Today, more and more people are empowered to leave their nine-to-five jobs to become their own boss. Some people are living the dream. However, others aren’t as lucky. Their fear of failure hinders them from turning their side hustle into a full-time business.
Of course, entrepreneurship isn’t easy, especially at the very beginning. But with the right help, anyone should be able to make their side hustle profitable enough to turn it into a full-fledged business.
Establish a Stable Foundation
Anyone who’s looking to take on a side hustle should lay out a solid foundation. Aspiring self-employed workers can, for instance, start by identifying how much time they can devote to their side hustle. They also have to consider the costs of running this side hustle.
Let’s say an elementary teacher wants to tutor high school students who are trying to get into English programs in college.
They need to take into account the expenses they incur when they travel to and from each student’s place. Aside from that, they should consider labour and material costs. If they’re renting a space where they can tutor students after classes, they also need to take that into consideration.
Knowing all the expenses, as well as their asking price, will help aspiring freelancers keep a close eye on their margins. By maintaining this margin, they can protect the profitability of their side hustle.
Test Desired Business Models
Draft a business model. Like large corporations, the best way to ascertain the success of a product or a service is to test it. Aspiring entrepreneurs might not have the same budget as these huge businesses, but there are other ways to seek valuable feedback. For example, they can get guidance from people whose opinions matter to them, such as colleagues or friends.
Seeing the plan from another person’s perspective helps them see the loopholes that they have missed. More importantly, it lets them understand how they need to improve their business model.
Also, building a compelling value proposition, which covers how much entrepreneurs want to give at a set price, lets entrepreneurs run their side hustle effectively and efficiently. This way, they can gradually turn a hobby into a full-fledged business without ruining their lifestyles, relationships or finances.
Set Clear Actionable Goals
Goals give entrepreneurs a purpose. Having clear actionable goals help them understand what they need to do to turn their hobby into a full-time business.
When they establish goals early on, they can monitor their business’ progress and identify what they need to improve to achieve their desired outcomes. Of course, goal setting alone won’t guarantee the success of the business. However, it will give entrepreneurs a better chance of succeeding.
Seizing that opportunity to assess the business from a broad perspective should give entrepreneurs a bit more confidence to take on whatever the future holds. No one might be able to predict what lies ahead but anyone can plan for it.
At DWS we love to encourage our members to follow their passions and develop their own businesses. As a means of improving the chances of success we have partnered with Margin Partners who specialise in this maximising the profit of small businesses. If you have a hustle you dream of becoming your full-time gig, let us know below.