35 Side Business Ideas in 2026 (With Earnings Data)

Discover 35 side business ideas for extra income—with startup costs, hourly rates, and real founder stories. Start yours without quitting your job.

Side businesses have become a normal way for people to earn money in the US. Whether it’s an aspirational full-time business, supplemental income while underemployed, or just a way to get ahead or save for a big purchase, side businesses offer diverse opportunities. 

About 27% of Americans reported having a side hustle in 2025, including 34% of Gen Z and 31% of millennials. On average, US side hustlers bring in around $885 a month, or roughly $10,000 a year on top of their salaries. At a global scale, the gig economy is valued at more than $674 billion in 2026 and projected to reach $2.5 trillion by 2035.

Those numbers show a shift in how people think about income. According to a 2025 Shopify survey, 46% of Shopify store owners said their business started as a side project and grew over time, which is the single most common reason they gave for not writing a formal business plan at the outset.

Whether you want to earn extra money, test a business idea before going full-time, or build skills outside your main job, there’s a side business idea on this list that fits your schedule, budget, and goals. Below are 35 options, organized by cost, time commitment, and the kind of work involved.

What is a side business?

A side business is a revenue-generating activity you run outside your primary job. It can be a service, product, or platform-based income stream, and can be anything from walking dogs on weekends to running an online store. Unlike a side hustle (which often implies informal, one-off gigs), a side business has potential to grow into something more structured over time.

Why start a side business?

The reasons vary. Thirty-five percent of side hustlers use extra income for regular living expenses, 20% use it to pay down debt, and 29% say they’ll always need a side hustle to make ends meet.

Job security is part of the picture too. US total employment is projected to grow only 3.1% from 2024 to 2034, far slower than the 13% growth recorded over the prior decade, according to the Bureau of Labor Statistics. Retail trade is projected to lose the most jobs of any sector. 

“Hanging on to my full-time job was also another way to kind of give me leverage as I was proving out my business concept,” says Nancy Twine, founder, Briogeo.

Home-based side business ideas

These ideas work from home with minimal equipment, and if you consider yourself an introvert, some of these side hustles are well-suited for you. 

• Be a usability tester
• Become a dropshipper
• Rent your space
• Start affiliate marketing
• Offer consultancy services

1. Be a usability tester

A usability tester gives feedback on websites, apps, or digital products by walking through tasks, narrating their thoughts, and flagging things that feel confusing or broken.

How much you earn per test depends on the platform, test type (moderated versus unmoderated), length, and complexity. For example, UserFeel advertises tester pay of $3 to $30 per test, with many tests hovering around $10 for a 20-minute session.

Potential earnings: $3 to $30 per test. 

2. Become a dropshipper

Dropshipping is an ecommerce model where you sell products online without holding inventory, because suppliers ship orders directly to customers. 

Thomas Sleeth, founder of Dropshipping Hustle, started dropshipping while working full time as a disability support worker. “I was fascinated by the business model and completely immersed myself in it and spent all my free time—and even some work time—learning all I could,” Thomas says. It took him about five months to see consistent profits, and roughly a year to leave his job.

Net profit margins are typically 15% to 25% per product, according to TrueProfit.

To get started, connect with suppliers through Shopify Collective (products from other Shopify brands), DropCommerce for North American suppliers, or Syncee for international sourcing. Niche-specific options include BooksCloud for books and Trendsi for women’s fashion. 

Sidekick, Shopify’s AI commerce assistant, can generate product descriptions, identify trending products, and help set up your store faster.

Potential earnings: Depends on what you’re selling, but typically 15% to 25% profit from each product sold.

3. Rent your space

Consider renting out space in your home through sites like Airbnb or Vrbo to make rental income. In 2025, Airbnb’s revenue grew 12% and Gross Booking Value grew 16% year-over-year, which is the highest-growth quarter the company has had in more than two years.

People pay on average $164 for a one-night stay in an Airbnb. Just check local regulations, as some cities require short-term rental permits. You’ll also want the right insurance coverage, because standard homeowners’ policies don’t always cover guest stays.

