Having a side hustle is a great way to bring in some extra cash additional to your full or part time job. Most start off small and remain so, but others show potential for making it big at an early stage. If your side hustle falls into this category, you've probably considered the pros and cons of quitting your job and developing your side hustle into a profitable business.
Before you make that jump and write your resignation letter, you will need to ensure that you've got all your ducks in a row to give yourself the best possible chance of success.
Taking the Next Steps with Your Side Hustle
What should the deciding factor be when considering moving your side hustle into a full time business? It's not actually much different than the one you use when starting up a new business; potential for success. To know this, you'll had to undertaken a comprehensive analysis of your potential market, competitors, cash flow forecast, marketing plan and product or service research. From here, you'd need to create a business plan and if possible, chat with a business advisor about your side hustle plans.
Let us consider these steps in further detail:
- Potential - what is the scope or potential for growth that your side hustle has? Could it be something that would eventually replace your full time wage? Or is there no way you could sell any more of your product or service than you currently are? Where else could you market your business and get results, other than what you are currently doing?
- Costs - do you have enough funds to take your side hustle to the next level? If not, where would you get the money and how will you pay it back? Is your side hustle already generating a positive cash flow, or do you need to top it up? Could you keep some income coming in by only working part time initially while you are building up your new business? How much income do you think your side hustle is capable of achieving? It would be a good idea to test this first while it remains your side hustle to see if it can be achieved.
- Prices of your products or services - are you charging enough to cover all the costs associated with your product, as well as a significant profit? Have you considered the wholesale cost of your product too? Take a read of our article How to Set Your Wholesale Pricing for further details on this.
- Interest - you may love everything about your side hustle now, but will you continue to do so in the future? Many side hustles are built around an interest or topic which is pertinent at the time, yet desire to maintain this can waver in the future. Be sure that you will still be wanting to make and sell plastic bow ties in five or ten years time.
- Planning - create a comprehensive business plan which includes details of how you will make, package, market and courier your products. Will you use Xero or MYOB? One of the best tools your business can have is a website and Website World is New Zealand's best online shop platform!
Posted: Tuesday 4 August 2020