{"id":8537,"date":"2021-01-07T17:00:44","date_gmt":"2021-01-07T17:00:44","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=8537"},"modified":"2026-01-29T09:51:56","modified_gmt":"2026-01-29T09:51:56","slug":"joanna-booth-financial-script-side-hustle","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/joanna-booth-financial-script-side-hustle\/","title":{"rendered":"Joanna Booth on\u00a0how to plot a financial script to go from side\u00a0hustle to\u00a0small business\u00a0"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tJoanna Booth on\u00a0how to plot a financial script to go from side\u00a0hustle to\u00a0small business\u00a0\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"Joanna\t\t\t\tJoanna Booth<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Square, bespectacled; the old movie trope of accountants \u2013 <\/em>think Albert Brennaman in the romcom Hitch, or Ghostbusters\u2019 Louis Tully, throwing a party purely because it\u2019s \u201ctax deductible\u201d \u2013 is not true to modern life.  <\/em><\/p>\n\n\n\n

In fact, accountants have a starring role for small businesses, says Joanna Booth, founder and director of Social Media Makes Sense<\/a>, a company specialising in social media for TV and training for small and medium-sized enterprises (SMEs).  <\/em><\/p>\n\n\n\n

Financial planning can be overwhelming and complex, and hiring an accountant straight away will ensure your side hustle is smart about its money, sustainable and potentially scalable. <\/em><\/p>\n\n\n\n

However, you do need some insight into the numbers, so we asked Joanna to help us write a script for taking your business from side hustle to something bigger, accommodating any financial plot twists along the way\u2026 <\/em><\/p>\n\n\n\n

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Download your free side hustle toolkit, comprising a side hustle guide, business plan template and cash flow forecast template<\/a><\/div>\n<\/div>\n\n\n\n

Side hustlers<\/span><\/b> are full of great ideas, but how can <\/span><\/b>you<\/span><\/b> tell if a side<\/span><\/b> <\/span><\/b>hustle is <\/span><\/b>viable enough to be <\/span><\/b>a sole<\/span><\/b> source of income?<\/span><\/b> <\/span><\/h2>\n\n\n\n

There <\/span>has to<\/span> be a big enough need for your offering, and you can use your workload <\/span>to<\/span> measure that. <\/span><\/p>\n\n\n\n

If <\/span>it\u2019s<\/span> hard for you to juggle both your full-time job and your side<\/span> <\/span>hustle, that could be a sign that your offering is in demand. <\/span><\/p>\n\n\n\n

I<\/span>f you<\/span>r side<\/span> <\/span>hustle <\/span>isn\u2019t<\/span> keeping you busy, you may need to keep your day job for now.<\/span> <\/span><\/p>\n\n\n\n

The first step in<\/span> financial planning<\/a> is validating your business \u2013 proving <\/span>ther<\/span>e\u2019s<\/span> a need for your offering by <\/span>making a sale to<\/span> at least one paying customer. <\/span><\/p>\n\n\n\n

Doing so will set the trajectory for the rest of your business plan.<\/span> <\/span><\/p>\n\n\n\n

Once the business has been validated, how soon can <\/span><\/b>new <\/span><\/b>entrepreneurs expect to collect a salary<\/span><\/b> from their side hustle<\/span><\/b>?<\/span><\/b> <\/span><\/h2>\n\n\n\n

For me, this depends on how much support you <\/span>have to<\/span> focus on your business. <\/span><\/p>\n\n\n\n

If you have a partner who can financially support you,<\/span> for example,<\/span> you can leave your job and start yo<\/span>ur adventure without being in a rush to take a salary.<\/span> <\/span><\/p>\n\n\n\n

If you <\/span>don’t<\/span> have support, you need to take a salary straight away. <\/span>Your salary probably <\/span>won\u2019t<\/span> be the same as what you received as an employee<\/span>, so you will need to zero in on making sales. <\/span><\/p>\n\n\n\n

Don’t<\/span> rely on savings \u2013 <\/span>they disappear quickly and should be there to enhance and support, not replace income.<\/span> <\/span><\/p>\n\n\n\n

Many side<\/span><\/b> <\/span><\/b>hustles need funding <\/span><\/b>for startup costs. <\/span><\/b>How should entrepreneurs decide between a loan and an investment?<\/span><\/b> <\/span><\/h2>\n\n\n\n

Use your aspirations for your business as <\/span>guidance.<\/span> <\/span><\/p>\n\n\n\n

If your vision is to massively scale your business<\/a><\/span>, then <\/span>you\u2019ll<\/span> probably benefit more from a large cash injection from an investor. <\/span><\/p>\n\n\n\n

If your idea is <\/span>really great<\/span>,<\/span> you can leverage business equity for the cash you need to <\/span>put your plan in action.<\/span> <\/span><\/p>\n\n\n\n

This of course means <\/span>you\u2019ll<\/span> <\/span>give up<\/span> a bit of your business control<\/span> to your investors<\/a>. They will likely have a heavy influence on your business\u2019 direction as <\/span>they are looking to recoup the highest possible return on investment.<\/span> <\/span><\/p>\n\n\n\n

