Have basic knowledge of your side-hustle business – Yamson

Story: Olive GIBBON, Accra

MANAGEMENT consultant Mr Michael Harry Yamson has offered advice to anyone considering starting a side-hustle business. He discussed ways to minimise risk when generating a secondary stream of income.

Yamson urged for a basic level of knowledge of the field, considering whether you can afford the investment, costs and employment, otherwise risks will arise.

He stressed the real possibility that “you may actually end up losing a lot of money”, rather than a side-hustle serving as a flippant experiment, “because you are dealing with people who know that industry, who will make money off you gladly”.

While side-hustles can therefore pose significant risk, by carefully assessing the possible return, risk, liquidity of assets and safety, side-hustles can generate considerable success.

By evaluating industry trends, succeeding sectors, emerging markets, your plan can be set within the necessary context. Hence why Yamson also warned against having too many side-hustles, and neglecting the attention to details.

His key advice for building a side-hustle into a sustainable source of income was to “formalise it as quickly as you can”. He highlighted the advantages of registering your business, enabling banks to recognise you as a businessman, and to be “more interested in you when you have two income streams”.

This can lend to easier identification, investments and loans, and contributes to the ‘safety’ element of investment, ensuring security of return.

To minimise burnout, he also prioritises time management as a fundamental skill in running a side-hustle.

Yamson recommended a realistic approach which underscored all his advice, saying overestimation of business potential is one of the greatest challenges business owners face leading to chasing something that is not there.

“Try winning small, then try winning bigger” he said in a plea for short-term achievable goals. “If you don’t have a very clear ambition for it, you are just going to drift”. Mr Yamson’s advice is particularly valuable considering significant aid that President John Dramani Mahama is promising private businesses in Ghana.