For many, 2020 has been a year of experimentation, hobbies, passion projects and the creation of a side hustle. Working from home has meant a shift in business activities, a new normal and one giant brainstorm session on how to make money during a pandemic! But whether your side hustle was born out of necessity or simply ambition alone, it takes work to get an idea off the ground and into the sky. So, where do you start? Let’s take a look.
1. Business planning – It’s no secret that the most successful businesspeople are the most organised. Create an in-depth business plan at the very beginning (and don’t rush it!). Document your products, services, predicted revenue, outgoings, state of the market and competitors. Do a SWOT analysis (identifying the strengths, weaknesses, opportunities and threats to your business) and think about every outcome to every scenario. Sure, this takes time and requires motivation, but planning for the best AND worst-case scenario will ensure you are equipped and ready to tackle challenges and grow your business.
2. Put in the time – At this point, you are growing your side hustle while working, most likely, fulltime. You’re working all day and most nights – and that isn’t going to change anytime soon. You need to grow your side hustle to an acceptable level before transitioning over to it fulltime in order to minimise risk, so keep at it!
3. Set up the framework – Create a structured, organised business from the very beginning. Map processes, set up business bank accounts and create a framework that you can continuously build on as you grow. A messy beginning will no doubt grow into a bigger mess, so take the time to set yourself up efficiently. If in doubt, give us a call and chat to an Accountant as well which is important to create the correct legal structure for the business. With the help of professionals in the industry, you can simplify your business operations in the long run.
4. Install the correct IT and software systems – This will allow you to automate the business functions as much as possible. This will also assist you in time management and create the capacity to expand the business before you have to employ staff.
5. Scale your business – Have you ever heard of the phrase “live within your means”? The same applies to a small business. Sure, money will need to be spent to set things up. However, think about necessity vs. choice and whether you need to be spending in certain areas. As you grow, you can pour more money into advertising, staffing, and product lines – but as you start out, start with manageable quantities and bite-sized chunks to ensure you are capable of handling the workload while it’s just you behind the wheel.
6. Transition to fulltime – When your side hustle has grown to a level where the transition is no longer deemed high risk, and you can sustain the outgoings of the business without your current employment, then think about transitioning over to your side hustle full time. The growth you’ve achieved so far will no doubt increase at a faster rate with you dedicating more time and energy to the business, so it’s onwards and upwards from here!
Every business is different and should therefore be treated as unique ventures. Like any business journey, we recommend consulting with a business professional to discuss your business in detail before making large decisions. Contact Core Business Brokers on (02) 9413 2977, or email Roy on [email protected] to get the conversation started. Roy and our friendly team of business brokers are always happy to discuss your business, where it’s heading and all the potential that awaits.