10 Key Signs You’re Ready To Turn Your Side Gig Into a Business

If you’ve been working on a side hustle for any period of time, there may come a point when you’re ready to turn it into a full-time business. Before you make this critical life decision, you’ll want to ensure that you’re absolutely ready to make the jump so that you don’t put yourself in a compromising financial situation.

What are ten signs that it’s time to turn your side gig into a business?

“I like to see a consistent track record of profits from the side hustle before you quit your job,” said Nick Loper, the founder of Side Hustle Nation. “It may not be fully replacing your day job salary, but it’s great if you can build it to the level of at least covering your monthly expenses.”

If your side gig is covering the bills and you feel that you can bring in additional revenue by going all in, this may be the strongest sign.

“If your side hustle has been consistently generating more income over time, and you’re seeing a steady increase in demand for your products or services, it could be a sign that your venture has the potential to sustain itself as a full-time business,” said Taylor Kovar, CFP, CEO and founder of Kovar Wealth Management.

If you find that your demand has been going up, you could benefit from devoting more time to your side gig to turn it into your main source of income.

Being objective about your demand and revenue is crucial to avoid lying to yourself about progress. If your side gig hasn’t seen any significant growth, you may want to focus on growing it for the time being.

“If your side hustle is financially viable, meaning it has a solid business model, minimal debt and you’ve figured out how to manage its finances effectively, it could be ready to evolve into a full-time business,” said Kovar.

A significant amount of financial planning is involved in working for yourself, but if you’ve laid down a strong foundation, then this may be enough to make the transition.

“If you find yourself spending all your free time on your side hustle and you’re passionate about it, turning it into a full-time business could be a fulfilling path for you,” Kovar said. “Passion is a crucial driver for enduring the challenges of entrepreneurship.”

If you spend all of your free time working on this side gig, you may want to go full time to avoid burnout, since it can be challenging to have essentially two full-time gigs.

Loper pointed out that a side hustle’s potential success could be the fuel to leave a toxic workplace. If you have a toxic boss and your workplace is causing you stress, it could be time to make the leap towards working on your own business.

While it’s not advisable to leave your job if your side gig isn’t bringing in any money, you could use this lifestyle change as motivation to take your passion project more seriously.

If you have an emergency fund set aside to help you cover your living expenses for three to six months, then it could be worth making the leap.

One of the biggest obstacles to going full time with a side hustle is paying the bills. If your side gig has money coming in and you have the funds prepared to hold you over, then this is a sign pointing in the right direction.

“If you’re consistently receiving more orders or requests than you can handle in your spare time, and your customer base is growing, this demand could indicate that your side hustle has the potential to be a successful full-time business,” said Kovar.

When you can’t manage the workload from your side gig, you may want to start thinking about making the leap toward turning this into a business so that you can allocate your resources and take it to the next level.

“If you have a little traction with your side business and are confident — with an extra 40 hours a week to dedicate to it — you could grow it to replace your current income, then this makes sense,” Loper said.

If you feel that the only thing preventing you from turning your side gig into a business is time, you may want to explore leaving your job to see what you’re capable of with full attention and effort.

“It’s probably a smart idea to treat your side hustle like a business from day one, just so you take it seriously,” said Loper.

While sometimes a side gig can be something simple, like renting out your spare room or walking dogs, it can also be a serious venture, like growing a podcast or becoming a full-time YouTube creator. If you’ve treated this side gig seriously from the beginning, you may have what it takes to take it full time.

“We’ve even had show guests say their business got to the point where it was literally costing them money — in opportunity cost — to keep going to work,” Loper noted.

If you’re missing out on revenue from your side gig because your full-time job is getting in the way, it could mean it’s time to go all the way.

Those key signs indicate that you’re ready to turn your side hustle into a full-time business. As always, you should speak with a financial advisor to ensure you’re prepared for this major life change.