If you have spare commercial space, platforms like Peerspace can connect you with companies looking to host photoshoots, galleries, launch events, workshops, and more. The same rules apply: confirm zoning laws and liability coverage before welcoming guests.

Potential earnings: $164 per night. 

4. Start affiliate marketing

Affiliate marketing earns you a commission for every sale made through your referral link. You promote another company’s products and get paid when someone buys.

Start with an affiliate marketing niche you know well, then join programs through ShareASale, ClickBank, or Awin, grab your referral links, and add them to blog posts, social media platforms, or a link-in-bio page.

Commission rates vary by program:

• Amazon Associates pays 1% on groceries to 10% on luxury beauty products.
• Web hosting companies like Bluehost pay up to $65 per signup.

Some programs have traffic requirements. For example, Amazon Associates requires three qualified sales in your first 180 days to stay in the program. Others, like ShareASale, don’t ask for a minimum audience size, but you’ll need a functioning website or platform where you’re actively posting content.

Potential earnings: Up to 10% on some products. Some affiliate marketers can earn up to $97,313 per year. 

5. Offer consultancy services

Offering consulting services means using your expertise in a particular field, such as marketing, IT, human resources, or finance, to advise or guide clients. First, define your niche and the type of clients you want to work with. Then, build a network of industry contacts who can help you secure your first few clients.

Potential earnings: Rates vary depending on your specialty, experience, and client type, such as:

• IT and technology. For tech consultants, average day rates fall between $268 and $878. 
• Marketing and digital marketing. As a marketing consultant, average rates fall between $17.88 and $55.61 per hour. Platforms like Upwork show average marketing consultant rates between $20 and $60 per hour for more “routine” assignments.
• Management and strategy consulting. On average, management consultants charge between $36.23 and $106 per hour. 

Easy side businesses (and side hustles) to start

These ideas are typically cost-effective to start and can be flexible, making them accessible for most people.

• Become a virtual assistant
• Become a dog walker
• Flip thrift-store finds for profit
• Offer decluttering services

6. Become a virtual assistant

Virtual assistants (VAs) handle administrative tasks remotely, including scheduling, email management, travel booking, supplier orders. 

Ariana Rodriguez started her VA business in 2021 for $2,000, which covered a website, a business course, and equipment. “In April, I began making $700 a month,” Ariana says. “By December, I was making $6,000 a month and working a full-time job. I was able to hire a subcontractor to make the work more sustainable.”

Decide what services you want to specialize in offering, set up a website or LinkedIn account to promote your services, and start reaching out to business owners who might need your help. 

Potential earnings: Rates vary depending on services and experience. On average, virtual assistants in the US charge between $15.66 and $41.86 per hour. 

7. Become a dog walker

If you’re an animal lover, consider taking other people’s dogs out for a walk while they’re at work or otherwise unavailable. Platforms like Rover and Wag connect you with pet owners nearby. Start with friends, family, or local community groups to build referrals for your pet business.

Potential earnings: Walkers charge between $10 and $60 per walk.

8. Flip thrift-store finds for profit

Thrift flipping means buying secondhand items cheaply and reselling them at a higher price on platforms like eBay, Depop, or Facebook Marketplace.

“I originally started selling items on eBay, and my goal was to get enough additional income coming in to quit my day job so I could stay home with my children,” says Kim Hawkins, president of EventsWholesale. “I started from scratch and invested very little money—under a hundred dollars—to get started, and then I would just reinvest the profit off of what I sold.”

Kim’s business quickly expanded into more than a full-time operation. Within two years, it was generating enough income for her husband to leave his job and join her, and the venture has continued to grow steadily since. In another case study, a single thrift run of used books and media returned nearly $995 in expected profit.

Potential earnings: It depends on what kind of products you resell. The average seller salary in the US falls between $9.87 and $32.05 per hour for context. 

9. Offer decluttering services

Professional organizers and decluttering consultants help people clear space and create practical systems in their homes. Jobs range from one-off projects (organizing a wardrobe) to multiweek engagements (preparing a house for a move).

