side hustle vs full-time business

Side Hustle vs. Full-Time Business: What’s the Right Path You?

Want to start a business but uncertain if you're ready to do it full-time? Consider the pros and cons.
5 mins read
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In this economy of non-stop inflation, making more money is a priority for most of us. People are turning to side hustles to cope with the rising prices of essentials. In the Philippines, the side hustle culture is thriving.

A 2023 study gathered 1,000 survey respondents aged 18 and above. Sixty percent of the participants said they had side hustles or part-time jobs, proving that younger Filipinos are raketeros and raketeras. They do this to strengthen their financial capacity. 

It makes sense to invest in a side hustle, but some questions need answers first: 

  • Which is better: side hustle vs. full-time business?
  • Is this the path for you?
  • What are the pros and cons of each?
  • Should I start a side hustle or is a full-time business better?

Benefits of starting a business as a side hustle first

Starting a business can be difficult, especially if you have a full-time job. So a  side hustle first can be a smart option for would-be entrepreneurs. 

Consider this: launching a business as a side hustle offers a safety net. The steady income from your full-time job as you build your business reduces the risk of failure and eases financial pressure. You can grow your business without worrying about not paying the bills.

As you work on your side hustle, you also build a network with customers, suppliers and industry experts. These conversations provide you with more knowledge of your target market that you can use to refine your business strategy. 

Finally, one of the best benefits of starting a business as a side hustle is the freedom to pursue your passion. 

Pros and cons of doing business as a side hustle

When you need additional funds, a side hustle is a reasonable Plan B. But like any financial venture, some pros and cons come with it. 


  • Additional income. Side hustles offer extra money to add to your current earnings. 
  • Skill development. The execution of any side hustle requires learning new skills and gaining experience. Developing new skills is a plus to your personal growth. 
  • Diversification of income. A side hustle diversifies your source of income, which reduces your financial risks. By adding more streams of income, you expand and explore new growth areas. 


  • Time-consuming. Side hustles demand time and effort, which can be draining. 
  • Risk of burnout. Exhaustion will follow when you’re doing your side hustle and going to work full-time. Practice work-life balance to prevent burnout.
  • Financial risk. Some side hustles might require investments without guaranteed returns. Before you say yes to a hustle, consider the cost/benefit ratio first. 

Signs you can build your business full-time

A good sign to go from part-time to full-time operation is prosperity. But other signs must follow before you commit to the business.

  1. You’re seeing consistency. After months or years of operating your side hustle, you see a steady income every month. When you see consistency and have a clear idea of how much you’re going to make, it’s time to go full-time. 
  2. You have savings and an emergency fund. Side hustles help build up emergency funds or save more money. Once you’ve topped your emergency fund and your savings are adequate, turn your side hustle into a business. 
  3. You have a solid business plan. Every successful business starts with well-crafted and informed strategies. You’re on the right track if you have a business plan.
  4. You feel financially comfortable. When you think about finally quitting your job, you have no anxieties about expenses. The income from your side hustle can keep up with your lifestyle. If this is the case, go full-time!

#NinjaTip: Your business needs the right logistics partner from the start. Partner with Ninja Van for end-to-end and customized solutions from express delivery to fulfillment, supply chain, and logistics management. Ship with Ninja Van today!

Benefits and downsides of doing full-time business

The benefits of a full-time business go beyond financial security. But weigh the pros and cons if you’re thinking about turning your side hustle into a full-time venture.


  • Independence. The inherent independence of a business owner is ideal for people who prefer to work autonomously. 
  • Flexibility. You decide the hours you work, which is a plus for anyone who operates more efficiently outside the 9-to-5 office hours. 
  • Financial gains. The steady stream of income strengthens your financial security.


  • Managing cash flows. You need multiple income sources to ensure financial stability even if one source runs dry. 
  • Maintaining legal compliance. Legal compliance comes with every business. You must have an understanding of tax obligations, HR rules and more. 
  • Burnout. Business owners sometimes work longer hours compared to employees, causing fatigue. 

How to turn your side hustle into a full-time business

A startup can be daunting. For starters, you have to come up with the initial capital to get the business going. Other than the cost, a few critical steps are necessary to set the stage for your new full-time business.

Choose your business structure. 

Choose from five main business structures; the three most common are LLCs, proprietorships and corporations. When deciding which structure to choose, consider your risk exposure. Can your business structure protect you from lawsuits?

Manage your cash flow. 

Start by developing a cash flow forecast to outline how much cash your business will have in the future. Also, keep a cash reserve to help your full-time business weather unexpected revenue shortfalls. Keep your cash flow positive by managing inventory to avoid overstocking and reducing the money tied up in inventory.

should you start a side hustle or full-time business?
Turning your side-hustle into a business can be a fulfilling endeavor for you.

Invest in the improvement of your business 

Turning your side hustle into a full-time business means upgrading your tools. For example, efficient logistics means happy customers. Instead of sending stuff yourself, work with a trusted logistics partner like Ninjavan. Increase your supply chain’s efficiency when you work with a logistics partner who can keep up with the growing demands of your business.

SIDE HUSTLES can be humble beginnings for successful businesses in the future. If this is your calling, take a leap of faith and start earning from your passion!

More helpful tips for your new business:
How to Get A Business Loan in PH?
How to Start a Business with Little or No Money
A Quick Guide to Filing Business Tax in PH

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