If you have a profitable side hustle, you’ve probably considered taking your business full-time. However, before you take the leap and transition to life as a full-time entrepreneur, there are a few things you should do.
Some tasks are simple, like opening a business bank account and setting concrete goals. Others, like building a professional website, investing in growth strategies, and networking, will take more time and consideration.
There’s no doubt the process can be overwhelming, so here are eight specific things you can do to prepare for the transition.
Register Your Business and Open a Bank Account
If you haven’t yet, make sure to register your business. An accountant or business attorney can advise you on the best business formation, such as an LLC. Once you’ve registered your business officially, open a dedicated business bank account.
Many solopreneurs start their businesses without these initial steps. However, if you want to transition to full-time self-employment, it’s essential to treat your business like the professional entity that it is.
Set Concrete Goals
Successful entrepreneurs create clearly defined, easy-to-track business goals. So, before you quit your job and take your business full-time, write down specific benchmarks you want to achieve. Whether it’s a certain number of customers or a revenue goal, sketch out where you’d like to be at the three-month, six-month, and twelve-month mark of being a full-time entrepreneur.
Create a business plan that outlines how you will market your business, how you plan to grow it, and why you expect to stand out in the market. Researching your competitors and seeing what they’re doing right (and wrong) is also important.
Take this information and use your research to help you make a comprehensive plan to follow. That way, you know what to do on your first day of self-employment and beyond.
Secure Funding
Some businesses, particularly online ones, don’t have significant start-up costs. However, others, such as brick-and-mortar businesses or technology start-ups, will require upfront cash.
There are many different ways you can fund your business start-up costs. You can self-fund it from personal savings, get a personal loan, or apply for a business line of credit.
The funding route you choose will depend on your business goals, the type of business you have, and whether or not you want to give up equity in exchange for funding. For example, many entrepreneurs choose to pitch venture capital firms but give up equity in the process. Others apply for SBA loans, like the SBA 504 loan.
As your business grows and you secure the necessary funding, consider planning for a move to a larger space that can accommodate your expanding operations and customer base.
Create a Website and Social Media Presence
Your website and social media profiles are some of the first things your customers or clients will see. Make sure you have a professional website and that your social media accounts reflect your business values.
Your business website should explain what you do clearly and have an easy way to contact you, while your social accounts should have a consistent brand presence with similar color schemes and your logo.
Update your social media accounts regularly and take the time to learn about social media and email marketing as ways to grow your client and customer base.
Build a Strong Client or Customer List
Speaking of clients and customers, it’s vital to have plans to reach them before you make the leap to self-employment. If you have clients that use your services, build a list of several that can provide recurring revenue so you can project your first few months of self-employment income.
If you serve customers, take the time to understand the best ways to acquire new ones. Test multiple marketing strategies and methods until you find a consistent way to keep customers coming back to your business regularly.
Once you build a strong and consistent client or customer base and you know you can reliably earn income while you’re self-employed, you can begin to make concrete plans to transition into full-time entrepreneurship.
Set Up Health Insurance and Benefits
While some may enjoy the benefits of insurance coverage from a spouse, many others will need to find their own plan after leaving their day job. For those who’ve never done this before, this can require a bit of research.
When you work for yourself, you’ll also need to arrange any “benefits,” like retirement plans. It’s a good idea to explore these costs ahead of time to ensure that your business income can cover the cost of your taxes, payroll, and more.
Invest in Growth Strategies
As you’re preparing to take your business full-time, invest in growth strategies. For example, make sure you’re regularly learning new skills and researching business grants. If you know you’ll need to purchase real estate as part of your business plan, find ways that you can buy property affordably or qualify for home buyer rebates.
Learn how to manage your bookkeeping and spend time understanding your cash flow. This information will help you know whether or not you can hire additional team members or invest in other products or services in the future as you grow.
Network and Find Mentors
Mentors who have made the leap from side hustle to full-time job can help you determine whether or not you’re ready to do the same. When you network and learn from others, it can help you avoid mistakes, saving you valuable time and money.
Networking in person is ideal, but it’s also wise to build your connections on LinkedIn to connect with entrepreneurs in similar industries. Connecting online means you’re not limited to business owners in your area, dramatically expanding your reach.
Take the Leap
Once you’ve completed the steps above, you’re likely ready to take the leap, even if you don’t feel completely ready. Many people are worried about their livelihoods, rising costs, and the economy overall, but data from a 2024 economic outlook shows economists don’t believe a recession is imminent. That means it might be a perfect time to break out on your own.
Keep these steps in mind before going full-time, and you’ll put yourself on the path to business success.
Featured Image by Microsoft Edge on Unsplash