Plenty of successful businesses started at a kitchen table in the evenings, while the owner still had a full-time job. Starting on the side lets you test an idea, build up customers and learn the ropes without giving up a regular income.
It is also hard work. Here is a realistic look at the first year, and how to make it count.
Test the idea before spending money
The biggest risk for any new business is building something nobody wants to pay for. Before investing in a logo, a website or stock, find out whether people will buy.
- Talk to potential customers about the problem you plan to solve.
- Offer your product or service to a handful of people and see if they pay.
- Look at whether others are already doing it successfully. Competition is often a good sign that there is demand.
Your first few sales will teach you more than months of planning.
Check your employment contract
Read your contract carefully before you start. Some employers restrict outside work, especially if it competes with them or uses their clients or equipment. If in doubt, speak to your employer. Many are supportive as long as it does not affect your job.
Get the basics in place
In the UK, if you earn more than the trading allowance from self-employment in a tax year, you will usually need to register for Self Assessment with HMRC and file a tax return. Check GOV.UK for the current rules and deadlines, and keep records of everything you earn and spend from day one.
It is also worth:
- Opening a separate bank account for the business so your finances stay clear.
- Checking whether you need insurance, such as public liability or professional indemnity.
- Choosing a business name and checking it is not already in use.
Many side businesses start as sole traders, which is simple to set up. You can always form a limited company later. An accountant can help you decide which suits you.
Protect your time
Time is your scarcest resource. Be realistic about how many hours you can give each week without burning out or neglecting your family and your day job.
Block out regular sessions in your diary, such as two evenings a week and a Saturday morning, and protect them. Small, consistent progress beats occasional all-nighters.
Start small and simple
You do not need everything to be perfect on day one. A simple website, a Google Business Profile and a social media page are enough to get started. Focus your energy on finding customers and doing great work for them. You can improve the branding and systems as you grow.
Keep costs low
Avoid long contracts, expensive equipment and big stock orders until you know the business works. Use free or low-cost tools where you can. Reinvest early profits rather than taking them out, so the business can grow without debt.
Build your network
Tell friends, family and former colleagues what you are doing. Join local business groups and online communities. Early customers often come through people you already know, and other business owners are usually generous with advice.
Know when to make the leap
Some people are happy to keep their business as a side income. Others want to go full time. Before handing in your notice, it helps to have:
- A steady flow of paying customers, not just a few good months.
- Savings to cover several months of personal expenses.
- A clear plan for how you will find more customers once you have more time.
Enjoy the journey
Starting a business on the side is demanding, but it is also exciting. You will learn new skills, meet interesting people and build something of your own. Treat the first year as an experiment, learn from what works, and give your idea the time and attention it deserves.
