When to walk away from your side hustle

When her side business picked up, the multitasking came to a head and she knew she had to decide: make the switch to full-time consultant or walk away entirely. “It started to get to a point where I felt like I was burning out,”  she recalled. “Financially, I didn’t feel ready. It also just felt incredibly emotional.” 

How to know if it’s time to step back

Spending endless hours building something you’re passionate about takes perseverance, but sometimes, it doesn’t turn out how you expected. Often, many people trying to build a business feel exhausted or on the brink financially, but walking away may feel like turning your back on your dreams. Experts say taking an analytical approach can help determine if it’s time to throw in the towel. 

In Warwick’s case, she laid out a list of conditions to help her make a decision.

First, she said, was to set up cash flow goals with a set timeline. Then, it was time to shore up her emergency fund and finally, draw a road map for building her clientele with set revenue targets. The deadline she gave herself was a year. “If we didn’t achieve those conditions by the end of 2022, I was going to take some space away and just focus on my role in engineering,”  she recalled.

The plan worked. With specific goals in mind, Warwick was able to make it happen. Today, the co-CEO of the Thoughtful Co. works with clients including some who find themselves at the same crossroads, debating whether or not to carry on with their side hustles. It’s important to set up non-negotiables when deciding whether to call it quits, she said.

When you’re feeling overwhelmed, it can be hard to gauge when to quit, Warwick said. She recommended envisioning what a balanced life would look like, which could bring clarity. That means defining how much time realistically can be devoted to various aspects of life: your main job, side hustle, self-care, and everyday life.

Side hustles, by nature, require more effort—it’s in the name. Warwick said the question is, how long can you sustain that for? “Are they comfortable doing it for two months, for six months, for a year?” she said.

Coping with the emotional side of stepping away

It helps to be clear on what you’re trying to get out of it, Warwick said. Is it going to be a passion project for a bit of extra cash, or is your ultimate goal to make it your main job? 

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Usually, there are signs it may be time to step away, said Christen James, a side hustle success coach. “There is some upfront cost, but at some point, you have to recognize when it has become an expensive hobby,” she said.

James said if you find yourself pouring a lot of money into the business but haven’t built any relationships or found clients despite months of work, it’s likely a sign that it’s time to step away. Often, that decision can take an emotional toll. 

“There’s a grieving process that will go into it,” James said. But it’s important to give yourself the permission to walk away and not beat yourself up about it. Framing it differently can help cope with the process, such as telling yourself that it isn’t a failure—and even though it didn’t work out, you can take away some lessons from that experience into your next job, James said.

Also, celebrate the small wins, she said. “Celebrate that you did the thing, because a lot more people will never start.”

Read more news:

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• How to make more money in Canada: 6 side hustle ideas
• Side hustles and self-employment in Canada: Taxes, business expenses and more
• Do I need a GST or HST number?

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