Yahoo Finanzas How To Turn a Small Side Hustle Into a Million-Dollar Business
Have you ever dreamed of turning a side hustle into a full-time business that earns you millions? You’re not alone. The idea of creating a successful business from a small side hustle might sound exciting, but it takes hard work, dedication and more than a little luck.
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Here are some tips from successful entrepreneurs who started with a great idea and a willingness to learn along the way. By following in the footsteps of their passion projects, you could scale the smallest idea into something that can make a change in the world.
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Can Your Side Hustle Become a Million-Dollar Business? Things To Consider
Before attempting to turn your small side hustle into a million-dollar business, you should decide if it is realistic and has a good chance of success. Some things to consider include whether your business is adaptable, whether you can scale appropriately and whether you can acquire financing.
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Is Your Business Adaptable?
Being adaptable is important for the longevity of a business. Ask yourself if your business provides something people want several years from now.
Taking advantage of current trends may lead to profits today, but it likely won’t be sustainable. If your business doesn’t provide something people will want in the future, you should be able to pivot to introduce new or complementary products or services.
Can You Scale Your Business Appropriately?
If you want to grow your side hustle into a million-dollar business, you will eventually need to scale and hire employees.
It can be difficult for small business owners and freelancers to hire employees if they are already comfortable doing everything themselves. However, being able to hire good employees is necessary if you want to build a million-dollar business.
Can You Acquire Financing?
Scaling a side hustle into something larger almost always requires money — and getting that money can be daunting. Side hustles usually cost little to no money, since they are smaller scale. When you start to grow your business, you may need to hire employees, buy more equipment, rent a space or market to a larger audience. This costs money.
According to the National Small Business Association, over one-third — 37% — of small businesses can’t get adequate financing. This is the highest percentage of small businesses to have difficulty getting adequate financing since 2008.
Not only do you need to acquire financing, but it needs to be enough and at the right time. This can be a tough balancing act.
Some options to get financing include borrowing from friends or family, using credit cards — especially ones with 0% promotional APR offers — or getting a personal loan from a bank or credit union. There are many other ways to acquire financing, of course. Whatever you choose, make sure you do your research and weigh the pros and cons.
Tips to Succeed
If you have determined that your side hustle has what it takes to become a million-dollar business, there are some things that you should consider if you want it to succeed.
Understand Your Customer
Having a thorough understanding of who exactly your customer is will help your business be successful, especially as it grows. It is helpful to know who your customer is and some things about them, like their preferences, budget, age and location. Of course, this is creating a generalization, but having an idea of your typical customer can help you create and update your product or service and marketing.
For example, if your customer is over the age of 60, you may not want to spend resources creating marketing materials on TikTok.
Your average customer may change over time as your business expands, as well. Keeping up to date with this can help you adapt your business to meet the changing needs of your customers.
Take Big Leaps When They Come
As humans, it’s difficult to get outside of your comfort zone. You become comfortable with what you know and understand. However, some of the biggest moments in business can happen when you take a leap of faith. This couldn’t be more true for Libby Diament, who founded and serves as lead designer for Diament Boutiques in Washington, D.C.
“After several years, Urban Outfitters approached me and placed a big order,” Diament said. “I didn’t know how I would do it, but I just said yes! Sometimes, you just have to say yes and figure it out quickly! It often forces you to learn how to grow fast.”
That decision has paid off well for Diament. She started her business 14 years ago by selling her jewelry at very small craft shows. Eventually, she moved to larger shows, all while working a full-time job. She saved as much revenue as possible to grow her online store to provide scalability.
Fast forward 10 years, and Diament opened her first brick-and-mortar store, followed by her second three years later. Today, she runs a million-dollar business with 10 employees by her side.
Build a Strong Brand Identity
Successful businesses align their brands to become recognizable household names. Maybe it’s through a tagline or the company’s logo. However, others do it because their service or product is memorable and helps solve a problem.
“Your brand is your promise to your customer,” said Al Lijee, founder of JunkGator. “JunkGator’s brand was built on eco-friendliness and quality service. This strong identity helped us stand out in a crowded market and attract customers and business partners who shared our values.”
Do Every Job Yourself Before Delegating
Delegation is necessary once you are growing your business. However, having a personal understanding of every job involved in running your company is helpful for several reasons. It can help you hire the right people, since you know exactly what is required for that job. You will also be able to help and advise the employees you hire.
“One of the most important steps in scaling my business was embracing the power of delegation,” said Geoff Cudd, founder of Don’t Do It Yourself. “Initially, I wore every hat in the business, but I quickly learned that sustainable growth meant trusting others to take the reins in areas outside my expertise. This improved the quality of our work and freed me up to focus on strategic growth.”
The Bottom Line
Not every side hustle has the potential to become a million-dollar business, but some certainly can. If you want to turn your side hustle into a million-dollar business, you need to do your research, prepare and work hard.
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