The ‘side hustle’ has become an extremely popular endeavour amongst the working population of today.
Between rising costs and real-terms pay cuts, the average household is less financially secure than it was a few years ago. Meanwhile, the rise of e-commerce platforms and access to business resources has made it altogether easier for people to monetise their hobbies, and find an audience in the process.
The ‘side hustle’ is an elegant way of marrying a personal interest with a financial opportunity, allowing you to build a second source of income without taking a second job or giving more time away to a role that doesn’t interest you.
But getting even the most basic of side hustles to a truly contributary, profitable venture requires investment – the opposite of your end goal.
What are some of the best ways to access funding for your new side-hustle venture?
#1 – Personal Funds and Loans
The first place you might look for seed funding with regard to your side hustle is your personal finances.
If you have some savings locked away, and a solid business plan that indicates how much you can expect in terms of business, you might feel safe enough investing your own money to get things off the ground. In certain scenarios, a personal loan may also make sense for the same reasons.
If you are approaching retirement age, equity release schemes could be available that enable you to leverage your home’s value; using an equity release calculator could show you how much you’d have available to borrow, and give you a major head-start in your side hustle’s early years.
#2 – Business Loans and Grants
If your side hustle has scope for significant growth, and could eventually incorporate staff, offices and expansion as a business in its own right, then you might find yourself eligible for a different class of financing altogether.
As an entrepreneur as opposed to an at-home hobbyist, you could access grants and early-enterprise funding from business-friendly organisations, as well as business loans purpose-built to get a business off the ground.
#3 – Friends and Family
Last but by no means least, looking to your personal support network could see you gain access to key funding towards opening your side hustle properly.
You might be remiss to contact loved ones for a cash loan, however small or short-term, and for good reason – owing money can muddy relationships unnecessarily.
However, your friends and family would more than likely be happy to help you out. You could even treat them as investors of a sort, giving them discounts or a return-on-investment based on the potential profitability of your new venture.