starting a side hustle is a great way to earn extra income without committing to growing your own business. but it still comes with new responsibilities like tracking your finances and a new element to filing your taxes.
before you commit to growing a side hustle into full on self employment, these are eight questions you should ask yourself.
what do your numbers tell you?
your financial reporting holds the answers to many questions self-employed individuals ask themselves. before you decide to expand your side hustle, it’s worth reviewing the numbers behind your business to learn its ins and outs.
what are the costs of expanding?
sizing up your operations means an increased workload. you need to get critical about whether your current setup is going to be sufficient to tackle the extra volume.
put together a list of ‘must haves’ and ‘nice to haves’ to get an estimate of how much to budget for. it could be worth holding off your expansion plans until these solutions are in place.
how are you going to expand your revenue?
to scale your side hustle, you either need to get more customers or upsell to the customers you have.
there are many strategies to get more customers. offering referral codes or discounts to referred customers is a great way to acquire high quality clients with similar values. otherwise, you could opt for cold calls, advertising, or local promotion.
what is a reasonable workload?
when you make your side hustle your full-time gig, it’s easy to fall into the pitfall of saying yes to too many things. you’re trying to establish yourself, build relationships, and create new revenue opportunities.
defining a reasonable workload ahead of time helps you understand when you’re reaching your limit. this means it’s time to start asking what it will take to start meeting your demand, potentially even hiring an employee.
what’s your timeline for expanding your side hustle?
deciding to take your side hustle to the next level can happen at any stage of the journey. while there’s no criteria for how long it will take for you to reach your first milestone, it’s helpful to have a timeline in mind.
your timeline will keep you accountable on your goals, but also gives you perspective if you ever feel overwhelmed.
what is your long-term goal for your side hustle?
long-term goals provide substantial benefits in terms of prioritization and decision-making. they serve as a guiding compass, offering a clear direction for your actions. with well-defined goals, it becomes easier to justify taking time off, knowing that progress has been made towards your objectives. similarly, any idle time can be used productively by engaging in tasks that contribute to the achievement of long-term goals.
who are people with similar experience you can consult?
taking the plunge into the full-time self-employed lifestyle comes with its unique challenges. even though you’re equipped to take them head on, having some support helps.
check out facebook groups, linkedin connections, and local small business organizations for people you can connect with. they’ve faced similar challenges in their past. don’t hesitate to reach out if you want a helping hand or even just an understanding ear to listen to your experiences.
will you still enjoy your side hustle when it’s no longer on the side?
for some, their side hustle is their passion project. scaling that up means it’s not just a passion project anymore. will you be okay if that relationship changes?
having your side hustle become your full time gig has you spending much more time doing and thinking about the work.
after putting so much effort into learning how to start a side hustle and getting yourself established, don’t let common mistakes stop you on your journey. with these eight questions, you’ll be equipped to tackle the biggest challenges entrepreneurs face when scaling their side hustle to a full-time commitment. taking the time to grow sustainably protects your time and helps keep your head above water as you continue on your new adventure.