Cost-of-living increases have pushed households to breaking point with their finances, leading many to look for extra sources of income. Side hustles are becoming a popular way of making these much-needed funds a reality – a report by automation platform Zapier of 2,032 U.S. adults found that 40% had a side hustle in 2022, each spending an average of 13.4 hours per week working on it.
According to a 2022 survey of 2,500 U.K. respondents from insurance company Aviva, the average income generated by a side hustle is around $600 per month, and 16% of those surveyed bring in more than $1,200 extra income a month. Read on to learn about three small-business founders whose operation started as a side hustle and proved so fruitful that it became their main source of income.
Creating Joy From a Bad Situation
When Ben Kuhl from Charlotte, North Carolina was laid off from his job in the travel and hospitality industry in July 2020, he took the opportunity to follow his passion – woodworking.
The demand for the handmade shelves that he created alongside his day job had been growing, and Kuhl felt confident in his ability to scale the operation and make it his sole source of income. He admits it was nerve-racking at first, but he was motivated by his passion for woodworking and desire to turn the hobby into a successful enterprise. This is when his small business, Shelf Expression, was born.
“I always felt a pull towards entrepreneurship – I just wasn't sure what that would look like for me,” says Kuhl. “That's what makes Shelf Expression so special – it wasn't a deliberate departure from my nine-to-five. Instead, it started organically as a side hustle that allowed me to pursue my passion for woodworking and earn some extra money at the same time.”
To convert his side hustle into a small business, Kuhl has had to teach himself new skills such as accounting, web design, graphic design, and marketing, plus SEO and PPC to help drive traffic to his website and attract new customers. He quickly realized that spending money on ads wasn't enough, and he needed to know how to optimize ads and target the right audience to get the best return on investment.
“I've made mistakes along the way and wasted a lot of money on PPC ads that didn't convert, but I've learned from those mistakes and I'm still discovering how to optimize my PPC campaigns for maximum impact,” Kuhl says.
He acknowledges that creating a side income can be difficult at times, but advises budding side hustlers that the long hours and hard work are worth it. Not only can it offer you a new source of income, but if the hustle becomes a small business, it also enables you to spend more time with family.
“Make sure you're prepared for the realities of running a business and are willing to put in the time and effort,” he says. “It's important to have a clear understanding of what it takes to be a successful business owner and to be honest with yourself about whether you're willing and able to make the necessary sacrifices.”
Eyeing Up a Gap in the Market
In her role as a writer in the beauty industry, Danielle Jackson noticed there was a gap in the market for a broader range of silk pillowcases to meet growing demand. She partnered with a manufacturer to create Celestial Silk pillowcases, which offer luxury quality without the high-end price tag.
In the beginning, Jackson was still freelance writing full time and taking care of ordering, marketing, packaging, and customer service for Celestial Silk during any free moments. During the first full-time year, she didn’t pay herself much because she was putting most of the money back into the business. Jackson notes that when you have less money, there are times when you wonder if you’ve done the right thing.
“Since I started working on it in little doses, it was easier to gauge how much time the business required,” she says. “I realized it was time to take the leap when there was so much more I wanted to do for the business, and I just didn’t have time to do it while working full time in another role.”
Jackson notes that her biggest challenge was learning to delegate and how to hire. She admits that she thought she had to do everything herself to see the quality she wanted, thinking a stranger couldn’t have the same passion for Celestial Silk that she did. She realizes now how that type of thinking is limiting.
“Some people will work passionately – you just have to find them,” she says. “I’ve discovered that the business became much stronger when I brought people in as team members rather than employees. In my mind, I’m not hiring someone – I’m asking them to join the team.”
Jackson advises side hustlers to offer their product or service at a fair price – and by fair, she emphasizes that means both to you as the owner, with the effort required to fulfill the service, and to potential customers. She recommends having savings set aside if you want to transition from a side hustle to full time, too.
I realized it was time to take the leap when there was so much more I wanted to do for the business, and I just didn’t have time to do it while working full time in another role.
—Danielle Jackson, founder, Celestial Silk
“Things will go wrong from time to time, especially in the beginning,” she adds. “If you don’t have a little rainy day money, those setbacks could mean you may have to get another job to pay for basic living expenses. But remember to step a little outside of your comfort zone – that’s when big things happen.”
Playing the Long Game
Mike Vannelli from Simi Valley, California always had his sights set on converting his side hustle in video creation into his full-time job. He told himself that once he made as much or more income from the side hustle as he was making with his day job, he would take the leap.
Vannelli says he used this approach because he wanted to maintain his quality of life and didn’t want to have any regrets about leaving his day job. He was able to make the move in 2015 after putting eight years of hard work into launching video creative agency Envy Creative.
“It feels like a great accomplishment to be able to use the company I built as my main source of income,” he says. “I love being my own boss, and I've accrued a great team in that we all work together to produce great content for our clients.”
Envy Creative has since worked for clients ranging from start-ups to Fortune 500 companies. Vannelli has recently created projects for McDonald’s and Warner Bros. Games, which he notes he’s really proud of.
His advice to side hustlers? Don’t be tempted to make the leap too quickly.
“I was at my day job for almost eight years before I made the switch because I didn’t want to do it until I was 100% ready,” he says. “You might feel like there’s a rush since you want to get there as soon as possible, but if you hurry and make the jump before you’re ready, you might fail without a solid base in place for your side hustle.”
Photos: MARNI V PHOTOGRAPHY
