How to build a $200k side hustle online in one year while working full-time

Starting a successful side hustle while managing a full-time job can feel daunting, but Elena from the Apprentice Diary channel has proven that it’s possible to establish a six-figure business in just one year. Through her journey, she not only achieved $200,000 in revenue but also learned valuable lessons about business growth, time management, and scalability. In this detailed recap of her video, we’ll explore her journey, the steps she took to scale her business, the challenges she faced, and her future plans.

Introduction: The ambitious goal and where it all began

In early 2022, Elena set an ambitious goal—take her family, including her parents, grandma, and aunts, on a European trip. While being an avid travel hacker and active member of a travel community, she consistently saw people leveraging business-related expenses to maximize their financial rewards. Inspired by this, she decided it was time to start her own business.

Elena’s research led her to Amazon FBA (Fulfilled by Amazon), a model that allows sellers to send products to Amazon warehouses, where they handle the shipping and customer fulfillment. After exploring various strategies for Amazon reselling—such as online arbitrage (OA), retail arbitrage (RA), wholesale, and private labels—she decided to dive in and begin her entrepreneurial journey.

Elena begins her Amazon FBA journey with inspiration from travel hacking

Learning the ropes: A hustle fueled by determination

When Elena started Amazon FBA, she was pregnant with her first child and nearing the end of her third trimester. In just one week, she laid the groundwork for her business by setting up legal documentation (DBA, EIN), opening a business bank account, and securing her first business credit card. Despite being weeks away from labor, she put in the effort to learn about scanning apps like SellerAmp and tools to identify profitable products.

In November 2022, just before giving birth, she shipped her first box of products to an Amazon warehouse and made her first sale soon after. That initial excitement of seeing a sale confirmed that she had taken the right path.

The first few months: Growing pains and profits

In her first month doing retail arbitrage (RA), Elena generated $1,000 in revenue with $125 in profit. By the second and third months, her revenues climbed to $3,100 and $7,800, with profits of $560 and $1,500 respectively. However, by her fourth month, while her revenue reached $6,400, her profit margin dropped to just $280 due to increasing software expenses and the time-intensive nature of RA. It became clear that while profitable, RA wasn’t scalable—she was spending weekends driving from store to store and late nights preparing inventory.

Elena reflects on the rigorous demands of retail arbitrage

Scaling with online arbitrage: A pivot to efficiency

Realizing that she couldn’t sustain the workload of RA while caring for a newborn and working full-time, Elena decided to invest all of her profits into further education. She purchased a comprehensive Amazon FBA course and started transitioning to online arbitrage (OA). Unlike RA, OA allowed her to source products online rather than physically visiting stores, giving her more control over her time.

Her first month doing OA brought in $8,325 in revenue with $975 in profit. By April 2023, just her second month of OA, she achieved $19,373 in revenue and $4,450 in profit. The move to OA proved far more scalable compared to her previous efforts.

Scaling up the business with online arbitrage tools like Keepa

Outsourcing and hitting milestones

To streamline her operations further, Elena took significant steps, such as outsourcing prep work to third-party prep centers and hiring virtual assistants (VAs) from the Philippines for administrative tasks. These changes allowed her to focus on scaling the business by sourcing more inventory at scale.

By July 2023, Elena achieved her first milestone of $20,000 in monthly revenue with $4,400 in profit. However, in October, her revenue dipped to $18,000 with only $171 in profit due to an increase in expenses.

Despite these fluctuations, by November and December, she brought in $31,000 and $34,000 in revenue, resulting in profits of $5,000 and $5,700 respectively. In December, her most profitable 30-day period saw her generate $51,000 in revenue and $11,600 in profit, primarily due to high demand during Black Friday and Christmas.

The introduction of prep centers and VAs streamlined scaling efforts

Lessons learned from running an Amazon business

As Elena recounted, her first year in business offered several key lessons:

1. Consistency matters: Whether during profitable months or challenges, dedication to learning and improving was key.
2. Adaptability is essential: Transitioning from RA to OA was a pivotal moment in the success of her business.
3. Seasonality is impactful: The majority of sales occur in Q3 and Q4 due to the holiday season.
4. Networking is vital: Engaging with other Amazon sellers provided inspiration and proof that the business model works.

Lessons about consistency and adaptability emerged from year one

Future plans: Scaling to $1 million in revenue

In 2024 and 2025, Elena aims to transition her business to wholesale and brand direct. These strategies, while yielding lower profit per unit, promise higher volumes and easier processes. Wholesale eliminates the constant need for sourcing, as products can be reordered directly from brands or distributors each month.

Additionally, Elena is leveraging the power of business credit cards to access capital with promotional benefits like 0% APR or zero-interest purchases over 12 to 15 months. This has allowed her to scale the business without dipping too much into personal savings.

Shifting focus toward wholesale and brand direct for scalability

Conclusion: Building a sustainable side hustle

Elena’s journey is a testament to resilience, creativity, and the power of creating efficient systems. Within one year, she turned her Amazon FBA business into a $200,000 revenue-generating side hustle, all while balancing the responsibilities of full-time work and motherhood.

Her advice to aspiring entrepreneurs? Stay consistent, adapt to changes, focus on scalability, and make strategic investments in your business. With plans to achieve $1 million in revenue yearly, Elena’s journey is far from over, and her story serves as an inspiring blueprint for new business owners aiming to make their mark in e-commerce.