{"id":8757,"date":"2024-03-06T10:08:33","date_gmt":"2024-03-06T10:08:33","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=8757"},"modified":"2026-05-07T16:14:17","modified_gmt":"2026-05-07T15:14:17","slug":"starting-side-hustle-faqs-answered","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/starting-side-hustle-faqs-answered\/","title":{"rendered":"How to start a side hustle: Planning and execution tips"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow to start a side hustle: Planning and execution tips\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tGot skills you can repurpose to generate income? or have a business idea to try alongside your day job? Enthusiasm is essential, but there\u2019s more to it than that. Consider side-hustle practicalities like validating your idea and writing a business plan, managing tax, finding customers, and knowing when to bring in help. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2024-03-06T10:08:33+00:00\">6 March, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How to start a side hustle: Planning and execution tips\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/starting-side-hustle-faqs-answered\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/ashleyhindsmansage\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/02\/Ashley-Thompson-350x350.jpg\" class=\"entry-author__image\" alt=\"Ashley Thompson\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/02\/Ashley-Thompson-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/02\/Ashley-Thompson.jpg 600w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Ashley Thompson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Successfully starting a side hustle&nbsp;comes down to&nbsp;a solid business idea,&nbsp;clear execution, disciplined finances, and the ability to test and adapt quickly.&nbsp;<\/p>\n\n\n\n<p>Maybe you\u2019ve&nbsp;spotted a gap in the market,&nbsp;identified&nbsp;a customer need, or want to turn a skill or passion into extra income. The challenge&nbsp;is&nbsp;knowing whether it will&nbsp;actually work&nbsp;and how to turn it into something sustainable.&nbsp;<\/p>\n\n\n\n<p>Getting the fundamentals right early, like&nbsp;how you&nbsp;validate&nbsp;demand, manage money, and structure your work,&nbsp;can&nbsp;determine&nbsp;whether&nbsp;your&nbsp;side hustle&nbsp;generates&nbsp;occasional income or grows into something much bigger.<\/p>\n\n\n\n<p><strong>Here\u2019s what this article covers:<\/strong><\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-are-the-first-steps-to-starting-a-side-hustle\" data-level=\"2\">What are the first steps to starting a side hustle?<\/a><\/li><li><a href=\"#h-how-do-nbsp-you-nbsp-know-if-nbsp-your-nbsp-side-hustle-idea-will-make-money\" data-level=\"2\">How do&nbsp;you&nbsp;know if&nbsp;your&nbsp;side hustle idea will make money?<\/a><\/li><li><a href=\"#h-do-you-need-a-business-plan-when-starting-a-side-hustle\" data-level=\"2\">Do you need a business plan when starting a side hustle?<\/a><\/li><li><a href=\"#h-how-do-i-write-a-business-plan\" data-level=\"2\">How do I write a business plan?<\/a><\/li><li><a href=\"#h-how-long-should-nbsp-a-nbsp-business-plan-be\" data-level=\"2\">How long should&nbsp;a&nbsp;business plan be?<\/a><\/li><li><a href=\"#h-how-to-finance-your-side-hustle\" data-level=\"2\">How to finance your side hustle<\/a><\/li><li><a href=\"#h-funding-through-business-loans-nbsp\" data-level=\"2\">Funding through business loans&nbsp;<\/a><\/li><li><a href=\"#h-alternative-funding-options-nbsp\" data-level=\"2\">Alternative funding options&nbsp;<\/a><\/li><li><a href=\"#h-how-to-handle-tax-for-your-side-hustle-nbsp\" data-level=\"2\">How to handle tax for your side hustle&nbsp;<\/a><\/li><li><a href=\"#h-what-if-nbsp-i-nbsp-make-less-than-1-000-in-a-tax-year-nbsp\" data-level=\"2\">What if&nbsp;I&nbsp;make less than &pound;1,000 in a tax year?&nbsp;<\/a><\/li><li><a href=\"#h-how-to-nbsp-manage-your-side-hustle-finances-nbsp-day-to-day-nbsp\" data-level=\"2\">How to&nbsp;manage your side hustle finances&nbsp;day-to-day&nbsp;<\/a><\/li><li><a href=\"#h-how-nbsp-to-nbsp-find-customers-nbsp-and-nbsp-arrange-nbsp-payment\" data-level=\"2\">How&nbsp;to&nbsp;find customers&nbsp;and&nbsp;arrange&nbsp;payment<\/a><\/li><li><a href=\"#h-when-nbsp-and-how-to-grow-your-side-hustle\" data-level=\"2\">When&nbsp;and how to grow your side hustle<\/a><\/li><li><a href=\"#h-what-are-the-easiest-side-hustles-nbsp-to-start\" data-level=\"2\">What are the easiest side hustles&nbsp;to start?<\/a><\/li><li><a href=\"#final\" data-level=\"2\">Final thoughts<\/a><\/li><li><a href=\"#h-frequently-asked-questions-about-starting-a-side-hustle\" data-level=\"2\">Frequently asked questions about starting a side hustle<\/a><\/li><\/ul><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-1a953aef-c126-42e1-a130-e0fbefd38b65\">Download your free side hustle toolkit, comprising a side hustle guide, business plan template and cash flow forecast template<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-first-steps-to-starting-a-side-hustle\">What are the first steps to starting a side hustle?<\/h2>\n\n\n\n<p>How to start a side hustle comes down to a few practical steps you can execute quickly.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Choose a skill or service:<\/strong>&nbsp;start with something you already know how to do or can learn quickly, like&nbsp;freelancing, selling products, or offering a local service.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Validate demand:&nbsp;<\/strong>make sure people are willing to pay&nbsp;for your product or service&nbsp;by researching competitors or testing your idea with a small audience before investing heavily.