How Do I Turn My Side Hustle Into A Full Time Business?
Starting a business can be risky. Here's how to make sure your side hustle is stable enough for you to take it full time.
I want to let you in on a secret. I used to run a side hustle, and after a few months of working for myself, I decided that it was time to take my baby full-time and start a small business. This sounds like the dream come true: being able to work from home, make your own schedule, and feel great about the work that you're doing! But as with any transition (or just any major life change), there are also some risks involved in making this move. After all, once you quit your job, it's tough to go back—especially if something goes wrong. I want to help you avoid having to ask for your old job back. I'm a full-time entrepreneur, and I've been where you are. I know it's not easy, but it's possible. Here are some tips to help make your business dream a reality.
Determine how stable your side hustle is.
Before you make your side hustle your full-time business, you need to determine if it is stable. Ask yourself: Is there enough work to support your needs? Are there seasonal fluctuations that could affect your ability to pay the bills? These are just some of the questions you'll need to ask yourself.
You want to make sure that it has been growing steadily, or at least quickly enough so that you know there is potential for growth in the future.
What kind of money do you need to make?
How much money do you make now? This may seem like a silly question, but it's important. Will your new venture replace your current employment and side hustle income? What do you expect from a company to pay for itself?
How much money would you like to make each month? This is important because it will determine how much money needs to be generated by your business each month in order for it to be profitable for you personally.
How much time do you want to spend on your business?
There are a few things to consider when making this assessment:
How much time can you devote to your business? Being realistic about running your own business means you do all the jobs, marketing, sales, finance, innovating, running meetings plus actually doing all the work. Think about your lifestyle now and how much busier it's going to get.
Estimate the amount of time you’ll have to spend on your business.
To start, you need to figure out how much time you think you’ll have to spend on your business. If you're going from side hustle to full-time business, then you'll be doing lots of jobs that you never had before—and that time can add up quickly.
Divide your tasks into categories:
Daily Tasks (e.g. providing the product and services, social media management)
Weekly Tasks (e.g., customer support, client meetings, sending out emails, creating quotes),
And Monthly Tasks (e.g., hosting an event, accounts, site updates, newsletter updates, running ads, chasing new business).
The more organized you are with your time management, the more successful your business will be!
Set Goals - From Side Hustle to Full-Time Business.
Setting goals is the first step toward turning your side hustle into a full-time business, and we've got some tips on how to make sure it’s both realistic and achievable:
Start with the MONEY. It might be tempting to start with all the other stuff—like product development or marketing—but if you don't have enough cash coming in from your business, then all those other things won't matter! So start by working out how much money you need for all of those things, and work backward from there.
Break it down into quarters/months/weeks. You can't expect yourself to work towards your goal 24/7, so break it down into smaller chunks so that each time you reach one, it will feel like an achievement and motivate you to keep going.
So instead of saying "I want my business to have a revenue of $350,000 by the end of the year," try saying something like: "I need to bring in $30,000 per month." That way, it seems more realistic and achievable—and less scary!
Then you need to document how you will get there. Look at each of these areas as a starting point: marketing, product/services development, and customer development so you can hit your target of $30,000 a month.
You can do this in whatever format makes sense for your business. Here is one example:
1) Marketing: I need to increase the number of customers by 10% each quarter by running ads on Social and Google as well as sending out regular newsletters with updates from the business.
2) Product /Service Development: I’ll sell five more products using an online store with a secure payment system that allows people to buy directly from our website.
3) Customer Service: I’ll improve our customer service by hiring a casual staff member who can help answer questions about our products and services over the phone or in person. I’ll need more formal contracts and agreements with suppliers, and clients in place before I start.
Document your business goals.
I'm a firm believer in setting and tracking goals. It's not as simple as it might appear, though—when you're busy, it can be difficult to remember what you're supposed to do and when.
That's why I use PaperMind, a Document app that lets me record and check off my goals and tasks as I go.
Papermind is ideal for planning my day or my month in advance.
But Papermind is also great for keeping track of client agreements and contracts—it makes it so easy to send them to customers or anyone to sign directly from the app! And if any revisions are required, I can simply edit them and send them back!
I can keep all of my files in one place, request signatures on contracts, and document my objectives—all at once!
Yet another way to break goals down!
You can set your goals in terms of revenue, leads, customers, or sales. But whatever you pick, it's important to be specific and measurable. So add dates and figures if possible.
- I will generate revenue of $30,000 per month.
- I want ten customers in the Retail and Commercial Building sector by 30th Dec.
- I want nine sales per month by this 17th February.
- I want four new leads per month by the 18th of June.
- I want my business to bring in $5,000 per month by September 1st.
The Essential Checklist of Documents for New Small Business
Before you take the leap swapping out your side hustle into a full-time business, there are many documents you need to have in place. The list below will help you navigate some of the most common business-related tasks and ensure that everything runs smoothly on day one.
- Business Plan: A brief plan for your business, including mission statement, competitive advantage, goals and objectives.
- Business Structure: Decide whether you'll form as a sole proprietorship, partnership or limited liability company.
