While serving as vice president at a non-profit, I spent over three years building my side hustle as an executive coach and career strategist. Eventually, I decided to take the leap and make my side hustle my full-time focus. I’m delighted I made the change.
However, turning your passion project into your career isn’t always easy.
If you’re considering turning your side hustle into a full-time business, here are six essential tips:
Focus on finances
Your first priority should be to ensure that your business model generates enough income or has the potential to do so. Only then should you leave your day job.
For instance, Matt Gjertsen built a leadership development business while working full-time at SpaceX. He says his success came down to “pure math.
“I was making more money in my side hustle than I was in my main job,” says Gjertsen. “The math was working out, and the business could sustain itself.”
Not everyone is in a situation where the numbers speak for themselves. Sometimes, we need to focus entirely on building the business to allow for the time and space to grow the business to sustainability.
Save for flexibility
The next step is to build enough savings to support yourself for about six months while your business grows.
Anne Murphy is CEO of Empowered Fundraiser, which started as a side hustle when she was a fundraising leader in higher education. “Getting paid takes longer than you think, so you need a buffer,” advises Murphy. “Savings also allow you to be choosy about clients and not simply take any client that comes your way.”
Ben Rasmussen, spent over 12 years building Potomac Chocolate, a bean-to-chocolate firm, all while he was a Linux systems administrator. He recommends getting financially disciplined before going on your own. “Get all your numbers in order and realize that it may be a year or two or more that it’s a little tight,” he says. “What are you willing to do without? Do you need Netflix, HBO, and Hulu?”
Plan to own a business
Once you have developed your business model and prepared yourself financially, the next step is to dedicate yourself to the day-to-day business operations of being an entrepreneur.
Turning a side hustle or hobby into a business requires more than just passion for the work itself. Ensure you are equally enthusiastic about the business aspects, such as marketing, finances, and operations. Test it thoroughly as a side hustle to confirm you enjoy and are committed to the work and the business-building process. Matt Gjersten references the cautionary tales of turning a hobby into a business as outlined in the classic business book The E Myth: Why Most Businesses Don’t Work and What to Do About It by Michael Gerber
“You shouldn’t start a bakery because you love baking bread,” says Gjersten. “Start it because you want to run a bakery.”
Build the business while employed
While some people may be able to quit their day jobs and dedicate all of their time to their passion project, this is not possible for many workers.
Instead, I recommend that you ensure there’s a demand for your offerings and that you’ve identified your target audience—while you are still employed.
Murphy suggests arranging networking meetings to validate your product-market fit and having your offers and packages launched before leaving your full-time job. Additionally, you should establish foundational elements like contracts, invoicing, branding, mailing lists, and automation while still employed.
Plan a graceful exit
Once all of these aspects are aligned, you should plan a graceful exit from your role.
You should prepare a well-thought-out transition plan for leaving your current job because after all, it’s thanks to this job you have been able to build the side hustle into a viable business.
Your exit plan should include giving appropriate notice. For instance, I gave over six months’ notice. This helps ensure a smooth handover of responsibilities, and allows you to maintain your professional relationships. A graceful exit will leave the door open for future opportunities—and increase your odds of receiving a good reference.
Embrace creativity once you take the leap
Transitioning from working a traditional job to running your own business can unlock creativity and potential. “Reducing my time commitment to my full-time job unlocked more energy and ideas, leading to new products and ventures,” says Rasmussen. He explains that after leaving his job to focus on Potomac Chocolate, he started a successful pop-up pizza shop, which may lead to an entirely new side hustle.
Taking your side hustle full-time is a significant step. Know that careful planning and preparation can lead to unexpected opportunities, unlimited ideas, and rewarding successes.
