The 2019 Hiscox Side Hustle to Small Business™ Study, which surveyed 400 small business owners whose companies started as side hustles reports that 54% of entrepreneurs were driven by a particular passion or the dream of owning their own business.
So, what do entrepreneurs need to do to turn their side hustle into a full-time business? Here are some tips.
Treat the side hustle like a business.
Don’t work for free. For example, while a graphic designer might swap designing a logo or two at no cost in exchange for putting the samples on their website, a public relations firm side hustle doesn’t promote someone else’s business launch for free.
Weekend and vacation plans are low priorities
Entrepreneurs reported working an average of 20 hours per week on their side hustle. Since they are still employed at their full-time job, 72% of respondents worked on their side hustle on the weekend and did not take vacations.
Don’t be in a rush to start the business
The entrepreneurs surveyed worked their side hustle for an average of 19 months before quitting their full-time job. It also took them roughly three years of running their own business full time before they earned the same annual income as their last full-time job.
Make a plan for financial stability
Starting a business at any level requires hard work, dedication and capital. It means managing planned and unexpected expenses to avoid eating into the profits which are needed for business growth.
Don’t do it alone
Seventy-two percent of survey respondents set up their side hustle with someone else. It also helps to form an informal advisory board of friends who could offer ongoing suggestions, insights and support.
Every business faces risks, but you can protect yourself against many of them. Small business insurance can protect entrepreneurs against the financial impact of a claim or a lawsuit, keeping you in business.
Starting a side hustle can be a good way to get into entrepreneurship and test the waters. But the way to success requires advanced planning and hardcore dedication.