How to turn your side hustle into a business
If there’s one thing we’ve learned over the past two years, it’s that business can be successfully done in ways we never imagined.
The traditional Monday to Friday office job is no longer the ‘norm’, and many people have adapted quickly to new ways of working. So many, in fact, that ABS data states that over 40% of employed people in Australia regularly work from home.
Many industries were decimated by Covid-19 and thousands of people lost jobs, incomes and businesses. As a result, the previously uncommon term ‘’second revenue stream’’ joined our vernacular together with ‘’cluster, remote working and isolation’’.
According to SemRush data, searches for ‘’side hustle to make money’’ increased by 585.7% and the number of Australians looking for answers on ‘’side hustles from home’’ increased by a whopping 3800%. In the 2020-21 financial year the number of small business registrations in Australia jumped 15.2% as people across the country look to have more control of their job security and income. Suddenly having a ‘side hustle’ has become a very valid way for people to earn an income.
But how easy it is to turn a hobby into a viable small business? And what does it take to go from selling a few second-hand things around the house on Gumtree, to setting up an ecommerce business and selling products online?
I can tell you from personal experience that it is absolutely possible - though not exactly easy. After a successful 17-year corporate career I launched my own small business in January 2018 creating premium travel packs and gifts for the corporate market. It was an exciting time, but when Covid hit we lost our entire pipeline of sales and many of the contacts we’d spent two years building.
The next 18 months were spent pivoting as we tried to reposition the business in an ever-changing global climate. To gain some security and financial stability in 2021, I decided to focus on my side hustle by expanding my consulting business that had only been an occasional sideline to my travel business up to that point. The gamble paid off and business boomed, so much so that my consulting work is now my primary focus.
As a business strategist, I work with many clients who are largely small business owners facing numerous challenges as they turn their side hustles into profitable businesses.
The three most common challenges I see business owners facing are:
Having a great idea but not knowing how to run a business or the importance of cash flow
Verifying the product or service is viable, has a market, and can be profitable
Having no experience in sales and marketing and not knowing how to sell or grow their customer base
If you’re thinking about starting a side hustle or business, there are a few key things I recommend you consider.
First, DO YOUR RESEARCH. I spent one year researching, testing, and trialling my travel product business before we launched our first product in market. I knew our concept was solid but you need proof of concept and the best way to do that is in market, getting real feedback from people.
Next you need to ensure you set the business up correctly from day one. Be clear about the processes needed in your state with regards to registering a business or ABN. Check you have selected the correct business structure and you have the right people on board to help you. In particular, I highly recommend engaging a book keeper to keep all of your costs and accounting processes on track (but just pay them hourly until your business really takes off). It might seem like an unnecessary expense but it will save you money in the long run.
Having a small business can be a lonely road and one that only other small business owners can relate to. I’ve found it hugely helpful creating my own little community of small business owners who are not just a great source of support and advice, but can help with recommendations, introductions and shared learnings.
Finally, invest some time into training and embrace the plethora of (often free) resources available online. Depending on which business platforms you use (such as Xero, Shopify or HubSpot), there are dozens of free tutorials to help new business owners grow and develop their business. It’s also important that you understand your legal and financial responsibilities as a business owner, so use sites such as H&R Block which offer lots of free accounting advice.
Taking a leap to turn your business idea into a reality is scary and risky, but with focus, hard work and determination the risks can reap incredibly satisfying and sustainable rewards.