In case you aren’t as old as me (who is), blue boxes were devices that could produce the tones used by telephones to switch long distance calls. Use a blue box, make long distance calls for free. (Calling my girlfriend when I was a freshman in college cost .45 cents a minute at a time the minimum wage was $2.65. You do the math.)
Jobs and Woz sold approximately $6,000 worth of blue boxes before they were nearly caught by police, but that wasn’t the real lesson they learned.
It was the magic of the fact that two teenagers could build this box for $100 worth of parts and control hundreds of billions of dollars of infrastructure in the entire telephone network in the whole world, [all] from Los Altos and Cupertino, California.
Experiences like that taught us the power of ideas: the power of understanding that if you could build this box, you could control telephone infrastructure around the world. That’s a powerful thing.
If we wouldn’t have made blue boxes, there would have been no Apple, because we wouldn’t have had the confidence that we could build something and make it work, because it took us six months of discovery to figure out how to build this…
Break out the leashes and the poop bags! There’s never been a better time to be a dog walker.
Who says so? Well, The New York Times says so. It just ran an article about professional dog walkers in Manhattan who are making more than $100,000 a year.
And, sure, most of us don’t live in Manhattan, and most dog walkers don’t really earn six-figure salaries. But this is still a lucrative time to walk dogs for a living, either full time or as a side gig. And it’s all because of the pandemic puppies.
That’s nearly 1 in 5 households! That’s tens of millions of new pets that need tending to, every single day. “With many Americans back in the office, somebody has to walk all those pandemic puppies,” the Times pointed out.
You spend a lot of money on your pets. Maybe it’s time they return the favor. PetSmart is seeking a dog or cat to be its “chief toy tester.” The gig pays $10,000.
How to Get Started as a Dog Walker
Sounds great, right? Lots of fresh air and exercise and dogs, what could be better? But how can you set yourself up for success?
You could get started the old-fashioned way: Tell all your friends and neighbors, then put up some handmade leaflets in strategic spots around your town. Post it on Craigslist and announce it on all your social media profiles, too.
These days, though, most beginning dog walkers are finding work on apps.
The rise in dog walking as a job or side gig can be partly attributed to the rise of dog-walking and pet-sitting apps that have hit the market in recent years, modernizing this whole process. The most popular ones are Rover and Wag, which were founded in 2011 and 2015, respectively.
These apps are sort of like Uber for dog walking in that you take requests in your area. Depending on where you live, you can accept dog walks that are ASAP, meaning you need to arrive for the walk within a certain period of time, or you can accept a walk that’s scheduled for a later time.
You also post your availability for dog walking gigs in your area. Dog owners near you can look at your profile, your prices and your availability, then book a walk with you through the app. So you’ll want to make sure your profile looks inviting and features photos of you interacting with pets.
If you hit it off with a pup and its owner, you can schedule ongoing walks with the same client.
You have to be 18. Both apps do a basic criminal background check.
And if you’re finding dog walking appointments hard to come by, you might branch out into pet sitting or even pet boarding. Both apps offer that.
These are the 29 best side hustles to help you make more money. (And, yes, pet sitting made our list.)
How Much Does a Dog Walker Make?
There’s not a simple answer to this question. Pay rates are all over the map, and your total earnings will depend on how aggressive you are about seeking out work and what kind of services you offer.
According to Rover, here are the average prices for each service:
Dog walking: $20 a walk
Drop-in visits: $20 a day
Doggy day care: $35 a visit
Overnight boarding or sitting: $40 a night
A search on Rover in our city found dog walkers charging $15 to $25 per walk.
“Many sitters on Rover use the platform as a traditional side gig, taking care of pets for extra income,” Rover trends expert Kate Jaffe told The Penny Hoarder. “We make it easy to manage their business, whether they work full time and want to dog sit on the side, or they’re a student looking for flexible work, or a retiree who wants to stay active and avoid dipping into their retirement savings.”
Not sure how much to charge? Look at what other people in your area are charging. If you’re just starting out, set your rates on the low end while you work to build up your clientele.
For example, Wag allows you to set rates for 20-, 30- and 60-minute walks, and it shows you a range of what the average walker in your area is charging.
Once you set your rates, your clients pay your rate plus a 20% fee to Rover or a 40% fee to Wag.
Pet sitting and pet boarding gigs typically pay more than dog walking because they require more than a brief commitment of your time.
