsorships, advertising opportunities, or even sell merchandise. Becoming a content creator online hones the imagination and teaches great lessons in marketing and audience engagement.
- Part-Time Services: For more traditional students, it’s still possible to secure part-time opportunities related to babysitting, dog walking, or assisting in some other way (for instance, running errands for a senior citizen or a busy professional). This approach can offer flexibility in the hours you work and help you earn money while you grow a network in your community. Plus, you can boost your communication, organization, and customer skills at the same time.
How Side Hustles Help Build Transferable Skills
As we have noted, side hustles offer some considerable opportunities to build skills and competencies that you can carry over into your future professional life.
Engaging with clients, vendors, or audiences will help develop strong communication and interpersonal skills. While managing finances–such as budgeting, pricing services, and understanding profitability–builds business and financial acumen.
Finally, using online tools and platforms for marketing, sales, and operations improves digital literacy, ensuring you are tech-savvy and ready to become a member of an increasingly digital-driven workforce after graduation.
All these skills will help your side hustle be successful right now–and can serve to add some depth to your resume when you start looking for a full-time job.
The Importance of Business Structure for Student Side Hustles
While it’s easy to look at a side hustle as something small scale you do when you’re not in class, the fact of the matter is you must be aware of the liability that comes along with any business opportunity where you are interacting with other people and earning revenue. As such, it’s important to formalize your business structure.
Choosing the right business structure, such as forming a Limited Liability Company (LLC), can help safeguard your personal assets, like your car or personal savings account. It also establishes how you pay taxes on the money you earn and can create a sense of legitimacy (this is especially important if you are performing a service in someone else’s home, like dog sitting–we’ll explain more on that, too!).
Here’s why it’s important to establish an LLC:
- Forming an LLC protects your finances from business liabilities, such as a lawsuit or debt. For instance, if you’re house sitting and something goes wrong while the homeowners are away, you could be held personally liable for damages if you don’t have the protection of an LLC.
- LLCs offer tax benefits because you are assigned an Employer Identification Number (EIN) by the IRS. This enables you to set up a business bank account as well as take advantage of pass-through taxation, which means business profits are taxed once on your personal income tax return.
- Setup of an LLC is also incredibly easy–but it does vary by state. What that means is that the requirements to form an LLC in Florida will be different from what is involved in starting an LLC in Illinois, for instance.
If you believe there is the chance of earning significant income from a side gig, it’s important to speak with a business consultant, attorney, or CPA about the next steps in formalizing your business structure.
Building More Than Just a Bankroll: The Long-Term Benefits of Side Hustles
Having a side hustle as a student goes beyond simply padding your wallet with extra cash. Rather, a side hustle is about creating a foundation for long-term growth. Explore available opportunities responsibly, and you’ll gain more than just a paycheck. The skills you acquire right now will serve you for years to come.
Author Bio
Amanda E. Clark is a contributing writer to LLC University. She has appeared as a subject matter expert on panels about content and social media marketing.