A bit on the side - Episode 20
When to switch your side hustle to a full-time business venture
It’s not uncommon in today’s working world to make money outside your 9-5. Whether you’ve got a hobby that can bring in some extra cash or you’re passionate about helping others, building a side hustle into your working life can bring about some rich rewards…
So what exactly is a side hustle?
A side hustle is an effective way of starting up a new business whilst being in an existing position.
It’s a popular way for entrepreneurs and small business-owners to get started, allowing them to dip their toe into the water whilst minimising the risk of leaving a full-time position of employment.
Why start a side hustle?
Side hustles have become extremely popular in the past 10 years as they help to spread the risk if you want to change careers or explore new avenues.
Imagine you have an idea for a new business, have always wanted your own business or are looking to leave a corporate career to set out on your own. Leaving one full-time position that gives you stability and a monthly income to start a new venture can be extremely risky and very daunting.
However, building a side hustle into your current working life can allow you to test your new concept whilst remaining employed.
It sounds simple, but from the outset you need to know that this is extremely hard work and that a side hustle isn’t sustainable in the long-term.
It works best if you have a flexible employer and you are able to reduce your working hours gradually as your new business starts to expand. But be warned – this doesn’t always happen and some employees don’t take kindly to employees running additional businesses.
How to make your side hustle work
I’ve seen many a side hustle convert into a successful business, but where this works best is when strategy and a plan has been put in place from the outset.
Here are the top five things I would recommend if you’ve begun a side hustle:
- Keep a goal in mind: you need to have a plan, a goal and a lot of focus to move the business forward. Unless you keep the momentum going, a side hustle can very easily stall and become a burden and inevitably your enthusiasm will begin to wane.
- Test the market: this is the time to find out who or what your market looks like and whether they actually want to buy the product or service you are delivering. Use the time to refine your product or service – service-based businesses, especially, need to be packaged in a way that people can buy easily from you.
- Know your numbers: do the research to get your prices right – does your market want to buy the product and service you’re offering, and at the right price? How many units or services will you need to sell in order for your side hustle to become your main business?
- Create a timeframe: make sure that your plan includes a timescale to give you an idea of when you hope to move from side hustle to full-time business. Imagine a set of scales – when you start your side hustle, the weight will be heavily in favour of your full-time employment but as your side hustle grows there will be a tipping point where you will feel comfortable to make the switch.
- Build a safety net: make sure you have savings to assist with cash flow for at least the first year of your new business. While you’re employed, scale your business as far as you can and use the flexibility that you have to its maximum.
Bio
Alison Teare is a qualified, marketer with more than twenty-five years’ business and management experience, in both the public and private sectors, at local and global levels.
A social media expert, Alison is a trainer and speaker who regularly provides advice to businesses to guide their social media and marketing policies and strategy. She developed an integrated Social Media Management programme which enables businesses to co-ordinate a successful implement their own sustainable social media presence. Alison also mentors entrepreneurs and small business owners, helping to reduce overwhelm and providing purpose and clarity in their business development and marketing.
