Thinking of taking the leap with your side hustle?
According to Zapier, 1 in 3 people have a side hustle in the US and 67% of them started in the past few years.
If you’re one of the many people who have been side hustling and are ready to go from part-time to full-time with your business, there are a few things you can do ahead of time to set you and your business up for success.
Here are six steps to follow if you want to transition your side hustle into a full-time job.
Create a business plan
While you already take your side hustle seriously, taking it full-time means treating it like a business.
Before you make the leap, create a business plan so you know exactly what you’re getting into and can lay the groundwork for the business.
Your business plan should outline your goals and how you plan to achieve them. It should also identify business costs, pricing structures, marketing strategy, target customers, etc.
Once you have an overview of what your full-time business could look like, you’ll know for sure whether or not you’re ready to take the next step and make your side hustle your main gig.
Review your numbers
Now that you know how much it will cost to run your business full-time, you should have an idea of what you need to not only fund the business but take care of your personal expenses.
If you’ve been thinking of taking your side hustle full-time for a while, then you may have some money saved up already. If not, figure out how much you need to comfortably leave behind your full-time salary and dive into the business while being able to cover business and living expenses. While the exact number is dependent on your own factors, a good rule of thumb is to have enough saved up — plus the revenue you’ll bring in from the business — to cover six months of expenses.
Save the date
If you’re ready to leave your full-time job to focus on your business, then commit to a quitting date so you don’t back out.
Not only does this help keep yourself accountable, but sticking to a specific date will give you a set amount of time to prepare. And speaking of preparing…
Prepare the basics
With a business plan in place and a start date lined up, it’s time to set up the basic elements of your business.
A few things you’ll want to consider as you set up your business are insurance (both healthcare and business), which entity you want to set your business up as, and how you’re going to manage your finances, whether through a bookkeeping tool or by working with an accountant.
You’ll also want to set up a business bank account (more on that below) and have a website with your services and portfolio ready to go.
Set up a business bank account
If you want to take your side hustle to the next level, a business bank account is a must.
Not only does a separate account help keep your business expenses and income organized, but a business bank account will actually help you make more money.
Tell your network
Sure, people in your network may already know about your side hustle. But taking your side hustle full-time is big news worth sharing.
Let your network know the exciting news that you’re going all-in with your business. Sharing with friends, family, and co-workers will help amplify the announcement and keep your business top of mind.
Plus, you may even land a few leads or connect with collaborators who you can team up with for bigger projects.
By following these steps to take your side hustle full-time, you’ll be equipped to run your business, manage the finances that come with being a full-time freelancer, and even set yourself up for new work.
There’s only so much you can do to prepare — at the end of the day, you might as well take the leap and see where you land.