6 QUESTIONS TO ASK BEFORE YOU TURN YOUR SIDE HUSTLE INTO A FULL TIME BUSINESS Author:
Michelle Gibbings P. 03 8300 7357 E. support@michellegibbings.com www.michellegibbings.com Workplace expert and the award-winning author of three books. Her latest book is 'Bad Boss: What to do if you work for one, manage one or are one'.
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tories of people taking their 'side gig' and turning it into a multi-million dollar business make being an entrepreneur and business owner sound enticing and rewarding. All successful business owners will tell you that building a thriving business takes planning, effort, persistence and a willingness to take risks. So, to turn your side hustle into a longterm profitable business, you must do your homework. Before rushing in and quitting your job, challenge yourself to answer these six questions.
1. ARE THE FINANCIAL PLANS AND PROJECTIONS REALISTIC? There are two primary angles to consider – current and future state. Firstly, consider whether your side hustle consistently generates enough income to cover living expenses and business costs. Secondly, examine the business's growth potential and profitability. Look at both sides of the ledger - debits and credits and 32
consider your cash flow position and how these factors will support or impede your growth ambitions. You want to clearly understand the business's financial state and have a realistic projection for future earnings and profitability.
2. IS MY BUSINESS PLAN ROBUST? A well-thought-out business plan specifies your goals, target market, marketing strategy, financial projections, and operational plans. It's your roadmap to success. Interrogate this roadmap to determine if it's robust. You want to lay out the opportunities for growth in your target market and detail sources of demand. Also, consider your suppliers and the relationship you have with them. You want to identify your competitive advantage and potential obstacles affecting your business's success.
3. WHAT'S MY RISK APPETITE? Entrepreneurship involves
financial and emotional risks. Consider your risk tolerance and assess your ability to handle uncertainty. Are you prepared for the possibility of income fluctuations, loss of job security, and the potential need to invest personal savings into your business? Be specific about how much money you are willing to invest in your business and how much you are ready to lose if the concept doesn't work.
4. AM I WILLING TO DO THE HARD WORK? Kicking off can be easy. It's sustaining the momentum where the real challenge begins. People get swept up in the initial enthusiasm for their idea and are often overly optimistic about how little effort, energy and resources are required to grow the business. Reality can be brutal. Be ready for the fact that obstacles and roadblocks will arise, potentially making progress slower and more