Do you have a side project that you're passionate about and want to turn it into a successful business?
Good news! With the right strategies, it's possible to launch a successful business while keeping your day job.
In this article, we'll share 11 tips for turning your side project into a successful side business.
We'll cover everything from developing a business plan and estimating costs to marketing your business and avoiding burnout. We'll also look at how to measure the success of your side project and the risks associated with launching a new business.
Whether you're a freelance artist, software developer or budding entrepreneur, these tips will help you turn your side project into a profitable and fulfilling full-time business.
Define the vision of your parallel project
Before launching your new business, you will need to :
- define the number of hours you are prepared to devote to this parallel project
- define what you will be offering as part of your project
- identify your target audience.
It's not compulsory, but if it will reassure you before you launch, draw up a business plan outlining your goals, objectives, products/services, marketing strategy and financial projections.
For this first step, we recommend that you read :
- This article by Kauffman FastTrac
- The Lean Startup,by Eric Ries
- Implementation, by Philippe Silberzahn
Determine the amount of money you are prepared to lose before the amount of money you will need
Launching a new business can be expensive, but not always! It often costs more in terms of personal time than money. To be sure, follow the steps below.
The first thing to do is to define the amount of money you are prepared to invest in your project. Consider this sum as lost when making your choice.
Once you've done that, it's important to work out how much you'll need to get started. Here's a quick guide to the costs that can be taken into account:
Determine your start-up costs
These are the expenses you will need to incur before you start generating income. These can include expenses such as product development, marketing, legal fees, website creation and equipment. Make a list of all the expenses you'll need to pay before you start your side business.
Estimate your monthly expenditure
In addition to the start-up costs, you'll also need to estimate your ongoing monthly expenses. These could include rent, utilities, insurance, server costs, accountant fees and any other recurring costs associated with running your business.
Once you have completed this stage, we also recommend that you... :
Determine your revenue forecasts
On the basis of your market research and feedback from your customers, estimate how much revenue you expect to generate each month. Be realistic and cautious in your projections.
Calculate your break-even point
The break-even point is the point at which your income equals your expenditure. It allows you to determine how long it will take to reach profitability.
Identify your sources of funding
Once you've estimated how much money you're prepared to «lose» on this project, you can work out how much funding you'll need to launch your side business. Consider sources of finance such as personal savings, loans from family and friends, crowdfunding or commercial loans.
Draw up a budget
On the basis of your estimated expenses and projected income, draw up a budget outlining the income and expenditure you expect for the first year of your business. This will help you stay on track and ensure that you are using your resources effectively.
Test your product or service
Before launching your new business, test your product or service with potential customers to see if there is a market for what you are offering. This will help you refine your value proposition and ensure that your business idea is viable and profitable.
To do this, we recommend that you create one or more POCs and MVPs. This is the best way to validate your idea, reduce your costs and increase your chances of success.
Create a company for your side project
It's time to set up a company. By doing so, you protect yourself from personal liability and ensure that you comply with legal and tax requirements.
Depending on your business and your market, you can also register your business name with your state. You can also register a trademark to protect your intellectual property. However, as you are in the early stages, we recommend that you don't spend too much time on this step. Your side project is not yet mature enough and your business will continue to evolve based on feedback from your customers.
If you have any questions about trademark registration and intellectual property in Belgium, we recommend that you contact Sophie Everarts de Velp.
Develop marketing around your parallel project
Marketing your new business is key to expanding your customer base and generating revenue. Develop a marketing plan that includes strategies for social media, email marketing, sponsorship and advertising.
For example, you could start by creating a newsletter for your project and promoting it on social media to your target audience.
Don't neglect this part and don't invest money in marketing. Even if you offer the best service in the world, if your audience doesn't know about it, they'll never use it.
Don't hesitate to use marketing to test your POC and MVP.
Build up a portfolio of customers
Building up a portfolio of customers is essential to developing your business and generating income. Go out and meet potential customers. Build relationships that will help you grow your business.
You can do this by offering discounts to your first customers. This will give you initial references that you can use on your website and in discussions with prospective customers to reassure them.
Finding a mentor and training
Entrepreneurship can be a challenge, and finding a mentor and training can help you navigate the process.