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Define your&nbsp;offer:&nbsp;<\/strong>be specific about what&nbsp;you\u2019re&nbsp;selling, who&nbsp;it\u2019s&nbsp;for, and how it solves a problem.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Set up&nbsp;a simple way&nbsp;to get paid:<\/strong>&nbsp;use basic tools to invoice, accept payments, or sell online.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Start small and launch quickly:<\/strong>&nbsp;begin with a&nbsp;basic&nbsp;version of your idea and improve it based on real customer feedback.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Manage your time and finances:&nbsp;<\/strong>track income and&nbsp;expenses and&nbsp;set aside dedicated time each week to grow your side hustle consistently.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-nbsp-you-nbsp-know-if-nbsp-your-nbsp-side-hustle-idea-will-make-money\">How do&nbsp;you&nbsp;know if&nbsp;your&nbsp;side hustle idea will make money?<\/h2>\n\n\n\n<p id=\"h-how-do-you-know-if-your-side-hustle-idea-will-make-money\">Before investing time and money into your side hustle,&nbsp;it&#8217;s&nbsp;worth doing some&nbsp;basic research&nbsp;to&nbsp;validate&nbsp;your idea.&nbsp;Here&#8217;s&nbsp;what to&nbsp;look into:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Identify&nbsp;your target customer.<\/strong>&nbsp;Who is most likely to buy from you? Think about their age, location, income, and&nbsp;problems they need to&nbsp;solve. The more specific you can be, the better.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Check&nbsp;that&nbsp;there&#8217;s&nbsp;a market for&nbsp;your idea.<\/strong>&nbsp;Search for your idea on Google, social media, and marketplaces like Etsy or Amazon. If others are already selling something similar,&nbsp;that&#8217;s&nbsp;a good sign: it means people are paying for it.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Size up your competitors.<\/strong>&nbsp;Who else is offering what you plan to offer? Look at their pricing, reviews, and how they market themselves.&nbsp;Identify&nbsp;where you could do things differently or better.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Test your idea before you commit.<\/strong>&nbsp;Talk to potential customers directly, run a small survey, or offer your product or service to a handful of people before going all in. Real feedback from real people is the most reliable validation you can get.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p id=\"h-how-do-you-know-if-your-side-hustle-idea-will-make-money\"><strong>Check that people will pay your price.<\/strong>&nbsp;It&#8217;s&nbsp;one thing to know people want what&nbsp;you&#8217;re&nbsp;offering;&nbsp;it&#8217;s&nbsp;another to know&nbsp;they&#8217;ll&nbsp;pay enough to justify the venture. Look at what competitors charge and test your pricing early.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-do-you-need-a-business-plan-when-starting-a-side-hustle\">Do you need a business plan when starting a side hustle?<\/h2>\n\n\n\n<p>Yes, you need a business plan. Even if you already have customers lined up, you need to document and plan the fundamentals of your venture if you want longevity.&nbsp;<\/p>\n\n\n\n<p>Taking the time to&nbsp;strategise&nbsp;will help you later down the line, no matter how small your&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/set-up-side-hustle-full-time\/\" target=\"_blank\" rel=\"noreferrer noopener\">side hustle<\/a>&nbsp;is.&nbsp;<\/p>\n\n\n\n<p>Your&nbsp;business plan&nbsp;is the roadmap your business will take, considering:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How you define your unique selling proposition (USP).&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If there is a profitable market for your offering.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Who your competitors are and what makes you stand out in the market.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Overhead costs, paying yourself a salary, and&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mpb-bootstrapping-cash-flow\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow<\/a>.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Your&nbsp;business plan&nbsp;is&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/create-a-business-plan-wow-investors\/\" target=\"_blank\" rel=\"noreferrer noopener\">how you prepare to be successful<\/a>&nbsp;in your business, so&nbsp;it\u2019s&nbsp;a must-have.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-i-write-a-business-plan\">How do I write a business plan?<\/h2>\n\n\n\n<p>We\u2019ve&nbsp;created a downloadable&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/how-to-write-a-business-plan\/\" target=\"_blank\" rel=\"noreferrer noopener\">business plan template<\/a>&nbsp;for you to use, but&nbsp;if&nbsp;you\u2019d&nbsp;rather do it yourself,&nbsp;here\u2019s&nbsp;a breakdown of the common components&nbsp;you should have:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Value proposition<\/strong>. This section explains the unique value of your offering. It needs to be cut and dried,&nbsp;with&nbsp;no jargon or corny marketing speak.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The problem you solve<\/strong>. This is&nbsp;basically your&nbsp;\u201cwhy\u201d.&nbsp;What problem do you solve? The solution you provide can resolve a known problem for your ideal customer&nbsp;or one they&nbsp;don\u2019t&nbsp;yet&nbsp;realise&nbsp;they&nbsp;have. This section explains that.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Target market and competition<\/strong>. Who are you selling to,&nbsp;and who else is selling to them? What other options do your customers&nbsp;have,&nbsp;and what are their deciding factors when choosing? This will help you to&nbsp;identify&nbsp;your strengths and weaknesses.