You’ve set up a side hustle, and it’s actually turning a profit now. So, when is the right time to leave your day job (and regular income) to become a fully-fledged business owner and entrepreneur?
Can you say ‘yes’ to all of the checklist steps below? If so, it’s time to write that resignation and go get ‘em!
1. Do You Have Enough Saved For Six Months Of Bills?
While it’s tempting to just ‘wing it’ when you start to see sales increase, hang on for a moment and work out if you could afford a downturn in sales.
That’s not just your living expenses, either. Can you afford to invest in more market research? Outbound marketing? More products? You need to be able to support your business AND your home life without the safety net of a regular salary.
2. Do You Know Who You Want To Hire?
You might be flying solo for now, but as your business grows it won’t be long before you need to take on an employee or two.
Make sure you know where your business skills gaps are, and how you would fill them. Consider your management style and how you would handle your first employees.
>>> For more advice on hiring your first employee, click here! <<<
3. Do You Have A Five-Year Plan?
As a side-hustler it’s easy to ‘wing it’ and see how things go. There’s little reliance on an income from your side business, as your day job is filling the gaps and paying your rent.
However, before you jump into full-time entrepreneurship, do you have a clear plan for the next five years? How is the company going to grow? Who will be involved? How will it be financed?
Make sure you have a clear plan for your business before you think about leaving your day job. While new startups have the advantage of being flexible in the market, you’ll need to consider how your business model may change as you become more established.
4. Will You Enjoy This Job Full-Time?
Something many side-hustlers forget to ask themselves is whether they’d enjoy doing their side business full-time. The trouble with taking a passion and turning it into a full-time job is that you risk hating it after a while.
It could go wrong. Or, it could go so right that it grows in a way you never expected and you could lose business focus. Alternatively, you could get sick and tired of making the same products or providing the same services time and time again.
If you’ve turned a hobby into a side business, try to think about how it’ll make you feel when the business really takes off. Remember: as the business grows, so does your administration, planning, and investments.
Right now, you can spend time doing your hobby to create 10 orders, for example – but what about when there are a hundred, or a thousand orders? Think about how expansion would affect the way you’re involved with the business.
Did you answer yes to all of the above?
Then it’s time. Go forth, and be a fully-fledged, full-time business owner!