Make a Money Plan to Take your Side-Hustle > Full-Time
So you want to take your side-hustle full time? You want to revel in the freedom of doing what you want, when you want and you want to do the work you really love. You’re aching to escape your 9-5 and be your own boss free to create the lifestyle you long for. I know, because I’ve been there too.
When I took my side-hustle full-time, money was my biggest worry.
Worries about money and security were the biggest reasons why I put off taking my side-hustle > full-time for so long. I wasn’t a good saver and I worried about what I’d do without a set amount of money coming into my bank account each month. I put off taking my business full-time until it was getting ridiculous. I’d been extending my contract at work over and over again and not progressing in my corporate career because all of my time and energy was going into what I really wanted to do. In the end I decided to set a deadline and take the leap. You can read my story as well as 5 other inspiring women’s stories of escaping their 9-5's here.
If where I was then resonates with where you are right now, it’s time to get practical with your money and look at the numbers.
If the idea of looking at your numbers makes you want to hide under your duvet and never come out, you’re not alone! But the only way to grow your side-hustle into a sustainable and profitable business that can become your full-time gig, is to understand your numbers.
If it helps, pour yourself a glass of wine or treat yourself to that really posh hot chocolate that’s been sat in the cupboard since Christmas and make it a bit more appealing. I always think of looking at my numbers as a similar experience to pushing the boundaries of my comfort zone, yes it feels uncomfortable and awkward at the start but once you’ve got your money-ducks in a row there’s a really empowered and energised feeling at the other side.
That empowered, energised feeling is waiting for you so, let’s look at those numbers.
Step 1: Lifestyle cost & Income goals
Defining the lifestyle you long for is where I start with all of the work I do, whether that’s in my course or my 1:1 mentoring. You need to understand what you’re aiming for to get a handle on how much you need to be earning. So, this lifestyle you’re dreaming of, how much does it cost?
The exercises in this section will help you get a clear picture on how much you need to be earning from your side-hustle at three different levels, the bear minimum you need to get by, a core income level where you’d feel more comfortable and a stretch level to aim for if you really want to go for it with growing your business over the next few months to a year.
This first section is all about getting clear on your numbers and understanding what your side-hustle needs to be earning so that you can start to replace your 9-5 income with your side-hustle income.
2: Your product and services
In this step we look at how you’re going to reach your income goals by figuring out what income you’re generating from your products and services and how much of that is profit. When you’re checking in with this stuff it also offers an opportunity to review your pricing and income streams if the numbers aren’t immediately adding up.
You’ll then start scenario planning and figuring out what mix of products you need to sell to hit your income goals. You’ll play around with different scenarios and see everything you’ve worked through all come together as you see how many different ways you can reach your income goals.
3: Making adjustments
After the first couple of steps you’ll either be thinking ‘you know what, this is totally do-able’! Or you’ll be thinking ‘ahhhh, this looks totally unrealistic and something’s got to change’. If it’s the latter, don’t worry! I’ve got some suggestions for you on how you can make your side-hustle more profitable and sustainable to help you get closer to those income goals.
In this final section of the workbook there are some suggestions on how you can tweak things if the numbers aren’t adding up yet, such as introducing new income streams or reviewing your pricing.
There’s no easy answer to when the right time is to take the leap BUT when you’re clear on the financial side, you can be a lot more confident in your plan to escape your day-job.
So, what are you waiting for? Grab your calculator and start making a money plan.