Invest in some basic supplies (think storage bins, labels, and trash bags), plus a simple website or social media presence to showcase before-and-after shots. From there, word of mouth, local community groups, or platforms like Taskrabbit can help you find your first few clients.

Potential earnings: Rates for professional decluttering often run $50 to $150 per hour, depending on your experience, location, and whether you market yourself as a general helper or a more premium “professional organizer.”

Side business ideas to start for free

These ideas have no significant startup costs.

• Teach a language
• Start a house- or pet-sitting business
• Become a ride-share driver
• Deliver food

10. Teach a language

The online language learning market is forecast to be worth $91.6 billion by 2030, according to a report by Research and Markets. If you speak multiple languages, sharing your skills could be a lucrative side business.

Language tutoring can be done virtually or in person, either in one-on-one or small group sessions. On average, tutors can earn up to $40 per hour teaching English on the side, but your exact rate may vary depending on experience and what platform you use:

• VIPKid has average pay rates between $14 and $22 per hour for teaching English to students in China (usually 25-minute sessions).
• Qkids pays between $16 and $20 per hour and handles scheduling, making it easier to fill your calendar.

Potential earnings: Language teachers in the US earn on average between $14.46 and $36.55 an hour. 

11. Start a house- or pet-sitting business

Starting your own pet sitting business means staying in or regularly visiting someone’s home to care for their animals while they’re away. House sitting covers the same setup but without pets. 

The American Pet Products Association found that 95 million households in the US own a pet. You can use platforms like Rover and Wag, which connect pet sitters with local clients, while TrustedHousesitters covers longer stays for both pets and homes.

Rates vary by location and service type. Pet sitters typically charge $21.80 for a drop-in visit and $55.45 for a day of housesitting. 

Potential earnings: Pet sitters in the US earn an average of between $13.54 and $48.42 per hour. 

12. Become a ride-share driver

Ride-share driving means using your own car to transport passengers through apps like Uber and Lyft. You set your own hours, accept or decline rides, and get paid per trip plus tips.

The US rideshare industry generated over $16 billion in revenue in 2025, and that’s predicted to increase to more than $61 billion by 2033. This shows there’s plenty of opportunity to get a slice of the pie. 

Your auto insurer will want to know you’re using your vehicle this way, as it increases wear and tear. You’ll probably spend more on maintenance and gas as a result, so keep records of your expenses. 

Potential earnings: On average, US ride-share drivers make between $7.55 and $39.20 per hour. 

13. Deliver food

Food delivery means picking up orders from restaurants or stores and dropping them off to customers through apps like DoorDash, Uber Eats, and Instacart. You sign up, pass a background check, and choose your own hours. In most cases, you’ll only need a scooter, car, or bicycle, a driver’s license, auto insurance, and a smartphone.

Potential earnings: Delivery drivers in the US make, on average, between $11.25 and $34.39 per hour. 

Family business ideas

These family business ideas work well when multiple household members can contribute time or skills.

• Start a home bakery
• Run a weekend lawn care business
• Launch a mobile car washing and detailing service
• Create a neighborhood composting service

14. Start a home bakery

If your kitchen meets state cottage food laws (or can be adapted), a home bakery can be a family-friendly side business. You can start your food business by selling cakes, cookies, bread, or specialty goods directly to neighbors, at local farmers markets, or even to small cafés.

“When I was starting the proof of concept or testing the proof of concept with Wild Rye, I was making small batch baking mixes in my home and sharing them with my friends and asking them to give me honest feedback,” says Sarah Chisholm, founder, Wild Rye Baking Co.

In the US, regulations vary by state, but most states allow “cottage food operations.” You’ll usually need to take a food handler’s course, apply for a cottage food license or permit, and clear product labels. Remember to budget for insurance. 

Potential earnings: The amount you make will depend on what kind of baked goods you sell and your schedule. To add some context, bakers in the US earn an average of $53,991 per year. 

15. Run a weekend lawn care business

If your family doesn’t mind getting outdoors and handling tools, weekend lawn care can be a smart seasonal side business. You mow, trim, edge, and maintain local yards for people who don’t have time or equipment.