“Given the duration of most overnight care (boarding and sitting) requests, these tend to be the most lucrative,” said Kaitie Edel, senior marketing manager for Wag. “Becoming a pet parent’s preferred caregiver or accepting a recurring request can also be very lucrative, given the long-term relationship it creates.”
In short, you’re probably not going to earn more than $100,000 a year like a professional Manhattan dog walker who caters exclusively to the rich elite.
But all those pandemic puppies need to be walked, and someone has to walk them.
If you’re looking for extra cash, it could be you.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.
If you’ve ever considered starting your own business, then the thought has probably crossed your mind: What’s an LLC, and do I need one?
LLC, which stands for limited liability company, is a great option for small business owners looking for a way to get legally established.
Not only does this business structure make your company sound more official, but it also comes with certain legal benefits (like liability protection) as well as tax benefits for business owners.
We talked with seven experts — from lawyers to financial coaches — to help us understand the ins and outs of an LLC. Their (free!) advice will help you decide if an LLC is right for you.
What Does LLC Mean?
A limited liability company is a way of organizing your business that also comes with a few extra perks. Tony Grenier, CEO of Instrumental Global, an online music instruction site, breaks it down for us.
“A limited liability company (LLC) combines the best of a sole proprietorship, C Corporations, and partnerships,” Grenier said. “It basically offers flexibility in management, division of profits and losses, as well as taxation benefits.”
Unlike other business structures, limited liability companies are also relatively easy to get started, especially for solo business owners
“An LLC is a type of business in which only one member or employee is required, and that individual can participate in the business’s daily operations,” said financial coach Annette Harris of Harris Financial Coaching.
Another unique aspect of LLCs is that the applicant doesn’t necessarily need a lawyer to start one. Depending on the state where you live, you may be able to register your LLC online. Once you get your business entity started, you also won’t have quite as many restrictions on how you operate your company as you would with a corporation.
“With Corporations, it’s easy to drown in mandatory red tape, meetings, and admin” said Adam Garcia, founder of The Stock Dork, an education investment site. “LLC’s have less of that and as mentioned before are easier to set up and run.”
What Can an LLC Do for My Business?
One of the main reasons to get an LLC is that it provides quite a bit of protection for you as a business owner.
“An LLC allows business owners to limit their personal asset liability exposure for the financial obligations of the business,” said business attorney Kimberly M. Hanlon of Lucere Legal.
Since all businesses assume some level of legal risk, LLCs are one way to protect your net worth from being dragged into any type of legal battle as a result of your business. But LLCs aren’t just for protection, they also offer great tax benefits for business entities as well.
“Taxwise, LLCs are attractive as there isn’t any double tax at play,” said Garcia, of The Stock Dork. “This is different from corporations, where you get corporate taxes as well as owners being taxed on their dividends.”
As a result of the 2017 Tax Cuts and Jobs Act, LLC owners are also entitled to a tax deduction called the Qualified Business Income (QBI) deduction (which isn’t set to expire until 2025).
Tips to Form an LLC
If you’re serious about forming an LLC, there are a few things you’ll want to keep in mind. Here are some high-level tips for successfully registering and owning a limited liability company.
Only Use a Lawyer if Your State or Special Situation Demands It
Working with a law firm can be incredibly expensive, and while there are cases where you may want a lawyer, you don’t need one to form your LLC.
There are instructions online on reputable law blogs like Nolo or on the department of corporations website for your state,” said Mark Chen, founder and CEO of BillSmart.
You may need legal assistance if your state requires you to have an operating agreement (which outlines the agreement between LLC members), if you’re applying for a copyright or trademark, or if you’re applying for certain state or federal business certifications.
Keep Your Finances Organized
Starting a new business venture is a lot of work, and it can be all too easy to get lazy when it comes to how you organize and record your finances. But this is definitely one aspect of your business you won’t want to cut corners on, as explained by financial planner Logan Murray of Pocket Project.
“Ideally, once an LLC is created, it’s advisable to keep income and expenses flowing only through that entity by setting up LLC bank accounts, getting debit or credit cards in the name of the LLC, etc,” Murray said. “This is helpful for legal purposes and also for tax purposes, as it keeps personal and business expenses separate, which makes your life a lot easier come tax time.”
Register at the Right Time
Creating an LLC comes with a whole new set of responsibilities, and you’ll want to be sure you’re starting it at the right time — and not before.
