So, you’ve started a side hustle and are ready for the next step:

Turning it into a full-blown business.

Or maybe you want to dip your toes in the business world with the idea of expanding your side hustle later?

Whatever situation you’re in, you’ve come to the right place!

Today, you’ll learn exactly how to turn a side hustle into a business.Plus, I’ll share the top business ideas that pay very well.

Ready to dive in?

Let’s go.

How can you turn a side hustle into a business from home in 8 steps

The steps you need to take are: 

• Find the right business idea
• Create a business plan
• Set goals 
• Understand your finances
• Set up your business structure
• Get clients
• Develop your mindset
• Know when to quit your job

Is it worth it? 

Yes! Having a side business is a low-risk way to:

• Earn some extra money
• Try out different business ideas
• Learn new skills
• Lay the foundation to become your own boss

How do I know? 

I started my own side business while I was in a demanding day job. 

Within four months, I turned that side hustle into a full-time business. 

But that’s four months after I started my business. It took me years and a few failed attempts to figure out what business I wanted to start and how to get clients.

And I’ve put my learnings into the following steps: 

1. Find the right business idea 

Let’s start with some good news:

Your business idea doesn’t need to be groundbreaking to succeed.

The two main things you should look for are:

• Easy setup
• High profit margin

Wondering what types of businesses fulfill these criteria?

Well, three great options are:

• Coaching
• Consulting
• Creating online courses

These business models let you earn money by sharing what you already know.

This means you can get started right away.

And because you offer a high-value service or product, you can charge more too.

That’s what I did – I started selling digital advertising consulting services (a skill I had acquired in my 9-5). 

Because I already had those skills and I could charge a high price for my knowledge, I was able to sell my first package at $5,000.

Think about your own idea:

• Does it have potential to make money?
• And do people want what you’re offering?

Jumping in without this knowledge is risky.

But figuring out your market isn’t too tough.

It’s all about knowing who will buy from you and why.

Now, it may seem like you need to work all this market research out in an elaborate business plan, but that’s not really true.

Let me explain…

2. Create a business plan 

Do you need a business plan to know how to turn a side hustle into a business?

Not quite.

While a business plan can be helpful, it’s not a MUST-have. (I didn’t have one when I started out. Instead, I researched my market and iterated.)

Think of a business plan as a map that shows where you want to go and how you plan to get there.

It should be straightforward and practical — not a thick book.

Unfortunately, many new business owners fall into the following trap:

They try to perfect their business plans, believing it will make them ready to launch.

But guess what…

Too much planning actually slows you down.

What’s most important is to get started.

Use your business plan to organize your thoughts and outline a few key steps, but don’t let it hold you back.

After all, you learn the most by actually doing.

So, keep your plan short and focused on solving your customers’ problems, using your market research.

Next, let’s look at how to set the right goals for your business.

3. Set goals 

To transform your side hustle into a thriving business, you need the right goals.

Goals help you:

• Check your progress
• Tweak your plans
• Keep you from feeling overwhelmed by aiming too high too soon

Just keep in mind:

Not all goals are the same.

To help you succeed, your goals should be:

• Realistic
• Doable

Here’s how to get started:

Break down your BIG goal into smaller, manageable steps.

This method makes your larger goal feel within reach and keeps you motivated.

For example, if your main goal is to live a life of freedom, lay out the smaller goals to get there.

Often, the first subgoal you should aim for is getting your first clients. (But more on how to make that happen in step 6.)

With your goals set, the next move is managing your finances…

4. Take care of your finances

Moving from a side hustle to a full-time business means more financial responsibilities.

Set yourself up for success, by keeping your finances in order.

What’s the first step?

Start by separating your personal and business finances.

This makes tracking your income and expenses much clearer.

What else should you watch?

Well, a few key things like:

• New leads
• Sales inquiries
• Actual sales
• Profit

In this video, I talk about what each metric means for your business:

By monitoring these figures, you see what’s working and can fix what’s not.

This approach helps you understand your business better AND guides you in making smart decisions.

Next up? Making your business official.

5. Set up your business 

Turning your side hustle into an official business doesn’t have to be complicated.

For a smooth transition, follow this checklist I put together for you.

But for now, let’s just look at three important steps:

• Choose your business structure: A sole proprietorship is the simplest form. However, a limited liability company (LLC) offers potential tax benefits and protection against business liabilities.
• Handle the registration: Register your business name with local or state authorities. If you’re operating under your own name, you might not have to register at all. But then you also miss out on legal protections and tax deductions.
• Get any necessary licenses or certifications: This step depends on your industry. For example, selling handmade goods online might not need a license, but offering legal or health advice usually does. Even if it seems like you don’t need anything, always double-check for any local rules. Think of a home business license, an occupational permit, or a DBA (doing business as).