- Business Name: Register your business name with your state agencies. At the same time register your domain name and setup your social media accounts for your business.
- Tax ID Number: Before you can register your business with the state or federal government, you'll need an Employer Identification Number (EIN) from the IRS (or Social Security Number if you're a sole proprietorship).
- Business Licenses/Registration: Depending on what kind of work you're doing (i.e., selling products or providing services), you may need to obtain different licenses from state authorities.
- Business Bank Account: An account where all of your cash flow will go through so that it's easier to track expenses and revenue.
- Business Insurance: Some state laws require different types of insurance. You should have insurance that covers damage to property and bodily injury, as well as liability insurance to protect against any lawsuits that we hope never get filed against your company.
- One great resource we came across is this from U.S. Small Business Administration.
Download Papermind Free!
And get ready to take your side hustle to the next level.
Papermind is the only app you need for signatures. It's easy to use, so you can get back to what you love doing: running your business.
Side Hustle to Full-Time Business:
Why You Need Agreements and Contracts?
If you've ever worked with clients before, you know that sometimes things don't go according to plan. When they don't, having an agreement in place can be the difference between getting paid or not getting paid—and we all know that when it comes to business, cash flow is king!
In my experience, agreements have saved my ass more than once. You’re probably familiar with the saying “the devil is in the details.” While this may not always be true, there are certainly times when things go wrong because of some small detail that was overlooked or misinterpreted. When you’re running a business, having a contract can help make sure everyone knows what they’re supposed to do and when they need to do it.
- You'll have a better chance of getting paid. When you're busy chasing down clients, it's easy to forget that some of them will try to avoid paying you. Having everything in writing will help make sure that your clients understand and agree with what they've agreed to pay you for and when they are supposed to pay it.
- You'll be more organized. In addition to making sure all your clients, customers, partners know what they’re supposed to do, having contracts written out also helps keep yourself organized as well as anyone you might hire. Having set expectations for everyone involved will help keep everything running smoothly, which means less stress and less time wasted trying to figure out where things stand at any given moment—time that could be spent growing your business!
- You'll be able to focus on the things that matter most: building a strong business foundation and growing sales! Without proper documentation in place beforehand, there’s no telling how much time could be wasted trying fix problems after they happen rather than preventing them before they arise—which can lead into many other issues such as losing clients or business partners along with money because work wasn't done correctly upfront.
Make sure you have legally binding documents for your services or products.
You might think a contract is only for big businesses, but small businesses need them just as much. As a new business owner, you're responsible for protecting yourself from financial loss and legal action. A contract or agreement is a legally binding document that can help you do just that.
It's important to have these documents in place before you start working with clients and customers—and it doesn't have to cost you a lot of time or effort.
PaperMind - create legally binding documents and request signatures.
For example, the Papermind App provides contract templates that you can edit and request signatures from your clients, suppliers, customers, partners or anyone else involved with your business. Plus they store all your digital paperwork—signed agreements and other files—all in one place, so it’s easy to access when you need it!
PaperMind provides different types of contracts some of the most popular includes:
- Contract for services - An agreement where someone agrees to provide a service in exchange for money
- Contract for goods - An agreement where someone provides goods (good) in exchange for money
- Employment contract - An agreement between an employer and employee that establishes the details of their working relationship (salary, benefits, etc.)
- Statement of work - A document that describes the tasks or deliverables required to complete a project
- Purchase order - An order placed by an organization with another organization for the purchase of goods or services.
Use Papermind Signatures to Get Deals Moving Quicker
Getting sign-off or approval is a big part of doing business.
Verbal agreements just don't cut it.
If you want your deals to be concrete, professional, and move quickly, you must have legally binding documents in place.
When doing business, you often need to get an agreement and sign-off from clients, partners, customers, or anyone else. It's an important aspect of being a professional. The best way to accomplish this is to use signature software.
Signatures are a great way to show that you are taking the agreement seriously. They also make sure that everyone involved in the agreement is on board, which helps with speed. As long as you have agreed on all of the terms of your transaction, then you can sign and move forward quickly. If there are any questions or concerns about an agreement, using signatures will help make sure that everyone knows what they're getting into before they stick their name on it.
Getting deals moving quickly can be a challenge. But with software like Papermind, it's easier than ever to get your clients or partners to sign and agree to your terms. All they need is an email on mobile or desktop to sign.
1. Just choose a template, edit & add your logo.
This way, you don't have to worry about creating a document—and you can focus on getting more deals done faster.
2. Request Signatures
Click ‘Sign,’ and multiple people can review and sign your document electronically in seconds. Instead of having to print out the contract and sign it by hand, they just enter their information online. That means they don't have to waste time printing documents, signing them by hand, scanning them, and emailing…you get the idea!
3. You’ve got yourself a signed agreement!
You get automatically notified once it’s signed.
Your signees such as your clients or partners automatically get a signed copy, and so do you – everything is stored digitally and securely!
There are a lot of things to think about when turning your side hustle into something full time. But if you’re passionate about what you do, keep at it and surround yourself with good people! You will be able to make this happen.