4 Signs You're Ready to Turn Your Side Hustle Into a Small Business

It may be time to take that leap.

A lot of people are working side hustles these days, whether to boost their income for leisure spending or pay off pesky credit card debt. If you've been working your side hustle for quite some time, you may be reaching the point where you're thinking of turning it into your full-time job. More so than that, you may be thinking of turning it into a small business.

There are a number of benefits you might enjoy as a small business owner, like different tax breaks. And if these signs apply to you, it may be time to consider converting your side gig into an official business.

1. Your workload keeps growing

Many people who start out side-hustling have to work hard just to find work. But if you've been at it a while, you may be in a place where there's a lot of demand for your services. And if that's been happening steadily, it's a sign that you may be busy enough to turn your side hustle into a full-time business.

2. You're commanding a nice hourly or per-project wage

Are you earning more money per hour at your side hustle than at your regular job? That's not an uncommon thing. And if you feel there's enough demand for whatever it is you do to work that gig full time, then starting a business could end up making you richer on a yearly basis.

3. You have plenty of money in savings

Even if you're doing well at your side hustle, it might take a while for a business you start to become profitable. Keep in mind that there are certain costs associated with opening a business, from things like filing fees and paperwork to acquiring the supplies or workspace you need. And it could take time to recoup those costs.

If you're going to turn a side hustle of yours into a small business, make sure your savings account is pretty nicely loaded with funds. Ideally, you should aim to have enough cash to cover a good year's worth of expenses or more. That way, you can cover your essential bills without stress, and you can focus your energy on getting your business going.

4. You don't like your main job

It's one thing to give up a job you really like in order to start a business of your own. But if you happen to dislike your main job, then that's all the more reason to take your side hustle to the next level. If you open your own business, you might manage to spend your days doing the things you love, as opposed to the things your boss insists that you do.

The decision to start a small business is a big one, and it's important to put a lot of thought into that decision before diving in. But if these factors apply to you, then it may be time to stop limiting your gig work to a side hustle -- and instead start a business you're motivated to work at all the time.