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Many people find their side gig improving exponentially over time, and naturally, thoughts turn to whether this is a viable business model full-time. Transitioning is an exciting but very challenging journey that requires careful planning, strategic execution, and financial preparation. Let’s show you exactly how you can make this shift.
Developing a Business Plan
Lots of people make the mistake of thinking that they can just carry on as they were. The problem is that now your business is going to be on a much larger scale, so you have to be clearer about what services you will offer. You need to identify your target clients, but also think about breaking down those long-term goals into smaller milestones.
You also need to remember that there’s a lot more administration to ensure that you are complying with tax regulations, that your business is registered, and that you are providing a real service to your customers. Naturally, conducting research is pivotal at this point.
Look at something like payment processing; as you can explore credit card processing services from North or other providers to help you manage payments with international clients, allowing you to expand your client base without worrying about currency differences. Additionally, this small component can present you as a professional freelancer who values modern and secure payment methods, which goes a long way in establishing trust and credibility. Therefore, your business plan can be invaluable at this juncture.
Assessing Your Current Skills
A lot of us underestimate the impact of going from a part-time job to a full-time job. We may have the skills to do it but not necessarily the endurance. You should identify your current core skills and how they align with how you are planning to grow.
Doing something on the side is a great way to earn a little bit of money, but the demand may not be there, and therefore, your full-time dream may fizzle out within a matter of months. This is why it’s time to think about how to diversify your skill set, so consider certifications or online courses to enhance your expertise, but also give thought to signing up for a mentorship scheme where others who have made this transition can guide you throughout the process.
You will learn a lot about what you can and cannot do, but rather than being stuck in your own head, always remember that it’s about how you appear within the market.
Financial Preparation
If you’re currently a freelancer and want to turn your work into a business, a safety net is pivotal. You should save at least three to six months of living expenses to cover your income gap during the initial stages. Don’t forget to trim unnecessary expenses and focus on the essentials to stretch your savings during the transition.
Many people become preoccupied with the allure of being able to sleep in a little longer and the coffee shop culture, but the reality is far different. When you’re growing a side hustle into a full-time business, you may find greater demands placed on you. This is where you need to smooth out the edges in your life.
Get rid of any debts before you start, and also be realistic about your income goals. Estimate how much you can actually earn within those early months, not just to avoid underpricing yourself, but to ensure you don’t take on lower-paying projects in desperation.
Start Small
The excitement of going from a side hustle to a full-time business or freelance role can often make us desperate to quit our full-time job. However, freelancers need to test their capabilities.
Take on small freelance projects during the evenings or weekends while you are still employed so you can avoid financial pressure and refine your skills and workflow before going full-time.
One of the keys to negotiating any contract is downplaying the pressure and feeling like you don’t need that bit of income. However, when we are desperate, this shows up in many aspects of our behavior. Start small, ensure you have SMART goals, and you will be far better positioned.
Prepare for Challenges
Whether you’re trying to secure funding or spending time working on a professional brand, you need to be aware of your own mental challenges, not just the financial or professional ones. Motivation and productivity are key, while also knowing how to handle demanding clients or unclear expectations through effective communication skills.
Finally, payments can be delayed, causing your finances to fluctuate, which is why financial discipline is critical.
Going from a side gig to a full-time effort requires a lot from you, but it is absolutely achievable, as long as you plan and execute it effectively.