A side gig can be a great way to earn extra money, and you may want to turn that side hustle into something more permanent. To help determine when — or if — the time is right to go all in, first be sure to review your personal situation, goals, and responsibilities.

To help you be as successful as possible, small business lending expert George Lewis of Civic Credit Union recommends looking at where your bread and butter is coming from.

“That can help you know if a leap may be possible, or if you need to expand your business a bit before taking the leap,” says Lewis.

Ask yourself these questions:

Ask yourself these questions to know if a leap is possible.

• How are you currently living? Are you and your family OK with less income for a while, if needed?
• What dollar amount do you need to stay afloat each month, for personal and business expenses?
• Do you have something to fill in the gaps if your business slows down at any point?
• What are your cash reserves, and how long will they last?

Are you ready?

Jamerson Pearson, a Certified Financial Counselor at Civic Credit Union, says being prepared for the realities of owning a small business can help with your decision.

While each situation is different, there are some must-haves for anyone with a side hustle who is thinking about making a permanent change.

These include:

Get saving: Build up 6 to 12 months of savings before you make any final decisions. If you decide to leave your full-time job, this money will help you cover your business and personal expenses while you close the gap to replace your prior income.

Understand the J curve: New business owners should plan for a decline in monthly income that hits a bottom and creeps back up to, hopefully, their previous income level. Having that savings cushion will help when you are at the bottom of the “J.”

Be honest about being a self-starter: Unlike in a corporate job, you will have the sole responsibility of all the tasks related to your chosen niche, which may include serving customers, marketing, and selling — everything. Be honest with yourself about your abilities.

Look after retirement savings: Protecting your existing retirement savings is critical for your future. If you dip into it, you will be taxed at traditional income levels with an added 10% tax. It is difficult to make that money back. Plan to keep your existing retirement savings untouched and meet with a financial planner to establish new strategies for a long-term view of your investments.

Be willing to get a side hustle to your side hustle: If you are not making two-thirds of your previous full-time salary, you may need to get another side hustle to help make ends meet. Waiting tables or driving for a ride-share company can help generate that last third of income.

Embrace being frugal: Being your own boss does not have the same safety net as a full-time corporate job. Using software or an app to help plan out spending will pay dividends for you down the road, and will help you stay disciplined.

Find birds of a feather: Connect with others who share an enthusiasm for small businesses. Turn to Meetups, local small business groups or North Carolina’s community college network of small business centers. Tap into local, North Carolina resources that can teach you and help prepare you for the possible road ahead.

As your side hustle begins to grow, Pearson says to remember these tips:

• Remember your reasons for being a small business owner and why they are important to you.
• Learn the basics about growing and scaling a business. Community college classes can be helpful here.
• Find a business coach to provide perspective and guidance for your business idea and a supportive path forward.
• Your accountant and financial planner are great assets for advice.

Having a side hustle can be rewarding on many levels. Through it all, keep your focus on making progress and know there are many resources out there to help when you need it.