Take part in workshops, online courses and conferences to keep abreast of best practice and get in touch with other entrepreneurs. Some associations are dedicated to mentoring. Find out which ones are closest to you.
Avoiding burnout
Setting up a new business can be a lot of work. So it's vital to avoid burnout, especially if you're doing this on top of your current job.
Take time for yourself. Set limits and take breaks to stay productive and energised.
Taking the plunge
Once you've drawn up a business plan, tested your product or service, got your market on board, generated your first revenues and secured financing, it's time to take the plunge and quit your full-time job.
It can be daunting. But with the right preparation and the right mindset, you can make a successful transition to full-time entrepreneurship.
Staying organised and focused
As a new business owner, you'll be wearing many hats and juggling many responsibilities. Stay organised and focused by setting priorities, delegating tasks and concentrating on your long-term goals.
Don't forget your legal and tax obligations
As a business owner, you will need to comply with legal and tax requirements. Keep track of your income and expenses, and file your tax returns on time. Seek the advice of a tax expert if necessary.
How to measure the success of your secondary project
Now that you have some tips on how to make your project a success, you're probably wondering how to measure the success of your secondary project.
Here is a list of the different measurements you can use:
Customer acquisition costs
This is the cost of acquiring a new customer. Monitoring this indicator can help you determine the effectiveness of your marketing and sales strategies.
Building customer loyalty
The number of customers who return to your business for repeat purchases can be a key indicator of success. A high retention rate indicates that you are offering a high quality experience. This encourages customers to return.
Conversion rate
Your conversion rate measures the percentage of website visitors who take a desired action, such as making a purchase or completing a contact form. Monitoring this metric can help you identify areas where you can improve your website and sales funnel.
Social media engagement
If you're using social media to promote your business, tracking engagement indicators such as likes, comments and shares can help you determine the effectiveness of your social media strategy.
Website traffic
The number of visitors to your website can be an indicator of success. It indicates the level of interest in your business. Tracking website traffic over time can help you identify trends. It can also help you determine the effectiveness of your marketing strategies.
Revenue
The amount of revenue generated by your side project can be a key indicator of your success. Tracking sales growth over time can help you determine whether your business is profitable and growing.
Profit margin
Your profit margin, the difference between your revenues and your expenses, can be another important indicator of your success. A higher profit margin means that your business is generating more revenue in relation to your costs.
What are the risks involved in launching a secondary activity?
Financial risk
Launching a new business can be expensive. There's always a risk that you won't earn enough money to cover your expenses. This can lead to personal financial difficulties and have an impact on your credit rating. That's why we recommend that you create POCs and MVPs before launching your entire product or service.
Weather risk
Running a secondary activity requires a significant investment of time, and it can be difficult to reconcile your secondary activity with other commitments such as a full-time job or family responsibilities. This can lead to burnout and have an impact on your general well-being.
Legal risk
Launching a new business also comes with legal risks, especially as you may be new to entrepreneurship. You may need to obtain permits or licences, comply with zoning rules or protect your intellectual property with trademarks or patents. If you don't, you risk litigation, fines or prosecution.
Market risk
There is always a risk that your secondary activity will not be successful in the marketplace. No matter how much research and planning you do, there's no guarantee that your product or service will resonate with customers or generate enough revenue.
Personal risk
Having a second job can also have an impact on your personal life. You may have to sacrifice time with family and friends, and it can be difficult to maintain a work-life balance.
Do you need advice before launching your side business linked to IT solutions (app, SaaS, Software, e-commerce, website, Artificial Intelligence)?
Don't hesitate to contact iterates for help, and have a free chat with our two founders, Rodolphe & Benoit.
Contact us
Conclusion
Launching a successful sideline business takes time, effort and dedication. But it can also be one of the most rewarding experiences of your life.
By following the 11 tips in this article, you'll be well on your way to turning your side project into a thriving business.
From developing a business plan to testing your product or service, to finding mentoring and training, these tips can help you navigate the process of launching a new business while keeping your day job.
Remember to stay organised, focused and flexible as you navigate the ups and downs of entrepreneurship. And above all, don't forget to celebrate your successes along the way. With perseverance and a passion for what you do, you can create a successful side business that will bring you joy and satisfaction.
Good luck!
