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Developing a side hustle is as popular as ever before due to technology. The freelance industry is thriving as skills of all kinds are in demand. Transitioning from having a side hustle to taking this on full-time will present some challenges. Change can be quite intimidating, especially when the risk incorporates your overall income. Leaping into working for yourself could take time to adjust. Holding yourself accountable might be a foreign concept as you have always worked in a traditional professional environment. Below will outline some challenges you could encounter when transitioning from your side hustle to a full-time job.
Figuring Out When To Quit Your Full-Time Job
Taking the leap into your side hustle and having it become your primary source of income is a tough decision. The security of a traditional job you have been working for years is too much for some to leave. Ensuring you make enough for your family to survive can be a lot to take in. The pressure can be too much for some, while for others, it can help push them to a new level of productivity. The motivation of not being able to provide if you fail can be enough to encourage an entrepreneur to work long hours.
Holding off as long as possible before quitting your full-time job is imperative. Creating a security net financially can allow you to make decisions for the good of your business. You do not want to enter into agreements with less than stellar clients simply to pay personal bills. You might find a saturation point where your side hustle will not grow any further. You want to make sure your side hustle can produce for you and your family for years to come. Working two gigs might be overwhelming, but you might find your side hustle isn’t sustainable after a few months.
Setting Money Aside For Taxes
The classic mistake of newly self-employed individuals is to forget to set money aside for taxes. For most people, this happens at least once if they are not organized. Paying quarterly taxes can be tough, as predicting annual revenue can be a challenge. You might not have any idea of how much money you will earn in a given year. You do not want to deal with the IRS, as late payment penalties can cost thousands. Keeping revenue streams organized is also very important, as you can receive payments on a multitude of platforms.If you’ve already made this mistake, a tax lien removal is possible with the right legal representation.
Finding Loyal Long-Term Clients
A small business can operate on the revenue of a few loyal clients. Contracts might differ immensely in the overall client spend or length of the agreement. Client retention is about focusing on making sure the client feels valued. Working with a small business is much more appealing than a large corporation, and the personal touch can be enough to convince clients to spend a bit more to work with a smaller corporate entity. In times of inflation, you might not want to enter multi-year deals. A great price could end up eating away at profit margins if pricing is not adjusted annually.
Figure Out Various Streams of Revenue
A small business is about sustaining the slow parts of the year and thriving during busy times. A writer might offer web design services by partnering with a great web designer. Partnering with others that are running their own business can be so fruitful. You want to expand the quality offerings of your business without having to hire in-house or deal with organizing freelancers.
Starting new side hustles that can be incorporated into your current business can be very fruitful. The primary revenue source for a business during its infancy might not be the primary source just a few years later. Keeping an open mind as the founder of a business is so important. The business world is constantly shifting, which requires different skills or products over the course of time.
The transition into doing your side hustle full-time can be stressful. The fear of failure should not drive any of the decisions you make for your business. You need to set your business up for success with a detailed business plan. Working with a mentor who is also an entrepreneur can be so helpful, and you might be able to avoid issues by leveraging your mentor’s knowledge.