4 Key things to do before making your side hustle your full time business
Most side hustles are started in order to earn a little extra money on top of a full-time wage. But what if it starts picking up pace and you feel you can make it into a full-time business? This can be a daunting thought, but we've compiled 4 key things you'll need to get in order before considering taking the plunge.
1. Get your finances in order
Your side hustle may not be making enough money for you to live off straight away, if it starts making money in the beginning at all. You may have to carefully calculate how much money will be needed in order to get it off the ground. It can help to save money while there are good times so that you have something to fall back on when the going gets tough. There is the option to take on debt when starting a business, but it can be better to try and avoid this if possible.
2. Perfect your paperwork skills
While you're running a side hustle you probably won't need any legal documents or the services of an accountant. But when you transform it into a legitimate business, you will need to look at the legalities and correct processes before taking the leap. Deciding on a business structure can be a good start, and our previous blog post, Tips to Choose the Right Structure for Business highlights some of the differences between them.
3. Think about moving
Your side hustle has probably been run out of your home, but when it becomes a full time job it can be a good time to look for a new space that's free from distraction. Look around your local area in order to find the facilities that you'll need, but create a checklist in order to keep on track and don't be afraid to go further afield if needed. Don't forget, you'll also need to keep track of any paperwork and agreements that relate to your business address, for example, don't forget to inform Companies House.
Some areas offer facilities such as business incubation or hot desking. This can allow you to use a professional setting while keeping costs low, and often comes with access to key resources like advisors too.
4. Take every chance to build your brand
While you're your own boss, no one can tell you what to do and how to do it, but don't forget you'll need to talk to your audience in order to refine your product into one that they will want and can't live without. Don't forget to get your face out there at networking events to show that there is someone behind the brand and it's not a faceless business.
A side hustle can help you to gain more of an income on top of what you're already earning, as well as being a way to broaden your skills in certain areas. But if you find that it's taking more of your time and energy than you feel it should, then it could be time for taking it seriously as a full time business. But remember, it can take time in order for it to gain enough momentum to live off.
- 22 Oct 2021 - How Can You Avoid Creditor Pressure As A Director?
- 14 Oct 2021 - What Is Dividend Tax?
- 08 Oct 2021 - Is Being Self-Employed The Same As Being A Sole Trader?
- 29 Sep 2021 - Common Budgeting Mistakes Made By Startups
- 24 Sep 2021 - Misconceptions Of Setting Up A Business