Increasing economic volatility and a rapidly changing workplace can make starting a side hustle in technology a wise decision. Launching a tech startup, even as a side hustle, can act as a safety net for you, and may even turn into a full-time venture.
Massive layoffs and reduced workers’ hours during the global pandemic showed us that nobody is invincible during economic meltdowns. Maybe that’s why more than 56 percent of Americans would prefer starting their own business to working for someone else, according to the MBO Partners 2021 Report.
And as remote work becomes the norm, many professionals are realizing that they don’t have to quit their day jobs to start their own businesses. The nature of remote work provides the perfect opportunity for you to start a side hustle outside your regular working hours.
One way to kickstart your side hustle is to start a freelancing tech business. Freelancing gives you the perfect opportunity to earn income by exploring your passions and putting your technology skills to good use.
Read on to learn more about the freelancing opportunities you can explore by launching a software business, an IT startup, or other tech company, and see how ZenBusiness can help you get started.
Earn extra income by starting a side hustle and letting ZenBusiness do the heavy lifting for you.
Launch or grow your tech startup with ZenBusiness.Top-Paying Tech Startup Ideas
Some tech freelance ideas have the potential to pay more than others, depending on your skillset. Here’s a list of some of the top-paying freelancing jobs in technology.
Web Designer
A web designer lays out websites based on a client’s specific needs. This tech business may include designing web prototypes or updating existing web pages. Becoming a web designer requires both creativity and professional coding skills.
As a web designer, how much you earn depends on your experience and skills. Web design projects may require proficiency in one or more programming languages, like JavaScript, HTML, Python, or SQL.
Positive job prospects make web design a worthwhile tech startup option. According to the US Bureau of Labor Statistics, web design jobs are expected to grow by 22 percent by the end of the decade.
Graphic Designer
Graphic designers use computer software to create visually appealing designs that attract and inform potential clients. Graphic designers should be proficient in design software like Figma, Adobe Illustrator, and Sketch.
Graphic designers can work with clients across every major industry. This makes the profession a great option for someone looking for a broad client base. The US Bureau of Labor Statistics predicts that there will be 23,900 graphic design job openings each year until the end of the decade.
Web Developer
A web developer builds web apps and web pages. This tech startup idea lets you focus on either user-side development (front end), server-side development (backend), or both (full stack).
Pursuing this tech business can increase your earning potential significantly due to increasing market demand. The US Bureau of Labor Statistics projects a 22 percent job growth for this tech business, making this side gig as popular as a web designer.
Digital Marketer
A digital marketer helps businesses increase their online visibility to drive sales and generate leads. This tech startup idea requires you to have high proficiency in digital marketing tactics like search engine optimization (SEO), email marketing, social media marketing, and digital advertising.
Given the evolution of the digital space over the last 10 years, digital marketers have a lot of room for growth. As more firms go online, the rising demand for digital marketers makes this a smart tech startup idea. In fact, the US Bureau of Labor Statistics projects a 10 percent growth in digital marketing jobs by 2030.
Software Consultant
Thinking about starting a software business? Software consultants are experts in software programs and programming languages. They advise businesses about their software use, check software for updates, assess digital security, customize client software systems, and install online software tools. Software consultants usually have a background in software engineering or development.
6 Steps to Kickstarting Your Tech Startup with ZenBusiness
Before you dive into your new tech side hustle, you should consider a few things that will help increase your opportunity to earn a solid side income. Below you will find six essential steps to take before you kickstart your tech business.
Step 1. Calculate Initial Costs
Square one of starting your side business is to figure out your potential startup costs. You’ll need a smartphone and a computer (not your work computer!). You may also need to buy software, learn about taxes you may need to pay, create a website, and register your business with your state.
Talk to people who already know how to start a tech business about how much it costs to get their business going. Or you can use a professional service like ZenBusiness to help you calculate your initial startup costs.
Step 2. Research Your Market
It’s in your best interest to understand where your skills are needed, what is driving the demand in your field, and how to meet the needs of potential clients or customers. This is why in-depth market research is essential before you start.
Popular freelancing sites like Upwork, FlexJobs, and Fiverr can give you insights into the market demand and how much you could expect to earn. It’s good to ask a professional or, better still, use professional services that can help you conduct deep research on the market and map out areas with the least competition.
Step 3. Plan Your Taxes
Once your side hustle starts to pay, you’ll need to report your income to the IRS and state tax agencies. To track your finances and prep for tax time, take the following steps:
- Set up a checking account for your tech business. Creating a checking account specifically for your side hustle makes it easier to track business-related spending. It also helps you correctly calculate how much to expect to pay in taxes.
- Set aside self-employment taxes. You need to set aside a percentage of your income for paying federal income taxes and self-employment taxes. You can do this by opening a business savings account.
- Understand estimated taxes. You’ll pay estimated taxes quarterly throughout the year from your earnings instead of a lump sum once a year. As a general rule, if the taxes you owe amount to $1,000 or more, you should pay estimated taxes.
- Create a record-keeping system. Having a recording-keeping system in place will save you a ton of time and money. For instance, keeping your business-related receipts in a safe, specific location will come in handy when figuring out your business deductions. It also serves as proof if the IRS questions your deductions.
- Seek help from a tax professional. Calculating and filing business taxes can be difficult, and there’s a lot riding on getting it right the first time. That’s why you should think about seeking professional advice or using a tax filing agency to ease the burden of working everything out on your own.
Step 4. Register Your Business
Although some side hustles do not require registration, forming an LLC business entity could save you a lot of money if your tech gig comes with potential legal liability. If your business ever incurs debt from damages or costs, having an LLC could keep your personal assets safe from being seized in a lawsuit.
Step 5. Win Your First Client
Getting your first gig goes a long way to increasing your credibility and exposure as a tech freelancer. Clients want to see your portfolio before hiring you. Ensure that your first project is done well and that your client’s expectations are met. Your client will likely act as your referrals, so make sure to deliver high-quality results in all the work you do.
Step 6. Keep Your Business Thriving
Once your business begins to grow and more clients and income pour in, it’s wise to work with business formation professionals who know the ins and outs of how small businesses work. This will help you avoid unexpected tax or compliance problems down the road.
Once you hit the growth stage for your tech startup, it’s time to focus on expanding your business reach. Leave tedious tasks like tax filing, business registration, market research, and staying compliant to proven experts who will keep you from gridlocks on the back end.
Let ZenBusiness Help Your Tech Startup Succeed
Starting a side hustle is a great way to boost your income and gain valuable experience in running a tech startup. You can even quit your job and focus solely on your hustle once you start making enough money. Running your own business comes with a lot of flexibility and freedom compared to a regular 9-to-5 job.
If you are ready to begin your tech side hustle, why not join ZenBusiness? The company has already helped many aspiring tech entrepreneurs like you succeed. The thought of starting a side hustle may feel daunting at first, but it’s not as hard as it seems, especially when you can have professional guidance. Get in touch with ZenBusiness to help start, run, and grow your tech business today.
About us: Career Karma is a platform designed to help job seekers find, research, and connect with job training programs to advance their careers. Learn about the CK publication.
