Personal Finance

How a $100 Sewing Machine Turned Into a $100K Side Hustle Success

Kristin Hitchcock

Published: November 26, 2024 10:30 am

24/7 Wall St. Key Takeaways:

• Side hustles are all the rave, but building a scalable one is challenging. Today, we’ll look at the story of one entrepreneur who did just that. 
• Cleary’s story sums up how breaking into new industries is open to anyone. 
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

Side hustles are everywhere, but how often do they turn into six-figure businesses? For Olivia Cleary, founder of The Clearly Collective, what started as a way to showcase her architectural creativity has blossomed into a luxury scarf brand bringing in over $100,000 annually.

We can learn a lot from her journey, so let’s take a look. 

The Hustle Behind the Luxury

Olivia Cleary’s entrepreneurial journey began humbly, like the journey of many entrepreneurs we’ve covered before. She started with only a $100 sewing machine, working on her side hustle late at night and early in the mornings. However, by sewing scarves herself, Cleary effectively earned less than $10 an hour in those early days.

But her sacrifice paid off. In less than two years, her scarves started to be featured at events for McLaren Automotive, Bacardi, and even the Paris 2024 Olympics. It took a lot of hustle to get there, but it left her with a sizable business. 

The Math: From Hobby to Six-Figure Business

Let’s put Cleary’s success into context with some math:

• National Perspective: The average U.S. salary in 2024 was $63,795. Cleary’s six-figure income puts her comfortably in the top 10% of earners under 30. 
• Effective Hourly Wage: Assuming her business now earns $100,000 annually and she works 50 hours a week, her effective hourly wage is approximately $38—nearly four times the federal minimum wage of $7.25.
• New York City Comparison:  Living in NYC, where the median home price exceeds $850k, Cleary’s income is above average but not extravagant. However, her lean operation (with just an intern and a contractor) means her profit margins could be enviably high.

What We Can Learn from Cleary

Cleary’s story provides us with several practical lessons, like:

• Start small and scrappy: Cleary didn’t wait until she had money to invest. Instead, she used a folding chair in her apartment to start sewing polyester scarves herself. 
• Leverage social media: A single TikTok post propelled her business into viral territory. With over 240 million TikTok users in the U.S., the platform remains an underutilized tool for niche brands.
• Invest in quality: Cleary upgraded her materials and pricing after gaining traction. Her initial scarves cost around $45, but she later updated that to $135. This does represent more expensive materials, too.
• Capitalize on niche branding: Cleary makes a very specific type of scarf. She ties her designs to iconic landmarks, creating emotional connections with her customers. Her scarves are more than an accessory for many buyers. 

In many cases, side hustles aren’t just about extra cash. They require testing ideas and learning new skills. Building something scalable is extremely important! The key seems to be starting now and scaling smartly.