In the past year, Google searches for ‘side hustle’ have grown by 58%, with 26,000 searches last month in the UK alone. In fact, a recent study found that 10m Brits are considering taking a second or even third job. This surge comes as no surprise against the backdrop of the cost of living crisis, with more and more people seeking ways to earn extra income.
Darren Fell, Founder and CEO at tax and accounting software, Crunch, said: “We’ve all seen those case studies in the news where someone has thrown in their day job to pursue their side hustles full time, and while it’s certainly possible for some, leaping from permanent employment to focus purely on your own business ventures isn’t always viable.
“The reliable income from a 9-5 is something that only a few can spare to ditch, especially amid the cost of living crisis, but the extra income and sense of fulfilment that can come from pursuing a side hustle or small business idea are nonetheless attractive. We have put together our tips for setting up a small business while remaining employed at your day job for anyone seeking the best of both worlds.”
- Check your employment contractMake sure you read your current employment contract from front to back before you go about starting your own business while remaining employed. There may be clauses and policies that state you can’t pursue your own business during your tenure as an employee, or your business idea may even be perceived as a conflict of interest. The last thing you want is to risk termination by inadvertently (or even deliberately) breaching your contract – so give it a thorough read-through, and raise any questions with your HR department.
- Be aware of your employment rights and benefits to help you strike the balanceWorking two jobs can be very challenging and, if not kept in check, can lead to a range of problematic consequences. If you overwork, both endeavours will suffer. If you devote too much time and energy to one, you’ll hinder the other. You have a few options to strike a balance. Firstly, you have the right to request flexible working from your employer – in fact, since 2014, this right was extended to all employees, not just those with family commitments.
That said, remember you only have the right to request it – your employer is within their rights to deny your request if they have a legitimate reason. Secondly, you could propose working part-time, a reduction in your contracted hours, or even on a job share basis. Neither of these things hurt to ask if you feel that you’re working yourself too hard in your pursuit of a second self-employed job. The third option – and the one most moonlighters trump for – is to just manage your time very carefully, and be aware of the impact on your well-being and productivity. The trick is to find a balance that works for you. Maybe you can devote one weekend a month to your new business, or maybe weekday evenings. Make sure you have downtime to spend with family and rest.
- Be respectfulWhile your side venture is new and exciting, and you may have a burning desire to plough all your time and energy into it, remember that you’re still employed and need to be respectful. Don’t waste company time working on your business idea. And if you do decide to focus on your own thing full time, try to leave your day job on good terms – you’ll thank yourself for doing this if you ever need to call on your former boss or colleagues for support.
- Tell HMRCIf you’re starting your own business, as either a sole trader or limited company, you’ll need to let HMRC know. This is so you can file your Self Assessment on time and pay the correct tax on your income. It is a legal requirement to inform HMRC once you start earning from your business. Don’t create any additional worry or concern for yourself by not having your taxes organised. We’ve got a great article on the tax implications of being self-employed and freelancing on the side that can help you get started.
- Be organisedStructure your precious time well and you’ll find your productivity levels soar. Set realistic goals and stick to them. A good example would be to look at what you want to achieve over a 30-, 60-, or 90-day period and construct a week-by-week checklist of what you want to achieve. There are many Apps that can help you with this, like Todoist, Trello, Scrivener, Goals on Track, Toodledo and ATracker to name just a few.
- Seek support and don’t shy away from networkingThere are many resources to help support you whilst you consider or plan to start your own business – these range from funding and grants to crowdfunding, or if you’ve got a few flush friends peer-to-peer lending. Networking is your best friend so don’t shy away from local events – your city’s Chamber of Commerce is a good place to start.
Featured image by Christin Hume on Unsplash