Running a “side hustle,” or a “passion project,” is a lot like starting a new relationship. It probably started out casually; eventually, however, you may come a point where you must decide how serious you are about it. Are you ready to commit?
Here are some signs you may be ready to take it from being a fun, part-time way to supplement income, to being your full-time job:
The income is steady (or steadily increasing)
If the income from your side hustle is substantial enough to support yourself, it could be financially feasible to shift the passion project to full time. Another sign would be an indication that devoting more time to the business will result in more income.
Consider, though, whether the income from your side hustle is growing or has the potential for growth. If it is stagnant or volatile, think carefully before quitting a steady full-time job.
You are willing to commit
If you are ready to quit your job and devote yourself to running a business, make sure the commitment is real. Are you willing to spend 40+ hours a week on this endeavor? Can you make sacrifices to help your business grow? Will you take the steps to lay a solid foundation, like choosing the right corporate structure and putting necessary contracts in place?
If you are ready to make the financial, personal, and professional commitment to your business, it could be the right time take the leap.
You have a plan (and a backup plan)
No matter how confident you may be in your new business, it is crucial to have a business plan that formally establishes your goals and what you will do to reach them. Give yourself deadlines and objectives to keep you on track and moving forward.
Meanwhile, you will also want to have a backup plan. For instance, have a healthy amount of savings or emergency funds. As this article notes, this money should allow you to dedicate yourself to your business for at least six months without any income. You should also think about expenses like healthcare coverage.
There are no guarantees when it comes to starting a business. However, if you start seeing these signs, they could indicate that you are ready to take your relationship with your side hustle to the next level.