One person can mow while another handles scheduling, invoicing, or route planning. As you scale clients for your lawn care business, you can add extra services, like weed control and garden cleanup, or hire extra hands. Note that startup costs (for mowers, trimmers, fuel, transport, etc.) can be around $5,000 to $8,000 (not including the vehicle).

Potential earnings: Lawn care operators in the US can earn anywhere between $13.41 to $26.69 an hour. 

16. Launch a mobile car washing and detailing service

Car washing and detailing is another service business that can be run from a van or even a car with portable gear. You go to clients’ homes or workplaces and clean their vehicles on-site.

Rates vary by job, with costs for full interior and exterior car detailing coming in at $120 or more (assuming a few hours of labor plus materials).

You can divide up the roles between your family. One person might handle washing, while another handles client acquisition, and yet another deals with supplies, etc. 

Potential earnings: The average salary of a mobile car wash technician in the US is $64,122 a year. 

17. Create a neighborhood composting service

Composting involves collecting organic waste like food scraps and yard clippings from your neighbors, then turning it into compost you can sell to local gardeners, farmers markets, or community gardens. Some services even offer compost back to the households who contributed, charging around $30 per household per month for pickup. If you’re looking for an eco-friendly business idea, this ticks all the boxes.

Potential earnings: Varies depending on how many pickups you have each month, but at $30 a household, that could be $300 if you have 10 pickups or $3,000 if you have 100. For context, compost operators in the US earn an average of $56,722 per year. 

Side business ideas for bigger budgets

You’ll need more capital to get started with these, but the earning potential is higher too.

• Start a cleaning business
• Become an event planner
• Become a landscaper
• Sell coffee to local businesses
• Grow and sell microgreens

18. Start a cleaning business

Cleaning businesses cover two main markets: residential (homes and apartments) and commercial (offices, retail spaces, and other businesses).

According to HomeAdvisor, house cleaning rates typically run $25 to $90 per hour, or $116 to $235 per visit for a standard home. Commercial rates tend to run higher depending on the size and type of space. 

To start a cleaning business you’ll need cleaning supplies, liability insurance, and a way to manage bookings and client communication.

💡 Tip: How To Write a Cleaning Business Plan

Potential earnings: Depends on the size of your business. As a baseline, cleaners in the US typically earn between $9.88 and $28.42 per hour. 

19. Become an event planner

Event planners organize weddings, corporate events, private parties, and community gatherings. The work is project-based and can be seasonal, which can fit around a full-time job.

Once you decide what type of events you want to specialize in, create an event planning business plan. Use it to map your business just like you would an event. Build a portfolio showcasing your past event planning work, and network with local venues, vendors, and industry professionals to establish relationships and find clients.

Potential earnings: The average salary for US event planners is $24.74 per hour.

20. Become a landscaper

Landscaping can be as simple as mowing lawns, trimming hedges, or planting flowers. With some know-how, you could expand your landscaping business to include hardscapes, like building decks or installing koi ponds.

The biggest upfront cost here is equipment. A reliable push mower can run between $200 and $500, while a professional-grade riding mower can cost anywhere from $1,500 to $5,000 depending on the model. String trimmers, leaf blowers, and hedge cutters will add another $50–$100 each, and you’ll also want basics like rakes, shovels, and protective gear.

Potential earnings: Landscape laborers earn an average of $19.24 per hour, while senior landscapers earn an average of $98,549 per year. 

21. Sell coffee to local businesses

Selling coffee to local businesses means sourcing or roasting beans, brewing in bulk, and delivering directly to offices, co-working spaces, cafés, or independent retailers on a recurring basis. 

To get started, invest in some quality coffee beans, a reliable cold brew setup, and durable containers that keep the coffee fresh. Try out a few recipes to create a smooth, consistent taste, then start approaching businesses.

Potential earnings: Depends on the quality of your product and the businesses you work with. For context, baristas make an average of $18.47 per hour in the US. 

