How to start a side hustle: the complete guide to earn extra income

The term “side hustle” has become more than just a buzzword in the business landscape.

Instead, side hustles are how many people are going about starting a business and earning additional income, especially amid economic uncertainty and the cost-of-living crisis. 

Nowadays, side hustles are so popular that 39% of Brits are taking up at least one as an additional source of income. Around a quarter of them (24%) also have a side hustle that earns them between £1-£200 a week.

In this article, we’ll guide you through everything you need to know about side hustles, including steps to start your own and the best practices for success.

What is a side hustle?

Simply put, a side hustle is a way to make some extra cash outside of your regular job. You can usually do it on your own schedule, like in the evenings or on weekends. People often start side hustles to save up for something, pay off debt or just have a little extra spending money.

Side hustles are popular because they allow you to do something you love or are passionate about while earning money. Whether it’s crafting, tutoring, or even launching an online store, they give you the freedom to explore your interests on your own terms.

Popular side hustle examples

Another great thing about side hustles is there are many avenues you can take, no matter your skills or interests. For example, if you’re creative, you could sell handmade goods on Etsy or design digital products. On the other hand, if you’re good with words, freelancing as a copywriter or starting a blog might be a good fit.

Here are some more popular examples:

• Childminding: offer paid childminding services in your spare time
• Cake making: start a cake business for special occasions such as weddings and anniversaries
• Coding: work with businesses to code their websites out of hours
• Vlogging and/or blogging: make money from digital marketing via a vlog or blog
• Taxi services: start your own taxi or private firm, or become an Uber driver
• Social media: offer freelance social media marketing services to new brands
• Dropshipping: purchase goods from a third party and resell them through your dropshipping store
• Tutoring: offer online or offline tutoring services to students in your local area
• Courier services: start your own courier business, or become a delivery driver through Deliveroo or Taskrabbit
• Public speaking: offer your public speaking services to events and conferences
• Webinars: create online or offline courses on something you’re passionate about
• Dog walking: offer dog walking services to people in your local area
• Photography: take up freelance photography and offer shoots for weddings, family photos and more

The pros and cons of side hustles

Side hustles are popular because they offer people the flexibility to earn extra money on their own terms, often by pursuing their passions. But beyond the monetary benefits, side hustles are also a great way to pick up new skills and maybe even discover new career paths.

That being said, there are drawbacks too. It’s important to note that it isn’t a get-rich-quick scheme, and you won’t likely make hundreds straight away. It takes time, effort and sometimes a bit of cash to get things going.

So before jumping in, it’s a good idea to think about both the upsides and downsides of starting a side hustle.

The benefits of side hustles

Side hustles are beneficial in many ways, mainly because they offer:

• Additional income: side hustles can help pay off debt or provide financial security.
• Skill development: gives you the chance to learn or refine skills that may not be utilised in your everyday job.
• Networking opportunities: you can expand your network by connecting with people outside your primary profession.
• Flexibility and autonomy: many side hustles decide when and how much you work (e.g. freelancing, ridesharing or online selling).

The drawbacks of side hustles

While there are obvious benefits to side hustles, there are also downsides to consider. This includes:

• Time constraints: balancing a side hustle with a full-time job, family and personal life can lead to burnout and less time for leisure.
• Impact on main job: fatigue or distraction from your side hustle could affect performance in your main job.
• Lack of stability: income can fluctuate, and may need some time before becoming profitable.
• Financial risks: some side hustles need upfront investment, and there’s no guarantee you’ll make it back.

How to start your side hustle

Starting a side hustle can be an exciting venture, but it’s important to go about it the right way to ensure everything runs smoothly. Here are the steps you should take to set up your side hustle.

1. Decide what you want to do

First, think about what you enjoy doing or what you’re good at. Your hobbies, skills, or even things people often ask you for help with could be great starting points. Once you have an idea, take some time to research whether there’s a demand for it. A little market research can save you a lot of time and effort later.

