Side hustles are one of the best ways a person can try out their innovative ideas, grow in their business skills, and make more money. According to a survey by Creditloan.com, about 21% of Americans have a side hustle in addition to working a full-time job.
We know many entrepreneurs who started their company with a business degree, but some began their company on the side and made the transition into a full-time business. People like Steve Jobs or Bill Gates started their conglomerates from their parents’ garage!
Maybe you’re in the same boat as the 21% with a side hustle and you’re thinking about making the jump into full-time business but still have your doubts.
I am a blogger in the evening, I have a full-time job as an IT manager. I love to work with people, I thrive when I am surrounded by many. That’s why I haven’t made blogging my full-time profession.
So how do you know when it’s time to turn the side hustle into a full-time business?
Here are a few ways to know:
Your side hustle is making you enough money to support yourself
The best way to tell whether or not your side hustle can be a full-time business is to look at the numbers, plain and simple.
If you’re at a point where your side hustle is bringing you more income than you thought possible, take note because the law of supply and demand is telling you something.
If there’s a growing demand for what you offer, whether that’s a product or a service that you provide, it’s telling you that you’re on the right track.
The flow of money is a simple indicator of where your time and resources should be spent.
If your side hustle is bringing in an amount of income that is comparable to your full-time job or is enough to support yourself on, it’s time to reconsider how much time and energy you should invest back into the business.
You have enough savings from your current job and side hustle
In any situation involving work and money, whether you’re looking for a job, have a job, or transitioning into new work, you need an emergency fund.
Financial advisors generally give the rule of thumb of having at least 6 months to a year’s worth of savings that can cover your living expenses in case of a rainy day.
As you crunch the numbers and find yourself in a position where you feel confident that you have enough saved up from your current job as well as your side hustle.
Permit yourself to begin planning for a full-time transition. The numbers may be whispering to you that it’s time to make the move.
Your side hustle is demanding more of you
If you’re noticing a stronger pull towards your side hustle with your energy, time, and resources, it might be a good indicator that you’ll need to make a transition soon.
This may seem common sense, but many fail to make the connection for themselves until circumstances demand a change.
For example, if your manager or co-workers are starting to notice a change in your focus and attention, then it’s best to close one door instead of getting stuck in two doors.
Multi-tasking many things on your plate are doable, but multitasking and getting the job done well are two different issues.
If your work performance at your full-time job is suffering because your side hustle is consuming more of your life, then it’s time to reevaluate your priorities and decide if it’s time to make a change.
Your side hustle brings you more joy than your current job
In addition to bringing you more income, if your side hustle is bringing you more joy than your full-time job, then it’s time to think about making a jump.
Many struggles with this aspect because of the fear of failure or the fear of the unknown.
However, consider this: your ultimate return on investment is measured by your quality of life.
If your full-time job is enabling you to make money but it’s leaving you exhausted, frustrated, or burned out, your quality of life is declining rather than improving.
On the other hand, if spending more time and energy on your side hustle brings you more life and excitement, then invest more into your source of joy and watch your life dramatically improve.
All in all, measure your success by the quality of life your work is producing.
Give yourself a 2-week deadline
Still going back and forth about making the jump into a full-time business?
Set a limit on the amount of time you’re allowed to sit on it.
The longer you wait, the harder the decision is. It’s important not to procrastinate because you’re wasting more time worrying rather than producing results.
Be wary of waiting for “perfect timing” because it may never come. Instead, make a plan for how you would make a transition and give yourself 2 weeks to make a decision.
If you choose to jump in, make sure you have supporters who can help you follow through on your plans.
Talk to someone close to you, maybe your partner, your parents or children, or simply a childhood friend. Seek others’ opinion.
Move you’re full-time into part-time, and part-time into full-time
If you’re still not sure about making the full-time jump into your business, consider making a slow transition.
One way to do this is to try out your side hustle with full-time hours while making adjustments to your current full-time job.
If possible, seek out ways to lower your hours at your full-time job. Discuss the situation with supervisors and managers and see if there is any leeway to work with your transition.
The most ideal solution would be to turn your current full-time job into a part-time position, which gives you the freedom to do put in more hours with your side-hustle.
No more waiting! Make the jump!
Does it seem like your side hustle is showing you all the signs of potential success?
Then it’s time to make your move! Turn your side hustle into a full-time business and see what comes of it.
If you’re stressing out about business financing, don’t give up out of exasperation.
Many startup companies get turned down for bank loans, but some alternative lenders can still offer business financing to you.
Look around and see the available services, and make adjustments to your plan accordingly. The important thing is to take that first step into growing your full-time business.