Four successful individuals share their tips on starting a profitable side hustle: 'You don't have to settle for mediocrity.'

Starting a side hustle can be simple if you know where to begin.

A growing number of individuals are beginning side hustles, according to research. Despite the possibility of not achieving six-figure success, there are certain actions you can take to ensure that your additional income stream is worth the time investment.

According to a group of experienced side hustlers, success with side hustles can be achieved by not giving up, as stated by Cody Berman, co-founder of online printables course Gold City Ventures, in an interview with CNBC Make It in January.

Four successful side hustlers share their advice for generating at least $100,000 in annual revenue.

Find a gap in the market

To begin a side hustle, first determine what you can monetize. Afterward, investigate how your product or service can address a problem or fulfill customers' requirements.

Bella Lin, a high school senior who earns six figures annually selling guinea pig cages on Amazon, learned the importance of profitability early on. In seventh grade, she started selling leggings for teen girls who couldn't afford larger, trendy brands. Although it brought in roughly $300,000 in revenue per year at its peak, the business was never profitable.

She was aware that a market existed because she belonged to TLeggings' target audience. However, she underestimated the competitiveness of the market and the difficulty of breaking into it, she admitted to Make It in January.

Lin, a longtime guinea pig owner, recently shifted her focus to designing enclosures that were simpler to clean and enabled the pets to move around more freely than typical cages. Her side business, GuineaLofts, generated $410,000 in revenue last year, according to Make It's review of financial documents.

Roughly 25% of that revenue was profit, Lin estimated.

I discovered that many other companies were also trying to accomplish the same goal with TLeggings. However, with GuineaLofts, I found a market gap that was largely overlooked.

Keep researching your market over time

Staying informed about industry trends and audience demographics can impact your earnings in the long run, advised Etsy seller Tim Riegel in an interview with Make It last year.

In 2021, Riegel began his side hustle, which involved creating and selling steel fire pits. His products quickly gained popularity, resulting in him earning $169,000 on Etsy in just one year, as per Make It's review of the documents.

In early 2023, Riegel observed a decline in his profits. He attributed this to the rising costs of recyclable steel, gas, and packaging supplies, which were cutting into his profits.

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He raised the price of his 275-pound fire pits to $950 from $650 in fall 2022, after studying his competitors' pricing and adding new features and colors to justify the increase. His profit margins returned to 35% to 40%.

To avoid shocking customers with sudden price hikes, evaluate prices monthly and gradually increase them.

"To ensure you're financially secure, it's crucial to closely monitor the expenses of all your activities, including your side hustle, said Riegel. If your side hustle isn't generating profits, it may not be worth the time investment."

Use your strengths and past experiences

You may be able to monetize your skills if you excel at something.

According to documents reviewed by Make It, Becky Powell, a kindergarten teacher in Beaverton, Oregon, made $125,500 in 2022 by selling worksheets on the educational resource platform Teachers Pay Teachers.

Powell specializes in teaching kids how to sight read as a teacher, as she revealed last year. Instead of creating generalized kindergarten worksheets, she developed resources specifically for other educators to teach sight reading to their students.

She attributed her success to standing out in a competitive market, she stated.

"Powell stated, "My husband, a computer engineer, would always tell me that the riches are found in niches. For me, this meant considering hands-on activities that would engage students.""

Write, and stick to, a thesis

After deciding on a side hustle, create a mission statement and ensure that all aspects of your business align with it.

Morgan Eckroth had three jobs that centered around coffee last year. She earned a $45,000 salary as a marketer for Onyx Labs, worked as a barista in Portland, Oregon, and created videos about coffee for TikTok, Instagram, and YouTube.

In 2022, Eckroth's social media accounts generated $96,000 in profit, with the majority of the earnings coming from ads, brand partnerships, and merchandise sales. The success of her content, she explained, was due to its ability to convey the cozy atmosphere of a coffee shop to her audience.

"Eckroth stated that having a thesis for creating content is crucial. He suggested that it is beneficial to have a clear objective, such as selling more of a product. Writing down this objective can help align every video with the overall goal. Eckroth emphasized the importance of regularly assessing whether the content is achieving the desired outcome."

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