How to turn your side-hustle into a full-time business
In today's economy, it's simply impossible to survive on a single source of income. Whether it's through some kind of entrepreneurial streak or simply a need for extra cash, chances are most of us have a side-hustle of some kind.
From baby clothing online to running a small-time media agency, the connectivity of the internet has made it possible for just about anyone to start their own business. Usually, side-hustles are just that, jobs on the side that provide a nice source of additional income while we focus on our actual day jobs.
Doubtless to say, many of us with side hustles have entertained the thought of being our own bosses someday.
After all, isn't that why we started hustling in the first place?
However, the uncertain nature of side businesses often prevents us from taking the plunge; quitting our day jobs and becoming full-time entrepreneurs.
But for those of you willing to actually take the next step, here's what you'll need if you want to take your side-hustle to the next level.
1. You have a comfortable cash buffer
Here's the thing about coming out on your own, you can't expect to be earning a ton of cash at the start. In fact, you should be prepared to tighten your belt as far as it can go.
The great thing about holding a steady day job is the fact that you'll know that your paycheck will come in at the end of every month.
On the other hand, being a full-time entrepreneur is much scarier as you don't have the safety line of a steady paycheck. In fact, there'll be times when you'll be wondering how if ever are you going to make ends meet.
This is why it's crucial that you have a buffer of several months rent and money for groceries saved up. As your business begins to grow, you'll slowly be able to pay yourself a living wage. However, don't expect that to happen during the first few years.
2. Your side-hustle matches your paycheck
While passion may drive your business, it's the profitability that keeps it alive. Even if you are a horse racing enthusiast, do not go all in into the Kentucky Derby bets, unless you know the risks you are taking. If your side-hustle is regularly able to match or even exceed your paycheck then congratulations, you're probably onto a good thing.
On the other hand, if your side venture can barely keep itself afloat, you may want to hold back on your plans for going full-time. Instead, focus on the fundamentals and work on expanding your client base and improving revenues.
3. You can no longer cope with the additional work
So, your side-hustle has been steadily growing day by day. Customers are calling in and business is looking good. However, you've found that things have hit a wall; you find yourself being unable to meet your customer's requests for more work.
It appears that you simply lack the bandwidth to accommodate the growing needs of your new enterprise and soon you'll be forced to turn away customers.
If you're losing out on potential financial opportunities because you're being held back by your day job, then maybe you should consider focusing all of your efforts on your business.
4. You have a long-term plan for your business
As the saying goes, if you fail to plan, then you plan to fail.
The lack of planning is one of the main reasons why new businesses go under all the time. Before you make that final decision, ensure that you have the direction and future of your business planned out.
Identify potential threats that could derail your plans and at the same time make allowances for these challenges. A good business plan should have a series of measurable goals and results with deadlines for you to meet.
Many of us harbor dreams of one day becoming our own bosses and successful entrepreneurs. However, there's much more to business than just setting up shop, it involves plenty of planning, discipline and hard work.