How to Turn Your Side Hustle into Your Full-Time Job
Introduction
Side hustlers across the country are daydreaming about leaving their full-time jobs behind and striking out on their own. A new study revealed that 81% of Americans who currently have a side gig want to make it their sole focus, saying farewell to the 9 to 5. But many of these same people can’t figure out how to make the transition and turn a side gig into a full-time source of income due to concerns about money, lack of time, or other obstacles. Here are six tips to help make the leap successfully.
Timing is Key
Transitioning from your full-time job to your side gig is about timing, says Brian Ford, a financial well-being executive.
“Determine when it’s best to take a side hustle full-time by weighing the trade-off of investing more time on your side gig versus your primary income source,” he says. “Be mindful of the opportunity cost of sacrificing the stability of your total compensation package for unpredictable earnings potential.”
Steps to Determine the Right Timing
- Consult a Professional: Sit down with a financial professional adviser or mentor to plan your transition.
- Develop a Business Plan: Create a detailed business plan and budget to outline your financial strategy.
- Set Legal Foundations: Ensure you have the necessary legal foundations for your business.
Image Description: Illustration showing a timeline for transitioning to a full-time side hustle.
Do Your Research
Before making the big leap, ensure there’s a market for what you want to do or sell. Kristin Marquet, founder of FemFounder.co and The Splendor Studio, emphasizes the importance of market research.
“Make sure there’s a market large enough for you to sell to consistently,” says Marquet.
Research Steps
- Identify Your Market: Understand your target audience and their needs.
- Analyze Competitors: Study your competitors and identify what makes your product or service unique.
- Validate Your Idea: Use surveys, focus groups, or pilot programs to test your concept.
Image Description: Infographic showing steps to conduct market research.
Expand Your Client Base First
Before leaving your day job, begin reaching out to potential clients. Maddy Osman, founder of The BlogSmith, suggests starting to build your client base early.
“It’s also a good idea to begin cold pitching people,” says Osman. “You want to begin finding clients before you leave so when you leave, you have work lined up.”
Client Base Expansion Tips
- Leverage Your Network: Reach out to people in your existing network who might be interested in your services.
- Cold Pitching: Develop a list of potential clients and start pitching your services to them.
- Showcase Your Work: Create a portfolio or website to display your work and attract new clients.
Image Description: Illustration of strategies to expand your client base.
Create a Financial Cushion
In the best-case scenario, you will have time to plan your exit and build a financial cushion. Maddy Osman advises having enough money to cover a few months of expenses when starting your new gig.
Building a Financial Cushion
- Save Three to Six Months of Expenses: Financial experts suggest having at least three months of emergency money ready.
- Cut Unnecessary Expenses: Reduce your current spending to save more quickly.
- Separate Savings Account: Open a dedicated account for your financial cushion to avoid spending it accidentally.
Image Description: Infographic showing how to build a financial cushion.
Find a Mentor
Connecting with a mentor early in the process can provide invaluable feedback and guidance.
“My mentor was willing to talk with me whenever I had questions or concerns,” says Osman. “It’s beneficial to have someone to tap into for advice.”
Benefits of a Mentor
- Experience Sharing: Learn from someone who has successfully made the transition.
- Networking: Gain access to your mentor’s professional network.
- Guidance and Support: Receive advice on overcoming challenges and making strategic decisions.
Image Description: Illustration showing the benefits of having a mentor.
Be Different
To break through the noise and be successful, find a way to be distinctive. Kristin Marquet highlights the importance of differentiation.
“Make sure whatever you are offering has a unique spin that differentiates you,” says Marquet.
Ways to Differentiate
- Unique Selling Proposition: Identify what sets your product or service apart from competitors.
- Innovative Pricing Model: Consider offering flexible or unique pricing options.
- Distinctive Branding: Develop a strong brand identity that resonates with your target audience.
Image Description: Infographic showing ways to differentiate your side hustle.