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sales and marketing<\/strong>. How will you reach your target market to make sales? How will you explain your offering to gain&nbsp;their interest? In this section, you&nbsp;identify&nbsp;where your target audience is and your plan to&nbsp;draw them in.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Budget and sales<\/strong>. This is where you start to look at forecasting sales, cash flow, and where&nbsp;you\u2019ll&nbsp;spend your money. How many sales do you need to make to turn a profit after you settle your expenses?&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Goals and milestones<\/strong>. How will you measure success? This section is where you set your milestone targets to keep your&nbsp;business\u2019s&nbsp;bigger picture within view. Vague targets are just ideas. Assign yourself due dates and go into detail about what needs to happen to achieve each goal. Things will be more manageable this way.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Finances<\/strong>. Break down how money will be used to get set up and&nbsp;maintain&nbsp;operations.&nbsp;Detail&nbsp;how you plan to pay off debts.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Risks<\/strong>. This section highlights what could go wrong and how likely it is for those things to happen.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>It can be easy to feel overwhelmed with all the things to consider.&nbsp;<\/p>\n\n\n\n<p>However, one&nbsp;easy way&nbsp;to give yourself a 360-degree view of where your company\u2019s blind spots are is by doing a&nbsp;Strengths,&nbsp;Weaknesses,&nbsp;Opportunities,&nbsp;and&nbsp;Threats&nbsp;(SWOT) analysis.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s&nbsp;what that is in more detail:&nbsp;<\/p>\n\n\n\n<p><strong>Strengths<\/strong>&nbsp;<\/p>\n\n\n\n<p>What is your business already doing exceptionally well? How can your strengths help you&nbsp;to deal&nbsp;with risks?&nbsp;<\/p>\n\n\n\n<p><strong>Weaknesses<\/strong>&nbsp;<\/p>\n\n\n\n<p>In what area is your business&nbsp;weak? Is it knowledge? Money? Bandwidth?&nbsp;<\/p>\n\n\n\n<p><strong>Opportunities<\/strong>&nbsp;<\/p>\n\n\n\n<p>Where are the opportunities?&nbsp;<\/p>\n\n\n\n<p>Big or small, set a goal for each opportunity that is specific, measurable, attainable, relevant, and can be done in a realistic&nbsp;timeframe.&nbsp;<\/p>\n\n\n\n<p>&nbsp;<strong>Threats<\/strong>&nbsp;<\/p>\n\n\n\n<p>Threats tend to attack your weaknesses first, so use this as another opportunity to remedy your weaknesses and reduce the risks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-long-should-nbsp-a-nbsp-business-plan-be\">How long should&nbsp;a&nbsp;business plan be?<\/h2>\n\n\n\n<p>A business plan should be however long it needs to be.&nbsp;<\/p>\n\n\n\n<p>When you first start out,&nbsp;your&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/business-model-canvas\/\" target=\"_blank\" rel=\"noreferrer noopener\">plan could be on one page<\/a>. Or&nbsp;nailing down the details of your business could take several pages.&nbsp;<\/p>\n\n\n\n<p>This will be a living document;&nbsp;you will update it regularly as your company evolves.&nbsp;<\/p>\n\n\n\n<p>Review it often to ensure things are moving in the right&nbsp;direction or&nbsp;use it as your blueprint to change direction completely.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-1a953aef-c126-42e1-a130-e0fbefd38b65\">Download your free side hustle toolkit, comprising a side hustle guide, business plan template and cash flow forecast template<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-finance-your-side-hustle\">How to finance your side hustle<\/h2>\n\n\n\n<p>You can fund your side hustle in several ways, from traditional bank loans and investors to savings, grants, and crowdfunding.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Funding&nbsp;option<\/strong>&nbsp;<\/td><td><strong>How it works<\/strong>&nbsp;<\/td><td><strong>Pros<\/strong>&nbsp;<\/td><td><strong>Cons<\/strong>&nbsp;<\/td><td><strong>Best for<\/strong>&nbsp;<\/td><\/tr><tr><td>Own savings&nbsp;<\/td><td>You fund the business yourself using money&nbsp;you&#8217;ve&nbsp;already set aside&nbsp;<\/td><td>No repayments; no interest; full control&nbsp;<\/td><td>Puts your personal finances at risk; may not be enough&nbsp;<\/td><td>Early-stage hustles with low startup costs&nbsp;<\/td><\/tr><tr><td>Bank loan&nbsp;<\/td><td>You borrow a fixed amount from a bank and repay it with interest over an agreed term&nbsp;<\/td><td>Keep full control of your business; predictable repayment terms&nbsp;<\/td><td>Requires good credit history; personal assets may be used as collateral&nbsp;<\/td><td>Hustles that need a significant upfront investment&nbsp;<\/td><\/tr><tr><td>Investors&nbsp;<\/td><td>An individual or firm provides capital in exchange for equity in your business&nbsp;<\/td><td>Access to large sums; investors are motivated to help you succeed&nbsp;<\/td><td>You give up a share of control and future profits; highly competitive to secure&nbsp;<\/td><td>High-growth ideas with strong earnings potential&nbsp;<\/td><\/tr><tr><td>Crowdfunding&nbsp;<\/td><td>You raise&nbsp;small amounts&nbsp;from&nbsp;a large number of&nbsp;people via platforms like Kickstarter or Crowdfunder&nbsp;<\/td><td>Validates your idea publicly; no equity&nbsp;required&nbsp;on some platforms&nbsp;<\/td><td>Time-consuming to run a campaign; success is not guaranteed&nbsp;<\/td><td>Product-based hustles with a compelling story&nbsp;<\/td><\/tr><tr><td>Grants&nbsp;<\/td><td>You apply for funding from government or private bodies; the funding&nbsp;doesn\u2019t&nbsp;need to be repaid&nbsp;<\/td><td>Free money with no repayments or equity&nbsp;required&nbsp;<\/td><td>Highly competitive; strict eligibility criteria; slow to process&nbsp;<\/td><td>Hustles that meet specific criteria such as innovation or social impact&nbsp;<br><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p id=\"h-how-to-finance-your-side-hustle\">&nbsp;<\/p>\n\n\n\n<p>Here\u2019s&nbsp;a closer look at the benefits and&nbsp;tradeoffs&nbsp;of these start-up funding options:&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-funding-through-business-loans-nbsp\">Funding through business loans&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pros-nbsp\"><em>Pros<\/em>&nbsp;<\/h3>\n\n\n\n<p>This&nbsp;option&nbsp;allows you to keep total control of how your business moves forward.