For some people, side hustles remain exactly that – an after-hours business or vocation that isn’t as demanding as their 9-to-5.
For others, however, side hustles can show potential to become something more.
In these scenarios, entrepreneurs sometimes reach the point of “make or break”, where it’s time to make the all-important decision on whether to turn a side hustle into a fully-fledged business.
This experience can be just as exciting as it is daunting, but by putting a few important building blocks in place, you can make sure that you’re 100% ready and poised for success when the time comes to take the leap.
You can start by asking yourself these three vital questions:
1. Have I sense-checked my business idea with someone I trust?
In the world of entrepreneurship, a lot of emphasis is placed on the quality of a business idea. Entrepreneurs by nature are brilliant problem-solvers and have the ability to come up with ideas that are truly groundbreaking, unique and even revolutionary. The problem, however, is that even the best, most well-thought-out, mind-blowing ideas still don’t sell themselves.
In reality, having a great idea and believing wholeheartedly in its ability to be the “next big thing” is only about 20% of what needs to be done to actually be successful. This is why it’s vital to get a second opinion – which can be tricky, because it’s also unwise to share your idea with anyone unless you trust them completely.
But once you find the person – or persons – you want to use to sense-check your thinking, share that idea with them in the same way as you may pitch it to an investor or a business partner. What you’ll be looking to get out of this experience is an unbiased opinion from someone who is honest and open enough to give you their unfiltered view on the idea.
They can help you identify any blind spots, flag potential pitfalls, ask questions you may not have considered and get some of the raw excitement out the way so you can get practical about what needs to happen next.
2. Do I have a solid plan on how to finance this business?
Capital is – and will arguably always be – an entrepreneur’s biggest challenge. This is a fact that has been confirmed year after year by the Business Partners Limited SME Index, as well as other leading industry reports. For this reason, getting on top of the financial aspect of turning a side hustle into a business is vitally important.
Once a business plan has been drawn up, the next step is to choose the best way to raise the working capital needed to get the idea off the ground. For some entrepreneurs, it may be necessary to apply for SME funding at this point.
Either way, you need to understand what the long-term implications of financing the business will be – whether that’s planning how to repay a small business loan, saving towards the next phase of growth, or diversifying your revenue streams.
Before going ahead, it’s essential to have the financial aspect tied down. To do this, you may need to do your research via platforms such as the SME Toolkit, seek the advice and guidance of a business development consultant, a financial planner or a small-business expert.
3. Am I ready for what it takes to be a successful entrepreneur?
Although the prospect of becoming self-employed may be exhilarating, you need to understand that being successful will most likely require much personal sacrifice, tenacity and grit. As one entrepreneur once put it, becoming a business owner means trading in your 8-hour work day for a 16-hour one. That, quite literally, has been the experience of many of today’s most successful people in business. It was Lori Greiner, television personality and entrepreneur, who said: “Entrepreneurs are willing to work 80 hours a week to avoid working 40 hours a week.”
Furthermore, entrepreneurship requires resilience in the face of setbacks and obstacles, as well as the ability to stay focused and driven towards long-term goals. Successful entrepreneurs must be willing to take calculated risks and step out of their comfort zones. This often involves embracing uncertainty and being open to learning from both successes and failures.
For this reason, it’s important for aspiring entrepreneurs to engage in some introspection – to ask themselves whether they have the time and the energy to take on the challenge at the phase of their life that they are in. This may require juggling their entrepreneurial responsibilities with being a parent or family member, reaching a personal goal or fitting in some much-needed self-care. If all these factors align, it may just be time to take a deep breath in and prepare for the plunge.
Ben Bierman is the managing director of Business Partners.
BUSINESS REPORT