Parents invest $2K in a side hustle now earning $295K/year, with potential to build generational wealth. Here’s how

The couple’s story of side-hustle success is inspiring — but it is unfortunately not the norm for many Americans who catch the entrepreneurial bug.

A side hustle can help boost your wages, and can be especially appealing amid inflation, climbing housing costs and a tough job market. And the appeal is widespread: Estimates range between 30 to 50% for the number of Americans with some kind of side hustle. (2), (3)

According to a survey by lender Self.inc, 26.1% of Americans earn between $1 and $50 a month from their side hustles, and 32.1% earn between $51 to $250 a month. (2)

However, only 1% of respondents said that they earned more than $4,000 a month from their side hustle, and the majority of respondents (51.4%), said that their side hustles made up between zero and 20% of their monthly earnings.

A separate survey by marketing platform Omnisend, which polled people from the U.S., the U.K., Canada and Australia, found that 60.3% of respondents said they earned $500 or less a month from their side hustles. (3)

The costs of starting a business

With such low returns, aspiring entrepreneurs would do well to consider the costs associated with starting and running a business.

For gig work such as delivery driving, costs associated with owning and maintaining a vehicle, including added wear and tear, will factor into how much you really earn.

For those running e-commerce businesses, in addition to paying for product, you may also incur costs such as fees for the platform you use or for your website, fees if you’re required to obtain any business licenses, and fees for contractors, if you want to outsource things like marketing or accounting. (4)

Read More: Young millionaires are rethinking stocks in 2026 and banking on these assets instead — here’s why older Americans should take note

Side-hustle success

There is a lot to learn from side-hustlers like Tayo and Dolu Lanlehin if you’re thinking of starting your own business.

They were both able to leverage skills that they already had to run the business — Dolu’s background in consulting led him to conduct market research in the early days of the business, for example. They also relied on their own resources, like investing a small amount of their savings in their product, and using their own basement to store their product.

Perhaps the biggest lesson one could take from this success story is the impact that market awareness can have. Tayo Lanlehin’s keen insight that there was a gap in the market, as well as tapping high-profile event planners and celebrities, likely made all the difference in their company’s success.

Conducting your own research on whether there is a market for what you are offering can go a long way to ensure that your side hustle is sustainable.

While the Lanlehins are able to rely on their incomes from their full-time jobs, and not take any wages from the business, this might not be feasible for everyone. According to Forbes, it is important to be realistic about your revenue objectives, and your projected monthly income from a side hustle. (5)

Budding side hustlers should also investigate whether they will be required to apply for licenses for their business, and whether they will require insurance.

For those starting a side hustle, keep these things in mind:

Consider your time: The possibility of burnout is real for those taking on a side job, so it’s important to consider how much time you can dedicate to your side hustle, and whether it is likely to impact your primary job.

Don’t forget taxes: Consider consulting a tax professional to make sure that you aren’t making costly errors when it comes to your accounting, and to understand whether your extra income will bump you up into a new tax bracket.

Evaluate your finances: Make sure that your initial investment and operating costs are affordable, and consider your risk tolerance before taking on debt to start a side hustle. If you have a large amount of existing debt, a side hustle with low start-up costs might make the most sense.

Look for inspiration: You can also reach out to other entrepreneurs for advice, or search out books or podcasts by those who’ve started similar businesses. Gathering as much good advice as you can before you begin can help you learn from other’s costly mistakes.