&nbsp;<\/p>\n\n\n\n<p>The loan repayment terms can be straightforward\u2014meet repayments on time and the lender&nbsp;remains&nbsp;largely hands-off.&nbsp;Financial service providers such as banks&nbsp;aren\u2019t&nbsp;looking to make a huge profit off your loan, either.&nbsp;<\/p>\n\n\n\n<p>As long as&nbsp;you keep your loan in good standing,&nbsp;they\u2019ll&nbsp;have little involvement in how you run the business.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cons-nbsp\"><em>Cons<\/em>&nbsp;<\/h3>\n\n\n\n<p>Getting approved for a business loan can be difficult if you&nbsp;don\u2019t&nbsp;have a good credit history.&nbsp;<\/p>\n\n\n\n<p>You can use personal assets such as your home as collateral,&nbsp;but&nbsp;if the business fails, any assets used as collateral could be at risk.&nbsp;<\/p>\n\n\n\n<p>Funding through investors&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pros-nbsp-0\"><em>Pros<\/em>&nbsp;<\/h3>\n\n\n\n<p>Investors&nbsp;typically have abundant capital.&nbsp;<\/p>\n\n\n\n<p>You can use that to&nbsp;purchase&nbsp;technology to help you work faster and smarter for your customers.&nbsp;<\/p>\n\n\n\n<p>You&nbsp;also&nbsp;can make more&nbsp;product&nbsp;and hire more people to help you saturate your market.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/dealing-with-investors\/\" target=\"_blank\" rel=\"noreferrer noopener\">Your investor<\/a>&nbsp;wants to help your business&nbsp;operate&nbsp;on the highest level for their investment\u2019s biggest return.&nbsp;&nbsp;<\/p>\n\n\n\n<p>They&nbsp;won\u2019t&nbsp;hound you for repayment because&nbsp;they\u2019ll&nbsp;make their money through equity in your business. The more you make, the more they make.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cons-nbsp-0\"><em>Cons<\/em>&nbsp;<\/h3>\n\n\n\n<p>It\u2019s&nbsp;a competitive market for the attention of investors. Entrepreneurs everywhere claim to have the next&nbsp;big thing&nbsp;in their pocket.&nbsp;<\/p>\n\n\n\n<p>Unless your business is already&nbsp;generating significant revenue&nbsp;with&nbsp;high earnings&nbsp;forecast and manageable risks, it can be hard to stand out&nbsp;from&nbsp;the crowd.&nbsp;<\/p>\n\n\n\n<p>Plus, investors will want equity in your business, so&nbsp;you\u2019ll&nbsp;have to give up a&nbsp;portion&nbsp;of your control.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-alternative-funding-options-nbsp\">Alternative funding options&nbsp;<\/h2>\n\n\n\n<p>Loans and investments can seem glamorous and tempting, but in&nbsp;reality,&nbsp;not everyone will be in a&nbsp;position for&nbsp;either (or&nbsp;have a desire to consider them).&nbsp;<\/p>\n\n\n\n<p>You could&nbsp;also&nbsp;use your own savings or income from your&nbsp;main job.&nbsp;There\u2019s&nbsp;the&nbsp;option&nbsp;to reach out to friends and family, too.&nbsp;<\/p>\n\n\n\n<p>You might decide to go down the&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/crowdfunding-tips\/\" target=\"_blank\" rel=\"noreferrer noopener\">crowdfunding<\/a>&nbsp;route;&nbsp;there are&nbsp;numerous&nbsp;online platforms you could try.&nbsp;<\/p>\n\n\n\n<p>There\u2019s&nbsp;also the&nbsp;option&nbsp;to&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/government-grants-for-small-businesses\/\" target=\"_blank\" rel=\"noreferrer noopener\">try&nbsp;to&nbsp;get a&nbsp;government grant<\/a>&nbsp;(and if&nbsp;you\u2019re&nbsp;successful, you&nbsp;won\u2019t&nbsp;have to pay it back).&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pros-nbsp-1\"><em>Pros<\/em>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Friends and family funding is informal and often interest-free, based on trust rather than credit history.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Crowdfunding&nbsp;validates&nbsp;your idea publicly before you launch, and some platforms require no equity in return.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Government grants&nbsp;don&#8217;t&nbsp;need to be paid&nbsp;back and&nbsp;winning one can add credibility to your business.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your own savings require no repayments or interest, and you&nbsp;retain&nbsp;full control of your business.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cons-nbsp-1\"><em>Cons<\/em>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Borrowing from friends and family can strain personal relationships if the business struggles or repayments are delayed.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Running a successful crowdfunding campaign is time-consuming and&nbsp;there&#8217;s&nbsp;no guarantee of reaching your target.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Government grants are highly competitive, with strict eligibility criteria and a slow application process.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Using your own savings puts your personal finances at risk and limits how much you can invest.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-handle-tax-for-your-side-hustle-nbsp\">How to handle tax for your side hustle&nbsp;<\/h2>\n\n\n\n<p>The amount of tax you pay on your&nbsp;side&nbsp;hustle income depends on how much you earn.&nbsp;There are different rules depending on whether you generate more or less than \u00a31,000 per year.