Side-Hustle To Full Time Business – How to Financially Prepare for the Leap
5/1/2025 - Starting Your Business | Small Business Resources
A side hustle is often a creative outlet for entrepreneurs without the capacity to manage a company full-time. But what happens when a weekend or seasonal hobby has the potential to grow into a larger business?
There are many factors to consider when deciding whether to turn your side hustle into a genuine small business. In addition to the financial implications, there are personal questions to ask.
Use the information below as a guide before taking the leap into small business ownership.
Your side hustle has grown consistently, but is the timing right for a full launch? What are the implications of moving forward earlier or later? Questions to ask are as follows:
Some side hustles take off overnight, while other entrepreneurs labor for years working multiple jobs to support their creative side. When considering whether to go all-in on your business, remember that your journey is unique to you. You must craft a plan that best fits your personal and professional needs.
Building your business happens alongside your personal or family budget. The decision to quit one full-time job, or multiple part-time jobs, to devote resources to your side hustle must take your monthly expenses into account.
Can you afford to pay your rent or mortgage if you leave one of your jobs? Or can your partner handle the financial load while your new business grows? Do you plan to use any personal savings to support the business?
Your family may need to have discussions about cutting back or taking a break from family vacations for a year or two, and the weekly schedule may change as you put in more hours at your new company.
The support of your personal network is key to making your business thrive. Keep lines of communication open before, during and after you launch a company full-time.
There are many factors to consider when deciding whether to turn your side hustle into a genuine small business. In addition to the financial implications, there are personal questions to ask.
Use the information below as a guide before taking the leap into small business ownership.
Consider the Timing
Your side hustle has grown consistently, but is the timing right for a full launch? What are the implications of moving forward earlier or later? Questions to ask are as follows:- Is there demand for my product in the marketplace?
- Is demand expected to rise or fall based on seasonal trends or gift-giving?
- Is rent for a storefront affordable or increasing?
- Are there tax benefits to take advantage of?
Some side hustles take off overnight, while other entrepreneurs labor for years working multiple jobs to support their creative side. When considering whether to go all-in on your business, remember that your journey is unique to you. You must craft a plan that best fits your personal and professional needs.
Keep Lines of Communication Open
Building your business happens alongside your personal or family budget. The decision to quit one full-time job, or multiple part-time jobs, to devote resources to your side hustle must take your monthly expenses into account. Can you afford to pay your rent or mortgage if you leave one of your jobs? Or can your partner handle the financial load while your new business grows? Do you plan to use any personal savings to support the business?
Your family may need to have discussions about cutting back or taking a break from family vacations for a year or two, and the weekly schedule may change as you put in more hours at your new company.
The support of your personal network is key to making your business thrive. Keep lines of communication open before, during and after you launch a company full-time.
When considering whether to go all-in on your business, remember that your journey is unique to you.
Find an Accountant or Business Manager
Unless your company deals with finance, chances are you will want an expert to help you with the money side of your business. A side hustle may not need to worry about employee benefits or insurance, but a full-fledged business must account for these aspects. Consider hiring a certified public accountant, business manager or bookkeeper to help you manage accounts receivable and payable, payroll, cash flow and more.
A CPA or bookkeeper can also provide a system of checks and balances for spending.
Invest in Security
Small businesses come under attack each day from hackers trying to steal company and customer information. As you move into small business ownership, it’s vital to understand the risks and how to protect against cyberthreats. Security software is readily available, but you may need to budget for stronger defenses as you begin to process more payments. Hackers often target small businesses because they don’t have adequate resources.
You will want to devote time to training any staff you have to defend against business email compromise and other cyberthreats. Consider making cybersecurity training part of any annual required safety training so everyone can be up to date on the latest scam trends.
Budget for Growth
In the midst of transitioning into a full-time business, you may find it difficult to think about the future of your company. However, you’ll need to intentionally set aside funds to keep the business growing.- Advertising – dollars spent advertising should expose your company to new people.
- New equipment – a side hustle can get by on minimal equipment, but your business may need to invest in updates to be competitive.
- Product expansion – as you see success, consider how additional products can bring in new shoppers.
- Employees - dedicated staff can help you avoid burnout; new people can also help you dream up fresh ideas.
Work With an Expert
Your new company will require additional financial resources, and your local small business banker can help. Working with a trusted expert can make applying for an SBA loan, finding the right POS system and saving funds easier and hassle-free.
Learn more about Small Business banking with SouthState.