With these steps completed, you’ve laid the foundation to grow your side hustle into a thriving business.

Now, it’s time to focus on getting clients.

6. Get clients

The next step is to find clients.

However, don’t try to do too much too soon.

Instead, focus on one client at a time.

This approach is less overwhelming. Plus, you can use the feedback to keep improving.

Where do you find these clients, though?

Here’s a simple yet effective strategy that works:

Figure out where your potential customers are — and then be there too.

This could be on platforms like Reddit, Instagram, or Facebook.

Every few days, take some time to answer questions and share valuable insights.

The key here is to be CONSISTENT.

That’s how you grab attention and build trust.

With every happy client, you have new testimonials and reviews.

These are priceless for your business.

They prove that you deliver results. And with this proof, even people who were unsure before will be more likely to engage with your business.

In fact, after I landed my first client at $5,000, I struggled to sell my services. 

Until it dawned on me why… I had helped my first client for free for a couple of weeks before she bought from me. 

So she already trusted me – and that’s why she was willing to pay that money.

I realized I had to take a step back and lower my rates temporarily (to $1,500), get a few testimonials to be able to increase my rates.

That’s what I did – and didn’t look back. 

Ready to learn more about winning clients? Then check out this short video:

Getting clients is key, but it’s just as important to develop the right mindset.

Let’s find out how.

7. Develop an entrepreneurial mindset

All the previous steps are super important, but none of them will work if you don’t have the right mindset.

Your mindset is the key to a thriving business.

And to make it big, you need to think like an entrepreneur.

But how do you do that?

Here are three top strategies to develop an entrepreneurial mindset:

• Focus on actions, not numbers: Concentrating on what you can DO to make your business successful keeps you moving forward.
• Become self-motivated by default: Make working on your business a daily habit. Find the time of day when you’re most productive — and stick to it.
• Figure out how you can make things work for you: Instead of doubting whether something will work for you, think about how you can make it work. This proactive attitude helps you think of creative solutions. That’s how you’ll succeed no matter what.

Having an entrepreneurial mindset also means being patient.

This leads us to our next important step…

8. Know when to quit your job 

A big part of moving from a side hustle to a full-time business is quitting your day job.

But that doesn’t mean you NEED to do that just yet.

In fact, it’s much better not to rush it…

Let’s look at a straightforward plan to make sure you’re ready.

It’s called the “321 rule”, and you’ll want at least two of the following requirements in place:

• 3: Have steady sales for at least three months
• 2: 2X your salary to cover surprise expenses and lost employee benefits
• 1: Have a safety net that covers a year of living expenses

Sticking to these rules puts you in a strong position to handle challenges and make strategic decisions.

That’s what I did, too. I built my business to six figures before I quit my job.

And I’m so glad I did because I didn’t have to deal with financial stress on top of building my business. 

Great! You now know how to turn a side hustle into a business.

Next, let’s look at the best side hustle ideas that pay well.

Best side hustle ideas that pay well

As I already explained, if you’re thinking of turning your side hustle into a business, go for a business model that:

• Requires little upfront investment
• Has the potential for big returns

Not sure where to get started?

Let’s take a quick look at the side hustle ideas that can make you the most money:

• Productized services: Turn your skills into packaged services. For example, if you’re good at graphic design or social media management, offer these as fixed packages. This makes your skills easy to sell. (Yes, even if they seem simple to you.)
• Done-for-you business: Handle tasks for clients that they either don’t have time for or lack the expertise to do themselves. This could be anything from website setup to managing social media. Clients appreciate the convenience, and it can lead to repeat business.
• Content creation: Content creation can be very profitable. You could write, start a podcast, create videos, and so on. For instance, my daily email newsletter played a big part in growing my business to eight figures. That said, it takes time to build up an audience.
• Online courses: Share your knowledge through online courses. This requires skills in marketing, teaching, and sales, but can generate a lot of passive income for many years to come. Websites like Udemy and Teachable are perfect for offering your courses to a worldwide audience.
• Digital products: Create digital items like templates, checklists, or planners. Like online courses, these products can be sold repeatedly at no extra cost. You could sell through platforms like Etsy or your own website.

With the right strategy, these side hustles have a high chance of becoming very profitable and sustainable businesses.

All it comes down to is taking that first step.

Next steps

There you have it! You now know exactly how to turn a side hustle into a business.

Being your own boss comes with many benefits. And with the right strategies, mindset, and systems, it’s completely within your reach.

Often, success boils down to your willingness to invest in yourself.

Ready to take the next step?

Then, get my free blueprint where I show you exactly how to go from employee to entrepreneur.  

Read more:

How to Start a Side Business from Home

Finally Go From Employee to Entrepreneur

How to Start a Business While Working Full Time