Faced with the worst inflation of the 21st century, it seems the only way working families can find economic relief is by making more money.
For many entrepreneurial-minded people, that means taking on a side hustle to improve their monthly incomes.
Inflation started its vertical rise beginning in April 2021, when it jumped to 4.2 percent, the highest figure since 2008. But the annual rate of inflation for 2021 outpaced predictions, hitting the 7 percent mark for the year.
To say 2022 was equally bad for working families would be something of an understatement.
The overall rate hovered around 6.5 percent, with the month of June battering consumers at 9.1 percent.
As we slog our way through high grocery costs and uneven gasoline and heating oil prices, 2023 is expected to serve up the third-highest inflation rate in the last decade.
Cutting out expensive food items, reducing restaurant dining, and canceling underused subscriptions aren’t likely to offset the reality or uncertainty of inflation.
These rank among the viable business side hustles that could be the elixir everyday people need to negotiate an unpredictable economy.
Rent Underused Space on Airbnb
Homeowners have seemingly found a pot of gold at the end of the rainbow with Airbnb.
The e-commerce rental giant markets rooms, houses, cabins, and even campsite rentals to millions of travelers and vacationers on its platform.
With upwards of 7 million listings across 220 countries, vacancy rates and bank accounts fill relatively quickly.
If you decide to become an Airbnb host, start by establishing guidelines for your spare room or rental property.
Take photos, write a short description, and highlight which amenities are included. Sign up for an Airbnb account and await approval.
The business breakdown is fairly simple, with Airbnb taking a maximum 14.2 guest service fee and a 3 percent host fee.
Entrepreneurs can roll those costs, as well as cleaning fees, into the overall rental package.
It’s also important to keep in mind that state taxes typically come into play. Being in the private room rental business means you will likely have to pay occupancy taxes in the same vein as hotels.
The e-commerce corporation collects occupancy taxes in most states, with the exception of Alaska, California, Delaware, Georgia, Massachusetts, Nevada, and a few others.
This is not to say Airbnb hosts in other areas are not required to pay the state-imposed fees.
Like most businesses, you will need to register with the appropriate tax authorities. In states such as Washington, property owners must file short-term rental revenue reports that are subject to excise taxes.
Major California cities enjoy occupancy rates above 70 percent and revenue that exceeds $2,000 per month in many cases.
Sign Up as an Uber or Lyft Driver
Considered one of the most straightforward gig economy side hustles, Uber and Lyft drivers pull down extra cash on nights and weekends.
There are several driving-for-cash options, such as providing rideshares or making Uber Eats deliveries.
You can start an Uber or Lyft business by signing up online at either platform. The outfits require information about your vehicle, a valid driver’s license, proof of insurance, and age-determined experience behind the wheel.
You will also be subject to a screening process that reviews your driving history and a thorough background check.
According to Indeed, the average Lyft driver earns an average of nearly $20 per hour, with a high-water mark of about $45 per hour.
In terms of overall earning potential, Minnesota, Michigan, and Oklahoma are reportedly the best states for rideshare side hustles.
States such as New York, New Mexico, and Oregon have been listed among the worst places to start a rideshare sideline, largely due to over-saturation.
California has been something of an outlier in terms of starting a rideshare venture. The state’s AB5 law initially banned Uber and Lyft as independent contractors.
After voters approved Proposition 22, the gig was restored, though it went through some courtroom hijinks.
Launch a Housekeeping Business
A small housecleaning business can put an additional $20,000 to $25,000 in your pocket.
Entrepreneurs usually need to secure an Employee Identification Number (EIN) and track payments to the people they onboard as independent contractors.
This type of small business can benefit from filing as a Limited Liability Corporation (LLC), securing insurance, and applying for the appropriate licenses.
There is an abundance of people who are also looking for gig work such as housecleaning, which makes staffing relatively simple.
Alaska has been ranked first in terms of the best states for housekeepers, followed by Montana and Texas. High-population states such as California (27th) and Florida (44th) fared more poorly than expected in this niche industry.
