5 Tips for Making the Leap From a Side Business to a Full-Time Startup

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For some people, side hustles are a way to earn a little extra money. But for those who aspire to start their own business, they’re a chance to test drive ideas that could become something much bigger than an evening or weekend endeavor.

Some very familiar tech companies got their start as side projects, including Groupon, Twitter, Craigslist and Instagram (which began as Burbn, a location-based app for whisky lovers). And, in some ways, it’s easier for today’s gig workers than it was for those founders to advance a side business into a fully-fledged startup. Here’s how experts suggest you make the transition.

1. Resist the temptation to go all-in too early.  Being excited about transforming your side gig into a full-time startup is a good thing, but you also have to keep one foot planted firmly in reality. Do the math. Know how much you’ll need to make in sales to generate a profit that will match the salary of your current full-time job. It can slow the launch, but it ensures the transition will be smoother.  You need to put let’s say 20 percent of your time into that your side-hustel while paying attention to your core [day job] business.
2. Move methodically.  Hunter Ellenbarger, founder of Star Quality Studio, a design studio and creative consulting firm, agrees with the advice of going slowly. What started as a side hustle with him creating social media campaigns and content for artists and creators is now a full-time business. But he says if he had focused on it to the detriment of his job (as a member of YouTube’s marketing team), it could have turned out much differently.
3. Consider whether you want funding.  As you get a better sense of what needs to be done with your fledgling startup, you may also find yourself facing funding needs. With a startup, especially one born from a side business, that will most likely be people from your personal circle. And there are unique risks, should you decide to accept their offers and even before you dip deeply into your own bank accounts if you have a spouse or family.
4. Assemble the right team.  Side businesses don’t have to be solo ventures, and they’re often easier when you’ve got partners. But if you’re planning to convert that side project into a full-time endeavor, you’ll need to ensure that your co-founders are on the same page, and are willing to make the same sacrifices you are.

And Think like a corporation.