Manager's Hot Seat: Turning Your Side Hustle into a Small Business
Starting a small business comes with risks as well as rewards. Today’s prospective small business owners have a lot to consider before getting started, including marketing, growing a client base, taxes, start-up costs, and planning ahead for potential inconsistencies due to seasonal work or economic downturns.
Craig has been working a corporate job since he graduated college and doing landscape work on the side. Now, he’s ready to turn his side gig into a small business. He and his wife Amy have brought in Morgan, a small business consultant, to talk through their plans and to seek advice. How has Craig prepared for taking the first steps in opening his business? What would you do?
1. "We hadn’t even thought of taxes!" Amy says. Which of the following is not a hidden cost of running a small business?
A. aying yourself a salary
B. setting aside money for taxes
C. Costs of new equipment
D. aying employees
2. Morgan advises Craig and Amy to take out a loan for start-up costs, noting that it can take a while for a small business to begin turning a profit. What other potential financial hurdles did Morgan advise them to prepare for?
A. conomic downturns
B. The seasonal nature of landscaping
C. Inconsistent business
D. All of these choices are correct.
3. "I know he thinks he has a plan, but he’s counting on jobs he hasn’t even won yet." After his consultation with Craig and Amy, Morgan mentions several hurdles that Acre Landscaping will likely face. Which hurdle is he talking about with the above statement?
A. maintaining and growing a steady client base
B. Creating a catchy slogan
C. Hiring the right employees
D. figuring out how to do landscaping in the winter