&nbsp;<\/p>\n\n\n\n<p>If you earn more than \u00a31,000 in a tax year from your side hustle,&nbsp;you\u2019ll&nbsp;need to register as a sole&nbsp;trader, and&nbsp;use the&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/file-a-tax-return-online\/\" target=\"_blank\" rel=\"noreferrer noopener\">Self Assessment<\/a>&nbsp;system to tell&nbsp;the tax office (HMRC)&nbsp;about what&nbsp;you\u2019ve&nbsp;earned (and pay any taxes that are&nbsp;required).&nbsp;<\/p>\n\n\n\n<p>This applies even if you already have a full-time job that pays you a wage for which tax and&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-national-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">National Insurance<\/a>&nbsp;are&nbsp;deducted by your employer (through PAYE).&nbsp;<\/p>\n\n\n\n<p>If your side hustle brings in&nbsp;\u00a390,000&nbsp;or more in a year,&nbsp;congratulations; but&nbsp;that\u2019s&nbsp;the cut-off beyond which&nbsp;you&nbsp;need to&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/register-for-vat-online\/\" target=\"_blank\" rel=\"noreferrer noopener\">register for VAT<\/a>.&nbsp;<\/p>\n\n\n\n<p>This means charging VAT on products and sending&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/vat-return-making-tax-digital\/\" target=\"_blank\" rel=\"noreferrer noopener\">VAT&nbsp;returns<\/a>&nbsp;to HMRC.&nbsp;<\/p>\n\n\n\n<p>It\u2019s&nbsp;even possible to create a&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/business-records-limited-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">limited company<\/a>, through which you can&nbsp;operate&nbsp;your side hustle and pay yourself a wage. Again, you can do this even if&nbsp;you\u2019re&nbsp;employed full time and receive a wage.&nbsp;<\/p>\n\n\n\n<p>But most people with a side hustle simply register for&nbsp;Self Assessment.&nbsp;<\/p>\n\n\n\n<p>This means they calculate how much income tax and National Insurance (Class 4) is due on what&nbsp;they\u2019ve&nbsp;earned,&nbsp;then&nbsp;submit&nbsp;a&nbsp;Self Assessment&nbsp;tax return form electronically by 31 January each year.&nbsp;<\/p>\n\n\n\n<p>To see how much you owe,&nbsp;you\u2019ll&nbsp;need to know how much&nbsp;you\u2019ve&nbsp;already paid in tax and National Insurance via your wage.&nbsp;<\/p>\n\n\n\n<p>That info is on the P60 and P11D that your employer provides between April and May each year.&nbsp;<\/p>\n\n\n\n<p>Pro tip: You can&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/allowable-expenses-self-assessment-tax-return\/\" target=\"_blank\" rel=\"noreferrer noopener\">claim expenses<\/a>&nbsp;via&nbsp;Self Assessment, which can reduce the tax you owe from your side hustle. If your side hustle is one that requires buying consumables, then this makes a lot of sense.&nbsp;<\/p>\n\n\n\n<p>After starting your side hustle, you need to&nbsp;<a href=\"https:\/\/www.gov.uk\/register-for-self-assessment\" target=\"_blank\" rel=\"noreferrer noopener\">register for Self Assessment<\/a>&nbsp;as soon as possible, but&nbsp;definitely by&nbsp;5 October in your business\u2019s&nbsp;second tax year.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-if-nbsp-i-nbsp-make-less-than-1-000-in-a-tax-year-nbsp\">What if&nbsp;I&nbsp;make less than \u00a31,000 in a tax year?&nbsp;<\/h2>\n\n\n\n<p>If you make less than \u00a31,000 in a year,&nbsp;it&nbsp;is considered casual&nbsp;income&nbsp;and you&nbsp;don\u2019t&nbsp;need to tell HMRC about it.&nbsp;Don\u2019t&nbsp;get this confused with profit;&nbsp;this is based on gross&nbsp;sales,&nbsp;not how much you keep in your wallet.&nbsp;<\/p>\n\n\n\n<p>Note that in&nbsp;these circumstances,&nbsp;there\u2019s&nbsp;no way to claim the tax back on expenses, as you can with the&nbsp;Self Assessment&nbsp;system.&nbsp;<\/p>\n\n\n\n<p>You might find you keep more money overall if you do this, even with an income under \u00a31,000.&nbsp;<\/p>\n\n\n\n<p>It\u2019s&nbsp;worth noting that HMRC\u2019s recommended approach is that you should register your side hustle as a business, regardless of income and if you have any tax or National Insurance to pay.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-nbsp-manage-your-side-hustle-finances-nbsp-day-to-day-nbsp\">How to&nbsp;manage your side hustle finances&nbsp;day-to-day&nbsp;<\/h2>\n\n\n\n<p>The three essentials&nbsp;for managing your side hustle finances effectively&nbsp;are a dedicated bank account, an accountant, and accounting software.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-open-a-business-bank-account-nbsp\">Open a business bank account&nbsp;<\/h3>\n\n\n\n<p>If&nbsp;you\u2019ve&nbsp;set up a&nbsp;limited company, your business will be legally separate from you,&nbsp;and&nbsp;you will need a business account.&nbsp;<\/p>\n\n\n\n<p>However,&nbsp;if&nbsp;you\u2019re&nbsp;running your side hustle as a sole trader&nbsp;or are freelancing or working as a contractor, then you&nbsp;don\u2019t&nbsp;have to open a business bank account.&nbsp;&nbsp;<\/p>\n\n\n\n<p>No matter which of the two camps&nbsp;you\u2019re&nbsp;in, opening a business account is a good move.&nbsp;<\/p>\n\n\n\n<p>The key to accuracy&nbsp;in&nbsp;reporting and calculating taxes is keeping your business and personal expenses separate.&nbsp;<\/p>\n\n\n\n<p>Your business account should be free of any purchases that&nbsp;don\u2019t&nbsp;qualify as a business expense.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-hire-an-accountant-nbsp\">Hire an accountant&nbsp;<\/h3>\n\n\n\n<p>It makes sense to&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/how-to-choose-an-accountant-for-your-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">use an accountant<\/a>&nbsp;right away, but it&nbsp;isn\u2019t&nbsp;mandatory.