How to Turn Your Side Hustle into a Full-Time Business: A Step-by-Step Guide

Are you ready to take your side hustle to the next level and turn it into a full-time business? Making the leap from a part-time gig to a full-time business venture is exciting, but it requires careful planning and strategic action. Whether you’re selling handmade crafts, offering freelance services, or running an online store, here’s how to make the transition smoothly.

Remember, it’s going to take time—probably longer than you expected. No one likes to hear that, but if you’re doing it right and being strategic, patience and persistence are key.

1. Assess Your Side Hustle’s Viability

Before quitting your day job, evaluate whether your side hustle has the potential to sustain you full-time. Consider factors like consistent revenue, customer demand, and market trends.

Example: Sarah started selling custom jewelry on Etsy while working as a graphic designer. When her monthly earnings consistently matched her full-time salary, she knew it was time to make the switch.

Tip: Track your side hustle’s financial performance for several months to ensure stability. Identify peak seasons and slow periods to plan for cash flow fluctuations. Start saving money now to “float you” through the slow seasons of business.

My coaching business isn’t making consistent income yet, so I continue to build it while working my 9-5 job as a nurse. This way, I can use part of my nursing salary to support my business if needed, while ensuring a stable income is there to cover our bills, needs, and wants. This approach keeps me from feeling stressed and allows me to avoid coming off as forceful in my sales to clients and my audience. Do I wish I could quit my job now and do my financial coaching full time? YES, of course, but I am realistic in understanding that it takes time to build a profitable and consistent business. I also am enjoying my family and friends and don’t want to burn out. So, I have come to terms with building a little slower while still enjoying life.

Also, is your business a solid business idea? Is there a market for your niche? Is it scalable?—which we will go more in depth here shortly. Are there 100 other same businesses in your small city? For example, if you are wanting to open a childrens clothing boutique in a brick and moter, how many others are in your area? Do your market research. If you live in a city of 4,000 people and there are 20 children’s boutiques in your small town, maybe it is not the best business idea or side hustle.

2. Create a Solid Business Plan

A well-thought-out business plan is essential for scaling your side hustle. It should outline your business goals, target market, pricing strategy, and marketing plan. Full transparency, at the time of writing this, I have been in business almost 2 years and I JUST created my full business plan. Don’t fret if you don’t have one yet, but it is important to create one.

Example: Jody, a software developer, started offering web development services on the side. She created a business plan that detailed how she would market her services, set pricing, and attract more clients. This helped her transition from side gigs to running her own web development agency.

Tip: Include financial projections in your business plan to anticipate future expenses and revenue. This will help you determine when you can fully transition to your side hustle.

There are individuals who say, “shit or get off the pot” or “sink or swim” and what I mean here is that there is a type of plan where you GO ALL IN and figure it out. You quit your day job and you make your side hustle into your full time business no matter what. And this has worked for some people, however, what I have seen over the years, is that for the vast majority this isn’t a good plan. This doesn’t work out well. Most of the people who do this end up either shutting down their business or going back to work at a day job and trying to build their biz on the side again…

Having a business plan in place, a well thought out one, and a financial plan, will help your business be more successful. For me, once I leave my 9-5, I don’t want to have to go back. I would rather it take me a little longer to feel ready to leave my secure day job, than for me to take the plunge and pray to God it works out and STRESS non-stop about bringing in a client or selling a course to pay my bills.

3. Build a Financial Cushion

Having a financial safety net is crucial when leaving a stable job. Save enough to cover at least 9 months of living expenses, preferably 12 months,  so you can focus on growing your business without the stress of immediate financial pressure.

Example: Emma, a photographer, saved 12 months’ worth of living expenses before quitting her job as a teacher. This allowed her to invest in better equipment, market her services, and build a steady client base without financial anxiety. She knew her family would be financially “ok” for 12 months and she felt relief about that. She wasn’t pressuring her clients to book or buy more of her products just so she could pay her bills. She was able to serve first, sell second, which is a moto I live by.

Tip: Start by setting aside a percentage of your side hustle income each month until you reach your savings goal. There is a great book and system in which I am implementing in my business called, Profit First by Mike Michalowicz. Do yourself a favor and read the book, it is a good one!!

If you want help implementing Profit First into your business, I would love to help! You can connect with me at Jesswaynecaoching.com. Plus, you can and should implement profit first while your biz is a side hustle!

