Going full time with your business idea
Making the leap from side hustle to full time business is a big step. Find out what you need to carefully consider.
Choose the right time
You may be ready to take your business full time when:
- your business is generating enough income to cover your living costs
- you’ve got a good cash flow with regular orders and repeat customers
- you’re able to respond to setbacks and have a plan to manage risks
- you’re starting to think more about growth and new opportunities
- you’ve got time to devote to your business
Decide when you'll make the decision
Be clear about when you will decide whether to commit full time to your business. This could be when:
- your business is consistently producing a steady income
- you no longer have time to take on new work or clients and start turning down opportunities
- you’ve saved enough money to cover your expenses during your business’s start up or growth period
Be clear about when you will decide whether to commit full time to your business. This could be when:
- your business is consistently producing a steady income
- you no longer have time to take on new work or clients and start turning down opportunities
- you’ve saved enough money to cover your expenses during your business’s start up or growth period
Understand the implications of going full time
Taking your business full time can have knock-on effects on other aspects of your life.
Your tax liabilities
Once you earn over £1,000 from your business, you need to report your income and register for self-assessment.
If you’re operating as a limited company, rather than a sole trader, you’ll need to comply with rigorous tax and reporting requirements.
If you’ve got caring responsibilities
You may have less free time while you’re working on your business. Think about how you’ll manage any other commitments, and what impact this might have on your wellbeing and on those you care for.
If you’re working
Make sure you can manage without your regular income. Check if there are any restrictive clauses in your employment contract that might limit who you can do business with.
If you’re on benefits
Talk to your local jobs and benefits team to find out what support you can get while you work on your business, and to find out how your benefits might be affected.
Make a plan for how you will take your business full time
When you’re ready to make the change, prepare a plan setting out how you will manage:
- business finances – budgets, cash flow, expenses, tax, salaries
- operations and processes – purchasing, sales, invoicing, record-keeping
- legal requirements – regulations, licences, health and safety, data protection