&nbsp;<\/p>\n\n\n\n<p>If your side hustle is one in which you incur expenses (that is, you buy materials or consumables), then the use of an accountant is likely to pay for itself.&nbsp;They\u2019ll&nbsp;know what you can claim to offset your total tax bill.&nbsp;<\/p>\n\n\n\n<p>Using an accountant also&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/accountant-huge-difference-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">saves a lot of time and effort<\/a>&nbsp;when the time comes to file a tax return, and they will remove the stress and worry that you&nbsp;might\u2019ve&nbsp;got it wrong.&nbsp;<\/p>\n\n\n\n<p>If you bring an&nbsp;accountant in&nbsp;right away, they can&nbsp;also&nbsp;help you decide if you should set up as a&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/sole-trader-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">sole trader<\/a>&nbsp;or limited company.&nbsp;They can walk you through the tax implications of each and help you make your choice based on your business ambitions.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tom-coward-finance-experts-data-decision-making\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tom&nbsp;Coward<\/a>,&nbsp;chief&nbsp;financial officer&nbsp;of&nbsp;Cytora, a platform that helps insurers to underwrite more accurately, advises&nbsp;to hire&nbsp;an accountant once managing your finances becomes unmanageable.&nbsp;<\/p>\n\n\n\n<p>He says: \u201cI suggest dividing your financial tasks into two categories.&nbsp;<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>\u201cDo it yourself:&nbsp;business-critical things such as cash flow forecasting and business plan modelling.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>\u201cHire an accountant:&nbsp;things you must do but&nbsp;aren\u2019t&nbsp;a value add for you,&nbsp;such as VAT reporting and statutory accounting, and repetitive things like payroll, payments, and invoicing.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>\u201cIf the DIY category becomes too much and you can afford it, bring someone in-house. You can start with a portfolio finance director who does this for two or three companies.\u201d&nbsp;<\/p>\n\n\n\n<p>What if I decide not to hire an accountant?&nbsp;<\/p>\n\n\n\n<p>If&nbsp;you&#8217;d&nbsp;rather manage your finances yourself,&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounting software<\/a>&nbsp;can handle&nbsp;the heavy&nbsp;lifting. It automates the capture of your income and expenses, helps you forecast cash flow, and calculates your taxes accurately.&nbsp;This removes the guesswork, saves you time on processing data, and frees you up to focus on growing your side hustle.&nbsp;<\/p>\n\n\n\n<p>Look for software that integrates with your bank account and can scale with you as your income grows.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-1a953aef-c126-42e1-a130-e0fbefd38b65\">Download your free side hustle toolkit, comprising a side hustle guide, business plan template and cash flow forecast template<\/a><\/div>\n<\/div>\n\n\n\n<p> support you need, so that is the best place to start investing if you are not especially skilled in that area.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-nbsp-to-nbsp-find-customers-nbsp-and-nbsp-arrange-nbsp-payment\">How&nbsp;to&nbsp;find customers&nbsp;and&nbsp;arrange&nbsp;payment<\/h2>\n\n\n\n<p>To find customers and arrange payment, start by reaching out to people in your existing network or getting visible online, then set up simple, reliable ways for customers to pay you quickly and consistently.&nbsp;<\/p>\n\n\n\n<p>This is how you confirm that your fantastic-sounding idea&nbsp;actually solves&nbsp;a problem that exists&nbsp;and that people are willing to pay for it.&nbsp;<\/p>\n\n\n\n<p>You might already have the connections to secure customers from your experience,&nbsp;background,&nbsp;and contacts.&nbsp;These customers could be your best prospects for immediate sales. They offer the most cost-effective way to increase business because you already have a relationship with&nbsp;them.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-website-nbsp-and-marketing\">Website&nbsp;and marketing<\/h3>\n\n\n\n<p>If you&nbsp;don\u2019t&nbsp;have&nbsp;pre-existing&nbsp;connections,&nbsp;here&nbsp;are&nbsp;some suggestions for finding your first customer:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Create a functional website and set up social media profiles&nbsp;to explain what your business does and provide ways to&nbsp;purchase&nbsp;your product or service.&nbsp;You&nbsp;don\u2019t&nbsp;need to use every single social media channel;&nbsp;start with one or two.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cold call and pitch your services, both online and offline. Advertise in both traditional (offline directories, community boards) and digital ways, depending on your budget.&nbsp;Get&nbsp;visible&nbsp;by&nbsp;using the media or attending online events, for example.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Partner up&nbsp;with business owners who offer services that your&nbsp;customers need&nbsp;for cross-promotion.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Your website is often the first impression a potential customer gets of your&nbsp;side&nbsp;hustle, so it needs to look professional and be easy to navigate. Platforms like Squarespace, Wix, and WordPress make it straightforward to build a polished site without technical knowledge, while tools like Canva can help you create consistent, professional-looking visuals&nbsp;for&nbsp;your site and social media.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-getting-paid\">Getting paid<\/h3>\n\n\n\n<p id=\"h-getting-paid\">&nbsp;How and when you get paid depends on your cash cycle,&nbsp;the time between completing work and receiving payment.