There’s another reason too – a simple reluctance by many to go back to the bad old days of the pre-pandemic nine-to-five. Side hustles and freelance work saw a huge spike during Covid, and many people discovered an entrepreneurial mindset they never knew existed, making them more inclined to pursue their own ventures or flexible job opportunities rather than returning to conventional office roles. Thankfully, the availability of advanced technologies has given them greater opportunities to reach wider audiences in innovative ways.

In fact, according to recent research from NatWest, nearly half of Brits are eager to start or expand their side hustles – this trend is particularly pronounced among younger generations, with around 50% of people under 35 engaging in this type of work. Experts suggest that these entrepreneurial pursuits are driving the small business segment, indicating a major shift in how we view work and income generation.

As of October 2023, the UK boasts approximately 5.6 million businesses, a remarkable increase from 4.477 million in 2010. This growth of 1.07 million small and medium-sized enterprises (SMEs) highlights the burgeoning entrepreneurial spirit across the country.

However, while developing a side hustle can be exhilarating and full of potential, transforming it into a sustainable startup requires a strategic approach.

Here are some tips to take the side hustle you enjoy to a sustainable venture built for long-term success.

Get clear about your purpose

The first step is possibly the hardest – but it’s the most important. It’s the ‘why’ in the equation – why do you want to go this route anyway? It needs to be about more than making extra money, you need to be in it for the long haul and prepared to handle the many challenges that inevitably come with entrepreneurship.

Good reasons to move ahead include doing it out of genuine passion; you want to turn a hobby or interest into a full-time endeavour that allows you to do what you love. Another good reason is the flexibility and control that come with running your own business, as entrepreneurs can tailor their schedules and work environments to suit their needs. If the ‘why’ is that the side hustle meets a significant market demand or solves a problem and has the potential to be scaled into a profitable business, even better.

Think like a founder

Next, you need to think like a CEO/Founder – yes, we’re talking about working on your mindset. As Peter Drucker – aka the father of modern management – once wrote, "Entrepreneurship is neither a science nor an art. It is a practice." In other words, you need to work on having a founder mentality every day.

This includes developing key skills such as leadership and management to inspire and guide a team, financial literacy for informed decision-making, and marketing and sales expertise to promote products and drive revenue. You won’t be able to do everything straight away, so identify the gaps and invest in your personal and professional development; it’ll be worth every penny

Create strong systems and processes

This is the part many new entrepreneurs get wrong and pay for it later. Creating strong systems and processes early means you can grow and scale in line with demand. Think ahead and work out a strategy that includes the main elements e.g. hiring and operations. Start by documenting workflows for key functions such as sales, customer service, and finance, ensuring any team members you hire fully understand their roles and responsibilities.

Crucially, implement technology solutions where possible to enhance collaboration and data management, such as project management tools and customer relationship management (CRM) systems. Regularly reviewing and refining these systems allows for adaptability as the business evolves. If this all feels too much, get a consultant to guide you.

Understand the financials

Getting to grips with the money side of things is essential for success and to make sure you don’t dig yourself into a personal financial hole. Analyse projections for profit, turnover, and your salary to gauge the business's potential. Honestly assess when might be the right time to transition from a stable job (if you have one) to entrepreneurship, considering factors like savings, market conditions, and financial obligations.

Evaluating the viability of this leap involves thorough budgeting and forecasting to ensure that your startup can sustain itself and that you’re not in stressful financial straits during the early stages.

Elevate your visibility

Of course, none of the above will matter if when you come to launch your potential customer base doesn’t know you exist. Whether you’re comfortable being ‘out there’ or not, these days you must get serious about your marketing, personal branding, and social media presence – you can guarantee your competitors are.

Luckily there have never been as many ways to market directly to people around the world thanks to digitalisation and the power of social media – and the good news is most digital marketing can be done cheaply using online tools.

Focus on building a strong online presence through social media platforms, content marketing, and search engine optimisation (SEO). Create engaging content that showcases your expertise and resonates with your target audience. Try participating in relevant online communities and forums to connect with potential customers and partners. In short, see what works best for your business.