If you find yourself working on a passion project in your spare time, and you’re wondering if you can turn your so-called “side hustle” into a legitimate business, we have good news for you! As long as you put in the work and preparation, there’s no reason you can’t start a business and spend your time doing what you love the most.
First, however, you will need to invest a lot of time into making your passion profitable. You will also need to think about your business realistically, which could mean saving money, finding investors, talking to lawyers, and more. Once you have everything lined up and feel confident about your new venture, you can make the leap and quit your day job.
Treat Your Side Hustle Like a Business
According to Entrepreneur, treating your business like a business means you don’t work for free. If your friends love your hand-knit sweaters, stop giving them away for free. Tell your friends and family that you are selling them for a price and to share your information with their friends and family, too!
You might end up making more sweaters than you expect, but you will also be making money off your labor of love.
Expect to Have Less Free Time
While your side hustle is still your side hustle, you might be squeezing work in after work. While this can be exhausting and call for some sacrificed weekends and vacations, it won’t be like this forever, and if your venture is successful, it will pay off.
Plus, if you’re passionate about what you’re doing, the time will fly by.
Make a Financial Plan
Think about what you need to survive and make your business work and don’t quit your day job until you’re making that kind of profit or have another plan. For some, a small business loan may be the way forward, but the money will only serve you if you know how you are going to use it.
You may be able to pay employees who can help you grow your business or hire independent contractors to perform essential services.
In any case, don’t rush and don’t take out a loan just to have money in the bank.
You should also consider opening a business bank account to better separate your personal finances from your business finances.
Ask for Help
There’s no reason you need to run your new business alone, and asking for help will free up your time, so you can focus on what you love. If you knit the sweaters from our previous example, maybe your friend or significant other can help with the books, or you can even hire people to do things you can’t (see above).
At some point, you will also want to make your business official, which may mean talking to attorneys and tax professionals. Creating any kind of business is filled with legal minefields, and a good lawyer can also help you manage your risk.
For example, Busch, Reed, Jones & Leeper, P.C. can help you form a new business, establish a business partnership, and resolve any legal issues that may arise.
Our business law attorneys have more than 150 years of combined professional experience and can help you plan your business at a price that works for you. Discuss your future with our firm during a consultation and take one of the most important steps towards achieving your goals.
