Many South Africans have started side hustles during the COVID-19 pandemic to make extra money.
If you are one of these people, you may be considering transforming this into a full-time business.
Some of the most successful businesses in the country began as side hustles, thanks largely to South Africans who were passionate about making a difference.
For example, bio-scientists Andile Gcaza and Phetole Raseropo founded Evergrow after being frustrated at how expensive healthy foods were in supermarkets. Evergrow sells high-yield, fast-turnover vegetable seedlings to small-scale and subsistence farmers in rural and peri-urban communities.
They didn’t have money, tools, or resources to start Evergrow, but they saw a problem and found a way to solve it using these four steps:
- Start with a seed – Have a problem to solve.
- Plant the seed – Find a customer willing to pay for the problem to be fixed.
- Nurture its growth – Seedlings need the right amount of water and sunlight to germinate. What comes next in your business depends on how well you nurture it.
- Learn as you grow – Starting a business is five times harder than you think it will be, but the rewards are worth every sacrifice and failure.
If you have a side hustle, you’ve probably already done the first two steps. Now it is time to move to steps three and four.
Starting your business
If you want to turn your side hustle into a fully-fledged business, you should first decide on your business’s structure. This includes determining how the company will operate. Will you trade as a sole proprietor, or will you be a registered company?
Each of these options offers unique pros and cons, and the better option will depend on the nature of your business.
You then need to formalise the details of your business. What is its name? Where will you operate from? What will you name your website?
Depending on the industry you are operating in, you may also need to register with the appropriate regulatory body.
Get the right software
Once you have made these decisions, you should look for the best software to help achieve your goals.
This includes having an effective accounting and payroll solution, so you streamline your financial processes – including invoicing, cash flow management, supplier payments, VAT returns, and employee payments.
This is where Sage steps in, offering the best cloud-based accounting and payroll software solutions for small businesses.
Sage Business Cloud makes it easy for you to process payments and financial transactions.
This lets you focus on your day-to-day business tasks rather than spending hours trying to perform your financial tasks manually.