Don't wait on unemployment insurance-start a side hustle
/In April I found that I was facing a shortage of several things; toilet paper, face time (real faces), and a full-time job. On the positive side, I had a surplus of beans and soup, but that’s a story for a later day.
Like many Americans, my hours were reduced by my employer. The economic uncertainty caused by the pandemic led to several cuts at my organization. I was one of those. There is hardly ever a convenient time for a reduction, but this was especially less than ideal given that I was planning to get married in June (how to pandemic proof your wedding blog coming soon).
Once the decisions had been made we were encouraged to apply for unemployment. At this point, states across the country were facing an overwhelming number of applications. Unemployment was well over 10%.
The process to apply is painful and I could write for several pages on what should be done to fix this archaic system, but that’s not what I’m here to discuss. I never received one payment from unemployment insurance because I still “earned too much” each week. The state’s definition, not mine. But what I discovered during this whole process is the real insurance policy is in a side hustle.
Before we get into this, I’ll provide some background. I started a side business as a copywriter in November 2018. I had very few clients, made very little money, and generally had no idea what I was doing. It came about from the desire for more creativity that was lacking in my day job. Plus, the extra income to protect against any job loss (although at the time, I thought I would never be laid off) was another motivation. So I started writing emails, web copy, a random product insert, and anything I could do to get more experience.
Fast forward to 2020. I’m working a full-time job and still do some work on the side for a couple of long-standing clients. Nothing significant, at times only bringing $100-$200 per month. That’s where things stood when the pandemic hit and I was working 60% of my normal hours. While battling the unemployment system, I began looking for extra writing work. I reached out to former clients, colleagues, in Slack channels, and many people in my Rolodex. I scrolled down writing job boards every morning.
By late May, I had replaced most of the lost income. By now, it was evident that I would not be receiving assistance through the unemployment office. I began to realize that in its current form, unemployment insurance is unreliable for those who need it. You should not, and likely cannot afford to, count on this to replace lost wages. If you lost your job, you should look at applying for unemployment. But I’m here to talk to you about why should have a side hustle for times like we’re experiencing now and how to get one started.
Lean into your skills
Start with what you know. Whether we realize or not, almost all of us have a skill or some knowledge that someone else is willing to pay for. Think of things you’ve done in your past. In my situation, I had experience as a writer. I freelanced for my university while I was in college. I took a few years off but used that experience to build upon what I do now. This started as a creative outlet but has now become a solid source of revenue. Examine what you do in your full-time job. Maybe you have a skillset or expertise that you can offer through consulting services. If you’re a designer, there are always opportunities for freelance work.
If you’re having a hard time finding a direction, make a few lists. Right out a freelance resume. What are the skills and experiences you can use to earn extra income? Don’t worry too much about finding something and developing a perfect plan of execution. In the beginning, your focus needs to be on identifying something you will enjoy and that has a market that will pay for your services.
Tell the world
You’ve picked out what you would like to do as a side gig. That’s one step forward, but now what should you do for the next step?
Utilize your network.
Find others in your area of interest who you can talk to and ask questions of. Many of these people will be full-time freelancers. They’re the perfect people to ask when you’re trying to figure out how to get started.
In my case, I spoke with two fantastic writers. One of them recommended I reach out to someone who turned into my first paid gig. These conversations will be invaluable when it comes to launching your side business.
Don’t stop there. Let others in your network know that you are freelancing and available for work. And I get it. This is not easy to do, especially when you are starting out and probably don’t have any work samples. Update your LinkedIn to start receiving leads from their ProFinder service.
Search for Slack channels that exist in your area of interest. I’ve joined marketing and freelancing groups. I’ve landed clients through these groups and learned from people who’ve been doing gig work for years.
Trust me when I say that the entrepreneurial and freelance community is extremely supportive. Most people genuinely want to help you on this journey. Reach out, let others know what you’re doing.
Take steps towards your first client
It’s time to land your first gig.
A few Google searches on how to land a freelance client may leave you with a lot of questions. Some suggest you work for free to build up a portfolio. Others say this is the cardinal sin of the side hustle.
Personally, I don’t think anyone should work for free. There are a few exceptions (non-profits you care about, etc.) but generally, it’s not a good idea to work without pay. Even if your rates are low in the beginning, this still gives you a basis on which to charge and grow.
Side hustling is a slow build
We won’t get into the whole process of building a freelance business. I’m still figuring that out myself.
The point I want to convey is that no matter how comfortable you are in a job, things can change in an instant. If you asked anyone whose job was affected by the events of the last few months, I doubt many would say they expected anything to happen. I sure didn’t.
Control your safety net
Without a side gig, I’m not sure what I would have done to make it. I never once received a check from unemployment but that turned out to be okay.
Find something you enjoy and give it a go. Maybe it will turn it into a full-time career for you or maybe it won’t. Think about that sweet spot of income you want to make with your side hustle. Maybe it’s $500 or $5,000.
I set a modest goal of $500 a month last year. I didn’t hit that very often. Now I’m earning double that. That’s not a lot of money. But to me it is. It helps.
Now go get yourself some unemployment insurance. The homegrown kind that you hustle on your own. When the next crisis hits you’ll have confidence that you can continue supporting yourself, even when things seem like they’re falling apart.