If you're a side hustler but looking to turn that side hustle into a full-time profitable business, you have come to the right place.
Today, I'm here to talk to you about how and when it's time to make the switch to becoming a business owner, being your own boss, and with no fixed contract anymore.
Don't be scared. I know it can seem frightening to make the jump, so that's why I have created this episode for you.
It's going to be a to-the-point episode, so hang tight.
To quit or not to quit?
I assume you're faced with a problem.
You have started working for yourself, and you absolutely love it, but you're still tied to an employer. You are filled with self-doubt and feeling overworked, wasting a lot of energy on your job, leaving you with almost no time for your side hustle.
I have been in that situation, too, and here to help you figure out when it's time for YOU to quit your full-time job and go all-in on your side hustle.
For instance, if you're in a safe position and your financial support is good, why not go for it? On the other hand, if you're not quite there, I recommend you take a few things into account.
You don't necessarily have to quit your job immediately to focus on your dream. There's no shame in waiting until you have created a safe environment financially, so you can focus your mental energy on your business. Otherwise, you may risk wasting that energy because you feel unsafe.
Spend your (time) resources wisely
You probably recognize the problems I just described: feeling overworked, filled with self-doubt, no time left for your side hustle, and not knowing when to quit. Am I right?
Let's look at how to get you out of this situation.
First of all, it starts with you being extremely mindful about your 80/20, especially when you have such limited time, and it's a side hustle.
What I mean by this is you need to look at:
- What is bringing in revenue for your business?
- What is actually moving the needle in your business?
If your business isn't bringing in money or clients, it's NOT a business. It's a hobby.
Therefore, your 80/20 divide should be focused on sales and bringing in clients. And here, I don't mean putting stickers on your car or working on your website every night. No, it's about converting those DMs into clients; it's working with your clients.
You need to ask yourself: am I wasting my time, or spending my time the way I should be spending it?
TIP: make a list of all the things you do for your side hustle. Make another with the biggest results you have seen lately or that you are proud of. Now, draw a line from the actions that were the biggest factors leading to the results.
If you see a pattern, stick to those winning actions 80% of your time, and leave the rest.
If this means you have to stop working with some clients, then that's what you have to do. Especially in a service-based business, I know this can be difficult, but it's YOUR business. You're the boss of your health and sanity. Don't let clients run your business.
Recap: spend 80% of your time on the actions that bring in the biggest results. In your case, that probably means converting sales and bringing in clients.
Ask yourself these 4 questions before making the jump
Now, if we dive a little deeper into actually making the jump from a side hustler to a full-time business owner, I have created a list with 4 questions that I strongly recommend you ask yourself. Answer honestly.
Q1: How much money do you need to live?
If you still work for an employer, I assume the money you get there is the money you need to survive (not thrive) to pay your monthly bills.
Be realistic about the amount you need, and write down the monthly costs you have to live.
Example: let's say you need €1500/month. Considering that half of what you earn will go to taxes means that you need to make €3000/month (excluding potential extra business costs; see Q2).
Q2: How much do you need to sell to hit that?
You know how much money you need to live, but how much do you need to sell to hit that amount?
When you calculate this, remember to add your costs on top. This applies whether you're selling a product or trading your time for money.
If you think it's challenging to figure out these numbers, I have previously created a 4-step guide to help you calculate your hourly rate.
Q3: Which gap do you need to close?
Next up is figuring out which gap you need to close.
Usually, it's said that you should have a 3-month money buffer in your bank account to start a business. Others recommend 6 or even 12 months. I recommend sticking to 3 months to start.
If you don't yet have this kind of buffer in the bank, don't use that as an excuse for postponing your dream. For instance, I have always had a social buffer with supportive peers rather than a big financial buffer.
The point is you will most likely not end up homeless or living in the street because you have peers to lean on in tough times. Maybe you have a supportive partner, family, cousin, or friend who can help you out.
And though they may not support your dream, they support YOU, which means you basically have everything you need to go for it.
Don't let bankruptcy or fear of failure paralyze you. Don't be too good to ask for help. You’re in an environment that can afford to help you out. Use that to your advantage. Be grateful.
Q4: What can you automate?
Before you leave your full-time job completely, already start looking into what you can automate in your side hustle. Because when you go all in, you want to look at automation anyway.
For instance, invest in your marketing and scheduling, so you can focus on your zone of genius in your business—even when it's not yet full-time.
Make sure you have systems in place, like
- Storage: Google Drive
- Task manager: Notion or Asana, or the Excel template I teach in my Time Management and Workflow System course
- Social media planner: SkedSocial
- Appointment scheduling: Acuity
These are just examples, but at the end of the day, you can save a lot of time on administration and build your business while you still work for your employer.
Investing in automation systems may seem counter-productive because you're not earning a lot yet, but I promise you this will free up so much of your time and fill your pipeline with new potential clients.
Remember, you have limited resources and already working harder than anyone else, so make sure you're working on the right stuff.
Maybe you're also interested in this: 9 Systems to Build Your Online Business
Financial safety vs. mental energy
Congrats, you made it till the end. I hope these questions will help you determine how and when it's time to turn your side hustle into your full-time profitable business.
If you're thinking: ‘Do I need to quit immediately?' The answer is no, not necessarily. There's nothing wrong with playing it safe, but I want you to ask yourself if you're playing it safe because you have to or because you're scared?
I mean, no job is safe, but in your own business, you have control. And if it doesn't work out, you can always go back to working for someone else. There's no shame in that.
At the moment, it may even make sense to keep doing what you're doing for a bit longer. Always be mindful of your energetic balance: look at your financial safety and mental energy to see if there's a balance there.
Remember, don't take unnecessary risks, but calculated risks are totally fine.
Trust your gut, and you will know when the time is right.
Is it your BIG DREAM to make €10.000 or more every month?
I have created the 6-Figure Freedom Framework for you to:
- Learn how Amy made consistent 10k months
- Discover the 10 pillars for your 6-figure a year business
- Gain clarity on where you're supposed to spend your time and energy
PS Are you thinking, after reading this article, that you’d love some actual coaching from me and my team? Then it’s your lucky day because I’m hosting my Business Summer School again this year.
I hosted it last year and more than 3000 people attended. We talked about mindset, taking fast action, creating a profitable product suite, marketing, launching and basically all of the good stuff.
Do you feel like joining? Go take a look at fastforwardamy.com/bus and register for my Business Summer School of 2023!
Good luck! I'm rooting for you.
We do not take any responsibility for the financial decisions (or any other business-related decisions) made by listeners/businesses based on our podcast content. Every business has its own specifics, which we cannot take into account in this podcast.