Turning Your Side Hustle into a Small Business
Authored By: Genisys Credit Union on 7/23/2025 
Turning a side hustle into a full-fledged small business is an exciting journey that combines passion, purpose, and a bit of risk. Whether you’re selling handmade products, offering freelance services, or building a brand around your skills, making the leap from part-time project to full-time venture takes planning and preparation.
If you’ve been considering turning your side hustle into something more, we’re here to walk you through the essential steps to launching your small business. We’ll help you understand which parts of starting a business are essential, share some smart tips, and help you find the credit union products that can support your financial needs as you grow.
Starting a Small Business
Whether you’ve always dreamed of owning a business, recently discovered a passion or skill with great money-making potential, or are looking for additional revenue streams due to life or career changes, starting a company could be the key to unlocking joy and independence.
As with any major decision, financial or otherwise, there are several benefits and potential risks that should be carefully evaluated so you can determine what’s right for you. Let’s look at the possible pros and cons facing future entrepreneurs:
Pros
Cons
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Facing stress and uncertainty
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Finding sufficient funding for startup costs and continuing operations
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Committing the time and effort to succeed
Additionally, you must take several critical legal and financial steps to launch a business and ensure compliance with state and federal laws. The U.S. Small Business Administration provides a helpful checklist of these steps required to start a business. We recommend starting there to make sure you cover the basics and learn more about the various legal requirements.
Smart Financial Moves When Starting a Small Business
Before launching your new venture, you want to ensure your business has everything it needs to succeed. Here are the money moves you must take to set your small business up for success:
Check the Laws:
Start by checking your state’s website for the specific legal requirements for starting a business. This step will ensure that your business complies with federal and state laws to avoid any legal consequences and non-compliance fines.
Register Your Business:
Registering a new business is typically less than $300, but the exact fees may vary depending on your state and business structure (LLC, sole proprietorship, partnership, corporation, or non-profit). Many online legal websites will help set up your company, or you can work with an attorney directly if your business format is more complex.
Create a Budget:
Building your business budget won’t be an exact science when starting from scratch. Begin by identifying your expenses, including fixed costs that stay the same month-to-month, like rent or lease, insurance, taxes, and loan payments. Then, add variable costs that fluctuate throughout the year, like inventory, supplies, materials, etc. From there, you can begin to predict your revenue and make budget adjustments as needed.
When starting out, it’s best to overestimate expenses and underestimate revenues. Unexpected expenses always pop up for business owners, especially when you’re trying to get your company off the ground.
Pay Your Employees:
If you plan to hire employees, there are additional legal steps to ensure they are paid properly. Have your employees fill out the necessary tax forms (Form I-9 and Form W-4) and be sure to include room in your budget for employee paychecks.
Working directly with a payroll company can help simplify this process and guarantee all tax and legal requirements are fulfilled properly.
Secure Startup Funds:
Determine how much money you need to get your business off the ground. You may have funds from savings or friends and family members willing to chip in. Still, you’ll likely need to secure outside funding for bigger business plans, especially if you’re considering a storefront or other property to run your venture.
Pro Tip:
While borrowing startup funds may seem tempting, we recommend holding off for as long as possible. Especially avoid borrowing from venture capital (VC) firms or predatory lenders with too-good-to-be-true offers. Far too many new entrepreneurs pursue rapid growth to enhance their reputation and clout, only to end up oversaturated in debt and have their company go under because they can no longer afford payments.
Just like your personal finances, you should only borrow money when necessary.
How the Credit Union Can Help Your Small Business
The credit union offers a variety of products and services designed to help businesses like yours succeed. We’re here to satisfy all the financial needs of your new business, from saving and spending to borrowing and investing.
Business Checking Accounts:
Just like your personal checking accounts, your business checking account will be the cornerstone of your financial life. Money will steadily flow in and out of this account for revenue and expenses. Your business checking is here to cover all your day-to-day needs.
Business Savings Accounts:
Your savings account will be crucial when covering unplanned expenses, which you’ll find pop up frequently when running your own business. It’s essential to regularly set money aside in savings to build a solid emergency fund that’s there when you need it.
Business Investment Accounts:
As your profits grow, it’s wise to put some of your savings into higher-earning accounts, like Money Market Accounts or Share Certificates. Earning higher dividends or interest from your invested funds will generate additional revenue to help sustain your business.
Business Credit Cards:
Your business credit card is more than just a spending tool; it can be a valuable way to wisely manage cash flow while earning rewards to boost your business. A credit card can help you pay for purchases, earn rewards, and enjoy affordable repayments.
Business Loans:
Accessing affordable financing can be a game-changer when starting a new business. This funding can help you finance major expenses like equipment, vehicles, property, and more. A business loan can make a huge difference in helping you get your business off the ground or elevate it to the next level.
Advisors:
We encourage you to meet with our dedicated team of financial advisors, who can offer support and guidance throughout your journey to starting your own business. Their insight can reveal additional financing options and help estimate the long-term impact on your financial plans.
We’re Here to Help!
If you’ve been considering turning your side hustle into a small business, we’re here to help you every step of the way. From securing financing for startup costs and providing accounts for day-to-day operation to offering support and guidance through every phase of your journey, we’ve got you covered.
If you want to learn more about our small business solutions or need to speak with a financial advisor, we’re happy to assist you. Please stop by any of our convenient branch locations or call 248-322-9800 extension 5 to speak with a team member today.
© Genisys Credit Union and www.genisyscu.org, 2025. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Genisys Credit Union and www.genisyscu.org with appropriate and specific direction to the original content.
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