Are you ready to turn your side hustle into a full-time business? It can be rewarding, fulfilling, and freeing if you get everything right. However, the transition can be somewhat challenging for most entrepreneurs.
There is never a strategic time to shift from a full-time job to owning a business. Also, consider that not every hobby or side gig can turn into a full-time source of income. But it doesn’t mean that 2021 is not the year for you to live your dream and attain financial independence.
Today, we take a comprehensive look at how you can effectively turn your side hustle into a full-time business. Whether you’ve been dreaming of it for a while or your side hustle is rapidly growing, this financial guide will help you start on the right foot.
Start with a Business Plan
The good news is that you don’t have to wait until you become an expert to join an industry — all you need to do is create a viable business plan. Below is a detailed guide on critical sections of a business plan to get you started.
- Executive Summary — Encompasses what your business will do and how you intend to accomplish it. Ensure the business goals are measurable, specific, relevant, attainable, and timely.
- Business Overview — Showcases the current state of your startup, including resources like office equipment, savings, and prototypes.
- Industry Analysis — Includes market research to determine whether the chosen industry is struggling or booming. It will help to consider how the industry will affect your strategy.
- Competitive Analysis — Involves determining your indirect and direct competitors. Ensure you brainstorm how your business will distinguish itself from the rest while filling the available demand.
- Sales and Marketing Plan — How will your business make profits? What is the primary source of revenue?
- Management and Operations Plan — Start by highlighting the available human resources. You can then decide how your company will run.
- Financial plan — How much will it cost you to shift your side hustle to a full-time job? Ensure you consider sources of funds at this stage.
Register Your Side Hustle as a Business
Once you have your business plan set up, start treating your side hustle as a full-time gig. Register and incorporate it as a business as soon as possible. You can complete this step online or seek legal help to structure everything correctly.
Creating a corporate bank account is only possible once you register the business. It separates your personal funds from your business funds. Having a clean record helps you conveniently receive money from both investors and sales.
It will also help to create a business email and address to ensure clients take you seriously as a professional. Building brand loyalty to enhance customer engagement is easier once your side hustle identifies as a legal business entity.
Manage Your Finances
Being a boss comes with several perks but also includes a new set of responsibilities and challenges. For one, bookkeeping can be a nightmare for most individuals. You have to track cash flow, save money for tax season, and position yourself for success through financing.
Start by learning about the basics — for example, how to track outgoing expenses and incoming revenue. You will also find it crucial to track existing assets (such as inventory) and obligations (such as accounts payable and debt). Knowing all these will help you determine your business’s worth and financial health.
Don’t Forget About Marketing
Start bringing in new clients to your business. The quality of work or service you provide is useless if no one knows about your venture. Therefore, look towards reliable marketing tools such as Search Engine Optimization (SEO).
SEO ensures your business ranks highly in search engines so that potential customers can locate you. Doing this will boost brand awareness and web traffic, thus ensuring you get more sales. However, start by figuring out specific keywords you want to target.
Choose a Suitable Accounting and Financial Partner
Bookkeeping can be somewhat challenging when transitioning from side hustle to a full-time business. However, having an experienced accounting and financial service partner can help make it quick and easy. At DOAAR, our team of experts provides highly customizable bookkeeping, controller, and CFO services to small businesses and their owners. Ensure you contact us today to ensure your finances are in excellent hands.