&nbsp;<\/p>\n\n\n\n<p>If&nbsp;you\u2019re&nbsp;a retailer or sell products online, then the buyer usually pays you&nbsp;immediately, so the cash cycle is&nbsp;very short.&nbsp;<\/p>\n\n\n\n<p>But if you&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/invoicing\/\" target=\"_blank\" rel=\"noreferrer noopener\">invoice customers<\/a>&nbsp;in a business-to-business transaction,&nbsp;you\u2019ll&nbsp;probably need&nbsp;to wait for payment anywhere from 30 to 60 or even&nbsp;90 days.&nbsp;<\/p>\n\n\n\n<p>The fastest way to see improvements in your cash flow is to ensure you have tight payment policies from the very beginning.&nbsp;<\/p>\n\n\n\n<p>Consider these actions:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ask customers to pay by credit card and\/or direct debit. It gives them a chance to conveniently pay the bill;&nbsp;for the former option, they can enjoy the interest-free repayment grace period offered by every credit card company, and&nbsp;for the latter, it can be set to a regular cadence, meaning the customer doesn\u2019t have to think about it.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You could also offer&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/best-payment-methods-for-small-businesses\/\" target=\"_blank\" rel=\"noreferrer noopener\">online payment methods<\/a>&nbsp;such as GoCardless and Stripe to your customers.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Keep new customers on a maximum credit limit until they have&nbsp;established&nbsp;a&nbsp;favourable&nbsp;payment history with you.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ask customers for deposits upfront to reduce your exposure to&nbsp;late payments.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ask customers for progress payments as you go, especially for large jobs.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Move from credit sales to cash sales.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p id=\"h-getting-paid\">Along the way, measure the average number of days it takes you to collect&nbsp;debts&nbsp;so you can see if these changes to your payment policies have a positive impact on your cash flow.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-nbsp-and-how-to-grow-your-side-hustle\">When&nbsp;and how to grow your side hustle<\/h2>\n\n\n\n<p>As your side hustle grows, there will come a point where you&nbsp;can&#8217;t&nbsp;do everything yourself. You will need to bring in help&nbsp;and carefully consider&nbsp;what kind of help&nbsp;makes sense.&nbsp;<\/p>\n\n\n\n<p>The right time to hire will depend on your situation, but there are some common signs to look out for.&nbsp;These are nicely summed up by the experience&nbsp;of&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/cash-flow-forecasting-sid-moore\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sid Moore<\/a>,&nbsp;founder of&nbsp;Moore&nbsp;Accountancy,&nbsp;who gives practical advice on dealing&nbsp;with this moment.&nbsp;<\/p>\n\n\n\n<p>On&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/hiring-people-building-team\/\" target=\"_blank\" rel=\"noreferrer noopener\">hiring people<\/a>,&nbsp;Moore&nbsp;says&nbsp;to&nbsp;do it \u201cwhen you&nbsp;don\u2019t&nbsp;have the capacity\u2014or,&nbsp;more importantly,&nbsp;the&nbsp;expertise\u2014&nbsp;to handle something&nbsp;yourself\u201d.&nbsp;<\/p>\n\n\n\n<p>The point is to be able to remain focused on what&nbsp;you\u2019re&nbsp;best at, and&nbsp;that\u2019s&nbsp;serving your customers.&nbsp;&nbsp;<\/p>\n\n\n\n<p>If there are parts of running your business that you find tedious,&nbsp;it\u2019s&nbsp;best not to risk valuable time and inaccuracies.&nbsp;<\/p>\n\n\n\n<p>Moore adds: \u201cI suggest subcontracting work out where you can as an easier step for getting&nbsp;additional&nbsp;support.&nbsp;<\/p>\n\n\n\n<p>\u201cWith a professional at the helm, you won\u2019t have to worry about the risks of tax penalties, cash shortages, making payroll, and missing deadlines.\u201d&nbsp;<\/p>\n\n\n\n<p>Your&nbsp;cash flow and forecasting&nbsp;will dictate how soon you are able to hire the support you need, so that is the best place to start investing if you are not especially skilled in that area.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-easiest-side-hustles-nbsp-to-start\">What are the easiest side hustles&nbsp;to start?<\/h2>\n\n\n\n<p>The easiest side hustles&nbsp;are those that require little upfront investment and use skills or resources you already have.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Here are four categories worth considering:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Service-based.<\/strong>&nbsp;If you have a marketable skill, this is often the quickest way to get started. Freelance writing, virtual&nbsp;assistance, social media management, tutoring, and bookkeeping can all be launched with little more than a laptop and a few clients.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Digital products.<\/strong>&nbsp;Create something once and sell it repeatedly, like&nbsp;templates, online courses, stock photography, or downloadable guides. There are upfront time costs, but the income can become&nbsp;largely passive&nbsp;once the product is live.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reselling and flipping.<\/strong>&nbsp;Buy items cheaply from car boot sales, charity shops, or online marketplaces like eBay, and resell them at a profit.&nbsp;Startup costs&nbsp;are low,&nbsp;and no specialist skills&nbsp;are&nbsp;required, though it does take time to develop an eye for a good deal.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gig economy.<\/strong>&nbsp;Platforms like Deliveroo, TaskRabbit, or Fiverr connect you with paid work quickly, with maximum flexibility over when and how much you work. The trade-off is that income can be&nbsp;unpredictable&nbsp;and&nbsp;you&#8217;re&nbsp;subject to the platform&#8217;s terms and fees.