“Choosing a business structure will be one of the first major decisions you make as a business owner, so give yourself the grace to move forward when it’s right for you and no sooner,” said Terra Gross, founder of Attuned Legal, LLC, which specializes in providing services to micro businesses. “Look closely at startup timing in light of how expensive it is to register and maintain an LLC wherever you plan to set it up, as well as whether you’re personally ready to spend hours keeping up with, or outsourcing, the bookkeeping.
Even though there are perks, Gross said, you should stay on top of reporting and tax requirements. If you’re in a regulated profession, you should also double-check whether there are restrictions on adopting an LLC as your business structure.
Be Prepared for Annual Costs
In addition to the time investment of registering and maintaining your LLC, you’ll also want to be prepared for the monetary expense of getting your LLC up and running, and renewing its annual registration.
“LLC costs depend on the state,” said business attorney Hanlon. “There are registered agent fees and the annual fee that you’ll need to pay to the chamber of commerce in your state. Registered agent fees are about $50 a year. State LLCs range from $100 to $700.”
Another thing to keep in mind is that you may end up paying two different state fees if your LLC is registered in one state, but you live in another. Before you begin the process of forming an LLC, be sure to calculate exactly how much it will cost you and start saving up. That way, you won’t encounter any surprises down the road.
Start Simple
One of the best pieces of advice we’ve heard with regards to creating an LLC is to keep things simple, and if you’re not sure whether to form an LLC or a C corporation, consider starting with an LLC.
“Review the different types of legal structures: sole proprietorship, LLC, corporation and S corp and see what structure works for your needs,” Chen, of BillSmart, said. “Keep in mind that it’s easier to go from an LLC to a corporation than a corporation to an LLC. Start simple, and then go deeper if you need to.”
Looking for more advice on starting your own business? Check out our 10-step guide.
Frequently Asked Questions (FAQs)
What Does Having an LLC Mean?
An LLC, or limited liability company, is a type of business structure that gives business owners certain legal protections (like limited liability) and tax benefits. It’s also a relatively simple business entity to start, and only requires one owner.
What Is an LLC Used For?
An LLC is a legal entity used by small business owners who want a more formal business structure than a sole proprietorship or partnership. It offers certain legal protections and tax benefits as well.
Is LLC Good or Gad?
LLC’s can be a great option for small business owners, depending on the goals and needs of their company. For larger companies, or those wishing to raise venture capital funding, forming a c corporation might make more sense.
As Always, Think About the Money
Starting any new business venture is a big deal, and forming an LLC is no exception. Before you get started, take some time to outline your company goals and decide if this type of business entity is the best model for your company.
You should also consider setting aside some cash for registration and other startup costs. If you have business partners, be sure to get them involved in the conversation, and consider drafting an operational agreement to designate various responsibilities. The more planning you can do in advance, the better your transition into a limited liability company will be.
Contributor Larissa Runkle specializes in finance, real estate and lifestyle topics. She is a regular contributor to The Penny Hoarder.
Amid the pandemic, some out-of-work people have started food businesses in their homes, using handwritten flyers and Instagram accounts to advertise their wares.
These underground businesses can supplement income in uncertain times, but they’re often operating in a legally gray area, and that could lead to fines from local health departments. Going legit takes time, but it can help scale your food business from underground sales to farmer’s markets, online marketplaces or local stores.
While every state treats home-based food businesses a bit differently, here’s what you’ll need to look into to take the next steps with your food business.
Check State and Local Laws
When I opened my small-batch confectionary in Massachusetts, I needed to have my apartment kitchen certified as a Retail Residential Kitchen. The application process was time-consuming: I had to read the entire federal food code, become ServSafe certified in food handling, describe the items I planned to make and how they’d be processed and packaged, and have my kitchen inspected (I sweated this one, but I passed).
This process is likely different for every state in the country. Search “retail residential kitchen for (name of state) to find the regulations for your location.
Massachusetts law only allows for home production of foods that don’t require hot or cold holding. Baked goods, jams and bread are fine, but pizza doesn’t pass. Cut tomatoes aren’t allowed, so a home-based salsa business is a no-go.
Massachusetts tends to be a bit draconian in its laws; had I started my home-based cooking business in New York, where I live now, I wouldn’t have had to get my kitchen certified or inspected. (New York only inspects if complaints are made.)
New York offers an expansive list of approved and banned foods that’s worth examining closely for its inconsistencies. While you can repackage dried pasta, you can’t make or dry your own pasta. While cakes and cookies are OK, custom cakes and cookies for weddings or special events are prohibited.
