Signs that Your Side Hustle Is Ready For The Next Step

The Simple Sum

13 Sep 2023

This article is brought to you by ANEXT Bank. You’ve been working on the side or freelancing for a while and earning a good amount of money.
On certain months, you seem to be doing exceptionally well, and while you could still hold your day job and run this business on the side, you also wonder if you could quit going to the office and do your side hustle full time instead.
This scenario of dedicating your undivided attention toward your own company and seeing it flourish may have crossed your mind but the question is when and how should you go about to achieve it? And most importantly, how do you know it’s the right time?

You have the right mindset and attitude

Not everyone is cut out for running their own business full time, shares Lim Wei Liang, entrepreneurship programme director at Pinnacle by Golden Equator. “Many times, people go into self-employment with the expectation that they can have the freedom of time to do anything they like…but this is the wrong mindset,” he shares. Instead, the road to running your own business requires lots of self-discipline “as there is no one to set goals or push you to generate revenue”.

You are passionate about what you do and open to learn more

Passion is another essential quality to successfully turn your side hustle into a full-time gig, says Wei Liang. “Due the nature of running your own business, it’s easy to burn out without realising it,” he says, adding, “Doing something that you love will not only help you to not give up, but also gives you the drive needed to continue.” Jayce Tham, chief businesswoman at CreativesAtWork, advises that you need to be able to shift your mindset and have an open mind to thrive when you go full time. “As a business owner, you need to be more confident about the decisions you have made, be more curious about how things are being done and be open to learn.”

You can pay yourself

Many people think that as long as they have revenue, they can think about going full time with their venture. However, they neglect to factor in the costs that they have incurred, says Wei Liang. “Just because you earn revenue, it doesn’t mean that everything else is paid off and that you are making money as a business.” This is because many people forget that if they run their side hustle full time, they need to pay themselves a salary too. Thus, there is a pressure to meet fixed monthly targets as a full-time business that you don’t have when you are doing it as a side hustle, shares Wei Liang. “And you need to set a goal and try to reach that first as a side hustle before you consider transiting to a full-time business.”

You know how much it costs to run a full-time business

When you go full time, there are many costs that you’ll find yourself having to fork out aside from the salaries you must pay your employee(s) and yourself. “For example, when you are a side hustle, employee insurance may be optional. But as a registered business entity, it becomes compulsory. You’ll also have to pay for many other administrative costs that you can’t avoid.” Other business costs when you go full time include paying for a business address, doing your ACRA registration and any business banking costs. You may also want to budget for a legal advisor to ensure that you are adhering to all the regulations within your industry. And because you are looking at scaling your business, your marketing and advertising can rack up quickly. Jayce advises business owners to err on the side of prudence and to “cut down on unnecessary expenses and get more value for your money”. “One mentor once told me that when you are your own boss, you should spend $1 like it is $5,” she quips.

You have a plan to scale, grow and further differentiate yourself

Your goal as a full-time business is and should be to grow, advises Wei Liang. “Always remember that once you turn something into a business your focus should be scaling it,” he says. One way to ensure that your business will have longevity as a full-time endeavour is to look at the customer’s lifetime value. “If you see that your customers are constantly coming back to you, it shows that you have created a loyalty system within your customer base, and this, together with your competitive advantage, creates an opportunity to run it as a full business.”
Content sponsored by ANEXT Bank. If you are someone who has ticked all the above boxes and are looking to take your business full time, check out ANEXT Bank, one of Singapore’s first digital wholesale banks, fully regulated by the Monetary Authority of Singapore. The ANEXT Business Account is a commitment-free, simple to use business account with all the essentials and more to start your business – unlimited free local and inward overseas transfers and earn daily interest on your balances. You can also grow your business funds with higher interest rates and short tenures from one month by placing ANEXT Fixed Deposits. If you need a capital boost, the ANEXT Business Loan is designed to offer fuss-free financing for start-ups and small businesses – borrow up to S$300,000 collateral-free and choose between two repayment options: monthly instalments or pay as you draw down from a credit line. Furthermore, no documents are required for loans up to S$30,000. Find out more about how ANEXT Bank is working with SMEs to progress and reimagine financial services for financial inclusion together at anext.com.sg.