22. Grow and sell microgreens

If you like the idea of a gardening business, consider growing microgreens. Microgreens are vegetable and herb seedlings harvested seven to 14 days after germination, and include varieties like arugula, radish, sunflower, and pea shoots. They sell to restaurants, farmers markets, and direct consumers, typically by the tray or by weight.

Most growers use standard 1020 trays (roughly 10 by 20 inches) filled with a shallow layer of soil or soilless growing medium, seeded at around 10 to 15 grams per tray depending on the variety.

Gross profit margins are often reported to be 80% or more for new farms, and established producers sometimes push 85% or more in certain crops.

When you factor in operating expenses, including rent, power, packaging, labor, and marketing, the net profit margins tend to be more modest, with many growers reporting 15% to 20% net margins as a more realistic range.

Potential earnings: The average salary for microgreen farmers in the US is between $19.79 and $23.25 per hour. 

Turn your hobbies into a side business

If you’ve already got a skill or hobby, these business ideas give you a way to earn from it without starting from scratch.

• Start a photography business
• Teach a class
• Sell online courses
• Organize people’s homes
• Repair and troubleshoot tech devices
• Offer home repairs and DIY services

23. Start a photography business

Photography as a side business covers a wide range of work, including portraits, weddings, newborns, pets, real estate, product shoots for ecommerce stores, and brand photography for local businesses. 

To start your own photography business, decide on your niche, such as newborns, engagements, or pets, and build an online photography portfolio to showcase your work. You may also consider working with local businesses to provide staff or product photography, or with event managers to capture local events.

You can also sell your photos online via sites like Stocksy, Shutterstock, and Alamy, which pay photographers when their photos are commissioned, downloaded, or sold. Shutterstock pays photographers between 15% and 40% commission, Stocksy pays between 50% and 75%, and Alamy pays an average license fee of $30. 

Potential earnings: Photographers in the US earn an average of $50,117 per year. 

24. Teach a class

Teaching a class means running structured, in-person sessions in a subject you know well, which could be anything from cooking, personal training, yoga and art, to music, fitness, coding, or life coaching. You get to set the curriculum, the schedule, and the price.

You can teach classes from your own home or host them from a community center or a rented studio space. 

To get started, pick one class format and test it with a small group before committing to a recurring schedule. Post in local Facebook groups, Nextdoor, or community notice boards to find your first students. Platforms like Eventbrite and Meetup let you list classes and handle registration and payment in one place.

Potential earnings: Depends on what you’re teaching. The average teacher salary in the US is $42,928 a year, but that’s based on full-time school hours during term time. 

25. Sell online courses

An online course teaches people how to do something, while allowing them to tune in on their own schedule.

To get started, you’ll need a topic idea, a curriculum, and a platform to host your course on. There are a variety of platforms you can pick from, each with tradeoffs in features, fees, and branding:

• Thinkific: Prices start at $40 a month for the basic plan.
• Teachable: Prices start at $39 a month. 
• LearnWorlds: Prices start at $29 a month. 
• Podia: Prices start at $39 a month. 

You can also use a course marketplace like Udemy or a video hosting service like Vimeo, Wistia, or YouTube to embed or stream lessons.

Potential earnings: Depends on your audience, topic, and course format. For context, the average cost for an hour’s academic online class was $337 in 2025. 

26. Organize people’s homes

Home organizing means helping clients create functional systems in spaces that aren’t working, such as cluttered kitchens, overloaded closets, chaotic home offices, and garages that haven’t seen a car in years. It overlaps with decluttering, but you’re not just removing things, you’re designing and installing storage solutions too.

To get started, build a portfolio website with before-and-after photos. Offer a discounted first job or two in exchange for photos and a review and lean into word-of-mouth referrals. The National Association of Productivity and Organizing Professionals (NAPO) offers certification if you want to formalize your credentials and charge at the higher end of the market.

Advertise your services on Thumbtack and TaskRabbit to get your first few clients. 

Potential earnings: The average cost of a personal organizer in the US ranges from $227 to $640, with most people paying around $380. 

