Post-pandemic, and in the face of a cost of living crisis, thousands of us are taking on new business ventures. We find out more about the side hustle journey and how to start one.
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It’s never been a busier time for the UK’s side hustle economy. Whether dog walking or designing clothes, people all over the country are seeking second incomes.
Reasons for the surge are largely lifestyle-related. Working from home policies have given us more time to concentrate on our interests and side gigs. Rising inflation has also contributed, as consumers look for ways to offset more expensive energy and food bills.
Running a side hustle can be lucrative. As we reported last year, recent estimates value the market at a massive £346bn.
But there are also associated challenges to consider, such as tax implications, employer awareness, and upstart costs.
Debating whether to start your own side hustle? Below, we’ll go through the key steps involved, and get advice from experienced side hustlers on everything from balancing work commitments, to accessing funds.
This article will cover:
What is a side hustle and why do people start one?
Alternatively, you can also use social media pages to sell products if you want something with a quicker setup time.
Esther Showemimo is a full-time student and owner of beauty business, HerNailRoomUK. Showemimo turned to Instagram and Tik Tok after the COVID-19 lockdown put a stop to all in-person appointments, explaining:
“I [now] use Instagram as my main platform for my business and with all their new business account features, it is really easy to promote and view insights.”
Find out more about how to use Instagram for business in our full guide.
If you’re running a product-based business, your startup costs will also include an ecommerce website, so you can sell online. Some of the most popular choices for this are Shopify.
That’s unless you want to sell items through a third-party marketplace, like setting up an Etsy shop.
Chelsey Pippin is a PR executive by day, and runs Pip Cards Tarot, a creative coaching consultancy, by night. Pippin’s PR earnings have funded the business’s startup costs including“website, apps subscriptions like Zoom, Vimeo, and Flodesk, memberships to entrepreneurial and creative networks.
“While the business is still in its early stages, I’m breaking even on costs now that I host regular group workshops.”
What else do I need for my side hustle?
Being time-poor is a common complaint amongst those running side hustles. You’ll be conducting most of your business after work and around other commitments.
One business tool that’s popular among startups is accounting software. It’s a good way to stay on top of finances and even forecast revenue.
Such systems are also smart for those that want to turn their side hustle into a startup, by helping you firm up foundations for larger sales figures.
Keep up to date with your side hustle finances with our top small business accounting software.
Start your 30-day free trial now.
Another issue with working off-peak hours means that you’ll likely be working for your main job while your customers are looking for products/services.
Small business CRM software increases time efficiency by automating a lot of basic customer management tasks, such as sending welcome emails or invoices. That means even while you’re working at your desk, your side job will still be taken care of.
SME software doesn’t have to cost a bomb – there are plenty of free CRM systems and free accounting software brands to choose from.
How should I fund my side hustle?
People running side hustles generally choose to ‘bootstrap’ (meaning self-fund) their venture using savings or wages from their primary income.
If you’re starting a side gig with the intention of scaling it into a business, you can take out a business loan or reinvest the money from any sales back into your venture.
Crowdfunding is another way to fund your passion project. It amounts to pitching a project or business through an online crowdfunding platform, which can be a valuable form of marketing and has proven to attract media attention in the past.
Small business grants are also a good option to look into, particularly if you’re a woman. Specialist women-only grants exist to help combat the gender funding gap.
Richard Pakey is founder of Lime Licensing Group, a franchise consultant. Pakey outlines:“Most [side hustles] start slow and steady and fund their side hustle from cash flow. There is no right or wrong really, it’s purely how you perceive the risk.”
Does having a second income affect my taxes?
As long as all taxable income is declared to Inland Revenue
