Over the last few years, you’ve probably heard a lot about side hustles and seen countless side hustle success stories on social media. News sites are full of stories about how people have taken the leap and turned a passion into their primary income. But while side hustles are going through a bit of a boom lately, they’ve been a concept since the 1950s.
If you’re looking for a way to make more money, starting a side hustle could be a fantastic opportunity. Whether you’re looking to quit your full-time job or just want some extra cash for a holiday, starting a side hustle can help you reach your financial goals.
With the UK experiencing both a cost of living crisis and a recession, more and more people are looking for ways to supplement their income and make some extra money. Side hustles offer an excellent opportunity to make a bit of extra cash for many and for others they’re the chance to finally start their own business.
But where do you start? What kind of side hustle should you start? And how do you make sure it’s successful? Mint Formations has got you covered. In this guide, we’ll answer all those questions and more. By the time you’re done reading, you’ll be ready to start your side hustle, register your business and start making money. Ready to get started?
Jump to what you want to know:
- What is a Side Hustle?
- The Benefits of Starting a Side Hustle
- Side Hustle Ideas
- How to Start a Side Hustle in 7 Steps
- Start Your Side Hustle Today
What is a Side Hustle?
Throughout the pandemic and cost of living crisis, you’ll have undoubtedly seen countless stories of people starting side hustles. People are converting campervans to make some extra money, starting online courses, and plenty of NSFW side hustles.
But with so much variation, you may wonder what a side hustle really is.
The answer to that is pretty broad. Here’s the Cambridge Dictionary definition to show just how expansive it is:
“A piece of work or a job that you get paid for doing in addition to doing your main job” — Cambridge Dictionary.
As you can see, it’s a broad concept — a side hustle is simply a way to make extra money outside of traditional employment. It can be anything from starting a small eCommerce business to freelance writing on the weekends. Generally, side hustles are things that we’re passionate about and enjoy doing. They often feel less like work and more like a hobby.
The great thing about side hustles is that they offer us a way to pursue our passions and make extra cash simultaneously. In many cases, side hustles can even turn into full-time businesses. In fact, there are plenty of companies that started as side hustles, including
- Yankee Candle
- Etsy
- Apple
- Slack.
So, who knows? Maybe your side hustle will end up on the Fortune 500 one day. But even if it doesn’t, it’s still a great way to supplement your income, reach your financial goals and have some fun along the way.
The Benefits of Starting a Side Hustle
As we’ve already mentioned, the most significant benefit of a side hustle is that it can provide you with some much-needed extra income. Supplementing your earnings with additional income can allow you to save up for a mortgage deposit or go on that dream holiday.
But while the financial benefits are probably the most important, there are plenty of other great benefits that come with starting a side hustle:
1. Pursue Your Passions
A side hustle allows you to pursue your passions and turn them into a source of income. If you’ve always dreamt of starting your own business, a side hustle is a great way to get your feet wet without taking too much risk.
As you’ll be starting a business while keeping your income from employment, you won’t be dependent on your side hustle alone. This means you can get your business off the ground without the risks and worries associated with starting a business.
2. Develop New Skills
Side hustles allow you to develop new skills and learn more about the business world. If you’ve ever wanted to learn more about marketing or accounting, a side hustle is a great way to gain real-world experience.
Starting a side hustle is a do-it-yourself experience; throughout the process, you’ll need to handle every aspect of running a business. You’ll have to ensure that you keep your finances in check, market your business, keep a stock count and countless other things. All these experiences will set you up for success if you turn your side hustle into your main job.
They can also give you the skills you need for a career change or start if you’ve not got the experience companies are looking for.
3. Build a Network
When you’re running your side hustle, you’ll have the opportunity to build a professional network. Business owners naturally interact with other entrepreneurs regularly, so you’ll have plenty of opportunities to meet and connect with new people.
These connections can be vital for new businesses, and you may even connect with potential investors looking to invest in exciting new ventures like yours.
4. Improve Your Work-Life Balance
If you’re tired of working long hours at your day job, starting a side hustle can allow you to set your own schedule and work from home if you want to. A side hustle can be a great way to achieve a better work-life balance and give you more control over your time.
By creating an additional stream of income, you can maybe cut your hours at your full-time job and focus more on your own business. It’s important to note that most people who start side hustles tend to work more in the early stages, but the long hours are worth it in the long run.
5. Boost Your Confidence and Self-Esteem
Running your own business and making it a success can do wonders for your mental health. Pursuing your passions and achieving business success is unparalleled and can help you feel more confident in yourself and your skills.
Through the process of starting your side hustle, you’ll undoubtedly come across stumbling blocks and need to learn and adapt to overcome them. While this can be tough, it’s incredibly rewarding, and you’ll feel proud of yourself afterwards.
Side Hustle Ideas
As you can see, there are plenty of great reasons to start your own side hustle. But picking your idea is one of the trickiest parts of getting your business off the ground.
For some people, picking an idea is easy. We’ve all got those friends that always seem to bring in some extra cash from their passions. Maybe they sell handmade jewellery, or they’ve turned their love of baking into a thriving cake business.