27. Repair and troubleshoot tech devices

Tech repair means fixing the devices people rely on daily, including cracked phone screens, dead laptop batteries, software problems, and hardware faults. You can work from a home setup, visit clients on-site, or take jobs through platforms like TaskRabbit and Craigslist.

To get started, pick two or three repairs you can do confidently and source parts through suppliers like iFixit or Amazon. iFixit also publishes free repair guides for hundreds of devices, which is useful for expanding into new models.

Focus on the types of devices you know best, whether that’s smartphones, laptops, or gaming consoles. Start by advertising your services in local groups, posting on social media platforms, and reaching out to friends and family that might need your help.

Potential earnings: Computer technicians earn an average of $19.94 per hour, while mobile phone technicians earn an average of $16.75 per hour. 

28. Offer home repairs and DIY services

Handyperson and DIY services cover practical jobs, like furniture assembly, TV mounting, painting, minor plumbing fixes, and drywall patching. 

To get started, sign up on TaskRabbit, choose the services you’re confident doing, set your hourly rate, and pass a background check. There’s a one-time registration fee of around $25. You can also advertise your services on Nextdoor and in local Facebook groups without platform fees.

Potential earnings: New taskers can earn between $1,000 and $1,500 a month depending on how many tasks they take on and their skill set. 

Side business ideas for creatives

These hobby ideas turn design and writing skills into income.

• Sell your skills
• Start a clothing line
• Be an influencer
• Write an ebook
• Sell your art
• Private label your own products
• Sell handmade goods

29. Sell your skills

Selling your skills as a freelancer means offering services like writing, graphic design, video editing, web development, or social media management to clients on a project or hourly basis. You can sell your services on platforms like Fiverr, Upwork, or 99designs. 

To get started, pick a niche or one skill set to focus on. Then, build a portfolio you can share with potential clients on the platforms above or via your own website and social media channels. 

Potential earnings: According to Upwork’s own rate data, graphic designers on the platform typically charge $15 to $35 per hour, photo editors $18 to $35 per hour, and content writers $15 to $40 per hour.

30. Start a clothing line

In 2025, revenue of the global fashion ecommerce segment reached more than $920 billion. If you’ve dreamt of starting a clothing line, there are ways to test the waters.

First, create a few designs using a tool like Canva or Adobe Illustrator. You can also use AI to help you come up with designs and create them. Platforms like Printful, Lulu Direct, and Printify then allow you to upload your designs onto t-shirts, sweaters, hats, and more.

When you receive an order through your online store, print-on-demand suppliers will print your design and ship it to the customer, so there’s no need to hold and manage inventory yourself.

Shopify’s Shop app lets customers track orders and discover your brand once your store is live. 

Potential earnings: Depends on what you’re selling. For context, product owners in the US can earn between $3,250 and $19,917 per month. 

31. Be an influencer

Becoming an influencer means building an audience around a specific topic and earning extra money through brand partnerships, affiliate commissions, and platform revenue sharing.

To get started, pick one social channel (e.g., Instagram, TikTok, or YouTube) and one niche. Each channel has its own payout model. For example, YouTube pays through its Partner Program once you reach 1,000 subscribers and 4,000 watch hours. 

Once you’ve generated a following, consider joining an influencer marketing platform, to match with businesses with influencer marketing campaigns.

Potential earnings: 2025 data shows $202 to $364 or more per collab, on average, across platforms (varies by size, engagement, and format).

32. Write an ebook

Writing an ebook means creating a digital book and selling it directly to readers, without a traditional publisher. And there’s plenty of opportunity. Global revenue for the ebooks market is projected to reach $15.14 billion this year.

To get started, pick a topic you know well and that people search for. You can use Amazon’s own search bar to check demand. Write, format in a tool like Atticus or Google Docs, design a cover on Canva or hire a designer through Fiverr, and upload to Kindle Direct Publishing. 

You can distribute beyond Amazon through platforms like Draft2Digital, which pushes your book to Apple Books, Kobo, and Barnes & Noble in one step.

Potential earnings: KDP royalties are either 70% if you’re in eligible territories or price band, or 35% otherwise. 

