From Side Hustle to Scale: How Young Adults Are Redefining Success

Today's young adults are doing more than just chasing jobs. The majority of the next generation wants to define their careers and design their lives on their own terms.

In fact, 67% of the 2,300 respondents to Citizens' Next Gen: Future of Success Survey stated that they've pursued an entrepreneurial venture. And one-third of the 18- to 34-year-olds surveyed define career success as launching or growing their own business.

For today's young adults, entrepreneurship is more than making a living. It's a way to build a life focused on freedom and flexibility. "There's a complete redefinition of careers happening among young people," states Mark Valentino, Head of Business Banking at Citizens. "They're redefining what career success looks like — more about , flexibility, sustainability and a good quality of life."

Ownership is the new career playbook

In previous generations, the nine-to-five life was part of the standard definition of success, but today's young adults want more. For 29% of survey respondents, career success includes business ownership, and 46% define success as "freedom and flexibility."

Entrepreneurship allows you to align your career and ambitions with your values, while helping you gain control over your everyday life. As an independent business owner, you can more easily pursue work-life balance and find meaning in your work, compared to traditional forms of employment. With a foundation that supports flexibility and purpose, successful entrepreneurship goes beyond revenue.

However, today's young entrepreneurs won't succeed on ambition alone. Citizens' survey revealed obstacles to success that can get in the way of business ownership. But with the right tools, guidance and access to working capital, you can overcome these challenges and forge your own path.

Ambition meets reality: Barriers to starting up

Although more and more young people today want their own businesses, getting there isn't always easy. Lack of business funding, not knowing where to start and time constraints are the top barriers cited by survey respondents.

Fortunately, for would-be entrepreneurs, the right tools and guidance can help carry you over the hurdles. "The barriers to starting a business today are the lowest they've ever been," says Valentino. "You can register a business and develop a plan in minutes online."

Breaking the start-up process into manageable steps is often the best way to move forward, reducing uncertainty and paving the path for growth. These steps include:

1. Formalize your business structure
2. Separate personal and business finances
3. Create a simple roadmap

Funding the first mile

Once a new small business owner has a structure and plan in place, the next step is lining up funding. According to our survey, young entrepreneurs are getting financing from three primary sources:

• Friends and family (32%)
• Bootstrapping (29%)
• Loan or line of credit from a bank (22%)

Effective business financing involves far more than simply securing capital. New business owners also benefit from resources and support that help them learn how to manage their cash flow and scale their company.

One way to fund the first mile while remaining agile is to start with a business credit card or line of credit. Pairing business-specific bank accounts with invoicing and expense tracking tools helps young founders manage cash flow and stay agile while building a solid financial profile.

"Access to funding matters, but pairing capital with tools and coaching is what converts a concept into a durable business," Valentino explains.

From side hustle to sustainable enterprise

The side hustle is the on-ramp to entrepreneurship for many of today's would-be business owners, whether it's a creative or artistic project (13% of respondents), working with content or digital media (13%) or a skilled trade (12%).

By focusing on your business full-time, you can gain greater flexibility, work toward income parity and become eligible for additional funding opportunities. Even if you're not ready to take that step, it’s worthwhile to treat your side project as a business now. Your bank can help you formalize your operations and prepare for growth.

To help streamline the path from side project to full-blown enterprise, consider these tips:

• Open a dedicated business account
• Track income and expenses
• Set aside a portion of your income for taxes

Once you're ready to make the leap to full-time business ownership, shift your focus to cash flow planning and pricing strategies to replace your current income sources.

Planning ahead: Growth and exit strategies

At the start of your entrepreneurship journey, you may not be thinking about the end. But it's never too early for succession planning. For 18% of survey respondents, the goal is to sell to a larger company. Another 18% plan to pass on their company to a family member while 21% aren't sure how they'll make their exit.

Your bank can guide you through your business' growth and eventual transition process. Because opportunities can arise unexpectedly, it's wise to take a proactive approach to succession planning. Documenting your company's processes and building a strong credit history will help support your business beyond launch and well into the future.

Redefining success through entrepreneurship

You're confident, ambitious and ready to build your business, but need partners who understand that the journey to success isn't always smooth.

Citizens provides more than accounts and credit. We deliver tools, funding and expert guidance to help founders turn ideas into thriving businesses. Whether you're scaling a side hustle or planning your next big move, see how we can help you launch on solid ground.