Strategy is Sexy for Startups

The 9-5 grind is great for some people. They are doing exactly what they want to be doing and they make money doing it. That’s fantastic – we need people who relish working for someone else and truthfully, not everyone is cut out for entrepreneurship. There are others who despise spending a large portion of their life working to help bring someone else’s dream to life. Some will strike out on their own to turn their dreams into a reality with no safety net to fall back on if things go sideways with their business.

However, in the ‘gig’ economy, it has become easier to start a small business while still working full time until the side hustle is mature enough to become a full-scale business. It allows the entrepreneur to test their business idea without losing the income they need for necessities. Unfortunately, many get stuck in the side-hustle + full-time job cycle.

If you are ready to take the plunge and turn that side gig into a business, we have a few tips to help you make the transition successfully.

Planning is Key

Dreams and goals are great, but if you want to make a successful transition from employee to owner, you need to make sure you’ve accounted for everything in your exit strategy. Failing to plan is a great way to make sure your business fails. Before you send that resignation letter, make sure you account for the following:

Budget:

Review your budget. Starting a new venture can come with some unexpected costs and even if your business is currently a side hustle. Plan for equipment & marketing, examine software options that can help you run your business effectively, consider whether you want to hire or not, and most importantly, plan for business taxes. Expect that your new business may be slow to take off and try to have some cash saved up before you strike off on your own.

Create an Emergency Funds Account:

Even if you carefully plan your budget, there are still likely times when things will not go according to plan. Sometimes, those unexpected little wrenches in the process can be expensive. Saving can be difficult for start-ups but it is vital, so as you review your budget, look for where you can reduce your overhead and commit that to a dedicated business savings account.

Business Plan:

Although you may have been working your side gig for years when you decide to take it to the next level, set aside time to create a proper business plan. Formalize your business beyond ‘I do X’ to create a plan that includes financial projections, benchmarks, targets – everything that will help you define success. Keep in mind, this doesn’t need to be a permanent plan. In fact, it is best if you are flexible enough to adapt if your original plan doesn’t work out as you expected.

Get Your Support System on Board

Starting a new venture doesn’t just affect you. It hits everyone who is close to you and not everyone is going to be supportive of your venture. Building a business is hard, especially in the early years, so having the backing and support of those close to you there for emotional support and reassurance is necessary for success. At the same time, eliminate those in your life who are not supportive, those who try to knock you down, and those who just don’t believe you can succeed. They will be detrimental to your success, so it is important to remove those people to avoid the drama and stress they bring.

It Takes Time To Build a Business

Unlike your current occupation, running your own business is not a 9-5 task. In the beginning, your business will likely take up a large majority of your time. Your business doesn’t have set hours, especially not at first, and you may need to sacrifice parts of your social life to keep your business running. It's exhausting and some sacrifices hurt worse than others but remember: This constant grind won’t last forever.

Scale Your Business at a Reasonable Pace

You’ve poured your all into building your business and now its time to expand. Your business is your baby, so take the time to assess what you need to do to grow and how these steps need to be taken. Try to avoid scaling too fast. When it comes to scaling your business, slow and steady wins the race.

Don’t Forget to Take Time for You

Burnout is a common and avoidable reason that startups fail. We try to take on the world to get things done but tend to forget that we are not machines and the work will still be there later. So, allow yourself to take breaks, schedule them into your day if you must. Try to avoid working 15-hour days 7 days a week. Even giving yourself one day a week where you don’t work at all and instead spend time doing something you enjoy can help you avoid burnout.

Since you are turning a side-gig that you know already brings money into a business, these tips can help you succeed in your business venture and enjoy the fruits of your labor as your own boss.