How do I take my side hustle and make it a small business? All successful side hustlers asked themselves that question at least once?
Before moving from side hustle to small business there are few things to consider. The very first thing to consider is will your side hustle survive the next level of “risky” small business status.
A side hustle survives mainly because the owner is not totally dependent on the income and/or success of the side hustle. A side hustle is just that; a side hustle.
So what questions should you ask yourself before jumping “all-in” to your small business? This may mean quitting your regular to run your small business. Big difference from having a regular steady income, plus side hustle dough. This also means having to find health insurance, if this is something you receive from your regular job. Health insurance for employees is different for entrepreneurs/the self-employed in the sense that the rates can go up drastically. So now you are out your regular income stream with increased out-stream. And we are just getting started.
This short blog is not meant to scare you, just shed some light on the differences between running a side hustle and running a small business full time.
So here are a set of questions to ask yourself before moving from side hustle to small business:
1. Do I have some back cash until the business moves from side hustle to small business? Keep in mind, a side hustle may be able to run under the radar from business licenses, business insurance, business corporation, local license requirements and other expenses, not recommended, but many side hustlers run under the radar without any major bumps. A small business will definitely have some expenses getting legal to run like a legit small business. We won’t discuss business taxes in this article.
2. Will you need to hire more staff to help take the side hustle to the next level? Most likely you will need at least an assistant or secretary. Handling a small business is paperwork, documentation, lead building, visiting customers, marketing, and many other tasks that a side hustle may not need to succeed at the side hustle level.
3. Do I have the capital to fund a small business? Perhaps you have saved up some money from the side hustle level. But now you are moving up to small business. Expenses are different and the initial stage from side hustle to small business you are going to need to invest some money? Do you have enough money to run a small business? Ask yourself today and then again tomorrow. If the answer is yes, you are ready. If not, start looking for the capital to start your small business. There are many capital sources for small businesses.
Business lending Credit BLC can help you find the capital needed to transition from side hustle to small business. Drop us a line.