By: Lucell Larawan
SOME business-oriented employees design other income streams through a side hustle. A former co-worker sells chorizo, tocino and related foodstuffs while working as an office clerk. One full-time employee distributes ice cream sticks operating through assistants.
The need for a secure income source is the reason such entrepreneurs embrace the unknown, pursue their passion on the side while continuing to be gainfully working full time.
How can one turn his or her side hustle into a full-time business? Lou Casale shared his ideas.
For one to transition from an eight-hour-a-day job into a full-time business, he or she must not work for free. If one wants to start a public relations firm, he must not promote someone else’s business for free.
Another consideration: forget your weekend plans and vacations for a while. In the “2019 Hiscox Side Hustle to Small Business Study” entrepreneurs put 20 hours per week on their sidelines while working full-time. These hours are usually placed during weekends. It means one should have a strong will and self-discipline to soar with his business plans.
In the study previously mentioned, entrepreneurs work on their side hustle for an average of 19 months before quitting their day jobs and made their business their primary source of income. It took them three years of full-time operation before they earned the same income as their last employment. Lesson: do not be in a hurry to start your business.
Managing one’s expenses, the planned and the unexpected is also important. Planning for financial stability requires hard work, dedication and capital. Based on the survey mentioned earlier, respondents reported they need their side hustles to make at least $43,900 (in the US) per year before they felt comfortable leaving their full-time employment. In our country, the average annual income might be at least P300,000 before a decision of leaving a job; but no study confirmed it yet.
Those who transition from day jobs to a full-time business should not be alone. Around 72 percent of the respondents in the survey set up their side hustle with someone else, often a family member or partner. They should form an informal advisory board of friends who can offer insights and support.
The survey found out that most of those who have their sidelines do not have protection from risks. Small business insurance can protect them against a claim or lawsuit and keep them in business.
Building a business from scratch should be well-thought. There is no such thing as luck; even if there is, it is a product of several decisions.
