Is not having a side hustle holding you back?

As the landscape of work undergoes transformation, more individuals are embracing secondary occupations, commonly known as “side hustles.” With the shift away from the traditional 9-to-5 model, the concept of side hustles has gained prominence. The surge in freelancers and the normalisation of supplementary employment are prompting a reconsideration of business practices, emphasizing flexibility for both employers and employees.

A study by Henley Business School reveals that 1 in 4 UK adults has a side hustle, with those aged between 25 to 34 being the most prevalent in this endeavor. Approximately 2/5ths of the UK workforce and 37% of Generation Y are engaged in side hustles, contributing a substantial £72 billion annually to the UK’s GDP.

Individuals venturing into side hustles typically seek additional income beyond their primary 9-to-5 earnings and aim to establish a financial safety net. With looming economic uncertainties, job security is a concern, making the accumulation of savings a prudent strategy for preparing for potential downturns.

However, the path to building a successful side gig is challenging. It demands time, dedication, and substantial energy to manage multiple roles effectively. For those already fatigued by their daily routines but desiring enhanced financial security, the decision to embark on a side hustle raises questions about its worth and the type of side hustle to pursue.

In an effort to address these concerns, an interview with Charles Waciuma, a serial side hustler and the Founder of Diaspora-UK, was conducted. Waciuma, a financial expert assisting the Kenyan diaspora in creating additional income streams and accumulating wealth, shared insights into the essential elements needed to establish a side hustle that yields valuable returns.

Here are five key considerations derived from the conversation:

1. Clearly Define Your Purpose for Starting a Side Hustle:

Understanding the motive behind initiating a side hustle is paramount. Whether the goal is to augment income for debt repayment, bolster an emergency fund, invest, or eventually transition into full-time entrepreneurship, having a clear purpose is crucial. This clarity not only helps navigate the day-to-day challenges of establishing and sustaining a side gig but also aids in narrowing down viable options based on individual circumstances.

“Understanding your why and keeping it top of mind will help you deal with the day-to-day challenges of starting and maintaining your side gig. It will also help you narrow down potential options, and eliminate the ideas that don’t make sense for your situation.” Says Charles Waciuma

2. Identify Your Skills and Interests:

Optimal results in a side hustle are often achieved when leveraging existing skills and interests. Choosing a field or passion area in which one is already knowledgeable and experienced streamlines the process. Waciuma’s journey, which began while earning a modest hourly wage in the payment industry, exemplifies the benefits of aligning a side hustle with personal expertise. By asking what one is willing to invest time and energy in, and considering both professional and personal passions, individuals can identify suitable side hustle opportunities.

3. Conduct Thorough Research and Articulate Your Offering:

Successful businesses and products fulfill needs, serve communities, or solve problems. Prior to pursuing a side hustle idea, thorough research is essential to ensure its alignment with these principles. Questions regarding initial resource requirements, target audience identification, and the specific needs or problems addressed by the offering should be addressed. Developing a clear and effective message for the target audience is equally critical for the success of the side hustle.

“For me it was a no brainer – Kenyans are very easy to target in the UK, they attend a large number of events – for sports, culture and church. My idea was to get influencers within these groups to become agents for companies that have products or services that directly benefit that community. This helps create an income for those influences, whilst making it easier for the companies to break into the UK Kenyan community.” Charles Waciuma

4. Begin Small and Incrementally:

Contrary to the misconception that substantial initial investment is necessary for a side hustle, Waciuma emphasises the importance of starting small.

“For our business, the agents biggest asset is their contacts – they have a wide circle of people who know and trust them – this is particularly true for the huge number of Kenyans who work in the NHS that have both community and work based circles”

“We offer people the chance to start a business literally by attending the events they were attending anyway – these evening and weekend events can fit around day to day work and yet quickly evolve into a 5 or 6 figure income” Waciuma

5. Exercise Patience and Adaptability:

Building a profitable side hustle takes time, and setbacks are inherent in entrepreneurial ventures. Patience, coupled with a willingness to pivot when necessary, is key. Not every initial endeavor may yield the desired results, but each attempt provides valuable lessons, resources, and connections that contribute to future success. Knowing when to adapt and learn from failures is crucial for sustained growth.

The decision to transition a side hustle into a full-time business should be guided by financial goals and preparedness. Setting realistic expectations, being financially prepared, and ensuring stability before making such a leap significantly enhance the chances of success.

“I encourage agents to have at least overtaken their primary income before they consider going full time. They should have paid off debts and created a fund for if the unexpected happens like sickness” says Charles Waciuma.

Ultimately, whether one chooses to retain a side hustle alongside a primary career or pursue entrepreneurship full-time depends on individual preferences and goals. A side hustle can be a valuable supplementary income source, offering financial flexibility beyond the confines of a conventional 9-to-5 job.