By Tkay Nthebe
“In the middle of difficulty lies opportunity” Albert Einstein
With the monotony of COVID-19 slowly dying down and Basotho gradually working towards a new way of life, it is fascinating to see new opportunities arising. Personally, I am excited to see ordinary people being intentional about starting side hustles, for example rearing chickens, selling organic produce from our gardens and offering consultancy services to increase their income streams. I advocate for starting with the little we have but dreaming big enough to build and grow the busines from just being a side hustle. Hopola that it takes good planning and time to grow a side hustle.
The first mistake to avoid when growing the side hustle is mixing the money generated from sales with our personal income. Seke oa ja stoko. Le uena o moreki ka hona reka o patale joalo ka motho e mong le e mong. The goal is to treat the side hustle as an actual business if we are to grow it. This requires that we open a separate account where the daily sales will be deposited and tracked to determine if the business is profitable. Depending on the type of business you are operating, I would encourage you to speak to your banker about opening an account for the side hustle.
The second consideration is to think about the tax implications that come with the additional income. Lekhetho bana beso! Remember that any earnings from business profits, employment or rental income for example are taxable. It is therefore very important to educate ourselves about the tax laws and ensure we comply. After all has been said and done, there are more benefits to being complaint than being considered a delinguent.
The third and most important consideration to think about is formally registering the side hustle (when it is ready). There are different types of structures to choose from for example sole proprietorship, partnership or company. Select the most appropriate structure for your side hustle and remember that each business structure has tax implications. Spend some time learning about taxation and familiarise yourself with all applicable laws. Equally important, consult a qualified legal professional before going into any contract. It is important to have professionally drafted contracts to ensure you are adequately protected and you know all your rights and responsibilities.
While there are a lot of opportunities for us to choose from, especially with the difficulty that came with COVID-19, let’s also not undermine the trade-off that comes with running and managing a side hustle. It requires time, effort, discipline and money which if not managed can affect your well-being. Let’s start, grow and build our side hustles to become our main hustle. It is quite important to choose a money generating activity that you have passion for, so that you are committed and consistent.
Likhomo!
