Entrepreneurism is more popular and more accessible than it’s ever been. Driven primarily by technology and the ability to work, create, manage and succeed from pretty much any location, more and more people are making the switch to be their own boss and lead a self-sufficient lifestyle. Whether it’s driven by a passion to succeed on your own or simply a desire to escape working for ‘the powers that be’, it’s an exciting time to consider life starting your own business and working for yourself.
Entrepreneur life isn’t without risk though, if it was, everyone would be doing it wouldn’t they? Having a steady job and income is the foundation of financial stability for many and branching out on your own takes that safety net away. It’s for this reason that even the most naturally entrepreneurial people tend to start small and going down the side hustle route first.
For those who aren’t down with the lingo, a side hustle is a small-scale project or mini business which is run alongside your regular job. For some, this is driven by the desire for an additional income. For some it’s a hobby, for others it’s just because they want to create something for themselves but don’t want to leave their job and guaranteed pay packet until there is something concrete in place.
What happens though when that side hustle starts to pick up and gain a bit of traction? When do you know it’s time to take the next step and turn that side hustle into a real, sustainable business?
These are my tips for successfully turning your side hustle into a business (and believe me, as a serial entrepreneur, I have tonnes of experience in this area, from selling cars to starting up a beauty business, I’m always itching to get something new going!):
Side Hustles are Already A Business
One of the tricks to making the change from side hustle to business, is by treating your hustle as a business from day one. You can’t afford for it to be a hobby or something which helps you pass the time when you depend on it for your income. That means you might need to change your mindset. It means thinking about the future of the business and it certainly means turning a profit.
Before you can even consider going steady with your business you need to make sure you’re operating like a business and are making money from you labours. No more working for free or discounting your rates.
Find a Passion or Something You Enjoy
Sometimes the right direction and industry finds you by accident, but for most it’s a case of thinking it through. Businesses that get the most out of you as a person are those that excite you or spark passion. 79% of all start up businesses or side hustles are run by individuals moving into industries which are very different from what they currently do in their day to day jobs.
Creating a business in something you enjoy or that you have in depth knowledge about is always going to be something you can succeed in without feeling like you’re selling your soul. The hours required also won’t feel like as draining as striving for success in an area that doesn’t mean anything to you intrinsically. Sure, some are in it just for the money, but for most people, that’s not the be all and end all.
Don’t Rush It!
Entrepreneur Europe magazine surveyed many new business builders and found that it takes on average of around two years before someone’s side hustle becomes their primary source of income.
Don’t go steady before you are ready. Quitting your current career is a big step and while it may feel good to ‘take the plunge’, it will feel even better knowing you’re in the right place to do it. The hustle needs to be operating as a business and needs to ideally be showing steady growth before you can comfortably move away from your 9-5 job which pays the bills.
Consider a Partner
Having a side hustle while holding down your current job is tough work. It’s for this reason most side hustles aren’t a one man set up. They’re usually with a friend or family member, perhaps even a colleague. Having a partner allows you to share the burden or resource and gives you someone to keep you sane and motivated throughout the process.
Financial independence and entrepreneurial success aren’t synonymous with going solo, it’s more about breaking away from the pack. Just make sure the partnership is mutually beneficial and the workload is being adequately shared out between you.
Consider Your Expenses
In order to find the right balance between life and work, as well as the passion to go solo and succeed, many will leave their job before their side hustle earnings match their current salary. There is no hard and fast rule on how to manage this but make sure you closely monitor your vital expenses and evaluate your earning potential if things don’t go as well as you’d like. You don’t want to find yourself in a position of financial uncertainty early on.
Want more tips? I recently shared the 7 lessons I’ve learnt as an entrepreneur running my own businesses.
