So, you have a side hustle and you’re thinking of making it your full-time gig. Before you make the leap here’s what you need to know about starting a small business.
From Uber drivers to freelancers to cleaners spruiking their wares on Airtasker, it seems just about everyone has a side hustle these days. But how do you know when it’s time to give up your day job and make your side gig your full-time business?
Here are 3 signs you could be ready to make the jump
Your side hustle is encroaching on your 9-5
As your side hustle begins to scale you may notice you are spending more and more of your working day trying to manage your side gig. If your business is beginning to get a name for producing a quality product or service, then this makes sense. However, in order to capitalise on this success and make the most of these opportunities, you will need to devote more of your working hours to it. If you feel like your 9-5 is causing you to miss out on financial opportunities to grow your business it could be time to consider taking your side hustle full time.
You have a savings buffer
In order to make the great leap forward into your new role as a solo operator you need to make sure your finances are secure. After all, you won’t be drawing a wage from your employer anymore. Having a savings buffer is paramount for financial security should things go pear-shaped. If you don’t have a savings buffer, talk to your bank about finance options. Be certain to do your sums first. How much do you need to ensure you meet your monthly expenses? Need some help to calculate your startup costs?
You understand business basics
A sound understanding of business basics is essential for any small business owner. From cash flow management to insurance obligations to GST collection and BAS statements – if you’re going into business for yourself you need to be armed with knowledge. Passion isn’t enough! Your bank will likely have a number of resources you can draw on to help you start your small business journey – from loan calculators to cashflow forecasters to case studies on running small business.
Leaving your 9-5 job to pursue your passion project can be scary, but if all the signs seem positive for your side hustle, perhaps it’s time to say goodbye to the daily grind and start living your dream.
Does your small business have not so small ambitions? Find all the tips, info and calculators you need to help your business grow: www.nab.com.au/business/small-business