Cottage laws in Texas are even looser. Texans can make baked goods, jams, pickles, coffee and tea with no license required and no need to observe the Texas Food Establishment Rules, and the state’s Health Department can’t inspect home kitchens.
Some areas, like King County, Washington, don’t allow any sales of home-prepared foods. If you face those restrictions, look for a community kitchen space to rent, such as a commissary or church kitchen.
State and local laws not only determine what you’re allowed to sell but what, if any, business licenses or permits you’ll need before you can legally sell home-prepared foods. States, including Texas and Massachusetts, require food safety training, such as ServSafe. New York requires a Home Processing License (which is free and takes about two weeks to receive). My Massachusetts residential kitchen permit allowed me to sell direct to consumers; to sell to stores would’ve required a wholesalers’ license.
In addition to state laws, check local zoning regulations. You might not be able to have a home-based food business without a separate permit due to local zoning restrictions on home-based businesses. Or you might be allowed to operate a business so long as sales aren’t made onsite, with customers picking up from your home.
This is the most exhausting step, but it’s critical that you do it first, so you don’t invest time and resources in dreaming up a side gig you can’t actually run where you live.
Protect Yourself With Business Insurance
Home food business insurance may or may not be required in your state, but it’s the smartest thing you can do to protect yourself from liabilities like allergic reactions or food contamination. While ideally, nothing will ever go wrong, food spoils even in professional kitchens and you need to protect yourself.
Without insurance, you’d be on the hook for a hospital bill to cover an allergic reaction, which could damage your credit and empty your bank account pretty quickly. Liability insurance prevents a claimant from going after your personal assets in the event of an incident, and it’s pretty cheap: I paid $195 a year for a $2 million policy.
Before buying separate insurance for your food business, make sure you understand whether any other insurance you currently purchase (such as renter’s insurance or homeowner’s insurance) will cover your home-based food business. You may be able to extend coverage through a rider and you’ll often get a discount by bundling insurance through your current provider.
Invest in Supplies
Most states require you to package, portion and label food for sale. That means a food scale (mine needed to pass inspection), labels, a printer and ink. Packaging might include bags, boxes, tins or jars, depending on your inventory.
A local craft supply store is fine for times when you run out of packaging with a backlog of orders, but retail pricing eats into your margin significantly. Look for wholesalers to pare down your costs.
Vending at markets means special market supplies: a table and chairs, market tent (with weights so it doesn’t blow away), sign or banner, cash box (and change), Square or another equivalent, display items and decor to showcase your wares.
Yes, it’s more than you might think when you’re scrolling for Instagram inspo. How I did it on the cheap: thrift stores.
Build a Sales Strategy
Between social media, online marketplaces, and local outlets, there are more places to sell than you can probably handle as a new food entrepreneur. To avoid overwhelm, figure out where your business fits best.
I started my confectionary pop-up style, gifting friends with goodies while I worked out my recipes. Once I was licensed, I put up an Etsy shop to test the market. My products were a hit for the wedding demographic and the holiday season. I expanded to local farmer’s markets, but the price point never worked for me. I’d spend half a day manning a booth where I’d sell out of an item one week, then sell none at the following market. I always had leftover inventory, which had a limited shelf life. With Etsy, it took seconds to renew a listing and I made the product to order.
Pro Tip
Think Etsy is the right platform for you? Check out our step-by-step guide to making money on Etsy.
Food businesses are flexible, and there’s no one right path to profitability. With a better idea of what it takes to turn a home-based cooking business legit, you can earn more and worry less, while making changes along the way just like you would to a recipe you’ve made your own.
Lindsey Danis is a contributor to The Penny Hoarder. Freelancer Kent McDill contributed to this report.
After months of compiling notes and practicing pitches, contestants walk down a long, cavernous hallway, pass through wood-grain double doors and enter the scorching cone of the spotlight. The piercing gaze of their interrogators — who seem more like executioners — is hotter still.
Most contestants probably mutter to themselves “How did I get here?”
Millions of viewers watching at home wonder the same thing.
But these brave entrepreneurs have already passed the first test and figured out how to get on “Shark Tank.”
(Full disclosure: it’s long and grueling.)
Fret not. The Penny Hoarder talked to two successful “Shark Tank” contestants to help demystify the process.
