Having a side hustle might start as a way to make extra money or monetize a hobby you enjoy. But for those who are lucky, these supplemental gigs could become so successful that they could serve as a primary income source.
If you are in this unique position of deciding whether to turn your side hustle into an actual business, there are some important considerations to think about.
Knowing when the time is “right”
Wanting to make your side hustle your full-time job is not the same as actually being able to do so. The distinction boils down mainly to your financial situation.
Most startups take time to start turning a profit, and there will likely be expenses you must put into the business without getting it back right away.
Therefore, it can be wise to make sure you have a plan to support yourself if you are not making money. Further, ensure you have an accurate picture of your client base and its growth potential, as well as detailed breakdowns of your financial obligations and resources.
How can you build a solid foundation?
Laying the groundwork for your business takes time; cutting corners or taking shortcuts can make for a rocky road ahead. To avoid potential setbacks, take the time to build your business on a solid foundation.
This means doing the work to:
- Understand the market
- Partner with people who have skills and abilities that complement yours
- Accumulate and organize your finances
- Develop your portfolio and customer relationships
- Create your business plan
When you prioritize these fundamental elements, you can set yourself and your business up for success.
Do you have your legal bases covered?
Starting a business is as much a legal process as it is a professional one. There are several legal aspects you must consider, including the following:
- Deciding whether to incorporate
- Creating enforceable and effective contracts with partners, employees and vendors
- Drafting business documents, like handbooks and business plans
- Determining whether your business would interfere with existing non-compete agreements you might have with your current employer
These legal elements of starting a business may not be at the top of your priority list; understandably, you may be more invested in your product or service. But failing to think about these aspects could leave you exposed to legal conflicts and disputes.