How To Turn Your Side Hustle into a Business in 7 Steps

Last updated: 13/03/2024 Written by: Ruby Layram

Many people start a side hustle as a way to earn extra income or pursue their passion outside of their main job. However, with the right strategy, a side hustle can be transformed into a full-fledged business. In this article, we will guide you through the 7 steps to turn your side hustle into a successful and legitimate business.

Before making the decision to turn your side hustle into a business, it's important to assess its potential for success. Consider whether your side hustle is scalable and has the potential to grow into a larger operation. Evaluate whether it could generate enough revenue to replace your full-time income and support your financial needs. Additionally, research the market demand for your product or service to ensure there is a viable customer base.

7 Steps to Turn Your Side Hustle into A Legit Business

In the next section of our guide, we will take a look at how to turn your side hustle into a business in 7 steps.

Throughout the process, it is important to remember that strategy and planning is key. Starting a business is no easy feat and creating a robust online business strategy will ensure that you stay on track despite any set backs that you may face.

Step 1: Establish your goals and vision

Begin by setting online business goals and a vision for your business. This will help guide your decision-making and give your business a sense of purpose.

This should be the first step of starting ANY business it will enable you to create a clear and effective plan.

The best way to establish your goals and vision is to use a business planner. Our Ultimate Business Planner has everything that you need to set goals, create a plan, and track your business’s progress.

Step 2: How will you scale?

Determine how you will scale your side hustle to reach a larger audience. Consider strategies such as hiring employees, outsourcing tasks, or expanding your product/service offerings.

The way that you scale will depend on your business model. For example, freelancing can be scaled by building an agency and hiring employees to handle the workload on your behalf. Whereas, eCommerce stores can be scaled through practices such as automation and dropshipping.

The end goal is to increase revenue potential and reduce any barriers that might currently be stopping your from making more profit.

Step 3: Create a business plan

Create a comprehensive business plan that outlines your products or services, target market, marketing strategy, and financial projections. This will serve as a roadmap for your business and help you make informed decisions.

Creating a business plan is a substantial task that requires s significant amount of time and effort. Read out guide on how to write a business plan with ChatGPT for more information.

Step 4: Determine start-up costs and budget

Before you jump into turning your side hustle into a full-time business, it is important to assess whether or not you can afford the move.

Analyze your start-up costs and create a budget to ensure you have the necessary funds to launch your business. Consider expenses such as equipment, marketing, licenses, and permits.

If you don’t have enough funds, it might be a good idea to find an extra income stream that you can use to save. Check out these 10 ways to make money in one hour for some inspiration.

Step 5: Decide on a business name and branding

To grow as a business, you will need to have an identifiable name and brand image.

Decide on a catchy and memorable business name that aligns with your brand. You don’t need to spend too long here however, you must choose correctly from the beginning to avoid having to redo any marketing content further down the line.

Next, develop a strong brand identity by designing a logo, choosing brand colors, and creating a consistent brand voice. It might be a good idea to outsource this to an experienced freelancer.

Step 6: Create a website

Having a website will enable potential customers to find your business organically in Google search. Create a professional website to showcase your offerings and attract customers.

Include relevant information about your business, products/services, contact details, and testimonials. Make sure that your website uses your branding to create synergy and ensure that customers can recognize you.

Step 7: Register your business

Register your business with the relevant authorities to ensure compliance with legal and regulatory requirements. This may include obtaining a business license, registering for taxes, and securing any necessary permits.

In the UK, you can register as a Sole Trader or Limited Company. We recommend checking out the services that are offered by 1st Formations when you reach this step of the process.

When should I turn my side hustle into a business?

Knowing when to transition from a side hustle to a full-fledged business is a crucial decision. It requires careful consideration of various factors to ensure a successful transition. Here are some key factors to consider:

1. Stability and growth potential: Assess the stability and growth potential of your side hustle. Is it consistently generating income? Does it have the potential to scale and grow into a larger operation? Evaluate the market demand for your product or service to determine if there is a viable customer base.

2. Personal readiness: Evaluate your own readiness to take on the responsibilities of running a business. Are you prepared to dedicate the necessary time, effort, and resources to make your business successful? Consider your skills, resources, and availability to determine if you are ready for the transition to full-time entrepreneurship.

3. Generating consistent income: Look for signs that indicate your side hustle is thriving and generating consistent income. A steady and reliable stream of income is an important indicator that your side hustle has the potential to become a full-fledged business.

By carefully considering these factors and assessing your own circumstances, you can determine the right time to turn your side hustle into a business. Remember, each situation is unique, and it's important to make an informed decision that aligns with your goals and aspirations.

Pros and Cons of Turning Your Side Hustle into a Business

Turning your side hustle into a business can bring about a range of benefits as well as challenges that need to be considered. It's essential to carefully weigh the pros and cons before making the decision to take your side hustle to the next level.

The Verdict

Transforming your side hustle into a full-fledged business is an exciting endeavor that requires careful planning and dedication. By following the 7 steps outlined in this article, you can take your side hustle to new heights and create a legitimate and profitable business.

While turning your side hustle into a business offers numerous benefits, such as the ability to pursue your passion full-time and the potential for increased income, it also comes with challenges. Increased responsibility, financial risks, and the need for marketing and sales expertise should be carefully considered before making the transition.

With a solid plan, commitment, and perseverance, you can turn your side hustle into a successful and fulfilling entrepreneurial venture.

Also read: What is the difference between a side hustle and a business?

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