Thinking Of Having A Business On The Side?
Getting your side-hustle on ...
POSTED BY JONATHAN VOWLES ON 13/03/2018 @ 8:00AM
A growing proportion of people are setting up a business on the side, so as not to give up the day job. This could be just to explore a passion or as a precursor to being a full-time entrepreneur ...
If you have a business on the side, make sure it will scale before you quit your day job!
copyright: iqoncept / 123rf stock photo (licensee)
In America, this sort of business is called a 'side hustle', in the UK it might be called a lifestyle business. If this is you, then what advice can I give you?
Do something you enjoy doing.
If you are going to work evenings and weekends, then it should be something that you enjoy so much that it doesn't feel like work, something you are passionate about. If you can turn your hobby or passion into a business, then all you are doing is being paid to enjoy yourself, and how great is that!
Think strategically about what you are doing.
For example, don't sell stuff for peanuts, charge a good rate from the outset so that if you do go full-time the charging structure is already in place. Look for ways that you can build the value of your business. Maybe you can sell it for a capital value?
A hobby is a hobby, a business is a business.
Be clear about what you are doing. If you are turning your passion into a business, then be business-like. Do things professionally and properly, be a proper business even if you are a very small proper business. This includes sorting out legalities, paperwork and taxes.
Recognise when it is not working for you
... and do something about it. You might be working until midnight every day, then going to work at 7am ... something will have to give and don't just blindly be pushed around by your business and end up ruining your life.
If it is successful, then maybe it will work as a full-time business! If your side business is not successful, then be brave and sell it or kill it off - or at least reduce your workload so that you have time to look at ways to improve it.
Finally, a warning
I have helped many people who have a business on the side. I have even helped people turn it from a side business to a full-time business, but this doesn't always work!
The issue is that when you have a job that pays your bills, your side business provides some cream. You know, that cash that makes the difference between a holiday that is a weekend in Cleethorpes and a fortnight in the Maldives. And this makes you feel successful as a business owner. As soon as you give up the day job, you have to scale your side business to replace that income. Sometimes that just doesn't work.
The moral here is to do plenty of research and don't get sucked in by a side-hustle success that doesn't have the legs to be a full-time business. Read my blog post about questions to ask before quitting your job to start your own business before you make that final decision.
"Would you like to know more?"
If you have or are thinking about having a business on the side and getting your own side-hustle going then do give me a call on 01234 752 566 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking for a new accountant to help grow your business, do visit www.jvca.co.uk and discover how Jonathan Vowles Chartered Accountants can help you!
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.