How 2 Entrepreneurs Turned Their Side Hustles Into Multi-Million Dollar Startups
You have to work in an industry a while to identify the really big pain point there that will become your million-dollar opportunity.
Grow something sustainable first.
Before you jump into another venture, try to grow your original business into one that generates some monthly cash flow. This will make being a bootstrapped entrepreneur easier as you grow your second venture; you won’t have to wonder how you’re going to cover your own bills every month.
Once you're able to generate some steady income from your first business, it will be time to strategize on how to crush your second. Start by discussing the pain point you’re going to solve with people you already know in the industry. If they’ll willing to test it out, you’re on the right track!
Start small.
Whenever you step toward turning a side hustle into your main focus, it’s best to test the concept before changing that first entrepreneurial effort. This way, you'll have a realistic understanding of how big your new venture can get.
Resnick, for instance, knew his watch company would plateau at around six figures in yearly revenue. He struggled to manufacture his own products, even though he had formerly lived in China. When he discussed with friends in the ecommerce industry the concept of a sourcing software -- connecting entrepreneurs with manufactuers -- a few wanted to invest right off the bat.
That's how Sourcify got its start: Resnick charged clients a few hundred dollars to email-introduce their companies to the right factory. After a few dozen introductions, Resnick knew he needed to find a more scalable process.
Scale with software.
Most of the world’s fastest-growing companies are fueled by software. Software makes companies more scalable by helping them distribute their service in a streamlined way via the internet. Unlike what occurs when you contract with a typical agency, software enables you to instantly set up customer relationships around the world any time of the day.
If you compare a traditional sourcing agency to Sourcify, you’ll see the difference. Most sourcing agencies are basically consultants, walking your company through a production run through email. Sourcify’s platform is different; it connects you with a pre-vetted factory and manages a production run by letting you visualize what stage you're at in the process.
When you, too, look into starting a new venture, first think of it as a side hustle, as you won’t want to shift your focus to a second effort right off the bat. Take things slowly, getting your first business to a sustainable point, where you can hire a team to manage most of it. Then start your new venture at a small scale, and figure out how you can develop software to scale it.
Credit:www.entrepreneur.com
You have to work in an industry a while to identify the really big pain point there that will become your million-dollar opportunity.
Grow something sustainable first.
Before you jump into another venture, try to grow your original business into one that generates some monthly cash flow. This will make being a bootstrapped entrepreneur easier as you grow your second venture; you won’t have to wonder how you’re going to cover your own bills every month.
Once you're able to generate some steady income from your first business, it will be time to strategize on how to crush your second. Start by discussing the pain point you’re going to solve with people you already know in the industry. If they’ll willing to test it out, you’re on the right track!
Start small.
Whenever you step toward turning a side hustle into your main focus, it’s best to test the concept before changing that first entrepreneurial effort. This way, you'll have a realistic understanding of how big your new venture can get.
Resnick, for instance, knew his watch company would plateau at around six figures in yearly revenue. He struggled to manufacture his own products, even though he had formerly lived in China. When he discussed with friends in the ecommerce industry the concept of a sourcing software -- connecting entrepreneurs with manufactuers -- a few wanted to invest right off the bat.
That's how Sourcify got its start: Resnick charged clients a few hundred dollars to email-introduce their companies to the right factory. After a few dozen introductions, Resnick knew he needed to find a more scalable process.
Scale with software.
Most of the world’s fastest-growing companies are fueled by software. Software makes companies more scalable by helping them distribute their service in a streamlined way via the internet. Unlike what occurs when you contract with a typical agency, software enables you to instantly set up customer relationships around the world any time of the day.
If you compare a traditional sourcing agency to Sourcify, you’ll see the difference. Most sourcing agencies are basically consultants, walking your company through a production run through email. Sourcify’s platform is different; it connects you with a pre-vetted factory and manages a production run by letting you visualize what stage you're at in the process.
When you, too, look into starting a new venture, first think of it as a side hustle, as you won’t want to shift your focus to a second effort right off the bat. Take things slowly, getting your first business to a sustainable point, where you can hire a team to manage most of it. Then start your new venture at a small scale, and figure out how you can develop software to scale it.
Credit:www.entrepreneur.com
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