‘Anyone can do it’: This 30-year-old quit her job for a side hustle that now brings in seven figures a year. Here’s how

According small-business management platform Homebase (2):

• Starting a business costs anywhere from $3,000 to $500,000, depending on the type and location.
• Online or home-based ventures (like resale stores) are on the lower end: $3,000–$10,000.
• Retail storefronts and restaurants can require $50,000–$500,000+ before opening day.

It took awhile before the payoff arrived for Elizabeth, but she also proceeded strategically. She quit her part-time job only after she had replaced the income.

She also invested in renting commercial space and hiring employees, both of which are ongoing expenses, reports Make It. It hasn’t been smooth sailing: her company weathered drops in ad revenue, especially during the pandemic.

Even with her financial success, her 50-to100-hour work weeks may not be possible for many. But her resilience is an example of what it sometimes takes to build a successful business.

How to know if you're ready to start your own business

Elizabeth’s story can be motivating if you’ve dreamed of turning a hobby or side gig into a real business, but inspiration alone isn’t enough. The real question is whether you’re financially and emotionally prepared to take on the risks. Here's how to make sure.

Calculate your true start-up costs

Many entrepreneurs dramatically underestimate their early spending, especially when hidden expenses such as payroll taxes, software subscriptions, marketing and scheduling inefficiencies kick in. Lay out your numbers in advance to help determine whether your idea is feasible or if you need more time to save.

Know your personal financial runway

Running the business is only part of the costs. You’ll also have to cover your own bills before you make a profit. That means having several months of living expenses saved, plus sufficient cash to cover the business’s operating costs until it becomes self-sustaining. If losing your job would immediately put you in debt, it’s too early to quit.

Start small

Before taking the leap, it’s also smart to test your idea in low-risk ways. If you plan to sell products, try listing items on an existing platform. If you’re offering a service, build a small client base while still employed. Early revenue, even in small amounts, is a strong indicator of real demand.

Don't quit until you hit specific milestones

Many successful founders, including Elizabeth, eased into entrepreneurship by keeping a traditional job until their side hustle income became more reliable. A few key milestones can help you decide when it’s safe to transition to full-time, such as:

• Consistently earning a meaningful share of your current income
• Saving at least three to six months’ worth of personal expenses
• Showing steady, predictable demand for your product or service

Ultimately, the right time to start a business looks different for everyone. Elizabeth’s journey shows that you don’t need perfect conditions to begin, but you do need a plan. With realistic expectations, financial cushioning and a willingness to start small, you can reduce risk and give your new venture a better chance of lasting.

Article sources

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CNBC (1); Homebase (2).