A step-by-step guide to launching your side hustle

Are you looking for a way to make some extra money? A side hustle could be the perfect way to do it. With the right idea and dedication, you can turn your passion into a profitable enterprise.

Below, we look at the benefits and challenges of having a side hustle, and provide some creative side hustle tips and ideas to get you started.

Want to know more about how you can unlock the potential of your own entrepreneurial spirit and make your business dreams come true? Read our free guide to starting a side hustle

What is a side hustle?

A side hustle is a way to make extra money on the side of your main job. It can be anything from freelancing, tutoring, or starting an online business.

Side hustles have become increasingly popular in recent years due to their flexibility and potential for growth. Once you've come up with a suitable business idea, you can turn it into a profitable endeavour that gives you financial freedom and brings you more satisfaction in life.

Plus, it's a great way to learn new skills and gain valuable experience that you can use to enhance your main source of income. If you're looking for an exciting way to add some extra cash to your wallet, a side hustle could be the perfect opportunity.

Benefits of having a side hustle

Having a side hustle is one of the best ways to boost your income and gain financial freedom. You can take control of your life, make more money than you would with your primary job, and have enough spare time to pursue other interests too.

With the extra income a side hustle brings, you can supplement the earnings from your job or even replace this money altogether. This way, you can achieve financial independence without relying solely on your main job for income.

Moreover, a side hustle lets you explore new skills and opportunities that may not be available in a traditional job setting. It also gives you the chance to develop new talents and refine existing ones in areas such as marketing, customer service or web development, for example.

In addition, having a side hustle will help expand your professional network, which may lead to further career advancements down the line.

Finally, the perfect side hustle provides an outlet for creativity and personal growth. It's an opportunity to pursue passions while increasing financial security at the same time. With dedication and hard work, anyone can make their dreams become reality with a successful side hustle business.

Other free guides in the series

Start a fashion business / Start a food business / Start an Instagram business / Start a Pinterest business / Start an Etsy business / Start a TikTok business / Start a business while studying

Challenges of having a side hustle

One of the biggest obstacles is finding the time to balance your primary job and side hustle. This requires careful planning and prioritising tasks in order to manage your workload without burning out.

Additionally, there are financial risks associated with starting a side hustle. Depending on the type of business you decide to start, you may need considerable upfront investment before you start seeing any returns. You'll also have less stable cash flow than if you were solely relying on your main job for income.

Finally, having a side hustle can take away from other aspects of life such as personal relationships and hobbies. It's important to remember that while working hard is essential for success, taking breaks and spending quality time with family and friends is also key for maintaining good mental health.

Overall, having a side hustle can be immensely rewarding but it's important to be aware of the potential challenges that come along with it before diving in too deep.

How to run a side hustle while you're working full-time

Starting a business is an amazing experience. But the long hours and divided focus make running a side hustle a tough gig.

We've looked at how you can manage the stress, prioritisation and make the most of your time side-hustling.

1. Managing the time you have

Being proactive about time management helps make sure you get the most value out of the little time you have.

Look for tools that can automate simple tasks. If you're getting bogged down processing simple information it's likely there's an easier option.

Recording expenses and cash flow reports can be automated by online software, while Fulfilment by Amazon warehouses stock and automatically dispatches online orders.

Be relentless about prioritisation. Develop a routine for managing your to-do list. It can help to revisit it regularly to think about what can be dropped and the main priorities – what's going to make the most impact?

Plastic Freedom founder Beth Noy launched the business as a side hustle. She quit her day job after building the company for 11 months.

"By making a list of your priorities, you can easily categorise them and do multiple things at once rather than wasting time getting everything set up and put away each time."

2. Set expectations for customers and suppliers

You need to manage partners' expectations to make sure people aren't disappointed when you're unable to immediately deliver work or respond to communications.

Beth says:

"Making sure I had realistic goals and timescales for Plastic Freedom was vital. I have been very open about my life and the fact that I also worked full time whilst growing my own business."

She made sure customers and suppliers were aware of her time limitations and used an auto-reply on emails to set expectations for new contacts.

"So long as you're upfront with customers and suppliers about your limitations you'll be surprised about how understanding they are. We are all human after all!"

3. Get a day job you believe in

Entrepreneurs often start businesses in their existing industry having identified a problem they want to solve in the course of their career. Having access to industry contacts and a reputation helps you get started too.

If you're thinking about starting a side hustle, look for work opportunities that help you learn more about the customers you want to work with.

The job role could be directly related to the business you're starting or simply in the same area.

A wannabe restaurant owner who's researching their brand could benefit from working as a chef. If you want to open a yoga studio, getting a part-time job in a gym might help. Seeing how other businesses operate and structure their work is really helpful.

Freelancing offers a flexible option. Not only can entrepreneurs pick up work from clients who are related to the business. But it's possible to increase and decrease the work as the business – and the amount it can pay you – fluctuates.

4. Use the time to test your hypotheses

Businesses are built to meet customers' needs. Entrepreneurs develop hypotheses about products and services that they believe consumers want. Problems they need solving. This normally starts as a hunch that needs to be tested.

Would you buy shoes online? Do you want to broadcast yourself playing video games? The ideas behind start-ups like Zappos and Twitch were unconventional when they launched.

Your side hustle might not have a similarly disruptive proposition but your ideas likely include assumptions about demand, price and route to market.

Developing a business as a side hustle provides the time to figure out if you're right without the risk of committing to it full time. Use the opportunity to get to know your customer. Take steps to improve your proposition and the brand behind it.

The Mom Test is a useful place to start if you want to learn how to ask questions and learn about your audience.

5. Be frugal with your money

Entrepreneurs working on their start-ups full-time immediately incur a significant amount of cost.

Wages have to be paid. Office space is needed. Growth targets will be set and it's easy to get sucked into investing considerable amounts of money chasing revenue growth.

Working on a side hustle embeds a sense of financial discipline. The nut – the minimum amount you need to run the business – can be really low.

Websites and marketing can be run with a few low-cost or free subscription services. Most people running a side hustle do it out of their own home.

6. Look after your mental and physical wellbeing

Starting a business is tough. It's normal to face setbacks. Worries about money and failure are easily compounded by a lack of sleep. A feeling of loneliness is common among solo founders.

Starting a side hustle helps alleviate stress about money because you have an income to rely on. However, many of the common pressures remain and you have to balance different demands on your time.

Entrepreneurs need to take their wellbeing seriously. Part of start-up culture celebrates working relentlessly. The reality is you need a balanced lifestyle to continue to perform at a high level, enjoy your work and avoid burnout.

Ambition is great but be reasonable about your expectations and build the business that's sustainable for your lifestyle.

Exercising helps you stay healthy and has the added benefit of creating a space free of distractions that will help you think and develop ideas.

It's easy to feel like you're the only person who's struggling with particular challenges. Whether it's winning sales, choosing a business name or understanding your profit and loss accounts lots of other people are out there facing the same issues.

Building a network that gives you an opportunity to discuss ideas, learn and vent when you need to is incredibly powerful. Beth offers some guidance:

"My advice to listen to your mind and body and allow yourself time to enjoy life. When I'm focused I can get a lot done in a short period of time but I allow myself to have time off – without feeling guilty about it – when I just felt too tired.

"Make time for the things you love, stay healthy and get enough sleep. The rest will flow easily; following your dream should be fun!"

Want to make some extra money on the side?

Starting a side hustle is a great way to take control of your financial future and pursue your passions. Keen to know how? Get started with our free guide