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts<\/h2>\n\n\n\n<p>There\u2019s only one way to test if your side hustle has what it takes to make you money \u2013 and that&#8217;s to give it a try.<\/p>\n\n\n\n<p>And at the same time, stay organised with your finances by using accounting software and you\u2019ll have the clearest view to make smart decisions that will keep your business moving in the right direction.<\/p>\n\n\n\n<p><em>Editor&#8217;s note: This article was first published in May 2026 and has been updated for relevance.<\/em><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Side hustle toolkit<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get your free guide, business plan template and cash flow forecast template to help you boss your side hustle and achieve your goals.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-1a953aef-c126-42e1-a130-e0fbefd38b65\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free toolkit<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t<div class=\"single-cta__downloads\">\n\t\t\t\t\t\n\t\t\t\t\t969 readers have downloaded this guide\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"810\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/01\/carlahussey-810x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/01\/carlahussey-810x810.jpg 810w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-about-starting-a-side-hustle\">Frequently asked questions about starting a side hustle<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1778166095521\"><strong class=\"schema-faq-question\">How much money do I need to start a side hustle?\u00a0<\/strong> <p class=\"schema-faq-answer\">Many side hustles can be started with little to no upfront cost, especially service-based or digital offerings. Focus on validating demand before investing in tools, inventory, or branding.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778166107309\"><strong class=\"schema-faq-question\">How many hours should I spend on a side hustle?\u00a0<\/strong> <p class=\"schema-faq-answer\">Start\u00a0working on your side hustle\u00a0with a consistent, realistic schedule, often\u00a0five to\u00a010 hours per week. Consistency matters more than intensity, especially in the\u00a0early stages.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778166121139\"><strong class=\"schema-faq-question\">Can I start a side hustle while working full-time?\u00a0<\/strong> <p class=\"schema-faq-answer\">You can start a side hustle with a full-time\u00a0job, but\u00a0check your employment contract for restrictions (e.g.,\u00a0non-compete clauses) and avoid using employer resources. Time management and clear boundaries are essential.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778166135395\"><strong class=\"schema-faq-question\">When should I turn my side hustle into a full-time business?\u00a0<\/strong> <p class=\"schema-faq-answer\">When your income is consistent, demand is proven, and you have enough financial runway (typically\u00a0three to six\u00a0months of expenses) to handle the transition, you can consider turning your side hustle into\u00a0a full-time enterprise.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778166147477\"><strong class=\"schema-faq-question\">How do I price my side hustle services or products?\u00a0<\/strong> <p class=\"schema-faq-answer\">Start by researching competitors, then align pricing with the value you provide. Test pricing early and adjust based on customer response and profitability.<\/p> <\/div> <\/div>\n\n\n\n<p id=\"h-frequently-asked-questions-about-starting-a-side-hustle\">&nbsp;<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Got skills you can repurpose to generate income? or have a business idea to try alongside your day job? Enthusiasm is essential, but there\u2019s more to it than that. Consider side-hustle practicalities like validating your idea and writing a business plan, managing tax, finding customers, and knowing when to bring in help. <\/p>\n","protected":false},"author":281,"featured_media":3801,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6,9],"tags":[135,124,13,12,27],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[75],"imagine_tag":[312,200,109],"coauthors":[354],"class_list":["post-8757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-strategy-legal-operations","tag-business-finances","tag-business-support","tag-create-business-plan","tag-start-business","tag-tax","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Ashley Thompson","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/02\/GettyImages-583665183_super.jpg","imagine_tags":{"312":"Payments","200":"Payroll","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/8757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/281"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=8757"}],"version-history":[{"count":2,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/8757\/revisions"}],"predecessor-version":[{"id":30001,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/8757\/revisions\/30001"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/3801"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=8757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=8757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=8757"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=8757"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=8757"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=8757"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=8757"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=8757"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=8757"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=8757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}