4. Legalize Your Business

As your side hustle grows, make sure to take care of the legal aspects. Register your business, obtain any necessary licenses, and make sure to set up a separate business bank account! Don’t forget this last step.

Example: I registered my coaching biz into an LLC before I even had a paying client! I knew how important this step was.  This not only protects my personal assets but also makes it easier to manage my finances. In fact, my LLC is a different business name because I was, “Purse Coach” before I was Jess Wayne Coaching. Haha

Tip: Consult with a legal advisor to ensure your business is set up correctly from the start. Each state has different steps you need to take. Some places have a department that can help you with some of these steps for free!

5. Scale Your Operations

Once you’ve made the leap, focus on scaling your business. This is one of my favorite things to envision for my company and other businesses! This might involve hiring employees, automating processes, or expanding your product or service offerings. Maybe instead of expanding you actually “niche” down and specialize. This can help you serve your ideal client better and you can get paid really well to do this.

Example: Kelly started as a freelance social media manager but quickly grew her client base. To manage the increased workload, she hired two part-time assistants and started offering social media strategy workshops. This allowed her to grow her business while maintaining a work-life balance.

My friend, Janna, is a lactation consultant, who grew her business to include a team of other lactation consultants, plus a sleep coach, and a birth and postpartum doula! How amazing is that?

Tip: Identify tasks that can be outsourced or automated to free up your time for higher-level business activities (or activities only you can do!) This can be both personal and professional. What can you delegate or hire out? Maybe it is food prep, school pick up, or house cleaning. Perhaps it is hiring a virtual assistant to help manage your social media or email marketing. The time you spend cleaning your toilets might just be better spent working on and in your business! Some tasks in your business only you can do, for example, I am the only person in my business who can record my podcast, but I can hire out my social media marketing. I don’t yet, but maybe someday.

6. Market, Market, Market

Consistent marketing is key to sustaining your business. Use a mix of social media, email marketing, and networking to keep your brand visible and attract new customers. Remember, a business is built brick by brick, layer upon layer, and customer by customer, one at a time. It takes a while to grow your business, but your personal growth comes in the journey.

Example: Shelly, who started a digital art shop on the side, invested in targeted social media ads and collaborated with influencers in her niche. This boosted her visibility and sales, enabling her to turn her side hustle into a thriving full-time business.

Tip: Regularly analyze your marketing efforts to see what’s working and adjust your strategy as needed. MARKET RESEARCH MY FRIENDS!

7. Prepare for Challenges

Transitioning from a side hustle to a full-time business isn’t always smooth sailing. Prepare for challenges like inconsistent income, increased workload, and the pressure to sustain your business long-term. Remember to increase your expenses slowly if possible and to ONLY what you truly need at least until revenue and PROFIT are consistent!

Example: After turning her baking side hustle into a full-time business, Maria faced challenges with managing orders and keeping up with demand. She adapted by streamlining her menu, hiring an assistant, and setting clear boundaries for her work hours.

Tip: Stay flexible and open to adjusting your business model as you encounter challenges. Having a support network of fellow entrepreneurs can also help you navigate tough times.

Be mindful of ‘business creep’—the tendency to spend more as your business starts bringing in more revenue. While some increased spending can be fine, letting it get out of control can lead to trouble. If your overhead grows too much, it can strain your business finances.

I had a client who runs an online coaching business. As her business began to thrive, she expanded her office space. She started by working from home, then, as her revenue grew, she rented a small office. Eventually, as her business continued to grow, she upgraded to a large office with a conference room, paying nearly $1,500 a month in rent. While her business could technically afford it, she realized after a few months that she wasn’t using the office or the conference room as much as she thought. She decided to return to working from her home office and reallocated that $1,500 a month to more important areas of her business. Perhaps she will use some of that money to pay herself or take her family on a vacation!

Turning your side hustle into a full-time business is a rewarding journey, but it requires careful planning, persistence, and a willingness to adapt. By assessing your side hustle’s viability, creating a solid business plan, building a financial cushion, and staying focused on growth, you can successfully make the transition. Remember, every successful business started somewhere—yours could be next!

Ready to take the leap? Start planning today and turn your side hustle into the full-time business of your dreams! I can help! I love everything finances and biz-related! Head to www.jesswaynecoaching.com

 xoxo

Jess Wayne