33. Sell your art

Sell your original art, prints, and digital downloads on online marketplaces like Etsy, Redbubble, as well as directly through a Shopify store. Selling on Shopify gives you more control over branding, pricing, and customer relationships than a marketplace.

If you currently sell on Etsy, Shopify offers a migration guide to help you move your listings and customer data.

📚 Read: 30+ Art Business Ideas That Actually Make Money

Potential earnings: Average artist salaries in the US fall between $2,835 and $15,057 a month. 

34. Private label your own products

Private labeling is when you outsource product manufacturing to a supplier who produces items under your brand. You handle branding and marketing, while the supplier creates the product and attaches your branded packaging.

Platforms like Alibaba connect you with manufacturers, and Shopify handles the storefront.

You can always hire help to do the things you don’t have time for or aren’t as skilled at. “I found people who could help me, so when I was working my day job there were people behind the scenes who were helping with other things,” says Nancy Twine, founder, Briogeo. 

“So for example, I ended up hiring a cosmetic chemist who was working on the formulas while I was working my day job. I hired an agency to help me with the branding and the marketing, so I really focused my time on the things that were really special to my talents.” 

Potential earnings: Amazon SMB sellers average a 21% profit margin.

35. Sell handmade goods

Selling handmade goods means making products yourself and selling them directly to buyers online or at markets. This could be candles, soap, jewelry, pottery, prints, woodwork, or anything else that can be made by hand. 

You can sell your products on a marketplace like Etsy, which has built-in search traffic, or via your own Shopify store. 

Jen Greenlees, founder of Sydney So Sweet, started her side business selling handmade children’s products when her first daughter was born.

“At the time I was a high school chemistry teacher,” says Jen. “I ran my new business while teaching full time and also raising five kids.

“It took very little money to start, since I was making everything myself. Time was another issue. There were weeks during the fall where I was staying up until 2 a.m. to make and fulfill orders, and then getting up at 6 a.m. to get ready for work.”

Jen eventually took her side business idea full time. “It was a huge risk at the time,” she says. “Teaching provided a great salary and benefits, and I gave up a lot leaving my job. But the risk has paid off, and the freedom I enjoy being an entrepreneur is worth more than any paycheck.”

Potential earnings: On average, Etsy sellers make just under $3,000 a month. Earnings vary by niches and effort.

What to know before starting a side business

Be aware of the following elements to create a compliant and fulfilling side business. 

Side business legal structure

Choosing a legal structure affects your taxes, liability, and how formally you run the business. The main options for a side business in the US:

• Sole proprietorship. The default if you do nothing. Simple and free to start, but you’re personally liable for any business debts or legal issues.
• Limited liability company (LLC). Separates your personal assets from business liability. Filing fees vary by state ($50 to $500), with annual fees in some states. Most side businesses that carry any liability risk benefit from this structure.
• S Corp or C Corp. More complex and generally not necessary until revenue is substantial.

State laws on business registration, naming requirements, and annual fees vary. Check your state’s Secretary of State website or your state’s small business development center (SBDC) for current requirements before registering. This article isn’t legal advice. Consult a licensed attorney if you have questions about the right structure for your situation.

Side business taxes and insurance

If your side business generates $400 or more in net earnings, you’re required to file a federal tax return and pay self-employment tax, according to the IRS. The self-employment tax rate is 15.3%, which is made up of 12.4% for Social Security and 2.9% for Medicare, because you pay both the employee and employer portions. This applies to net earnings (revenue minus business expenses), not gross revenue.

For the 2025 tax year, the Social Security portion applies to the first $176,100 of net self-employment earnings. You can deduct half of your self-employment tax when calculating adjusted gross income, which reduces your income tax (though not the self-employment tax itself).

Most side businesses should also carry business insurance. General liability insurance protects against client injury or property damage claims. If you handle client data, cyber liability coverage is worth considering. Professional liability (errors and omissions) insurance applies to consulting and service work. Costs vary by coverage level and business type.

Time management and work-life balance

Running a side business alongside a full-time job requires a bit of smart juggling. 