Dawoon Kang, CEO and cofounder of Coffee Meets Bagel, pitched her business alongside her sister-cofounders Soo and Arum for season four. Coffee Meets Bagel is a dating app that combats what the founders see as a toxic, swipe-right dating culture by focusing on slow, meaningful relationships.
The Kang sisters didn’t walk away with a deal — they turned one down. Mark Cuban, the billionaire businessman and owner of the Dallas Mavericks, (in a rather controversial move because he was already “out”) asked the Kangs if they would sell their company for $30 million on the spot. They refused anyway.
Sara Margulis and her husband, Josh, appeared on season six to pitch Honeyfund, their wedding-gift and honeymoon registry website. Honeyfund is the brainchild of their own honeymoon experience: Josh built a website for his family and friends to crowdsource their dream honeymoon to Fiji.
The Sharks loved the idea, and the Margulises walked out with a non-equity deal from the Canadian multimillionaire Kevin O’Leary, aka Mr. Wonderful.
How to Get on ‘Shark Tank’
After a decade and more than 300 episodes, the entrepreneur-themed reality show is still going strong. Ratings have waned in recent years, but September’s season 14 premiere still drew in about 4.7 million viewers.
Depending on the season, “Shark Tank” producers get between 45,000 and 100,000 applications, according to various reports. Around 100 pitches make it to the viewers’ eyes each season.
Translation: It’s really, really hard to make it on the show. Applicants have a better chance of getting accepted into both Harvard and Yale.
But this insider advice from Kang and Margulis is sure to help those odds.
From left: Soo, Arum and Dawoon Kang pitch their dating app Coffee Meets Bagel on an episode of Shark Tank. Photo courtesy of ABC/Tony Rivetti
Option One: Apply Online
Currently, everyone who applies for “Shark Tank” does it online. Kang and Margulis included, technically. In both their cases, the producers of “Shark Tank” reached out to them first and encouraged them to apply.
“Some people on the show were using [Coffee Meets Bagel] and thought it was a really interesting concept, so they reached out to us,” Kang said.
But they still had to fill out the application, and it’s a doozy. All applicants must first complete a short screener questionnaire that asks background basics and for a brief description of the company or product.
The Shark Tank team will review those applications and reach out for more information for those they’re interested in.
That could include a 17-page document that explains your business’s backstory, numbers, stage of development, need for capital and more. It took Kang and Margulis both many months to fill out.
If all goes well after the paperwork, the producers will request multiple pitch videos to see if your business comes across well on camera.
Pro Tip
When filming your video pitch, be sure to be expressive, use good lighting and prep your hair, makeup and wardrobe as if you were going on live television.
“Speak succinctly about your company, just as you would if you’re cast on the show,” Margulis said.
Option Two: Attend an Open ‘Shark Tank’ Casting Call
Unfortunately, open casting calls have been canceled for the upcoming Season 15 “in accordance with efforts to mitigate the spread of COVID-19.” Applications will be online-only “for the foreseeable future,” according to the show’s website.
In previous seasons, contestant-entrepreneurs had the chance to apply in-person in various U.S. cities up to two months before the season premiered.
But just showing up to one of the casting call locations did not mean you were guaranteed an audition. Lines formed in the early morning hours, and there was only a two-hour time frame when the casting crew distributed wristbands. Not everyone got one.
And to audition, in the words of Paul Simon: “Wristband, my man, you got to have a wristband.”
Preparation is key for casting calls because a completed 17-page application is due on the date of the audition. Be ready to “wow and dazzle” the crew with a well-rehearsed one-minute presentation.
Pro Tip
For open casting calls, there’s no guarantee of internet access, AV hook-ups or electricity. Keep your pitch low-tech. Check ABC’s open-call schedule to see when in-person auditions return.
Insider Tips on Preparing for ‘Shark Tank’
So you slayed the audition and figured out how to get on “Shark Tank.” Now you have to actually … go on TV.
But before you shell out cash for strobe lights and models for an extravagant on-air presentation, make sure you have the basics down. Namely, your business pitch. Even if you don’t make it to the Sharks, the benefits of a well-crafted business pitch are endless.
“At the same time that you’re working on the visual presentation,” Margulis said, “you’re also working through the points of the business, what you’re asking for what percentage of the company, and answering a bunch of business questions.”
Here’s what else to do once that spotlight is on you.
