The pandemic had a significant effect on the economy as many businesses closed while others had to scale down their operations to stay afloat. Many people lost their jobs due to the health crisis. Some of those who still worked had to contend with shorter work hours and lower monthly wages.
To increase their income, they started side hustles. Research shows that around two million Americans started performing freelance work last year. Many of these new freelancers or side hustlers considered continuing what they were doing in the future. If you are in this situation, you can turn your side hustle into a business.
While there are risks to consider, you can increase your chances of succeeding by taking into account the following tips.
Make the Necessary Preparations
Before you start the business, you should make the necessary preparations to increase your chances of success. You should evaluate your business idea and see if it is viable in the market. Laying the foundations also entails making a business plan, choosing a business structure, getting the necessary tax IDs, and applying for permits and licenses, among others.
You should also project your potential monthly income to have an idea if you can quit your current job already. Deciding the amount of money that the side hustle can generate so you can quit your job is important. This serves as your benchmark for success and shows if the business is sustainable. It also allows you to have a goal to aim for once you start working on making the side hustle into a business.
Scale the Business Properly
When you plan, you should also focus on scaling the business properly. Doing this allows you to avoid the pitfalls of rapid growth for your business. The startup culture can tempt you to focus on growing the company at a fast rate. But you may end up losing the business since you couldn’t keep up with the demands of your customers.
Gradual growth for the business is advisable, especially in the current situation where many things are unpredictable. So, you can start by looking at your business plan and focus on attaining the goals you set. You can also start acquiring the necessary equipment for your side hustle, including the bank rubber stamps needed for the validity of checks and documents and accounting purposes. Getting a computer for the business is also necessary for you to work on your marketing collaterals and increase your online presence.
You should also test the waters and be cautious with every step to avoid taking unnecessary debt while the business is still growing.
Manage Your Time
You should be aware that starting a business entails many sacrifices, especially if you have a regular job. You will have to sacrifice many things, such as going out with co-workers at the end of the day. You might even have to forego weekend barbecues at your friend’s house. But once you have a routine, everything will be easier.
In this situation, you need to manage your time to set up the business while keeping your day job. You may have to spend a lot of your spare time on the business, especially at the start. If you are not keen on sacrificing your spare time, you might have to rethink your plan to turn your side hustle into a business.
Take a Step Back When Necessary
Working a regular job while starting a business can increase your chances of experiencing burnout. It is exhausting to fit into your schedule both your regular job and your side hustle. To avoid burnout, you should take a step back when it is necessary.
If you take a step back, you can increase the chances of turning your side hustle into a business. You should also devote some of your productive hours to the company. While it is challenging, you can do it if you manage your time properly.
Stay Passionate
When you started your side hustle, you focused on something that you were passionate about. If you plan to scale it and make it into a full-blown business, you should retain the passion that started everything.
Being passionate about your work or business makes it less challenging for you. You will even enjoy doing it, which allows you to provide your best output for the business. In this situation, you’ll likely reach your target income for the business sooner than you planned.
Turning a side hustle into a business takes a lot of discipline and hard work. But the rewards you reap are more than enough to pay for the sacrifices you made at the start.
Meta title: Challenges to Face When Turning a Side Hustle into a Business
meta desc: Many people started side hustles during the pandemic. Know the things to consider if you are planning to turn your side hustle into a full-blown business.
