6 reasons to turn your side-hustle into a small business
It’s the dream of many side-hustlers and moonlighters: quitting your day job, telling your boss where to stick it, and turning your side-hustle into a fully-fledged business – and your sole income generator. After all, your “passion project” already takes up enough of your time – it might even be providing a tidy second income. Why not take the plunge? Here are 6 good reasons that might give you a little nudge.
1. Quit letting ‘the man’ get you down – become your own boss
When you’re a full-time business owner you get to call the shots: you’re judge, jury and executioner – it can be exhilarating. And if your boss is giving you a hard time all you need to do is quit staring in the mirror.
Sure, when you’re a business owner – particularly early on – there’s no such thing as a sick day or holidays. But the payoff can be so much bigger. You have the freedom to make business decisions without getting anyone’s approval or feeling the wrath of a boss if something goes wrong.
2. Make flexibility your middle name
Well, maybe it’s Andrew or Anne, but it won’t matter because you’ll be working on your own terms. Don’t like the early morning public transport grind or traffic jams? Start your days later. Sick of someone eating your tuna melts? Let them try to take the sandwich from your home fridge and see how that goes.
Working your own flexible hours can have some massive upsides, particularly if you need to pick up the kids at a certain time, want to fit in a gym session, or you simply hate waking up at 6am every day. You may be working harder than you have in any day job, but at least you’ll get to call the shots with how and when.
3. Take it to the next level
Turning your side-hustle into a small business means you can see your creation grow and make a real difference. When you’re a small business owner and you get a win – be it make a sales target or get a great customer review – you know that the profits aren’t going straight to some shareholder fat-cat, they’re going to you and allowing you to grow your business.
When you’re taking your side-hustle to the next level there are a few steps you’ll need to take; the Australian Government’s business.gov.au portal provides information and services for business owners, including a handy step by step guide to help get you started. It covers all the basics, from registering your new business to finding business insurance that’s right for your needs. Explore the starting a business guide now for practical information on how to get started.
4. Utilise available tax benefits
If your side-hustle is quickly outgrowing its hobby status, then in the eyes of the government you should probably be paying tax on the income you generate. Fear not, this may be a blessing in disguise – and another reason to turn your side-hustle into a fully-fledged small business. There are numerous tax benefits afforded to small businesses, such as deductions. You may be able to claim some of your operating costs as deductions, therefore reducing your businesses taxable income. Some of those operating costs may include: insurance premiums e.g. on your products or public liability insurance policy, some electricity costs, stationary, internet and phone expenses.
5. Learn new skills
As your own boss you have to wear a few different hats, which means being your own marketing, accounts, and sales departments. One thing you never hear a small business owner say is, “I’m bored”. Each day will present a new set of challenges and it’s your responsibility to solve them.
6. Get rich. Disgustingly, obscenely rich
Ok, so this one shouldn’t be your main motivator and it definitely doesn’t happen right from the get-go. But building wealth is a result of creating and operating a business that’s innovative and solves a genuine need.
Timing is everything here: You don’t want to be Ronald Wayne, who sold his 10% share in Apple back to Steve Jobs and Steve Wozniak for $800 in 1976. That share would be worth tens of billions of dollars today. Putting your blood, sweat and tears into your business and seeing it flourish can have some big perks, eventually.
Taking your small business to the next level can be tough, but the positives can outweigh the negatives. Turning your side-hustle into a fully-fledged business can be very rewarding. And whilst there will be some tough decisions you’ll need to make along the way, such as hiring and firing, one step that isn’t hard to take is covering yourself and your new business with business insurance. Give AAMI a buzz today on 13 22 44 (8.30am – 6pm AEST/AEDT, Mon-Fri) to have a chat about your growing business’ needs and help cover your assets.
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Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Read the relevant Product Disclosure Statement before buying this insurance. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.