Side hustling has begun to trend in a post-pandemic corporate world. On the back of a series of global lockdowns and a push for an online e-commerce boom, digitally native consumers have taken to technology to bring their entrepreneurial vision to life.
From social media-driven promotion to using website builders to compete within the e-commerce landscape, the flexibility that comes with a side hustle has made the sector even more desirable for active online users with a few hours spare a week.
In fact, 2021 saw the highest rate of startup applications in the last decade, after a primarily millennial and Gen Z demographic engaged within the gig economy, and the flexible working industry on the side of their nine-to-five positions.
Read on as we develop into the pros and cons of side hustling in 2022 and divulge the all-important lessons hungry entrepreneurs should take on board before starting their own venture.
Has Side Hustling Become A Trend In 2022?
Did you know that a third of all UK workers have a side hustle? In fact, amongst millennials, in particular, that number rises to over half, amounting to roughly 70 million people in 2022.
With many side hustlers thanking the pandemic for their entrepreneurial success, a recent study from Simply Business found that 23% of newfound entrepreneurs used the lockdown to reconsider their passions, and a further 28% claimed that the pandemic gave them the time and energy needed to establish a venture if their own.
Simply Business CEO, Alan Thomas stated that post-Covid, side hustle success was a “testament to the entrepreneurial spirit that runs throughout the UK” in a recent interview.
“Small businesses are crucial to the UK, accounting for 99 per cent of all British businesses and contributing trillions of pounds a year to our economy,” he stated. “It’s therefore encouraging to see that so many people have taken the plunge during the pandemic and started side businesses.”
While the average side hustle brings in just $200 a month globally, half of all post-pandemic entrepreneurs claimed that they made less than $100 a month in 2021.
While profits may be sparse, a wide number of side hustlers still claim that their number one reason for starting up their own venture was to receive a second source of income. From disposable spending money to boosting savings and paying debt, starting up a side hustle is an effective capital-boosting strategy.
(Image Source: BankRate)
The question is, just how profitable can a side hustle be, and are there any risks involved when starting up a new venture? Read on as we discuss five crucial lessons newfound entrepreneurs should learn before embarking on their own side hustle journey.
5 Lessons To Learn Before Taking On Your Own Side Hustle
From financial management to knowing your target demographic inside out, here are five startup lessons entrepreneurs must learn on their journey to side hustle success.
Learn To Manage Your Finances
Did you know that one in five startup ventures fail within the first year due to a lack of funding and poor financial management?
While maintaining a side hustle requires a lower level of funding than a startup venture, budding entrepreneurs must be on top of their financial management if they are to succeed.
Securing backup funding is the key to side hustle success. With an increased flow of capital, side hustlers can spend more time on perfecting website design, product manufacturing and materials and of course paid social promotion.
Learn About Your Audience
Your demographic is your key ingredient to triumph when it comes to getting a side hustle off of the ground. With consumer backing, your products/services are more likely to receive a higher level of social media engagement and in turn a higher rate of sale conversions.
The fundamental factor here lies within your audience research. Entrenepurs who stay on top of market trends and find out what makes their demographic tick and click are more likely to create a product or service that is well received by their audience.
Learn To Use Technology To Your Advantage
In a new technological age, side hustlers have set up camp online. With a large proportion of side hustle-based businesses establishing themselves in an online playing field, new entrepreneurs need to be investing in technological aids in order to boost productivity.
From AR/VR-based immersion that can improve the consumer experience to digital working platforms such as Monday or Trello that aim to organise your production schedule. Using technology to your advantage could put you leaps and bounds ahead of your competitors.
Learn How To Manage Your Time
Just under 40% of side hustlers work 5-20 hours a week to keep their business venture afloat. For those working a full-time job alongside a side hustle, it’s important to make sure you are managing this time well to ensure maximum productivity.
In fact, in order to bring in over £500 a month, entrepreneurs must be spending upwards of 10-15 hours a week on their second venture in order to rake in a profit.
Learn to Embrace Failure
Who said managing a start-up could be easy? Certainly not us. Embarking on a startup journey does not come without its challenges. Whether they are financial constraints or a struggle to break into an industry, side hustle success requires passion, dedication and the ability to accept failure.
Smart entrepreneurs must have a growth mindset as posed to a fixed mindset, in order to approach hurdles with productive force. Learning to embrace failure as a chance to learn and grow will ensure that a side hustle venture will continue to expand and strive to keep improving with the times.
While success may not come within the first try, those who persevere will have the last laugh.