Should you turn your side hustle into a real business?
The past year or two, or three has been really tough financially for most families. This has led breadwinners to pick up an extra source of income to meet their basic needs. You probably have a side hustle that you picked up during the pandemic when the world was on lockdown. Maybe, you are still holding on to it although you are back to your full-time employment. What if you turn your side hustle into a real business?
Listen we are not telling you to quit your job just yet. Have in mind that a significant percentage of business start-ups begin to fail in the first year, and by the tenth, only about 33% are still doing well. This article will help you know if you are ready to make the big jump.
What’s your why?
We get into business mainly for profit, but is there more to it than just the Mulla? Do you want your business to impact the world? Is the business your passion? Do you want to build a dynasty and leave a legacy?
Starting a business is one of the toughest tasks to take up which sees up to 50% of new businesses closing shop in the first year. This is why you need the motivation to keep you going, a mission.
The reason you want your business to be more than just side biz is crucial to keep you going during tough times, which do come, and they are not gentle.
Who is your target market?
To be able to have a successful business, you need to connect with the customer, to connect with the customer you need to understand the market. This means that you need to spend time understanding the needs of your customers, the competitors, and how you can come in differently.
To understand your customer, you can create a customer persona that will be able to help you understand their needs, their interests, and so much more based on their demographic.
How well do you understand your target market? Do you understand your customer’s needs? Are you addressing these needs?
Put in the time
Your side hustle doesn’t necessarily have to be an afterthought. You can work on your side hustle when you are most productive rather than when you are worn out in the middle of the night.
Balancing your current full-time job and preparing to launch your business will mean that you will have to sacrifice some of that spare time. The evening drinks with colleagues, some of the weekend time with friends, etc. Your business will demand a lot of time from you before and after launch.
But don’t worry once you are all set, it will be worth it.
Get the numbers right
Numbers are a lifeline to any business. You need to understand how much your company makes and how much you spend to keep your business operational.
If you want your side hustle to be your sole business, there are a few numbers you need to closely pay attention to.
- Cash Flow: Cash flow refers to the net balance of cash moving into and out of business at a specific point in time.
- Net Income: Net income represents the overall profitability of a company after all expenses and costs have been deducted from total revenue.
- Profit and Loss: A profit and loss (P&L) statement summarizes the revenues, costs, and expenses incurred during a specific period.
- Cost of Revenue: Cost of revenue refers to the total cost of manufacturing and delivering a product or service to consumers.
- Gross Margin: Gross margin is the amount of money a company has left after subtracting all direct costs of producing or purchasing the goods or services it sells
- Your 20% customers: This is the 80/20 rule, which states that about 80% of company sales come from about 20% of its customers. Also known as the Pareto Principle.
It is also important to mention that when talking about numbers, have a financial plan of how much it will take for your business to take off. Think of different financing options and consider their pros and cons. To read about mistakes business owners make when seeking funding click here.
Be kind to yourself
It’s not easy to go from side hustle to a full-time gig. Many entrepreneurs have trouble making the switch from business mode to self-care mode in their spare time so they can focus on themselves or their families. Working on your own business is like working a 24/7 job, which can quickly lead to burnout if you’re not careful.
As a busy business owner, it’s important to find healthy ways to deal with stress and burnout. What works for you? Build it into your routine, whether it’s exercise, travel, self-care, or something else.
Working 18 hours a day will not guarantee that your business will take off. You need to keep yourself in a healthy state, physically and emotionally.
Make the move.
Now comes the hard step, deciding to fully focus on the side hustle to be your full-time work. It’s important to know that there might never be a perfect time to launch your business. As long as your business model is showing promise and the number checks out, the nitty gritty will line up as your business grow.
No one knows your business goals better than you. So, do you think you are ready for the big move?
Whether it’s starting a new business or growing your side hustle into a full-time business, beware that it might not be easy. You need to be well prepared for setbacks that might be very disappointing. You need to be prepared financially and set to go for at least 3 months with your monthly expenses.
As a bonus, surround yourself with like-minded individuals, people who understand what it takes to make the bold move. Keep learning about your niche and how you can be consistent in delivering to your customers quality and unique goods or services.
As sweet as “being your own boss” might sound, it takes a lot of courage, patience, and grit to earn the title.
What do you think? Are you daring enough to switch your side hustle to a full-time business? Talk to us in the comment section.