Instead of trying to squeeze in work whenever you can, block off dedicated hours for your side hustle just like you would for your day job or family commitments. For example, maybe you work two evenings a week and Saturday mornings. Either way, make the best use of the pockets of time you have available. 

“I had a long commute when I was still working in my fashion job, and Becca would call me on my train to work, which was an hour and a half, and we would talk all things Mustard,” says Jess Stern, co-founder, Mustard Made.

Be honest with yourself about capacity, too. A side hustle should complement your life, not completely take it over. If you find yourself working until midnight every night or missing out on weekends with family, it might be time to scale back or raise your rates so you’re earning more without adding hours.

Finally, communicate boundaries clearly to clients or customers. Let them know your working hours, and don’t feel guilty about saying no to projects that don’t fit.

How to choose a side business idea

Should you start a blog, launch an Etsy shop, or finally offer the consulting work your coworkers are always asking about? The trick is not to chase the “hottest” idea, but to find something that fits you.

1. Assess your skills and interests

Start with what you already know by looking at what professional skills, hobbies, or domain knowledge you have. Then, identify where those intersect with genuine market demand. If you’re a whiz with spreadsheets, virtual assistance or bookkeeping could be a natural fit. 

If you love being outdoors, lawn care or dog walking might energize you instead of draining you. If your full-time job comes with stress and lots of decisions, your side business could provide the opposite. Make a list of your top skills and genuine interests, then look for overlap.

2. Consider your schedule and availability

Be realistic about the time you can give. If your weekdays are packed, look for side hustles that you can do on the evenings or weekends, like ride-share driving or event planning. If you only have a few hours here and there, something task-based, like freelancing online, social media management, or selling digital products, might be a better fit.

3. Start with low-risk or low-cost ideas

Side businesses like freelancing, tutoring, or offering digital services let you dip your toe in without dropping thousands on equipment or permits. If you do want to try something that costs a bit more to start, consider renting equipment first or teaming up with someone to share expenses.

4. Test and validate before investing more

Before buying inventory or running ads, try to land your first customer through direct outreach, local community groups, or free listings. 

Start your side business today

The right side business depends on how much time you have, what you’re good at, and how much you want to invest. Many of the ideas on this list require nothing more than time and a reliable internet connection.

For side businesses that involve selling products, Shopify’s Starter plan lets you sell online and in person for $5 per month. It includes a product page, checkout, and Shopify Payments, without needing a full online store. 

Sidekick, Shopify’s AI commerce assistant, is built into every Shopify plan. It can help you write product descriptions, identify what’s selling, set up automations, and work through the practical questions that come up when you’re running a business alongside everything else.

*Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with two or more years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.

Side business ideas FAQ

How can I make $1,000 a month passively?

Digital products, online courses, print-on-demand products, and affiliate marketing programs can generate passive income once you’ve done the initial groundwork. Diversify your revenue by combining two or more of these income streams. 

How do I make an extra $2,000 a month?

Look at side businesses like freelancing in a skill you already have, walking local dogs, offering DIY or repair services for neighbors, or selling handmade items on Etsy. Consider what skills and interests you already have and look for ways to monetize them. 

Which is the best side business to start?

It depends on your skills, schedule, and how much you want to invest upfront. Service businesses like freelancing, consulting, cleaning, tutoring have the lowest startup costs and the fastest path to a first paying customer. 

Product businesses take longer to build but can scale without trading time directly for money. The best starting point is whatever sits at the intersection of a skill you already have and a problem people are actively paying to solve.

How much money can you make from a side business?

It varies widely. The average side hustler in the US earns $885 per month, according to Bankrate’s 2025 survey, though the median is $200, which means most people earn less than the average. Earning potential depends on the business model, time invested, and how quickly you build a customer base or audience.

When should you turn a side business into a full-time job?

Only 16% of side hustlers say they want their side business to become their primary income source, according to Bankrate. A common benchmark is when your side business consistently generates enough to cover your living expenses for three to six months, giving you a runway if income dips after you leave your job.