The side hustle culture is big in the US as it keeps people afloat amid financial challenges and recession worries. A recent Bankrate survey found that 1 in 3 Americans make money through side hustles. The trend is here to stay, as 32% of them believe that they will need these extra income sources forever.
Beyond boosting your spending power, a side hustle can be an opportunity to launch your startup. However, transforming it into a successful startup is not for the faint-hearted. It is a long journey that blends passion, strategy, and persistence. Many thriving businesses, in fact, began as side projects.
If you want to make the leap from a part-time gig to a full-fledged company, think carefully about planning and execution. We have a few proven tips to help you navigate this transition smoothly.
Start when you are ready
Although you may have heard countless success stories about hustlers, things are not as shiny as they appear. According to Self, the average monthly earning from a side hustle in the US is $688. Nearly 45% of people state that they make less than $250 monthly from the additional source. Only 19% claim that their earnings exceed $1,000.
The message is clear: don’t rush with things until you have a lucrative income stream going. Timing is crucial when considering turning your side hustle into a startup. Begin by evaluating your current situation from different angles.
Are you passionate enough to dedicate significant time and resources to a startup? Is there consistent demand for your product or service? Do you have the necessary skills and financial stability? If you are emotionally, financially, and logistically prepared for the launch, your chances of success are better.
Set realistic goals
Goal setting gives you the right start as an entrepreneur, whether building from scratch or having a head start. Indeed recommends setting actionable, realistic, and specific goals. For example, if you want to launch a sales startup, think in numbers like 100 sales in the first month. The number may be bigger if you are already in the market as a side player.
Achievable goals keep you motivated and measurable ones help maintain momentum along the way. Begin with short-term objectives, such as generating a specific amount of revenue or launching a website. Define what success looks like for your startup in one, three, and five years.
Beyond goal setting, think of breaking them down into bite-sized chunks, such as small milestones per quarter. You will feel that the journey becomes easier this way when you already know the market, product, and competition.
Have a financial plan
A robust financial plan is the next thing you need to move from your side hustle to a successful startup. Even if you have the basics like software, this is the time to move to the next level. As you scale your side hustle, you will require more equipment, inventory, and marketing materials to operate effectively.
Let us dig deep to understand the financial planning process. Suppose you want to start a business in New York, the ultimate destination for entrepreneurs. TechBullion notes that it is a hub of finance, culture, and innovation. It is also the financial capital, where angel investors and venture capital are easily accessible.
The good thing is that newbies can also find a budget-friendly office space for rent in New York City. If you are worried about high rents when transitioning from a side hustle to a full-fledged startup, there are options.
The Farm Soho recommends a leasing or sub-leasing model to make an office within your reach. You can also check options like long-term leasing and turnkey offices depending on your needs and budget. Next, calculate your initial investment, including one-time purchases and recurring expenses.
Consider how you’ll fund these, whether with personal savings, loans, or crowdfunding. Analyze income streams, including the current side hustle.:Estimate your revenue and track income and expenses to create a solid financial plan.
Develop a brand
Your startup’s brand is more than a logo; it is the fuel for growth. According to Investopedia, brand identity boosts the financial performance of businesses by enabling them to command higher pricing. It even helps them maintain customer loyalty during market downturns.
To build a compelling brand, you must define your brand identity in the first place. Clarify your mission, values, and what sets you apart from competitors. The good thing about transitioning from a side hustle is that you already know your target audience. However, now you will have to tailor your messaging to their needs as you are in a bigger market.
Investing in professional design with the right colors, fonts, and imagery is a great start. These elements can build recognition and trust. Having an online presence with a basic website and social media pages also enhances your brand’s appeal.
FAQs
What is the most profitable side hustle?
The most profitable side hustle varies based on one’s skills, market demand, and available resources. Some lucrative options include freelance digital services, e-commerce, consulting, and online content creation. The best side hustle is one that leverages your expertise and meets a genuine market need.
Should I turn my side hustle into a startup?
The answer is again subjective as there are individual factors to be considered. The transition makes sense if you consistently generate income and see growing demand. Similarly, you should do it if you are passionate and willing to commit more time and resources. You should also validate the market and have a plan for scaling.
How do I market my side hustle?
Marketing your side hustle is similar to promoting a business. Ensure that you have a distinctive brand and a clear target audience. A strong online presence is also essential even if you are a solo provider. Determine a consistent marketing message and stick with it across all customer interaction channels.
Transforming your side hustle into a thriving startup is a rewarding challenge. While it may require a lot of planning and effort, you should make the most of the opportunity if you have it. These proven measures can help you turn your passion project into a sustainable and successful business.
