Many founders will not pay themselves in the early stages of their business, with all initial money raised ploughed back into the business.
The question of when and how much founders get paid comes down to individual founders, their businesses and possibly their investors. However, founders still have bills to pay, and even if there is minimum remuneration from the business, early-stage entrepreneurs must figure out how they will get by on a personal level.
If you need more means to support yourself or need extra cash, looking to a side hustle might be the answer. According to research by comparethemarket.com in September 2022, 47% of UK adults are considering a second job. The trend is most popular among young adults between 25 to 34, with more than 68% saying they were considering setting up a side job. There is no shortage of possibilities, but finding one that pays and suits your lifestyle and business demands is critical.
What makes a good side hustle?
Flexibility is critical to side hustles, particularly when your startup demands significant personal involvement. There is little point investing time in a side hustle if you neglect your leading enterprise or your health and wellbeing.
The chances are you will be using your leisure time, evenings and weekends to pursue your side hustle. Therefore it's vital that you enjoy what you end up doing and that it supports your wellbeing rather than be detrimental to it.
Freelancing or consulting in the area that you have built your career to date is one area you could quickly turn your hand to on a regular basis. But you could take on multiple side hustles such as dog walking, house sitting, dropshipping, wholesaling, decluttering selling online or going to a Sunday morning car boot sale.
Fintellity is a fintech startup that helps people manage their personal finances. One area of interest for the business is supporting customers to explore side hustles to meet their financial goals. Founder and CEO Shardai Cosgrove says: "If you're a tech startup looking at a laptop all day, then you need a side hustle that's not online as a digital detox. Something that can involve the family or something that you enjoy because it can be very stressful being a founder.
"As a founder, you've got the inclination to start your own business; you're going to be very motivated and driven. Naturally, you've got to be good at time management and timeboxing tasks. And if you're going to have a side hustle, even more so."
If you're a tech startup looking at a laptop all day, then you need a side hustle that's not online as a digital detox. Something that can involve the family or something that you enjoy because it can be very stressful being a founder.
People are surprisingly creative at finding pleasant ways to make a bit of money. It could be making and selling craftwork, decluttering with car boot sales, dog-walking or house-sitting.
Freelancing or consulting based on a founder's previous career is an option, but it depends on individual circumstances because the demands on time can be prohibitive. Shardai says: "If you're single, and you work all week on your startup, then you work all evening and all weekend on your freelancing, fair enough. But if you're a startup with a family, that's just not viable." Side-hustling needs to suit your situation.
Collateral benefits
It's important to be realistic about what a side hustle could achieve for you financially. Being goal orientated and assigning that extra income to a specific item, such as a holiday or car insurance, helps. Whether it's just occasional pocket money or a regular income, if the result is taking some stress out of your personal finances, it will help you focus on your startup.
And if a side hustle presents an opportunity to build skills, experience, confidence or your network, it won't be lost on the business.
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