Turning Your Side Hustle into a Business

Lots of small businesses start out as side hustles – small, profitable enterprises people do in their spare time because they love doing it.

Exactly what you need to do to turn your side hustle into your main source of income depends a lot on the business type. Some things to consider relate to all enterprises, so it’s important you recognise where your business is unique and where it’s universal, then plan accordingly.

 

Finances First

We’ve all heard the saying ‘you need money to make money’. This is exactly why side hustles are just that – small business ventures you run on the side that are funded mostly by your main day job. 

Before you leap into a full-time side hustle conversion, make sure you’ve got your finances in order. 

• Pay off as many existing debts as possible so they’re not draining your bank every month.
• Save as much as possible so you can carry on paying the bills until the business takes off. Experts recommend having six to twelve months’ worth of expenses saved before you rely solely on business income.
• Open a separate account for business savings so you learn to differentiate between money you can spend and money that essentially belongs to the business.

Aside from those fundamental steps, you can also investigate business loans or grants, potential investors or other alternative means of raising funds – even backing from family or friends, or maybe partnering with someone in a similar line.

 

Investigate Costs

When a side hustle becomes a business, it brings with it all kinds of other responsibilities and obligations. Some are legal ones (such as taxes) and others are just nice to have when you’re starting, like an office or bespoke storage.

Expenses can soon get out of control if you leap in too soon or grow too fast. So, you need to weigh up the pros and cons to make sure the benefits outweigh the expense, while at the same time minimising overheads.

A professional office can do wonders for your image and community standing, with flexible office spaces offering one of the most straightforward and cost-effective rental contracts. Choose your preferred size and location, and with no hidden extras you have a secure business base with all the facilities you’d expect.

When you’re weighing up the benefits, don’t discount how an office can affect your own motivation and sense of fulfilment or professionalism. Moving up (and out of the house) can boost your confidence and help banish ‘imposter syndrome’.

 

Business Admin

You can get away with things in a side hustle that will get you in trouble when you’re in business properly. There are lots of business tasks that are less than glamorous, such as keeping accounts up to date, registering with HMRC, opening a business bank account, finding an accountant or bookkeeping help, submitting tax returns, and remembering that a hefty chunk of your money must be set aside to pay for those things.

And all that is on top of marketing, promotion, advertising, customer service, creating or sourcing products, maintaining your socials, and updating your website. It’s a lot.

But plenty of people do it successfully so don’t be put off. Rather, just be aware and learn as much about business as you can, so the workload doesn’t come as a shock.

 

Time Efficiency

It’s one thing doing something when you feel like it to make a little extra on the side, and another entirely to do that thing day in day out to keep all the business plates spinning.

Your time is your most valuable asset in many ways, so figuring out ways to work efficiently is a key success driver.

Outsourcing some of the routine business tasks, such as bookkeeping, answering the phone, updating social media etc. can help.

Stock organisation is also a primary concern if you’re selling physical items rather than a service. While your need for stock storage may have been relatively small while your operation was a side hustle, it can soon expand when it’s a thriving business.

A stock room is a boon, with self storage for business offering a good solution. You can rent the right size, kit it out with freestanding shelves or rails, and organise it so you can find things quickly. By hiring a room with space for a table, you can work more efficiently and save time by packing up customer parcels in-situ. 

 

Dealing with Fear

There are always going to be reasons to delay, and putting a side hustle onto a more professional or full-time footing will always feel like a scary leap.

There is never going to be a perfect time. Even if your existing side hustle is profitable, you have a cushion of funds, and you have more customers or clients than you can handle on a part time basis, letting go of the security of regular employment can be hugely challenging.

You will know in your heart when it’s the right time so don’t let fear, anxiety or self-doubt hold you back. 

If you’ve done the financial heavy lifting mentioned previously, you at least know you’ll keep food on the table and the lights switched on. With the essentials covered, you’ve minimised your risks and have everything to gain by turning your side hustle into a business.