The process to help you move from a side-hustle to a small business.
Written by: Anagha Bhat
Passion, or money, or the wish to become your own boss, or all the reasons put together would have driven you to start a side hustle.
That side hustle now is very dear to you and you are wondering if you can quit your day job and turn it into your main income source? It can also be very scary to take this decision since your day job gives you financial security.
If you are stuck at such a crossroad, here is some assistance on when to turn your side hustle into a full-time gig.
#1: You Have Stocked Up On Your Emergency Fund:
An emergency fund is usually put in a separate bank account, saved to cover at least 6 months to 1 year of fixed monthly expenses. This should include your expenses like rents, utility bills, EMIs, groceries, basic medicines, some inevitable dinners and such others.
An emergency fund will come in handy should you side-hustle need some time to start giving you returns. It will also serve as a safety net in case things don't work out as planned.
If you don’t have your emergency fund filled yet, it’s not the right time to quit your job that brings in a fixed amount of income.
#2: Your Side Hustle Is Bringing In Some Amount of Money:
It is not always true that just hard work pays, it is very important to have smart thoughts as well.
Have you done a thorough accounting of the amount of money your side hustle is bringing in for about 3 to 6 months of time? It should be so much such that it pays for your basic expenses, at the least.
If you end up spending only from your savings and not the income from your side hustle, you will end up in a debt and that will not take you too far.
#3: You Are Being Practical About It:
Is your side hustle scalable? Is there scope for more work? Are you going to work on it alone or will you be able to afford to hire people? Is there a demand for your product or service? Answer these questions.
Some side hustles are great as a side hustle but they may never bring in enough money for you to grow. Some side hustles might need more work than you think when converted into a full-time gig. Some side hustles do not work if you stop marketing the brand.
Think practically before you take the leap.
#4: You Have A Plan:
Have you thought about how will your transition from side hustle to full-time business be?
Plan your working hours. Plan about staffing, if need be. Fine-tune important details like branding, pricing, operational issues like invoicing, paying vendors and the contract policies since it is now about to become more serious.
Do not compromise on marketing right, because, as quoted by Beth Comstock “You can’t sell anything if you can’t tell anything.” Figure out whether you have enough funds for investing in the growth of the business.
#5: You Have A Plan B:
It sounds cool when a successful entrepreneur tells you, “I didn’t have a plan B, I put my entire energy on my business.”
While it is nice to have an optimistic approach in life, it is nicer to be prepared.
What if you fail? What if your business fails? What if it doesn’t go as per your initial plan? How will you fund your business or pay your own bills? Check to see if have an umbrella ready for the rainy days rather than looking for shelter after it showers!
#6: You Know Someone Who Can Help You:
Brad Henry said “Families are the compass that guides us. They are the inspiration to reach greater heights and our comfort when we occasionally falter.”
Having a supportive someone to hold you is often not given enough importance. It is great to be independent, but we are all humans, we may all fall and it is never wrong to be there for each other in need.
If you live with your parents, partner or a sibling who are self-sufficient and will offer to lessen your burden with contributing more to the house or shared expenses for until when your business is stable, it can be an added blessing.
#7: You Are Ready To Be Your Own Boss:
You would have realised by now that being one’s own boss is a challenge in itself.
You have to be in charge of everything. Looking for work, working on it, creating a deadline, reaching a target that you will be setting up- and so much more! If you are not someone that is self-driven and motivated enough to pick yourself up, you might have re-consider your wish to be your own boss.
An entrepreneur focuses on the work that needs to be done to bring in money and to achieve something. Having said that, an entrepreneur also has to make time for personal and social life, to eat good food and to exercise enough so that it helps in the long run.
It is a difficult task to be one’s own boss but it will all be worth it when you see your work bloom.
If you have thought through all of these things, then CONGRATULATIONS! You're in for an adventurous ride. :)
But, if you haven't, maybe take some more time to figure things out, and then take the plunge.