Caroline Wire

9 Feb 2023

5 min

Looking to increase your revenue with a side hustle, however uncertain the place to start?

Don’t fear, you’re not alone. Online searches for the phrase ‘make extra cash’ have risen 132% since this time final yr.  Whether it’s the problem of creating ends meet amid the price of residing challenges, paying off pupil loans, or saving for a vacation, beginning a side hustle could be a smart way to earn additional revenue quick.

In this publish, we’ll clarify how to start a side hustle as a freelancer or enterprise and supply some useful recommendations on how to flip your fledgling enterprise into a budding profession.

What is a side hustle?

A side hustle is a job you’ve gotten as well as to, or on the side of, your fundamental employment. It usually begins as a pastime however turns into a approach to earn supplemental revenue. Unlike a part-time job, a side hustle usually has extra freedom. You have better management, each over what you do and likewise what number of hours you spend doing it.

The rise of the side hustle

The Covid pandemic led to lasting modifications to working habits. Flexible working has change into the norm, making beginning a side hustle simpler than ever.

Combined with uncertainty in employment and the economic system, it’s hardly shocking that extra individuals are selecting to go solo.

Why start a side hustle?

According to Side Hustle Nation, in 2023, almost 20% of the UK working inhabitants are working their very own side hustle. This rises to 42% of Millennials (these born between 1981 and 1996) and 39% of Gen Z (these born from 1997 onwards).

Common causes for beginning a side hustle embrace:

Pay pupil loans off extra shortly

Supplement full-time revenue

Increase monetary {and professional} independence

Provide a inventive outlet for skills

Make spare time pay

Start a enterprise with out having to cease your full-time revenue

How to start a side hustle as a enterprise

A little bit of preparation goes a good distance. Here are some suggestions to provide help to get began in case you’re trying to arrange a new enterprise to your side hustle. Small Business Toolbox additionally offers a useful on-line guide on how to start a small business in the UK.

Create your corporation concept

Firstly, you want an concept for your corporation, and a distinctive identify to give your new enterprise an identification.

Top tip: This is a good level to write a marketing strategy to discover potential alternatives and perceive your competitors.

Find further useful resource

As your side hustle grows, it’s possible you’ll discover you possibly can not do the whole lot your self, however don’t but have the price range to recruit further workers. One approach to overcome that is to rent freelancers. PeoplePerHour is a market chief in matching freelancers to almost 1 million companies, thanks to our good digital platform.  Whether for particular person initiatives or on an ongoing foundation, you’ll discover a host of abilities and expertise at your fingertips at a less expensive price than hiring a full-time worker.

Understand your authorized obligations

When registering as self-employed, you’ll want to select a authorized construction for your corporation – whether or not sole dealer, partnership, or restricted firm. Simply Business offers extra useful data with its guide to side hustle legal obligations.

Explore funding

Your enterprise will want financing, so you might have considered trying to discover crowdfunding or whether or not you’re eligible for any small enterprise grants or enterprise loans for start-ups.

Sort enterprise insurance coverage

Navigating enterprise insurance coverage can appear sophisticated. However, even in case you’re solely buying and selling part-time, it’s vital to defend towards dangers corresponding to accidents, harm, and authorized charges. The fundamental forms of insurance coverage are:

Public legal responsibility – offering cowl if somebody is injured as a results of your corporation

Professional indemnity – vital in case you’re offering a skilled service to the shopper

Product legal responsibility – offers safety in case you’re designing/making/promoting merchandise

How to start a side hustle as a freelancer

Whether you’re trying to prime up your revenue or maximise abilities which are underutilised in your present job or every day life, you’re not alone. 

A ballot of two,000 adults with kids in schooling discovered 62 p.c really feel they’ve abilities that aren’t being utilised at the moment, whether or not that be at work or as a stay-at-home dad or mum.

If you’re prepared to make the leap into the world of freelancing, learn on for some concepts and suggestions to start your enterprise while minimising danger.

Decide what works for you

Ask your self these questions to perceive what you need to get out of beginning your personal side hustle:

Are you in search of lengthy or short-term work?

Do you need to earn a regular, common revenue or earn cash extra shortly?

How a lot time are you able to spare to your side hustle?

Do you want to do business from home, or are you prepared to journey?

Determine what you do greatest

The subsequent step is to resolve the place your skills, abilities, and expertise lie. If this sounds daunting, ask your self:

What are you good at?

What abilities do you’ve gotten that others may have?

What pursuits you?

What do your family and friends usually ask your recommendation for?

Check out Indeed’s publish on ideas for a side hustle to discover concepts and inspiration.

How to start a side hustle appropriate to your abilities

Once you’ve narrowed down your choices, the following step is to start advertising and marketing your self and make your side hustle desires a actuality!

One of one of the best methods to attain potential shoppers is by promoting your providers with a web based specialist platform. As the longest-running freelance service within the UK, PeoplePerHour is a perfect place to start. Connecting over 1.2 million shoppers to freelancers, we offer a safe on-line market to join your providers with shoppers and companies globally.

Alongside promoting your providers on-line, it’s additionally value creating your personal web site. Although this can take time and it’s possible you’ll want to buy a area identify, and so forth, it’s a good store window to showcase examples of your work.

Create your personal social media accounts to your providers and promote on group and native enterprise boards. The analytics in social media could be harnessed to provide help to improve person engagement and guarantee your posts get most protection.

To keep away from being hit with a giant tax invoice from HMRC, while you start a side hustle, it actually pays to be ready.

As you’ll be classed as self-employed, revenue tax and National Insurance gained’t routinely be deducted out of your revenue. Plan forward for this and:

Become tax savvy – Know the principles relating to private tax limits. You can get the lowdown on this and extra with Money Helper’s guides for freelancers.

Start saving – Put away a few of your earnings every month to go towards your taxes

Keep monitor of bills – Noting bills, corresponding to enterprise mileage, prices of organising a dwelling workplace, and so forth could scale back the quantity of tax you’ll owe

Challenging, but rewarding

So, now you know the way to start a side hustle. There’s little doubt it takes onerous work and dedication, notably while you’re juggling paid employment or obligations. Never lose sight of your finish purpose and what made you go solo within the first place. There are numerous sources on the market to assist get you began and switch your side hustle desires into actuality. So, why not give it a strive?