When To Turn Your Side Hustle Into A Small Business
When it comes to launching your own business, it takes a lot of determination and work. If you started a business on the side but aren't sure when to take the next leap, we want to help. We interviewed Online Labels founder, Dave Carmany, for advice on taking your side-hustle from hobby to small business and beyond.
Take your side business full-time when:
Interest is long-term
"Consider the long term demand for your business and assess the risk in the marketplace."
Make sure demand is here to stay and on the rise. This means asking yourself the tough questions: is your idea part of a fad, seasonal, unsustainable, or unscalable? You don't want to go all-in on an idea that may be short-lived.
Demand is greater than supply
"When your demand exceeds your ability to service it part-time, you're ready to take the leap."
Once you've ensured that long-term demand exists, make sure the volume exists. Lots of entrepreneurs believe that if they had more time to work on their side-hustle, the business would take off. But, there's more to it. The tipping point is when your time shifts from finding customers to fulfiling orders. Until then, you have too much at risk.
Finances are safe and steady
"It's important to evaluate your finances and know how long you can withstand losses."
Similar to ensuring that demand exists, ensure that your money exists. You need to have money to rely on until your business surpasses its breakeven point and turns a profit. That means build a budget, secure a cushion, create a savings plan, and stick to it. Be cautious when it comes to taking a loan or piling up credit card debt.
You're focused and self-motivated
"If you give 5 percent of yourself to 20 things, it's probably not as good as giving 80 percent of yourself to something that really has a lot of potential."
You need to be focused and self-motivated to go out on your own. Remember, there's no boss looking over your shoulder. To make the leap, you need to be confident that you'll have the laser-focus and resilient motivation to get after it.
About Dave Carmany
Dave Carmany came up with the idea for Online Labels while working at his family business. He continued to develop the concept for over a year before breaking off to pursue the venture full-time. He founded Online Labels in 1998.
We encourage and support entrepreneurs. Not sure where to start? Let us help brainstorm business ideas to turn your entrepreneurial spirit into reality. Once you have an idea, we're here to help you run with it. Read our labelling guide when it comes to packaging your products. Then when everything's ready to go, we've compiled a list of ecommerce platforms where you can sell your goods. Questions? Our customer service team is here to help.