6 Tips to Turn Your Side Hustle Into a Thriving Full-Time Business
Is it a bad idea to increase your earning potential apart from your existing full-time job? Is it also a bad idea to go the extra mile to turn that passion or side-income into a permanent thriving full-time business? Certainly not. There are reasons not to capitalize on your hobbies, but if you are willing to share your ideas and creations and make some extra cash while at it, why not?
So, what’s stopping you from leaping into entrepreneurship by going beyond your existing capacity?
Moving from a steady and 9-to-5s job to turn your side hustle into a full-time business looks like stepping out into the deep dark wood where there are so many unknowns. However, you can mitigate these dangers and risks by creating a solid plan and calculated analysis.
It would be wise to check its viability before moving on monetizing your side hustle into a thriving full-time business. Survey the targeted market to scale up your side hustle into the next big gig.
Read more on 6 Profitable hobbies You Can Start Monetizing
Let us narrow down to a few potential tips to monetize your side hustle;
Is Your Business Idea Addressing a Long-Term Problem?
When you are running your side hustle with your main job, you may not think about the future prosperity of your business idea. However, it would help if you thought about it. If the business idea does not address a long-term problem, it will lose its market shortly.
Think about Covid-19 situations. Some production facilities are making masks, and we have small business owners customizing masks from various materials. But how long will this demand for masks sustain? Two to five years? Is it better to keep this mask production as a side hustle instead of shaping it into a full-time business?
Is Your Product/Service Targeting a Long-Term Market
A customer-centered product or service is the root cause of any viable business. As CB Insights mentioned in their research, a lack of market demand was the common reason most companies, around 42%, failed in their startups.
You shall understand the potential of your side hustle when you can predict the demands in the target market. Think of two topmost important aspects before stepping into a full-time business:
- Are you providing innovative or distinguished products or services to the target market?
- Are there enough customers to buy your products/services for a long-term period?
Have a Business Plan as a Map
Every traveler needs a map to go to any destination when they leave their home. Similarly, you will need a map as a guideline from the very start of the business.
There are many issues to track, like:
- Which value events you will achieve
- When you will require investments and how to go about raising capital
- How much staffing is required, if any
- Equipment to buy and how much it would cost
- Sales target that allows you to breakeven
- Production capacity, and many more
How would you do that? First, you can always hire someone to do a business plan for you. Second, you will need a tool to manage your business, like project management tools that enable you to plan, organize, manage and even track performance.
Think of a Legal Business
Consider registering your small business. It helps in legitimizing your business operations and enhancing its identity. In addition, such legal processes make it a lot easier for you to seek funding and financing compared to non-registered businesses.
You can do it as a sole proprietorship or a limited private company. With the former, you and the business are considered the same entity. That means you are liable for any losses and debts that the business incurs.
Sole proprietorships are ideal if you want to keep it small and simple. With a private limited company, you or any other directors that your business might have, exist as different entities from your business. You will not be personally liable for the liabilities of the company.
There are benefits and disadvantages of each of these structures. So, think carefully, weigh your options, and choose the business structure that suits your present and future needs.
Never Mix Personal With Business Finances
Try to separate personal day-to-day bills and other expenses from the business money; otherwise, you will end up falling back to your original regular job.
You can use Excel, Google Sheets, or accounting software to help you keep the business’s finances in order. Also, ensure you have a separate bank account or mobile money account for your business.
All of this will come in handy for various reasons, including keep track of your business performance and taxation.
Related post; Reasons to Separate Personal and Business Finances
Build Public Relations in the Community
The journey of monetizing your side hustle may seem long, may look foggy and uncertain but be confident that you have a paradise to build. Try to contribute to the community where you have targeted and have been growing your paradise. Neighbors or locals who support your startup may become your loyal customer. Plus, some donations are tax-deductible, so you can always add them as part of your business expenses.
Keep hustling and keep earning. Just remind yourself the following before you plan to monetize your side hustle :
- Check the viability of the business and do market research
- Have a business plan as a map in the journey to success
- Separate personal finances from business finance
- Build public relations and market your business