You can start by checking out what others are offering, looking at trends on Google and social media, or just asking friends and potential customers what they need. Pay attention to any gaps in the market where you could bring something fresh or unique.

If you’re stuck on ideas, check out our article on 101+ small business ideas for some inspiration.

2. Make a plan

This doesn’t have to be a full-blown business plan. Instead, you should outline what you want to achieve with your side hustle, whether it’s making extra money, learning new skills or maybe even building a business in the future. It’s all about setting clear goals from the start to keep you focused and motivated.

From there, break your idea into smaller steps, such as setting up a website, finding clients or creating your first product. You don’t need to do everything at once – start with the essentials and build up as you go.

Additionally, it’s helpful to set some milestones along the way –  such as your first sale, landing your first client or hitting a specific revenue target – as this will give you a sense of progress and accomplishment.

To stay on top of your tasks, consider using project management software like Asana or Trello. These tools can help you organise your ideas, track deadlines, and prioritise your workload, making it easier to keep your side hustle on track.

3. Use your existing network

Your network is a great place to spread the word about your side hustle. Let your friends, family and colleagues know what you’re working on – they might even be your first customers or help you find some.

Social media is also a great way to promote your work and build an audience, but you’ll need to choose platforms that align with your target audience and the type of side hustle you’re running.

Platforms like Instagram and TikTok are great for showing off your products or services visually, while LinkedIn is ideal for professional networking and business-related side hustles. If you’re looking to connect with your local community, Facebook groups or Marketplace are a good place to start.

4. Launch your side hustle and test the waters

Start small before going all in. If you’re offering a service, take on a few clients and see how it goes. This will help you get a feel for the process, understand customer needs and see what works and what doesn’t. If you’re selling a product, create a small batch and test it with potential customers, whether that’s through friends, family or online platforms. From there, use their feedback to improve your offerings.

Also, don’t be afraid to change things up if needed. Sometimes, your original idea will need a little tweaking based on customer feedback or what you learn from experience. Remember – the early stages are all about learning what works best, so take your time and be open to changing things up when needed.

Best practices for a successful side hustle

Like anything new, side hustles need a lot of thought and planning to get it right. To help you start the right way, here are some good practices to follow.

Be realistic

It’s important to understand that success won’t happen overnight. Starting a side hustle takes time, so don’t expect to make significant profits right away. Be patient and give yourself time to learn and grow. Also, set limits for how much time and money you can realistically invest, so you don’t burn yourself out.

Stay consistent

You may have heard it a thousand times before, but consistency is key. Even if you’re working with limited time, make sure you put in the effort. Whether it’s a few hours a week or setting aside specific times for your side hustle, keeping up the momentum is important for progress and getting the most out of what you do.

Be organised

It can be tricky to balance your side hustle with your day job and personal life, so it’s important to be as organised as you can. Use tools like calendars, to-do lists or apps to track deadlines and tasks. This will help you manage your time better and keep things from slipping through the cracks.

Learn and improve

Even if you’ve already got a strong skillset, you should always be open to learning and improving your skills. Whether it’s through online courses, reading articles or simply asking for feedback, you should always look for ways to grow.

Manage your finances carefully

Make sure to track your income and expenses from the start, even if you’re just making a little extra cash. You should set aside money for taxes and any future investments, as this will help you avoid surprises later on and keep things running smoothly.

For this, there are plenty of free accounting software that you can use, such as Quickbooks and Zoho Books, to make managing your finances easier. That way, you can track your income and expenses, and handle invoices in one place, so you can spend more time growing your hustle and less time crunching numbers.

Conclusion

Side hustles can be a great way to boost your income, develop new skills and explore your passions. Whether you’re looking to make some extra cash or eventually turn your side hustle into a full-time business, it’s important to follow the right steps and be realistic about your goals. 

Remember to start small, stay consistent and be open to learning and adjusting as you go. With the right approach, your side hustle can be both rewarding and fulfilling.