More than 36% of adults have a side hustle in 2024, according to a bankrate.com survey. If you have a side hustle while working full time, you’ve likely considered making your side hustle a full-time career.
What’s a side hustle? It’s a second, nonprimary job or source of income for a working adult.
Here are some statistics on side hustles, according to a Self.inc financial survey.
- A side hustler spends between 5 and 10 hours per week on their second job.
- A little over 19% of the people with side hustles make over $1,000 per month.
- An average side hustle grosses $688 per month.
For people who love their side hustle more than their job, the question inevitably arises: Should I turn my side hustle into my full-time job?
That depends. Let’s look at some factors you should consider before making the transition.
How to Make a Side Hustle to Full-Time Freelance Job Transition
Keep these side hustle tips at the forefront of your mind when you consider making the leap from a freelance side hustle to a full-time freelance career.
1. Understanding the Challenge
Do you know what it’s going to take emotionally and financially to support yourself and perhaps someone else if you transition to a full-time freelance career? When I was a full-time writer, I was able to get article assignments without doing any freelance marketing.
Occasional opportunities came to me via word-of-mouth or referrals from editor friends who knew my work. I had freelanced early in my career, and avoided going back to it even though I suffered through a long period of dissatisfaction as a staff writer for one reason: I hated the marketing component of it. It wasn’t natural for me to self-promote, and I knew I’d have to spend three-quarters of my time in the beginning writing pitches and dealing with rejection.
It was easy for me to make some extra money in my spare time as a full-time writer without doing much outreach but I knew I’d have to dig deeper to make it on my own. I made the move to full-time freelance out of necessity after I took a buyout from my full-time job in 2021. Before I left, I tried to learn as much as I could about freelancing by focusing mostly on the business part of it.
I transitioned from side hustle to full-time freelance by taking a few online courses from successful freelancers, some group coaching sessions, and by talking to freelancers who’d made the transition. Even with years of writing experience, I still sweated the change. It’s okay if you feel that way, too.
Know your weaknesses before you make the leap to a full-time freelance career and work on them.
2. Putting Money in the Bank Before Going from Side Hustle to Full-Time Freelance
It’s important to have enough cash to make it through a start-up period. If you have clients already, you won’t need to have as much money socked away to get through the build-up process. A general rule is to have three to six months of cash available for living expenses if something causes you not to work or if you need to get work.
My standards are currently more aggressive but it took me time to build it up. I have a year’s worth of cash for any financial hiccups I could incur. I did that by setting aside a portion of my income beyond my taxes and savings for an emergency account.
One option to stay afloat is to take a part-time job. This can help you flip the script while you bank some money as you go from side hustle to full-time freelancer. Your side hustle is now your full-time job but you still have a way to bring in money outside of your main job.
I was leery of doing this because I wanted to devote all my energy to building a business. I figured it was more cost-effective to go all-in on freelancing than to split my time working. However, it has worked for many freelancers. It just depends on your situation.
3. Have a Freelance Business Plan
Write a business plan, put it away, and forget about it for a while. It doesn’t need to be fancy but it should be on paper and act as a guidepost for your journey.
A simple plan for making the transition from side hustle to full-time freelancer is that you should have two important numbers: Your projected monthly income and projected monthly expenses.
A third component is the clients you are targeting. Of course, your plan will become more sophisticated as your business grows but, having a super detailed business plan without having clients is meaningless.
The sooner you can start bringing in money, the better off you’ll be. You can always go back and flesh out your business plan. Building up a roster of paying clients is the most immediate goal. The U.S. Small Business Administration can help you create one.
It’s important not to parse every word of the business plan when you make the move to running a full-time freelance business. It can hold you back. I’ve seen new freelancers agonize over creating the perfect business plan. Avoid that trap. It just saps your energy.
Trust me, you’ll need to put a lot of energy into acquiring new clients.
4. Create Your Identity As a Full-Time Freelancer
Be committed to your new title. Let people know that you’re a full-time freelancer. That includes current clients, family, and friends.
Your online presence should announce your new role. Don’t be shy. One litmus test for making the move from part-time side hustle to full-time freelance is if you are comfortable and confident enough to be public about your role. If it’s not comfortable to call yourself a freelancer, you might want to consider waiting before you leave your full-time job.
This part was scary for me because I genuinely liked my full-time job. You have to immerse yourself in your new role. I took a class that taught me how not to think like a journalist. The hard skills I learned as a journalist—writing, editing, fact-checking—are useful but, I had to rewire my bedside manner and deprogram myself from being overly skeptical, blunt, and detached.
Those qualities are beneficial for journalists but don’t necessarily help when you have to move into sales mode for your new business. Get to know the characteristics successful freelancers adopt.
5. Know Your Worth
Early in my freelance journey, I took any job that came my way. If you have a side hustle, you should know the value of your work. I knew eventually, I’d be able to charge more.
What’s important here is to understand that you’re running a business and your well-being depends on your ability to make money. Many people who have a side hustle love it. The dynamics can change, however, when you’re side hustle becomes your main source of income.
You’ll have to establish your rates and be firm with them. That “nice-to-have” freelance rate that was a little extra gravy in your bank account when you held a full-time job needs to be consistent and a high enough freelance rate to sustain your business and lifestyle. Having a balanced freelance money mindset can help when you’re looking to build a lucrative full-time freelance career.
