Dec 26, 2025
Quitting your job to turn your side hustle into a full-time business might sound like a dream: freedom, flexibility and the ability to do what you love.
However, according to Wayfair co-founder and CEO Niraj Shah, the decision isn’t one to take lightly (1). On a recent episode of NPR’s How I Built This podcast (2), Shah says there’s a way to make what he calls a “no-regret decision.” To do that, you should ask yourself two key questions:
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- Has your business progressed enough to justify going full-time?
- Have you reached a point where your side hustle is showing consistent growth or generating recurring revenue?
If your customer base and income are trending upward and you believe full-time focus could help it scale, you may be ready to take the leap. Here’s how you can evaluate your business to carefully answer these questions, plus why you should create a financial safety net before taking the leap.
Can you afford to take the risk?
Shah emphasizes that passion alone isn’t enough to sustain a business. You need a financial cushion to weather the unpredictable early stages of entrepreneurship.
Billionaire Mark Cuban echoes this sentiment (3): “Save your money first. Don’t just leave [your job] unless you know what the hell you’re doing."
If you can’t survive a slow start or if your family depends on your income, it may be better to keep your day job while continuing to build your business on the side.
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What are your chances of being successful?
Side hustles are everywhere. About 39% of working Americans — that’s roughly 80 million people — have one (4). Millennials lead the trend, with half juggling a side gig alongside full-time work.
But there’s a big difference between running a side hustle and running a business. A side hustle can be flexible and part-time. Launching a business, on the other hand, means managing employees, finances, legal obligations and building a long-term strategy. It can also mean being responsible for the livelihoods of others.
And the reality? Most small businesses don’t survive. The U.S. has roughly 34.8 million small businesses, making up 99.9% of all companies.
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Yet 90% of new ventures fail over time, with 20% shutting down in the first two years and 65% within the first decade (5).
Starting costs can also be steep. The average new business spends about $40,000 in its first year, according to Sellers Commerce, though some start lean at $12,000, while others — like restaurants — may require several hundred thousand dollars.
That’s why Shah’s first question, about real traction, matters. If your side hustle isn’t yet bringing in consistent income, the odds of replacing your salary overnight are slim.
Is it time to turn your side hustle into a business? Here's what to consider
If you’re still dreaming about taking your side hustle full-time, the key is preparation. Here are a few questions to guide your decision:
Are you growing?
Look beyond enthusiasm and focus on hard data. Are your customers coming back? Are your sales consistent or increasing? If your business shows steady traction and you’ve validated demand, that’s a sign you’re on the right path.
Do you have a financial safety net?
Before quitting, calculate how much you need to cover personal and business expenses for at least six to twelve months. Many financial experts, including Shah and Cuban, stress that having cash reserves helps you survive lean months and make smarter long-term choices.
What is your business plan?
A side hustle can run without much structure, but a business needs direction. Create a roadmap that outlines your revenue model, growth strategy,and operating costs. If you can’t articulate how you’ll reach sustainable growth, you’re not ready to scale.
Can you test the waters first?
Instead of quitting cold turkey, consider reducing your hours or going part-time. Shah says this “in-between” step can help you test whether full-time entrepreneurship is sustainable without losing your safety net.
Do you love the work enough to do it every day?
Passion can’t replace profit, but it can sustain you when business gets tough. If your side hustle energizes and excites you, that’s a sign you might be ready to build something lasting.
Turning a side hustle into a real business isn't an impossible dream, but it does require preparation. Before taking the leap, evaluate your potential growth, create a safety net and make sure you're truly ready.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CNBC (1); NPR (2); Wired (3); Side Hustle Nation (4); SellersCommerce (5)
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
