From side hustle to full-time business: 5 practical tips for small business owners taking the leap

Running a business on the side while holding down a full-time job has become increasingly common in South Africa.

For many, it starts as a way to supplement income or pursue a passion project. But for some, the side hustle gathers enough momentum to raise a serious question: could this become my full-time livelihood?

Taking the leap from part-time to full-time entrepreneur is a big decision. Done right, it can unlock new levels of growth and freedom. But it also carries significant risk - particularly in today’s unpredictable economy. If you’re thinking about taking the plunge, here are five practical tips to make the transition smoother and more sustainable.

• Get clear on your finances

Before you resign from your day job, take a hard look at the numbers. Is your business currently generating enough profit to cover your personal and operational expenses? If not, how long will it take to reach that point — and do you have savings to carry you in the meantime?

Aim to build at least three to six months’ worth of personal and business expenses in cash reserves. This buffer gives you time to adjust, test new strategies, and survive any early setbacks without panic.

Also, think ahead about tax. When you become a full-time entrepreneur, you’ll need to manage your own PAYE and provisional tax. Speak to a professional to set up a process that works from day one.

• Formalise your operations

Side hustles often operate informally. But as soon as you go full-time, you need to treat your business like a business.

That means:

• Registering your business entity (if you haven’t already)
• Opening a separate business bank account
• Getting the required licences, tax clearance and compliance certificates
• Keeping records of financial transactions through the preparation of management accounts and eventually annual financial statements.

Not only will this help with your own tracking and planning, but it also makes you eligible for funding, tenders and supplier opportunities that require formal documentation.

• Secure your first core clients

Quitting your job without a reliable income stream is risky, especially if your business is still in its early growth phase. Before you take the leap, make sure you’ve secured a few anchor clients or recurring contracts that can sustain your cash flow in the first few months.

If your side hustle is more product-based (such as catering, fashion or e-commerce), test your sales at full capacity while you’re still employed. Can you handle a higher volume? Are you attracting repeat buyers? Is there demand beyond friends and family? You want to move into full-time entrepreneurship knowing that your business model works, not just hoping it will.

• Rebuild your routines

When your side hustle becomes your full-time job, the rhythm of your day will change dramatically. Without the reliable structure of a 9-5, it’s easy to fall into habits that aren’t productive. To avoid this, set a daily routine that includes time for business development, admin, client work and rest.

Be intentional about your working hours, even if they’re flexible. This discipline not only boosts your output but also helps you maintain boundaries – especially if you’re working from home or juggling family responsibilities. And remember, entrepreneurship can be extremely isolating. Consider joining a co-working space or an entrepreneur network to stay connected and motivated.

• Take a long-term approach

Your goal shouldn’t just be to survive the first few months. Once you’ve taken the leap, take time to revisit your business plan with fresh eyes. Where do you want the business to be in one year, three years, five years, and what would it take to get there?

Start tracking key metrics like sales, profit margins, client retention and customer acquisition cost. These numbers will guide your decisions, help you identify what’s working, and make your business more fundable when you’re ready to expand.

Making your side hustle your full-time business is a bold and exciting move, but it shouldn’t just be a leap of faith. Treat the transition as a process, not a single decision. Test, plan, build resilience – and when you do go all in, do so with intention. The better prepared you are, the more likely your small business will not only replace your salary but exceed it.

Jeremy Lang is managing director at Business Partners Limited. 

BUSINESS REPORT