Plenty of us choose to supplement our main income with a side hustle, and even the simplest small business idea needs to be nurtured and managed in the right way to bear fruit.
To that end, we’ll talk you through the steps involved in starting a company while still working full time for an employer.
Decide Whether To Set Up Your Business As An LLC
Picking the right structure for your fledgling firm is of paramount importance, and starting your own LLC makes sense if you want to avoid becoming financially liable for the business’ debts, while still channeling the money it makes through your own tax returns.
Of course not every side hustle needs to be registered as an LLC; if you have minimal overheads and expenses, for instance, it might be an unnecessary step, at least in the short term.
Put A Plan Together
Even a business you set up in your spare time needs to have firm foundations, and writing a business plan is crucial in constructing them.
This will cover aspects such as what products or services you’ll be offering, who you’ll be selling them to, what the market conditions are like at the moment, and how much money you’ll need to get the company up and running.
Your plan should also factor in what skills you’ll need to bring to the table, and whether you’ll have to recruit anyone else to help you realize your goals.
Dream Up A Name For Your Business
The name of your company is the first thing that will define it from a marketing and brand-building perspective.
It needs to be unique without being unwieldy. It has to align with your values and match your target market. And it can’t be too similar to established competitors, or else it won’t be possible to register it.
Launch A Web Presence
Even brand new businesses are expected to have websites which prospective customers and clients can visit to find out more. In addition to setting up a separate site for your company, you’ll also be better off if you create social media accounts for it at the same time.
A compelling web presence is one that’s interconnected and multiplatform in nature, so the sooner you get started, the better.
Look Into The Legal Side Of Operating Your Company
All sorts of rules and regulations apply to businesses, with some industries and activities requiring adherence to stricter standards than others. If you need to be licensed to do the work you intend to do, or you have to apply for a permit before you can get started, make this a priority.
Consulting with an experienced lawyer, and working with an accountant, will help you avoid any pitfalls relating to regulations and taxation as well.
Ensure Your Employer Is Happy With This Setup
When you’re on the brink of pursuing your entrepreneurial ambitions, the last thing you want is for your current employer to step in and stop you. The solution is to read over your employment contract and determine whether there are any clauses which explicitly or implicitly block you from having a side hustle.
It’s also sensible to simply ask your manager outright if there would be any problem here, as it should avoid unpleasantness and any conflict of interests further down the line.
Don’t Forget About Work-life Balance
The idea of making money from a side hustle alongside your regular salary is alluring, but not if it comes at the expense of your personal responsibilities.
Burning the candle at both ends can leave you fatigued, and you won’t be able to enjoy the extra cash that’s coming in if you don’t have any spare time because you’re working every hour of the day and night.
That’s why choosing to start a business in a field you’re passionate about is important. You won’t mind making sacrifices for it if you actually enjoy the work.
Check Out The Competition
Lastly, it’s useful to get a sense of who your main rivals will be once your business is up and running. That way you’ll be able to position yourself in the market more easily, and also look for untapped opportunities which could give you the edge.
Wrapping Up
Your after-hours business idea could be the making of you, but it’ll only be smooth sailing if careful planning and preparations take place before you dive in and get started.
Ella Marcotte
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