Many people start side hustles to earn extra money on the side of their regular jobs. A side hustle can be anything from driving for Uber in your spare time to selling items on Etsy to freelancing. At some point, a successful side hustle can turn into a viable full-time business. But how do you know when you’re ready to make the leap to self-employment?

If your side hustle is generating enough income to support yourself financially, that’s a good sign you may be ready to do it full time. You’ll want to make sure the income is consistent and growing steadily. It’s a good idea to track your income and hours for at least 6-12 months to ensure the business is truly sustainable before quitting your day job.

You should also make sure you have enough savings to live on for 6-12 months in case business slows down. As an entrepreneur, income can fluctuate, so having an emergency fund provides stability. If you have financial responsibilities like a mortgage or children, you’ll want to have more in savings.

Another sign you’re ready to go full time is that your side hustle is demanding more and more of your time. If you’re working nights and weekends and finding it hard to keep up with your day job, it may make sense to focus your efforts on growing your business. However, don’t jump into self-employment until you’ve addressed the other signs like consistent income and savings.

You’ll also want to make sure you have enough work lined up to sustain the business full time before you leave your job. If things are going well, start planning how you can scale and find new clients or customers. Build out a business plan to help chart your path to success.

Consider your motivation and mindset. Running a business full time will likely be challenging, so you need to be self-motivated, persistent, and able to work independently. Some people thrive as entrepreneurs, while others prefer the stability of a traditional job. Make sure you understand the risks and are comfortable with uncertainty before making the switch.

If after reviewing these factors, you feel confident in your ability to run your side hustle as a full-time business, start putting your plan in motion. Give proper notice at your current job and work on transitioning your clients or customers to your new business. Make sure to tie up any loose ends before your last day at work. Then, take a leap of faith and get ready for an exciting new chapter as an entrepreneur. While risky, with hard work and dedication, turning your side hustle into a successful small business can be very rewarding.