The first in our series of female focused articles this week looks at the rising popularity of the Side Hustle, and why it appeals to so many women!
What is a Side Hustle?
A side hustle is a type of enterprise of employment taken up in addition to a full-time job, perhaps in a freelance capacity or as a lifestyle business to generate supplementary income. It is a route into entrepreneurship often favoured by women in particular, allowing them to test the landscape at a reduced risk before deciding whether to make a permanent commitment.
For many women, their side hustle is a side business to their full-time work as a primary caregiver to children, allowing them to earn money without the burden of childcare costs (a topic we will return to later in the series)
How big is Side Hustlin’?
Research carried out by Vistaprint found
- 23% of Brits have turned a hobby into a business while a further 56% aspire to
- The average side hustle earnings are £6,604.80 per year post-tax
- Extra cash and pursuing a passion are the top reasons for starting a side business
- Side business owners would want to earn £2,711 per month before going full-time
It is also interesting that this study found beauty and wellness to be the most popular side business sector, which includes hairdressers, personal trainers and dieticians.
What to consider if starting a Side Hustle?
Side Hustle’s are popular due to the nature of their simplicity, however there are still processes and legalities that need to be considered even though your business may be casual.
Business Insurance may not be a legal requirement for all enterprises, but it is strongly advised not to forgo this vital cover. For example, if you are a hairdresser and you were to accidentally damage a clients clothing with hair colour, you would need to compensate the client from your own money or face stressful litigation in the small claims court.
Some services present a higher risk than others – such as consumable food that could cause serious illness or beauty products that may trigger a reaction and cause disfigurement. While it may sound dramatic, the possibility of losing your home and assets due to litigation when uninsured is a very real threat and it just isn’t worth the worry for the modest cost of being properly indemnified.
It is also worth checking with your home insurance provider that operating a business from your residential property does not cause your policy to be invalidated.
As a sole trader you are not legally required to have a dedicated business bank account, but you are obliged to keep your business and personal transactions separate and properly recorded. As a limited company it is a requirement to have a proper business bank account.
Start-up business bank accounts often have fee-free periods and are quick and easy to set up. They can be easily integrated with popular book keeping applications such as Quickbooks and Xero, and they will give you peace of mind that you are HMRC compliant and working to best practice.
While your Side Hustle may start small, from little acorns come big oak trees!
It is a good idea to have a business plan, even if you are only operating casually. It will help give you clarity on how much you need to earn before you can consider make it your full time focus and by forecasting your sales you can prepare a time line for when this is likely to become a viable option.
Join us again tomorrow for our second article in the Female Entrepreneurship series “Why Women Don’t Seek Investment”