Should You Start a Side-Hustle?  

I spend a fair amount of time focusing on businesses decisions - whether to break into new markets, chase after increased market share, or take an existing product in a different direction. If you’re a Business Analyst or Product Manager, you’re used to thinking through these questions.

But today, let’s take a step back from big business strategy and dive into a more personal question: Should you start a side hustle? 

We've all heard the stories, read the articles, seen the tiktok videos of normal everyday people who had a little side hustle that did so well, it became their full hustle and look at all the money they want you to know that they have. Its a very sexy story. And there are lots of success stories. 

I have a friend Melody who's considering turning her part time sewing skills into a side business on Etsy. She has sown lots of stuff for friends and family, and who knows - what if there is a real opportunity here? 

So we decided to run through the numbers to get a much clearer picture of what the potential returns could be. Let’s walk through it.

Melody’s Side Hustle Idea

Melody is incredibly talented at customizing clothes—she’s been upgrading blouses, skirts, jackets, and sweaters for her friends and family for years. Now she’s wondering: Could this become a profitable side hustle?

The idea seems simple enough: She would buy merchandise from suppliers or thrift stores, add her personal touch, and sell them for a profit. So, we decided to break it down to see if the time and effort would be worth it.

The Financial Breakdown

• Average price of each item: $30

• Cost of materials (buttons, fabric, etc.): $5 per item

• Time to customize:

  • • Sweaters and blouses: 2 hours

    • Jackets and skirts: 3 hours

• Weekly commitment: 12 hours of sewing

• Profit per piece:

• $20 for blouses and sweaters

• $25 for jackets and skirts

First Question: Which mix of pieces will be the most profitable? 

If Melody dedicated all her time to customizing jackets and skirts, here’s how it would break down:

• 12 hrs / 3 hrs per item = 4 jackets/skirts per week

• Profit: 4 items × $25 = $100 per week

A combination of blouses/sweaters and jackets/skirts might be more efficient. Let’s say Melody spends 6 hours on blouses and sweaters and 6 hours on jackets and skirts:

• 3 blouses/sweaters (6 hours) × $20 profit = $60

• 2 jackets/skirts (6 hours) × $25 profit = $50

• Total profit: $110 per week

She skips jackets and skirts altogether and just sticks to blouses and sweaters.

• 12 hours / 2 hours per blouse/sweater = 6 blouses/sweaters per week

• Profit: 6 items × $20 = $120 per week

Clearly, focusing on blouses and sweaters would give her the highest weekly profit: $120.

What else? Etsy Fees and Admin Time

Running an Etsy store isn’t just about sewing. Melody would also need to:

1. Take photos of her products

2. Write descriptions

3. Manage customer service (responding to messages, processing orders)

4. Handle shipping logistics

5. Spend time marketing her store

Assuming she spends 2 hours a week on these tasks, that leaves her with 10 hours for sewing. In those 10 hours, she can complete 5 blouses/sweaters, earning her $100.

But wait—there are fees to consider. Etsy takes around $2 per item in fees, so for 5 pieces, that’s an additional $10 deducted from her earnings:

• • • Total profit: $100 - $10 = $90 per week

    • $7.50 per hour.

Is It Worth It?

At $7.50 per hour, Melody would be earning below minimum wage for the amount of time and energy she’s putting in. To make this side hustle worth her while, she’d need to raise her prices significantly—enough to bring her earnings to at least $20 - $30 per hour. That means adding a minimum of $50 - $60 profit per item, which may be unrealistic depending on her target market and the time it takes to create higher-end products.

On top of that, there are other business risks:

• Unsold inventory

• Rising costs of supplies

• Marketing expenses

• Lost or damaged shipments

• Returns and refunds

So, should Melody start her Etsy side hustle?    Probably not. 

The margins just aren’t high enough to justify the time and effort required to make it profitable. She could charge more, but that comes with its own risks and challenges. If you’re thinking about starting a side hustle, it’s important to carefully weigh the time commitment, potential earnings, and any hidden costs or risks.