Side hustles are increasingly popular.
While many people are keen to set up a venture on the side to boost their income and indulge interests or passions, some have aspirations to turn their side hustle into a profitable business.
If you’re thinking about launching a new business, here are some essential steps to take.
Research the market
The first step to take when considering the possibility of converting a casual venture into a new business is to research the market.
Analyze potential competitors, look at sales figures, evaluate trends and learn more about consumer habits.
If you plan to offer services in the local area, identify rivals and see who they are selling to, how buoyant the market is and how much they charge.
If you’re launching an eCommerce store, take a look at other sites, browse products, read reviews and look for trends and patterns that are relevant to the kinds of products you sell and your target buyer.
Decide who you want to sell to
One of the most important steps to take when establishing any kind of new business is to define a target buyer or client.
Think carefully about who you want to sell to and use market research to get to know your audience. Carry out surveys and interviews, run online polls and engage with prospective customers online.
Once you know who you want to attract and what motivates them and inspires them to choose certain brands over others, you can use data, feedback and insights to inform decision-making processes.
Your research can help you choose marketing channels and set price points.
Master the logistics
Launching a start-up is not always simple.
There are several factors you may need to consider, including how you’re going to distribute and deliver products, how you’re going to source supplies and materials, who is going to work for you, where you are going to store items and how you’re going to fulfill orders if there is a surge in sales.
Selling internationally is particularly complex, as there may be different rules and regulations to follow.
If you have plans to market products to international buyers, it’s wise to look for a customs brokerage you can count on and search for businesses that offer shipping and delivery services with an outstanding reputation.
Make sure you have every box crossed and you are ready to start selling or providing services before you advertise products or start accepting orders.
Be cautious with money
Setting up a business can be expensive and there are risks involved, no matter how small the company. It is wise to be cautious when spending money or borrowing.
Monitor sales and income streams closely from the outset and try to avoid getting into large amounts of debt. If you cap expenses and stick to a manageable budget at the beginning, you can reduce risks and expand at a steady pace.
Are you hoping to turn a side hustle into a start-up in 2022?
If so, it’s important to plan meticulously and take steps to avoid mistakes and increase your chances of success.