You might already have a brilliant idea that you can’t wait to start (if that’s the case, skip to the next section). But if you’re struggling to pick one, here are some ideas to get you started:
1. Offer Freelance Services
Do you have a particular skill or talent that others could benefit from? Whether you’re a web developer, a graphic designer, or a social media whiz, there’s sure to be someone out there who’s willing to pay for your services. The best part is, you can work from anywhere — which means you can easily fit freelancing around your other commitments.
Learn more about starting a freelance business.
2. Write a Blog
If you’re passionate about a particular topic, why not start writing about it? You never know who might be interested in reading your thoughts and opinions — and you might even be able to make some money through advertising and affiliate marketing. All you need is a laptop and an internet connection.
Read more about starting a blogging business.
3. Start an eCommerce Business
From cosmetics to cookware to clothes, there are plenty of opportunities for new eCommerce businesses out there. And the great thing about eCommerce is that you can decide how much time and effort you want to put into it — so it’s perfect if you’re looking for something flexible. Plus, you don’t need to have your own website to start; you can use existing services like Amazon, eBay or Etsy.
Explore more about launching your own eCommerce business.
4. Be a Pet-Sitter/Dog-Walker.
If you love animals, this could be your perfect side hustle. Just promote your services online or through word-of-mouth, and pretty soon, you’ll have more clients than you know what to do with. What could be better than getting paid to hang out with furry friends all day?
As we’ve already covered, the sky’s the limit regarding side hustle ideas. With enough planning, you can turn pretty much anything into additional income.
Take the time to think about what you’re passionate about and how you can turn it into a business. Keep your ear to the ground locally as well; maybe there’s a you-shaped gap in the market.
How to Start a Side Hustle in 7 Steps
There are lots of different side hustle ideas available. You can start an online store, walk dogs, become a social media influencer, start an online course. The list goes on and on.
But while coming up with a business idea can be easy, starting a side hustle can seem daunting. Where do you even begin? Well, fear not! We’re here to help. We’ve put together the seven steps you need to take to get your side hustle business up and running.
Step 1: Choose Your Side Hustle Idea
The first step is to choose what you want to do. It may take some trial and error to figure out what works best for you, but choosing something you’re interested in and good at is essential.
For example, if you love animals, you could start a dog-walking business. Or, if you’re crafty, you could start making and selling handmade jewellery or home decor items on Etsy.
Whatever it is, make sure it’s something you’re passionate about. You’ll face challenges along the way, and your enthusiasm will be crucial for keeping at it through the tricky times.
Read more about developing your business idea.
Step 2: Do Your Research
Once you know what you want to do, it’s time to start doing some research. Find out everything you can about your chosen side hustle, including what equipment or supplies you’ll need, how much it will cost to get started, and who your target market is.
This step is crucial in helping you determine whether or not your side hustle is feasible and profitable. Try to take an objective look at your idea following your research so that you can impartially assess your chances of success.
Step 3: Create a Business Plan
This step is critical if you’re hoping to eventually turn your side hustle into a full-time business. But even if that’s not your goal, creating a business plan will help keep you organised and on track as you get started.
Include your business name and logo, a description of what you’ll offer, your target market, pricing information, and how you plan to promote your business.
Step 4: Get Organised and Set Up Shop
Now it’s time to get organised and set up shop. If you’re selling physical products, this means creating an inventory system and finding a place to store your products (like a spare room, garage or cupboard space).
If you’re offering services, this means getting everything in order so clients can easily book appointments online or over the phone.
Step 5: Promote, Promote, Promote!
Once everything is up and running, it’s time to start promoting your business like crazy. Get active on social media, hand out flyers in strategic locations (like local dog parks if you’re starting a dog walking business), and offer discounts or freebies to new customers.
You want people to know that your business exists and is worth their time and money.
Step 6: Keep Track of Expenses and Income
As your side hustle begins to take off, it’s essential to keep track of your expenses and income to know whether the business is profitable. This information will also come in handy come tax time. There are lots of great apps and software programs out there that make tracking expenses easy.
For many, the financial side of running a business is the most daunting. While keeping track of everything can be pretty straightforward with apps and spreadsheets, there can be severe consequences for getting it wrong. For that reason, many business owners use an accountancy service for peace of mind.
Step 7: Make It Official
The final step in the process is to make your business official. You’ll need to register your business with Companies House or HMRC to ensure you pay tax on any extra income you make.
For most people who earn money from a side gig, registering as a sole trader makes the most sense initially — it’s easy to do and keeping on top of your taxable income is relatively straightforward.
But if you’re planning to turn your side hustle into a full-time job, it’s worth considering registering your business as a limited company. Registering as a limited company has several benefits, including boosting your legitimacy, giving you limited liability against debts and allowing you to pay less tax.
Start Your Side Hustle Today with Mint Formations
So there you have it, everything you need to know to start your side hustle. Hopefully, at this stage, you’re raring to start your business and know everything you need to get going.
But if not, don’t panic. Starting your own business takes time, and it’s certainly not something you should rush.
At Mint Formations, we do everything we can to help new businesses. Alongside registering businesses with Companies House and HMRC, we have a vast amount of information on our blog for entrepreneurs on all aspects of starting a business.
If you’d like to download our latest guide on starting your own business during tough economic times, sign up for our newsletter today and download it for free.
Ready to start your side hustle? Explore our formation packages today and take the first steps in your entrepreneurial journey. If you have any questions, get in touch with the Mint Formations team today.