With remote work and new technology making it easier to work from anywhere in the world, many people are turning their part-time jobs or hobbies into full-time businesses.
Running your own business offers freedom, profit potential and personal satisfaction. But how do you go from a part-time side hustle to a sustainable, profitable endeavour?
In this article, we’ll guide you through the key steps to help you make the transition.
Evaluating market demand
Before taking the first steps, it’s essential to determine if there is a real need or demand for your product or service. Some of the key considerations you need to address include:
- Is there a genuine need for what you offer?
- How is the market performing? If there are competitors, what makes your business different?
- Who is your target market?
Setting your vision
A clear vision is key to growing your business and guiding your decision-making.
Start by writing a mission statement that explains your business’s purpose and values – it should clearly communicate why your business exists and what it aims to achieve.
Set both short-term and long-term goals to track your progress and keep you focused on your objectives. Short-term goals might include launching a new product or increasing your customer base, while long-term aims could involve expanding your company or achieving a certain profit target.
Crafting a financial plan and budget
A solid financial plan is essential for managing your business and ensuring its long-term sustainability.
Start by calculating your startup costs, such as licenses, marketing materials and any necessary equipment or technology. A pricing strategy will help to establish your potential income and a detailed budget can help you track your spending. This is also the stage at which to factor in considerations like online retailer insurance that may apply to your business’s needs.
If you calculate that you need additional funding to launch your company, you could explore various financing options such as government-backed business loans or grants.
Building an online presence and identifying sales channels
A strong online presence is crucial for reaching your target audience and driving sales.
Create a professional website that showcases your products or services, with clear calls to action. To reach a wider audience, create social media accounts for your brand to share valuable content and connect with customers.
You could also consider using e-commerce platforms to sell your products online. They can offer convenient access to basic but reliable systems to run an online store, process payments and manage deliveries.
Registering your business and understanding legal obligations
Make sure to legally register your business. Registering with Companies House and HMRC establishes your business as a legal entity and ensures you meet tax requirements, such as for VAT, income tax and corporation tax. You should also keep accurate records of income and expenses to file taxes correctly.