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Brits launch parallel stampedes to tackle cost of living crisis

The number of Britons turning to “side hustles” to generate extra cash has risen since the start of the pandemic, which has quintupled the number of business owners under the age of 24.

Data from website hosting platform GoDaddy and the University of Kent has revealed that the challenges of the pandemic, combined with the cost of living crisis, mean that more and more people have created their own business to supplement their income.

The study, which analyzed data from more than two million micro-businesses, shows that a third of businesses with fewer than ten employees are now run as hustles, up from 20.8% in March 2020.

More and more Britons have turned to hustles to earn extra cash since the start of the pandemic

And the growing number of side hustles has had a significant impact on the nation’s entrepreneur demographics.

The percentage of business owners under the age of 35 has risen from 26.4% to 34% since the start of the pandemic, according to the survey.

And the number of people aged 18 to 24 has increased from 1.7% before the pandemic to 8.6%.

The increase in the number of young entrepreneurs, as well as the volatility of employment during the pandemic, has also led to an increase in the number of those who started their business when they were not in full-time employment.

The number of micro-business owners who were unemployed before starting their business was 5.7% before the pandemic, while those working part-time was 7.9%. These figures rose to 7.3% and 11.7% respectively.

“I’ve run a number of side businesses in the past, from craft and knitting supplies to leftover book sales; and a hobby business is a great way for people to make extra money,” said Rob Peters, a business owner who now runs brokerage firm Simple Fast Mortgage.

“It’s in the toughest times, when the cost of everything goes up, that innovative business ideas are born, and those ideas can often turn into successful businesses or full-time vocations.”

Cameron Langstow, 22, from Plaistow, east London, works part-time as a postman but started Bark + Shout, a pet accessories business, in April 2021.

Part-time postman Cameron Laingstow started Bark+Shout during lockdown to earn extra cash

Part-time postman Cameron Laingstow started Bark+Shout during lockdown to earn extra cash

“I started Bark + Shout because I didn’t have a clear career path and needed a way to earn some extra cash. My day job helps pay the bills and while I’m trying to reinvest the extra income from Bark + Shout back into the business to help it grow, it certainly helps to know it’s there.

“Running the business completely online means I can cut costs and build a business with a long-term trajectory. The success we’ve had so far means I hope to run Bark + Shout full-time by the end of the year.

The demographics of entrepreneurs have also begun to diversify. The percentage of female owners of micro-enterprises increased from 32% to 39.8%, while the proportion of women belonging to minority communities increased from 13.2% to 15.1%.

Black founders represent 5.4% of businesses before the pandemic and 6.6% among those created after March 2020. The corresponding figures for Asian entrepreneurs are 10.1% before the pandemic and 11.9% after its start. .

What kind of work could you do on the side?

Anything that earns you extra money can be considered a side hustle, but some types of jobs are more common than others.

Popular side jobs include selling items online, driving for Uber, becoming a delivery driver, managing social media accounts, babysitting, cleaning, selling handmade goods, and cooking. personal training.

An unconventional emerging trend is people turning their pets into social media influencers.

GoDaddy estimates there are more than 4 million between-paws with average incomes for dogs of £15,627 per year and cats of £12,895 per year.

Selena Pang, 41, from London, was forced to close her hair salon in lockdown and decided to share her pug Kikko on Instagram.

“I noticed the trend of shoving and set myself the goal of building Kikko’s Instagram account to 10,000 followers,” she said. “Once it gained traction, I decided to monetize the opportunity and launched a website alongside the Instagram page.”

How to balance your full-time job with a side job

You may have a business idea but don’t know how to balance it with your current job, especially if this is your first time starting a business.

We asked some entrepreneurs how they manage to cope with their jostling around work.

Felicity Pryke, who started her own yoga business Finding Felicity, added an extra hour to each of her working days, allowing her to move to a four-day week while earning the 4.5 day pay.

“My pay is only down 10% – your income is down even less due to income tax. Unless you’re on a very high salary, you can probably recoup it by having an extra full day to focus on your business,” she said.

Jessica Ross, founder and CEO of marketing agency Smashtag Social, reiterated the need to balance daily work and side hustle so you don’t burn out.

“Keep a priority list for your scramble, so you have a shopping list to work from,” she said.

“Decide if it’s really a hustler you want or if you really want to do this job full time.

“If your side hustle is something you actually work on forever, just make sure it’s not a hobby or you might hate it when you have to do it under pressure.”

Finally, Julia Kermode, founder of the freelance network IWORK, insists on the need to control one’s finances.

“The Free Trade Allowance is only £1,000 and you will need to notify HMRC of any income you will earn under this.

“It can be annoying, but when you start your hustler, it’s wise to always set aside some of your profits for tax.

“Staying on the straight and narrow from the start will make your life a whole lot easier as your business grows and prospers. »

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