It’s a well-known fact that side hustles have gained popularity in recent years. This increase is likely due to economic necessity and proactive desire, and many of these startups and small businesses have thrived since the outbreak began. If you’ve started a successful side hustle, you might wonder what it takes to go full-time.
Making your side hustle a full-time business often depends on your situation and whether you’ve generated enough income to replace or at least cover your expenses at your day job. Side hustles can also add variety to your life, help you pay off student loans, or generate passive income to supplement your income.
If you want to transition your skillset from a side hustle to a full-time business, these 11 steps will guide you through the process.
Make a Strategy
The first step in preparing to go full-time with your side gig is to create a business plan. A business plan outlines your company’s objectives and how you intend to achieve them. It also goes over other aspects of your business, such as marketing, sales projections, and current finances. A business plan provides a clear picture of where you are now and where you want to go. It can also help you stay on track, accountable, and organized, just like any good plan.
Understand your numbers
Revenue and business metrics are important numbers to consider when going full-time with a business. First, you must ensure that your company generates enough revenue to cover its expenses. You should be able to increase your business income once you go full-time, but there is no guarantee. Create a solid emergency fund to protect yourself if something goes wrong.
Business owners must also be aware of key business metrics such as sales, expenses, profits, cash flow, etc. Knowing and comprehending your business numbers will assist you in making future decisions.
Determine your “why.”
Your side hustle may begin as a way to supplement your income, which is perfectly fine. However, turning it into a full-time business may necessitate more thought. Why do you want to grow your company into something bigger? Is it because you enjoy your job? Is it to improve your life or the life of your family? The “why” of your company is just as important as the “what” and “how.”
You, like many other entrepreneurs, may hit a brick wall or overwork yourself, resulting in burnout. Knowing why you do what you do can help you avoid burnout and stay focused when things get tough.
Understand Your Market and Customer Base
There is a distinction between earning money on the side and earning your sole income from a full-fledged business. To build a business that connects with customers, you must first understand the market. You can learn about your market by conducting market research and observing your competitors—what are they doing well? What changes would you make?
Customers are essential to the survival of any successful business. Find ways to connect with current and potential customers through affiliate marketing, social media, and ads—and, if your customer base is large enough, community building. Find out what problems they are having and how to solve them.
It is exceedingly rare to encounter a business owner who has achieved overnight success. In most cases, turning an idea into a profitable business takes time. There’s nothing wrong with starting small, particularly when learning new skills.
If you’re a freelancer, for example, you can start small on sites like Upwork and Fiverr. These sites may not pay well, but they can help you build a portfolio of work. Get in, invest time in growing your business, and then move on to higher-paying clients.
The same is true for marketing your company. With so many social media platforms available, it may appear that promoting your business everywhere is a good idea.
Establish business objectives.
Make time to set goals for your company. Consider revenue or sales goals, as well as other milestones you want to achieve. To track your progress, write down specific and actionable goals.
Keep your objectives simple as well. Begin with 3-5 goals, including short- and long-term objectives. Make a list of your goals and keep them visible as a constant reminder. Review and adjust your goals regularly.
Keep your company’s finances in order.
The more your company grows, the more details you’ll have to deal with daily. That is why you need to create a system right away to stay on top of everything. Experiment with various tools, software, apps, and organizational methods to see what works best. If something is overlooked, it is ultimately your fault. Implement organizational systems to keep you on track once you start working full-time.
You should also keep your personal and business finances separate. Novo is the best option for a business checking account currently available. You can also use Novo Reserves to save for quarterly taxes or other business expenses.
Spend time with people who share your values.
Relationships can frequently make or break a small business. Align yourself with people who will assist your business and be honest with you. Iron sharpens iron, and the same is true in business. Find people who will motivate, encourage, and help you grow as a person and business owner, whether they are employees, mentors, peers, or friends. Make it a two-way street as well. Offer the same assistance and support to those around you.
Make the most of your abilities and strengths.
A day only has so much time and energy. Spend your time on the most important aspects of running a business. Recognize and capitalize on your strengths and skills. Remember that there isn’t enough time in the day to do everything. Focusing on what you do best will give you the most bang for your buck.
Outsource your flaws
When you start your own business, you often have to do everything, whether you’re good at it or not. Outsource jobs as your small business grows, and you have extra funds. These can be areas of weakness for you or simply time-consuming tasks that divert your attention from more important work. Concentrate on the tasks with the greatest impact, and delegate the rest.
The more time you invest in learning and growing as a business owner, the better equipped you’ll be to scale your business. Reading books, listening to podcasts, attending industry conferences, and following other successful entrepreneurs can expand your knowledge. Learn how you learn best and apply that knowledge to become a better entrepreneur.
It’s a big step, from working on a side project for extra money to starting a full-time business. Before you take the plunge, weigh the benefits and drawbacks of going full-time with your side hustle. If you can follow these steps properly, you’ll be able to turn your commercial loan for a small business side hustle into a 6 figure business.