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It sounds like you're wanting the the side-project to take over and replace your day job. Which is fine, but different from what I've been picturing for myself. Nevertheless, with that being your target: suppose you've grown big enough to pay the bills. Does the business still need to scale?

I see that as a bit of a trap, because people pass on what (to me) seems to be fulfilling work that could support a modest lifestyle and make big-growth choices that either crash them out or saddle their business with debt its market can't sustain.

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If the whole point of starting your own business is because you want to get out of the ‘rat race’, doesn’t it need to at least pay your bills? Otherwise, you are still in the rat race, just with even less time.
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Not replace, but it should free enough time to run it. There's a minimum scale for something to actually free some time.

> suppose you've grown big enough to pay the bills. Does the business still need to scale?

No, that's the acceptable size.

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