Everyone dreams of financial security. For many, that means building a business or turning your freelancing company into an LLC. However, to get your budding company off the ground, you need to start with a side hustle. From there, you can slowly convert it to a full-time operation.
5 Steps to Turning Your Side Hustle into a Successful Business
If you’re starting with a side hustle, you’re less likely to fail than business owners who roll out their full plans immediately. Slow and steady wins the race, but you’ll eventually need to scale.
Step 1: Start by Laying the Foundation
The best thing about creating a side hustle is it helps you assess your business idea in a safe environment. Maybe you’re targeting the wrong market, or perhaps your industry isn’t doing so well. Or maybe you just need to decide between delivery couriers like Instacart or DoorDash.
But before you quit your job, you should also make sure you have enough money to keep you afloat in case your side hustle isn’t paying the bills. Remember that your idea of success is personal to you, so track financial benchmarks that help you reach your own business goals.
Step 2: Put Time Into the Business/Startup
You need to have a strong work ethic. Entrepreneurs can only make their own schedules once they have a solid foundation. Since you already have a regular job, you’ll need to make sacrifices to build a sustainable business, such as working late on weekends.
If you’re not excited to spend all of your free time on your business, that doesn’t mean this path isn’t for you. Humans aren’t supposed to work 8-hour days, so anything extra can feel torturous. Unfortunately, you’ll need to extend more energy to get out of your already draining workplace. Looking into your skills with an abstract reasoning test and make sure you invest time into yourself.
Step 3: Focus on Slow and Steady Growth
It’s tempting to throw all of your money in the growth basket, but be careful. While it’s true that many businesses fail because they don’t scale quickly enough, far more fail for the opposite reason. You’ll have to scale eventually, but you can hold off on hiring employees for now.
However, if you have the cash flow to expand your company, focus on getting more bang for your buck. For example, instead of hiring full-time employees, find a part-time worker or a freelancer. Instead of marketing a new product, add new features to your older selections.
Step 4: Don’t Work Until You’re Burnt Out
In fitness, there’s a concept called “overtraining.” When you overtrain your body, it starts to get worse. You won’t lift as much, run as far, or have the endurance you used to have. This leads to poor sleep, lack of energy, depression, and prolonged fatigue that can only be cured with rest.
When you’re burned out, you’ll experience the exact same symptoms. You should never work to the point where you’re exhausted. Pay attention to your body and mental health, and try to work on a manageable schedule. Give yourself at least one full day to recharge and stay healthy.
Step 5: Knowing When to Take the Leap
This step is the hardest to get right because you’ll never be truly ready to quit your full-time job. Even when your business is making more than your day job, you may grapple with the excuse that failure is still possible or “two incomes are better.” But you have to quit at some point.
For one, you’re limiting the growth of your business if you’re staying at your job. For another, you’re probably investing in a full-time business to cash in on limitless earning potential. You’ve already tested the waters and successfully managed your schedule. Now, it’s time to let go.
This post was contributed by a guest author. Mainvest does not guarantee the accuracy of information in this post and does not provide legal, tax, or accounting advice.
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