Turning a Side-Hustle into a Full-Fledged Business

Side-hustles are a great way to test the waters of a business idea. Not only do you still have the financial comfort that comes with holding down your “day job,” you also have the freedom to take on some risks on the side. 

If, over time, these small business risks start to amount to something serious, it may be time to take the leap and turn that side-hustle into a full-fledged business. 

How to Turn a Side-Hustle into a Business

•  Write a business plan – Developing a business plan is a good exercise in organizing your ideas, goals and financial strategy, and you may need it when it comes time to secure outside funding. While some people might be tempted to skip over this step, it’s an important one for charting the course of your business – and it can be revised over time. By going through the exercise of creating a business plan, you’ll be able to articulate your business strategy, set goals, prioritize the resources you’ll need to get there, and identify your financial targets to remain profitable.

• Make it official – If you haven’t already, name your business (and be sure to choose a name that hasn’t already been claimed). You’ll also need to determine the appropriate structure for your business – a sole proprietorship, LLC, corporation or non-profit. Consult with a business attorney for guidance. Lastly, submit the required forms to make it official with your state and the federal government, and apply for an Employer Identification Number (EIN) for tax purposes.

• Protect yourself – Establishing a separate entity for your business will provide some personal protection in case you encounter problems down the road, but you should also go a step further and ensure that you have strong contracts and agreements in place for all your business relationships. If you need insurance, licensing and permits for your line of work, get those too. It’s tempting to think, “that [fill-in-the-blank problem] will never happen to me.” And we hope it doesn’t, but like all things, prevention is the best medicine.

• Go forth and market – Once you’ve committed to making a run at your business, it’s time to go all-in. Drum up new business by creating an effective marketing strategy and start spreading the word about your products or services. 

Launching a business can be stressful but it’s also a moment to celebrate. Make sure you take time to step back and congratulate yourself on taking the leap. It’s onward and upward from here!