If your vision for your business is to make <\/span>a comfortable living for yourself, <\/span>then consider getting a business loan from a high-street bank. <\/span><\/p>\n\n\n\n

Business loans are usually straight forward. <\/span><\/p>\n\n\n\n

You maintain total control of your business\u2019 future, and the bank is only interested in <\/span>repayment according to the loan terms. <\/span><\/p>\n\n\n\n

A business loan <\/span>doesn\u2019t<\/span> come with the added pressure of generating a high return on investment.<\/span> <\/span><\/p>\n\n\n\n

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Download your free side hustle toolkit, comprising a side hustle guide, business plan template and cash flow forecast template<\/a><\/div>\n<\/div>\n\n\n\n

How should entrepreneurs get prepared to seek startup funding? What will lenders and investors want to see as a demonstration of finances?<\/span><\/b> <\/span><\/h2>\n\n\n\n

Both will want to see how thoroughly <\/span>you\u2019ve<\/span> planned to be successful. <\/span><\/p>\n\n\n\n

They want to see how well you understand your financial circumstances<\/a><\/span> and how <\/span>you\u2019ve<\/span> planned to <\/span>optimise<\/span> your strengths and support your weaknesses.<\/span> <\/span><\/p>\n\n\n\n

They will especially want to see how well <\/span>you\u2019ve<\/span> researched your market and how your findings support your business plan<\/a>. <\/span><\/p>\n\n\n\n

Show how you plan to market yourself, who you plan to sell to, and how you plan to use <\/span>funding to cover operational expenses. <\/span><\/p>\n\n\n\n

Don\u2019t<\/span> ignore the risks and challenges. Prepare to show how you plan to address these<\/span> in <\/span>great detail<\/span>.<\/span> <\/span><\/p>\n\n\n\n

What are some financial indicators that a <\/span><\/b>new business<\/span><\/b> is doing well? What should<\/span><\/b> entrepreneurs be tracking?<\/span><\/b> <\/span><\/h2>\n\n\n\n

This <\/span>will vary too much for one sweeping answer. <\/span><\/p>\n\n\n\n

Your focus and strategy will change as your business <\/span>matur<\/span>es from side hustle to small business<\/a><\/span>, and each stage will have its own applicable points of interest. <\/span><\/p>\n\n\n\n

Even further, <\/span>even businesses of similar models can have different goals and visions for expansion, or not. <\/span><\/p>\n\n\n\n

Universally, side hustles and mature small businesses should know their break-even point and aim to keep expenses low.<\/span> <\/span><\/p>\n\n\n\n

Don\u2019t<\/span> measure your success by anyone else\u2019s numbers, set yourself goals that matter to you. <\/span><\/p>\n\n\n\n

This is your adventure. Plan your path toward the goals that resonate with you<\/span> and celebrate when you win. <\/span><\/p>\n\n\n\n

You\u2019ll<\/span> do great!<\/span> <\/span><\/p>\n\n\n\n

At what stage in business maturity should entrepreneurs hire an accountant?<\/span><\/b> <\/span><\/h2>\n\n\n\n

We <\/span>can’t<\/span> all be good at everything. <\/span>If you can afford an accountant<\/a> straight away, hire one<\/span>! <\/span><\/p>\n\n\n\n

They\u2019re<\/span> the experts, and it\u2019s their job to handle <\/span>the accounting side of your business <\/span>so you\u2019re able to work<\/span> <\/span>on building your customer base<\/span> without distraction<\/span>. <\/span><\/p>\n\n\n\n

There\u2019s<\/span> already so much to juggle, and most <\/span>new entrepreneurs and even seasoned small business owners won\u2019t have the time or knowledge <\/span>to do it all themselves, <\/span>and certainly not long term.<\/span> <\/span> <\/span><\/p>\n\n\n\n

Your accountant will be there to keep you financially <\/span>organi<\/span>s<\/span>ed<\/span> so you are ready for growth<\/span> and free from tax penalties. <\/span>I love my accountant<\/a>!<\/span> <\/span><\/p>\n\n\n\n

How can <\/span><\/b>new and seasoned business owners<\/span><\/b> <\/span><\/b>improve<\/span><\/b> <\/span><\/b>their business finance knowledge<\/span><\/b>?<\/span><\/b> <\/span><\/h2>\n\n\n\n

No matter what size or how mature your business is, <\/span>don\u2019t<\/span> be afraid to ask for help.<\/span> <\/span><\/p>\n\n\n\n

If you <\/span>can\u2019t<\/span> afford to hire an accountant, <\/span>many accounting firms offer free webinars and learning sessions that cover general accounting best practices. You can also ask direct questions in those kinds of settings.<\/span> <\/span><\/p>\n\n\n\n

Aside from that, if you just want to handle your accounts yourself<\/a> or just want to be knowledgeable, you can take an online course <\/span>and apply what you learn to your own business. <\/span> <\/span><\/p>\n\n\n\n

At bare minimum, my advice is to watch your accounts daily, limit your spending, and stay diligent about getting paid on time.<\/span> <\/span><\/p>\n\n\n\n

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How to boss your small business finances<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Starting a business? Getting your finances under control from day one is key. Ever wish you could get advice from someone who really knows their stuff? Well now you can.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tFind out more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n

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