When a side hustle gets serious, it can expand into a fully-fledged business. Popular examples today include Innocent Drinks, Moonpig and, of course, Amazon! While you may not be the next Jeff Bezos, it’s nice to have dreams! Seriously though, there are many changes incoming.
Migrating from a microbusiness to something more substantial takes commitment and dedication. From a business plan to moving to a new location, here are some examples.
Committed Packaging and Shipping
So, what happens when a hobby becomes a profitable business? It goes from something that used to be fun and exciting to something with very real commitments. From lifestyle changes to logistical shifts, there are many changes. Further to logistics, you can show real commitment to customers when you order custom shipping boxes that convey brand identity, protect products and even meet sustainability goals, taking you from a hobbyist to a genuine brand owner!
A Business Plan When a Side Hustle Gets Serious
Most professionals will tell you that you need a business plan., and they are right. Around 44% of businesses actually start out as side hustles, but many more fail. A poor business plan is the most cited reason why. So, here’s how to start a business plan in three easy steps:
- Understand who the target market is in terms of buying decisions and driving forces.
- Define and clarify the goals of the business, such as what you want to achieve.
- Craft a unique selling point that sets your business apart from all the others in the niche.
The Legal Structure of the Company
As part of a business strategy, you need to consider the structure of the company. As an example, in the UK, you have the options of limited company, limited liability partnership, partnership and sole trader. For most new businesses from a side hustle, sole trader is the most common option. However, it gets more complex for any other type. It is recommended that you consult with a business expert who can help you navigate these complex and muddy waters.
How to Manage the Finances
Financial management doesn’t come easy to everyone, especially in business. However, you can surprise yourself out of necessity. When starting out, you may not have the funds to hire an expert and learn, and you go. This includes tracking income and expenses, opening accounts, and, of course, paying taxes! However, when you scale, things become more complex. An accounting service or even hiring a part-time bookkeeper are things you should consider. It’s also wise to explore any available tax credits for children if you’re a parent—these can help offset some personal tax liability, as well as ease the financial pressures that come with entrepreneurship.
How to Manage Your Time
Time is also a valuable resource that needs to be managed. As a side hustle, you can work on something as and when it suits you. However, that luxury disappears when your business gets serious. Poor time management can have a serious impact on business, killing it before it starts. Don’t let all your effort be for nothing, and learn how to delegate tasks, create schedules and manage customers, clients and suppliers, as their time is just as important as yours!
A Side Hustle Gets Serious and Needs Balance
Alongside time management, it helps you manage your life! This is easier if you are single but gets infinitely harder with a marriage or children. A survey of UK business owners found that around 30% struggle to maintain a healthy work-life balance. Sure, you can start a side hustle with your new car and drive back when needed. However, when side hustle gets serious, and you need to move to premises or stay on the road, there is a real need for work-life balance.
Analyze your tasks
Evaluate personal and work commitments and identify where you are struggling. Categorize tasks by priority and list the ones that are achievable and don’t be afraid to get help for the rest.
Prioritize tasks throughout the day
List what needs to be done and go through tasks by urgency. Set work blocks for the business and blocks for personal time, and don’t forget to include periods for relaxation and breaks.
Introduce simple self-care
Set clear boundaries when you can and cannot work and keep to them. Wake up and go to sleep at the same time each night for quality sleep, and be aware of how technology disrupts.
You might begin to resent your new venture before it’s even off the ground if your work-life balance isn’t harmonized. This would be an obvious disaster. However, you also risk burnout, a decrease in relationship health and increased stress and anxiety without a well-balanced life.
Hiring Some Outside Help
No one told you this, but you don’t have to do everything yourself! Today, you can outsource pretty much everything through “as a service” providers that offer experts in everything. Don’t know how to backup files? There’s a service for that! Having trouble with taxes? You guessed it! New to online marketing? Don’t worry. There are agencies that can handle PPC and SEO for you! Hiring outside help frees you up to focus on business management while scaling up.
A Dedicated Marketing Strategy
Marketing is the only way your business will grow. Seriously, how can your business scale effectively without anyone even knowing who you are! You’ve made it this far, but the real challenge is only just beginning. Going from a side hustle to a business now means you have direct competition, and it gets tough out there! However, if there is one piece of key infrastructure you need, it is marketing strategies for PPC, social media and SEO campaigns.
Scaling and Funding for Expansion
Maybe you have saved a nice little nest egg from your side hustle. However, scaling up means the costs will increase, too. More products means more materials, more labour and higher shipping expenses. You can consider investments from third parties, and no, you don’t need to fear Gordon Gecko types. Today, you can create a crowdfunding page. This way, investors get a slice of the pie, and you don’t lose any control of your business to unscrupulous businessmen!
When a Side Hustle Gets Serious, Move!
Scaling a business means your garage probably won’t do it anymore! In the UK, the average side hustle income is around £590 per month, but an investment in larger premises means you can produce more and bring in more money. However, there are some things to think about:
- Assess the business and decide on a physical location and the advantages it offers.
- Adapt pricing to reflect the increased expenses associated with moving to a premises.
- Make sure you understand the lease terms and conditions, as well as non-payment penalties.
Adapting to Market Changes
Maybe your business idea hit at just the right time, and you have seen some success. However, success is like British sunshine. One day, it’s there, and then it’s just gone. The frustrating part is that you may not have even done anything wrong. Sometimes, markets just change. Remember fidget spinners? Yeah, most people have forgotten them already! To stay in business, you need to innovate, adapt and be willing to change according to consumer trends that come and go.
Summary
Something as simple as well-designed packaging is a serious consideration when a side hustle gets serious, and you want to scale. Boxes are a vehicle for telling a story, committing to sustainability goals and showing respect to customers. However, work-life balance is also a critical part of scaling a business as it means more tasks to finish. Of course, your business must also be willing to adapt to market changes and customer trends and expectations.