Along with diligent cleaners, entrepreneurs will need to invest in supplies and be prepared to provide rides in the event someone’s vehicle breaks down.
Marketing a housecleaning business has never been easier due to platforms such as Angie’s List, Care.com, HouseKeeper.com, and Facebook Marketplace, among others.
Depending on how much time you are willing to invest in what could grow into a lucrative organization, house cleaning operations may use free online tools to launch a basic website and get the word out digitally.
Provide Accounting Services for Local Businesses
It’s not uncommon for some business-minded people to possess exceptional math and accounting skills.
By that same token, many professionals start companies because they are innovators who know how to provide a niche service or produce a product more cost-effectively than competitors.
The notion of keeping accurate books brings words to mind such as “chore” and “headache.” Needless to say, there are plenty of opportunities to run an accounting side hustle.
If you already have a company in place, accounting can be added to its palette of services.
This may require additional licenses and permits depending on which state you launch the business. For example, to be a Certified Public Accountant (CPA) in the
Lone Star state, you’ll need to apply to the Texas State Board of Public Accountancy and undergo competency testing. Most states require some show of expertise before issuing a CPA license.
That being said, the national average for part-time accountants hovers above $53,000, certainly enough to stave off the adverse effects of inflation.
The District of Columbia, New York, Connecticut, Delaware, and Massachusetts comprise the top five top-paying areas. By contrast, states such as Mississippi, North Dakota, South Carolina, Hawaii, and West Virginia tend to average near the bottom for this side hustle.
Start an Alternative Event-Planning Business
When we talk about starting a business in planning events like weddings, people often think it’s only about big, fancy occasions.
But, you can also start a smaller event planning business that makes some extra money, especially if you already have a job.
This can help you keep up with rising prices.
It’s a smart move to legally set up your small event business properly, even if it’s just a side job.
You might think about running it just by yourself, but it’s better to have a kind of business setup that offers you more safety.
This way, if something goes wrong at an event, like an accident or damage, you’re more protected.
There are many types of events you can plan. One good option is organizing music events. If you know a lot about new bands, you could work with a place that hosts events.
These places often look for people to help them find acts for their less busy times. You could make a deal where you get some of the money from ticket sales after paying the band and the venue.
If your events bring in a lot of people who buy food and drinks, the venue might even let you not pay some fees. But remember, as the event organizer, you have to pay the band, even if you don’t sell enough ticket.
What are the Best States to Launch a Small Business to Generate Extra Cash?
A recent Forbes article assessed the best states to launch an organization in 2023 based on 18 metrics over five categories. These included Business Costs, Business Climate, Financial Accessibility, Economy, and Workforce.
Looking through these lenses, the results were both telling and surprising. Based on those categories, Indiana ranked number one. Its 83.6 percent business survival rate outpaced the national average of 80.6 percent.
The Hoosier state also has a flat state income tax of only 3.23 percent, against a corporate tax of 25 percent. But the LLC filing fee is a nominal $100.
Forbes also noted: “Entrepreneurs in Indiana enjoy a low cost of living that is 15 percent lower than the national average along with a lower than average unemployment rate of 2.8 percent, illustrating the state’s eager workforce.”
Others that rounded out the top five included Colorado, North Dakota, Pennsylvania, and South Dakota.
While Forbes’ analysis favored states primarily with low population density, there are also good reasons to launch a side hustle business in states like California for example, which enjoys the largest economy in the country. It’s so extensive and diverse that it exceeds entire countries, and is therefore very popular for starting a business .
Other states like Texas and Florida do not have a personal income tax, allowing residents to keep more of their hard-earned money.
All three of the most populated states offer small business incentives, and their workforces bring unique talents to the table. In terms of starting a side project to overcome the negative impact of inflation, more people mean greater opportunities to onboard clients and customers.
Hey there! I’m Rohit Lohia, a passionate SEO enthusiast and the proud founder of Branded Bucks. I’m all about helping small business owners achieve success online through my blog. Join me on this exciting journey as we explore ways to make money online and build a thriving digital presence.