The flexibility of digital-related work has radically changed the nature of employment and the workplace. With the proliferation of work that is increasingly conducted exclusively in the cyber world, the “gig economy” and “side hustles” have become more commonplace. The ability to use software to put functions like taking credit card payments, inventory management, and building mailing lists on auto-pilot in the cloud has liberated millions from relying solely on 9-to-5 jobs at the workplace for their incomes. This newfound time management flexibility is especially important for single-parent households wishing to spend extra time with the family and hands-on child raising, rather than spending the time at a second job with the children in the care of a sitter, or worse, unsupervised. 

The Side Hustle as Postpartum Depression Therapy

CNBC’s Make It section profiles entrepreneurs, executives, and financial professionals and offers their observations and advice for others, based on their personal experiences.  

36-year old Rachel Jiminez is a mother of two. Roughly 4 years ago, she was suffering from postpartum depression and frustrated in her job as an education administrator. Although she had dabbled with side hustles in the past, a podcast ad for a course on selling products on Etsy led to Rachel starting a new part time business. The Etsy marketing side hustle has now become a major component of a $10,000 per month passive income stream that includes real estate, investment dividends, and bond coupons. The ability to provide and care for her children directly without being tethered to an outside office has drastically improved her outlook on life. With her depression now a distant memory, Rachel has started a blog intended to offer her advice on business, finances, and other life tips to other women. 

Rachel’s Passive Income Business Tips

1) Research to Minimize Mistakes – While having passion about something may be the trigger key to the entrepreneurial spirit, objective upfront research can drastically cut wasted time and money on mistakes. Rachel has cited her own experience of deciding to sell on Etsy, but that better research on the products she selected for their marketability would have accelerated her progress and minimized her idle inventory and listings. She advises creating financial projections before spending a dime so that expenses can be accurately calculated and reduce the odds of running out of money on the new business before it can reach break even. 

2) Putting In More Time To Start It Off – Passive income businesses give the appearance that no work is involved, which is misleading. Rachel notes that the bulk of the time required is in the beginning, to develop the skills and elements of the business’ foundations. She herself started with 8-10 hours a week, building it up to 20-30 hours a week to develop her products, before getting it to the autopilot level, where she now spends as little as 15 minutes a day. The automation for processing orders, managing website updates, gathering customer marketing information, etc. can then all be done by intelligent software after the business requirements and operational protocols are established. 

3)   Diversification – Rachel’s passive income streams include real estate rental income, stock dividends, bond coupon payments, and her Etsy marketing business. One of the biggest risks, in her estimation, was to live or die solely on the success of the business without any other alternative or fallback income that could keep her going.

4) Avoid Procrastination in Starting and Build a Network of Advice and Support – Rachel’s experience has taught her that procrastination and second-guessing herself were two of her biggest obstacles in the early days. The preparation research in Tip #1 can help to maintain one’s confidence and resolve, while a network of experienced advisors and a moral support cheering section can help entrepreneurs navigate rough business waters.

Some Takeaways

Rachel’s story is inspiring, but it’s important to note that there are extenuating circumstances that might make it harder for someone in 2024 to replicate her success without some modification to the formula:

• 2020 was the Year of Pandemic – online businesses like Etsy and eBay had the benefit of lockdowns that drove an inordinate amount of cyber traffic towards online shopping out of boredom, depression, and forced idleness. The empty street traffic wound up devastating many brick-and-mortar retail businesses. Such is not the case in 2024, so competition for retail dollars is back to equilibrium level, at least in cities where shoplifting and theft crimes are stringently enforced.
• Keeping up with AI and payment technology – Since 2020, a number of other payment systems have developed and greater sophistication now has become standard. Newer businesses, especially retail-oriented ones, will need to familiarize themselves with the latest platforms, especially if their target demographic favors particular systems over others. Additionally, the explosive rise in Artificial Intelligence can become an insurmountable challenge to some businesses, and a massive competitive advantage for others, depending on the nature of the side hustle’s business and what the economic and marketing landscape is for that sector.

This article is solely intended for informational purposes. A business and financial professional should be consulted if more in-depth and customized information is being sought.

 

 

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