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Key Takeaways
- Don’t quit until your side income reliably replaces your salary for several months.
- Build your business in completely separate lanes so your employer never feels threatened.
- Early momentum comes from working double-time and filling skill gaps on the fly.
In the wake of a turbulent job market marked by high-profile layoffs at major tech firms and a surge in self-employment, more professionals are turning to side hustles as a safety net and stepping stone to entrepreneurship.
Recent data shows a jump to 64 million Americans — or 38% of the workforce — engaged in freelance work in 2023, a 4 million-person increase over the prior year, reflecting a shift in how people approach career stability.
If you’re among those considering walking away from your 9-to-5, it’s worth learning from those who have navigated that leap successfully.
As a 7-figure CEO of Dimov Tax, I’ve helped thousands of entrepreneurs structure their businesses, reduce their tax burden and make the leap from employee to founder. I didn’t plan to become a CEO.
I was a full-time accountant who started freelancing at night and one day realized my side income had surpassed my salary. I quit my job, scaled quickly and never looked back. But I did a few key things right and I’ve seen what happens when people skip those steps.
Over the course of my career, I’ve worked with thousands of people via conversations, consults and client files that keep my finger on the pulse of what actually works when you go solo.
More people than ever are exploring freelancing and business ownership. Yet myths about how and when to quit persist, and small financial or legal missteps can create outsized risk. Read on for a grounded framework, not hustle-porn, to make a smart exit.
1. Replace your salary first
Before I quit, I set one rule: match (or beat) my paycheck with after-hours work. My full-time job paid $125,000 a year, which was about $10,000 a month. By August 2016, I was earning roughly $16,000 a month from freelancing at night. In January, I hit $25,000 per month, and that’s when I knew the status quo was unsustainable.
I gave notice and went all in. This wasn’t a leap of faith; it was a calculated transition powered by consistent side income. If you are thinking of quitting your 9-5 job, set a clear “replacement runway” number (e.g., your last six months’ average after-tax salary) and don’t resign until your side hustle reliably meets it.
2. Build outside your employer’s ecosystem
If your side business competes with your day job, or taps the same clients, you’re inviting termination or worse, litigation. If you hope to set up a business on the side, be sure to protect yourself from negative consequences from your current employer.
I launched in entirely different channels, industries and client types so there were no blurred lines or conflicts of interest. That separation protected my career while I built momentum. If you have an expertise but worry your boss will be concerned about your outside venture, keep your business development in different ponds: new verticals, new lead sources, new marketing lanes.
That’s how you stay loyal to your employer while you level up and how you avoid getting fired or sued. Audit your target market, offers and acquisition channels. If any overlap with your employer, redesign them until they do not.
3. Be willing to work double-time (at first)
In the early days, the edge was simple: outwork everyone. Nights, weekends, “impossible” timelines, I showed up when others wouldn’t. That grind created the momentum that made scaling possible once I went solo.
If you wonder if you can carve a niche for yourself by outworking everyone, decide in advance what “double-time” looks like for you (e.g., 15 client hours on weeknights + 10 on weekends). Protect every spare hour in your calendar like your revenue depends on it, because at the beginning, it does.
4. Fill your skill gaps early
In the early days of my side hustle, I said yes to projects that I didn’t fully understand, and then learned at speed. I read everything I could find, called mentors and hired outside consultants when necessary. That’s how I leveled up. While you may be tempted to get caught in analysis paralysis, earning certifications or going into further debt to get additional degrees, I advise the opposite: do not wait to become “ready”.
You become ready by doing, by asking better questions, and by paying for expertise when the gap is real. List three capabilities that would 10x your value in the next year. For each, pick a rapid-upskill path: a mentor, a short engagement with an expert, or a targeted course. Ship work that forces you to use the new muscle.
5. Expect to do everything at first
Year one, expect to wear every hat: service delivery, sales, marketing, HR, bookkeeping and admin. In my case, within three weeks, I hired six employees; until then, it was all me. That reality check keeps you from romanticizing entrepreneurship and helps you budget time (and cash) for the boring but essential work.
Build simple weekly operating rhythms for pipeline (outreach, proposals), fulfillment (deliverables), money (invoicing, reconciliations) and leadership (goals, retros). When each rhythm hurts, hire or automate that function first.
Entrepreneurship is thrilling but not forgiving. Don’t mistake passion for preparation. Build your cushion, separate your channels and sharpen your skills. Then leap with your eyes open. The best time to start is before you need to. The smartest time to quit is after you’ve built your replacement runway.
Key Takeaways
- Don’t quit until your side income reliably replaces your salary for several months.
- Build your business in completely separate lanes so your employer never feels threatened.
- Early momentum comes from working double-time and filling skill gaps on the fly.
In the wake of a turbulent job market marked by high-profile layoffs at major tech firms and a surge in self-employment, more professionals are turning to side hustles as a safety net and stepping stone to entrepreneurship.
Recent data shows a jump to 64 million Americans — or 38% of the workforce — engaged in freelance work in 2023, a 4 million-person increase over the prior year, reflecting a shift in how people approach career stability.
