Best Ways to Convert Your Freelance Hustle Into a Full-Time Business

Many people dream of quitting their jobs and starting their own Freelance Hustle ventures. Becoming your own boss means you get to call the shots.

Starting a business without a financial safety net can prove challenging as it can take time before it starts.

This is where a new side hustle comes in.

A side hustle allows you to reap the benefits of work and retain the financial stability that a job provides. 

Whether you’re consulting, doing graphic design, or selling products through an online store, any project can easily become a venture. So how can you “take the leap” and turn your freelance hustle into a full-time business?

Keep reading to learn how you can turn freelancing into a profitable career.

1. Establish a legal business

With any business venture, you need to make sure you’re complying with financial and legal regulations.

Follow these steps to set up a business:

  • Determine your business structure: Choose whether to operate as a sole proprietor or form a Limited Liability Corporation (LLC). There are advantages and disadvantages to LLCs and sole proprietorships, so be sure to do your research.
  • Register a business name: Ways to register your business filing for a trademark and “Doing Business As” (DBA). Be sure also to register a domain name if you haven’t already.
  • Apply for an Employer Identification Number (EIN): An EIN is a federal tax identification number. You’ll need this number to open a business bank account and file your tax returns. 
  • Get a sales tax ID: If you’re selling products online, you’ll need to get a sales tax ID. This will allow you to collect and report sales tax to your state. 

The exact licenses and permits that you’ll need to establish a business will depend on factors like your location and the industry you operate in. Be sure to research both state and federal requirements. 

2. Open a business bank account 

Whether you’re freelancing on platforms like Upwork or selling crafts through an online store, it’s important to keep your personal and business accounts separate.

One of the first things you should do to turn your freelance hustle into a full-time business is to set up a dedicated business account. This will make it easier to keep track of personal and business expenses. 

Another reason to establish a business bank account is it helps your business build credit. Established credit history will be essential as you start to scale, which brings us to the next point.

If you’re still in school and are looking to generate income, make sure to find out how old do you have to be to get a debit card or a credit card from your bank. 

3. Find the resources you need 

Finding the right resources is key to starting a new business—but finding the right resources means different things to different people.

If you have a great business idea but need more money urgently to get it off the ground, you’ll need to find creative ways to fund your new venture. The first step is to consider whether you should start with a loan or bootstrap your business; each option has unique benefits and drawbacks.

A loan is a formal agreement between two people or organizations where one person or organization (the borrower) receives money from the other (the lender). Loans are typically issued with interest, but some may be issued without interest. When deciding whether a loan will be right for your business, it’s important to consider the terms of your loan agreement and how they will affect your company.

Loans are one of the most popular ways of finding the financial resources your need for your new business. If you’re looking for a loan, there are a number of organizations out there that offer debt-based funds specifically for small businesses.

The second option—bootstrapping—involves using your own resources and the resources of others in order to build up and launch your enterprise without debt. Bootstrapping can be an effective strategy for businesses that don’t require much capital and can be started on a small budget.

Many people have enough money saved up for at least six months of expenses tucked away in a savings account, and if that’s the case for you, it’s a great start—you can use it as an emergency fund while you get your new business off the ground (or help pay off your debt). However, even if you’ve got enough money saved up, it’s important to keep in mind that it’s not really yours—it’s what’s left over after all of your bills are paid. That means that if something comes up that would force you to dip into your savings (like an unexpected illness or car repair), then it won’t be available when you need it most.

4. Create a solid business plan

Even before you apply for a business loan or reach out to investors, you must have a solid business plan in place. How do you intend to scale your side hustle? What will you use the funds for?

Simply going to a bank and saying, “I need money for my business” won’t work. A plan that explains how you are going to use the funds is fundamental for investors.

Here’s a breakdown of what to include in your business plan: 

  • Executive summary: Briefly describe what your business is and what problem it solves. Be sure to include a summary of the most important parts of your plan.
  • Company overview: Provide a short profile of your company, including what type of business it is and its legal structure.
  • Operations plan: Detail how the business will operate, as well as key milestones that you need to reach.
  • Market analysis: Include an overview of the market and your target audience. Be sure to add supporting data and graphs to support your statements.
  • Products and services: Describe the products or services that you offer and what your unique value proposition is.
  • Marketing plan: Describe where sales are coming from and how you intend to grow. 
  • Competitive analysis: Identify the strengths and weaknesses of your competitors and what differentiates your brand.  
  • Management team: Provide background information on your team (if you have one) or who you need to hire to scale.
  • Financial plan: Include financial details about your side hustle, including a full breakdown of revenue and operating expenses, and how you plan to use funds.

Putting things down on paper helps you create a roadmap for your business. It also provides more insights into the long-term viability of your side hustle. You may even come up with some existing ideas for marketing your products or services.

Start your Own Business

When you start your own business you should decorate your office as well A couple of items are enough for the tabletop. For example, a photo frame and a vase with white roses.

It will create a positive impact to your customers and also it give positive vibes and make you feel healthy and Fresh.

Most importantly, a solid business plan shows potential investors and lenders that you’re serious about running a business. 

5. Define the set of tools you will need for your business

A successful freelance business is really just like any other business—you need the right tools in place to make sure it runs smoothly and effectively, giving you time and energy to focus on the important things. 

If you’re just starting out, you can save yourself a lot of trouble by taking some time up front to define which tools will be most effective for your business.

The typical freelance toolkit is fairly straightforward. While there are other options out there, the ones listed below are some of the ones that will give you what you need to succeed in today’s industry:

  • Accounting software such as Quickbooks.
  • Project-Management Software like Basecamp or Trello.
  • Customer Relationship Management (CRM) software such as Salesforce.
  • Payment Processing Systems like Paypal or Stripe.
  • Cloud Storage and Sharing tools like Dropbox or Google Drive.

There are a lot of tools out there, but some are more important than others. The ones that are most important depend on the niche you’re entering, and every niche is different, so it’s always important to do your own research before investing in any particular tool.

6. Take advantage of small business resources

Running a full-time business has a steep learning curve. This can make you feel overwhelmed in the beginning. The good news is there are plenty of small business resources that you can and should take advantage of.

Here are just a few resources:

  • Service Corps of Retired Executives (SCORE): SCORE is a non-profit organization that partners you with mentors who provide free consultation services. SCORE also offers a ton of free business templates, guides, and other resources.
  • Local chamber of commerce: Joining your local chamber of commerce is a great way to network with small business owners and even land new opportunities. While there’s usually an annual fee, it’s well worth the cost.

Finally, as your business grows, it’s a good idea to have a plan in place for the money you earn.

7. Take the leap

Before you take the leap and quit your day job, make sure that your side hustle brings in enough revenue to cover your expenses. 

Start by calculating your expenses. Make a list of everything that you pay for to come up with your total monthly costs. Don’t forget to include other expenses, like health insurance.

If there’s a gap between how much your side hustle earns and your monthly expenses, consider cutting back on non-essential expenses or spending more time bringing in sales.

Owning a business is a dream for many people. 

If you’re already running a successful freelance hustle, you’re well on your way to turning it into a full-time business and becoming your own boss. Follow the tips laid out here to make the transition.

Edward Nick

Edward Nick is the founder of DisplayBenchmark. He is a PC enthusiast as well as engineer with a keen interest in PC hardware and all stuff related to tech and games.