Looking to take your side hustle to the next level and work for yourself full time? Taking the leap can be scary, but educating yourself and properly preparing can make the difference between floundering and flourishing. Here at PRIME, we’re experts in maximizing revenues while minimizing liability and taxes, and we’re here to help your business creation goals succeed. Check out our 10 essential steps to flip your side gig to a full time money-making machine, or reach out for a consultation with one of our experts to learn more.
Take Your Side Hustle to the Next Level with 10 Simple Steps
These 10 steps will help you get prepared to launch your full time business:
1. Create a Business Plan
Whether you’re just embarking on a side gig adventure or you’ve been putting in some extra hustle for years, proper planning is the foundation for all sustainable success. And if you’re hoping to turn your side gig into a full-time income, having a solid plan is essential. Crafting a business plan is a tried and true way to organize and communicate your strategy, and will help lend legitimacy to your entrepreneurial efforts.
A classic business plan should include the following information:
- Business name
- Target market description and analysis, including competitor analysis
- Cost analysis:
- Startup costs – including legal costs and registration fees
- Material costs
- Staffing
- Marketing
- Real estate costs
- Pricing plan for products and/or services
- Monthly revenue estimates
- Break-even analysis
Setting yourself up for success with a well thought out foundation will pay you dividends for years. Need help getting started with a business plan and next steps? Our experts are just a click away!
2. Establish a Legal Business
It’s super important to set up your side hustle business as a properly structured legal entity to protect yourself and your assets. Choosing the right entity structure—sole proprietorship, partnership, LLC, or corporation—will help you optimize your business and minimize your tax burden. At PRIME Corporate Services, our business formation experts can help you choose the right structure and file your registration paperwork in one simple step. We can also help you register with your state to obtain an Employee Identification Number (EIN).
3. Know Your Market
Researching your target market is an important step if you’re thinking about taking your side hustle to the next level. Make sure you can answer the following questions:
- Who is your target customer?
- Is your pricing sustainable? Can your potential customers afford your product or services?
- Who is your competition? How does your business compare to others? What makes your business unique?
- Does your business have the potential to keep growing in the future? If your business is based on a current fad or trend, do you have the ability to evolve or pivot as consumer habits change?
4. Be Money Smart
You already know that running your side hustle takes hard work and a big investment of your time. If you’re hoping to flip your business to a full time income, be prepared for the financial side of things to be even more important. Sourcing capital, managing and tracking your expenses, and thinking strategically about taxes are key parts of a solid business plan.
One of the most important first steps after you’ve structured your business as a legal entity is to open a business account. This will help you keep your personal assets and expenses separate from your business assets and expenses, and makes record keeping much easier. A business account also communicates legitimacy and seriousness of intent when you’re talking to clients, lenders, and potential investors.
Building a business credit profile and accessing low-interest business loans is another important part of any good financial plan. At PRIME, we’ve got experts who can help you with every step of this process to make sure you’re capturing all of the benefits of business credit and tax optimization.
5. Treat Your Side Hustle Like a Legit Business
Even if this is still a side gig, don’t sell yourself short. Don’t work for free or downplay your experience just because this isn’t yet your full time job. If you value your time and expertise, others will too, helping you build towards full-time status.
6. Be Prepared for a Large Time Investment
Entrepreneurs rarely work traditional hours, and when you’re getting started, weekends and nights might be prime times for you to get ahead. Know that the hustle only gets harder when you’re flipping your gig to full time, but the rewards can be sweet. Be strategic and intentional about your time management to avoid burnout.
7. Consider a Partner
You might be just fine running solo, but having a partner or even an informal advisory board can be a big help when you’re starting a business. From suggestions and advice to additional expertise and accountability, sharing the burden can be a strategic advantage for many entrepreneurs.
8. Manage Risk
You can never remove all risk from a new business venture, but you can take smart steps to mitigate it. The first step is structuring your business properly to separate your personal assets and liability from your business. Setting up as an LLC can be a great option for many entrepreneurs looking for this type of protection. Business insurance is another important consideration when you’re launching a serious entrepreneurial initiative.
9. Scale Smart
When you’re thinking of converting your side hustle to a main gig, you might be tempted to spend lots of money upgrading your work environment and systems. You might also be tempted to take investor money and grow fast. Carefully consider the pace and scale of your growth and spending so you don’t get out ahead of your skis. Remember the tortoise and the hare…slow and steady often wins the race!
10. Leverage eCommerce Tools and Social Media
Whether your business is an online initiative or in-person products and services, the power of digital marketing is something you can’t ignore. Connect to your customers 24-7 with an engaging website, compelling content, and a strong social media presence.
Taking the Leap Is Never Easy, But Good Preparation Can Ease the Transition
There’s probably never going to be a perfect time to quit your day job and dive into your side hustle full time. But if you’ve prepared and planned, you’re more likely to find stable ground and success quickly as your own full-time boss. Got questions or need help getting started? Reach out for a free consultation—we’re here to help!
Need more motivation?
Take it from Tommy – he recently discussed this on our Instagram!
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