Hook the Sharks
The Sharks are suckers for a good, relatable story. Gimmicks like models and corny platitudes might get a chuckle but not an investment. The Kang sisters crafted a hook that doubled as their origin story, which highlighted their journey from South Korea to Silicon Valley. And the Margulises went for a subtly Fiji-themed presentation to highlight how their personal honeymoon experience led to Honeyfund’s launch.
“Play to your strengths,” Kang said. “You want to stand out and differentiate yourself because they hear pitches all day long.”
Know Your Audience
Each episode of “Shark Tank” features five of the six permanent Shark-investors. The contestants don’t know who will be there on the day of the show, so it’s good to have a few Sharks in mind who you want to make a deal with, in case your top pick isn’t there. In recent seasons, the show includes some wildcards like billionaire Richard Branson, actor Ashton Kutcher and NBA legend Charles Barkley.
“Have a sense of who each Shark is, what kinds of deals they like to do and what kind of products and services they like to invest in,” Margulis said.
But don’t forget about the audience at home. Have a presentation that also resonates with the average viewer.
“You want to make sure you’re being energetic,” Kang said. “It can feel really flat if you’re not able to express your emotions. The audience watching the show would have a hard time connecting.”
Arm Yourself With Numbers
At the very least, every contestant on “Shark Tank” needs a specific ask in the format of “x% of my business for $x.” The obvious follow-up to that question is, “How did you come to that valuation?” And that’s likely just the first question in a coming onslaught.
“We had a stack of flashcards four-inches thick,” Margulis said, which detailed revenue, sales and projected growth numbers.
“You have to be able to succinctly tell [the Sharks] how their money is going to grow your company and return back to them,” she added. “Even better if you can say, ‘Hey Sharks, I have XYZ opportunities in front of me, but I can’t execute on these without your money.’”
Be Fair
In addition to the million other things to be aware of, it’s important to stay in the moment and dedicate time to address each Shark. They are a bunch of big media personalities, and they all want your attention. For example, if you have an infomercial-ready product, you might be itching for a deal with Lori Greiner, dubbed the “Queen of QVC.” But don’t ignore the other Sharks.
“Investor fit is always important,” Margulis said, but if you’re not fully answering the other Sharks’ questions, it could backfire in more ways than one.
The other Sharks might “go out,” which means less competition (and likely a worse deal). They will also be less likely to give you advice.
“We definitely got some good feedback from the Sharks while we were in the Tank,” Margulis said.
Even though Honeyfund took a deal with Kevin O’Leary, “Mark [Cuban] said that he thought it was a bad idea to go after other events beyond the wedding before we had really cornered the market in the wedding space,” Margulis said.
“That’s the thing that has stuck with me.”
Adam Hardy is a former staff writer at The Penny Hoarder. Freelancer Cassidy Alexander contributed tot his post.
Does all this “Shark Tank” talk have you ready to plunge into your own business venture? Read on.
Shopping usually means spending money — but what if you could use your passion for shopping to make some money?
That’s a real possibility, thanks to the booming world of online clothing reselling.
With platforms like Mercari, Poshmark and eBay, it’s easy to launch your own online clothing resale business. These six steps will help you get started.
1. Select a Platform
Your first step? Pick a platform.
Several online marketplaces are available for you to resell your clothing. Here’s a breakdown of three of the most popular options.
eBay
Everyone knows about eBay. It’s been around since the ‘90s, and you can buy and sell nearly everything, from car parts to cribs to new and used clothing.
What’s good about selling on eBay:
You can promote your items with eBay advertising, which is a simple and affordable way to get more eyes on your item.
You can sell your products around the world.
Once you list your items, you don’t have to do much with your store to make sales
What’s not so good about eBay:
Listing items can be time-consuming due to the amount of detail required.
Your buyers have up to 180 days to make returns, which means you could be required to provide a refund up to six months after making the sale.
Buyers have two days to pay for an item after purchasing it, so you may have to wait a bit to get paid.
Shipping
You can charge a flat shipping rate or let eBay calculate it based on distance, packaging and item’s size. When you purchase your shipping label through PayPal, you’ll pay commercial shipping rates which are less expensive than purchasing a shipping label using another method.
Fees
Ebay’s fees can be a bit confusing. Your final fees will ultimately depend on the final sale price. Learn more about their selling fees.
Poshmark
Poshmark is best known as a marketplace that combines shopping with the interactivity of social media.
What’s good about selling on Poshmark:
The social aspect is great If you like being part of a community.
It’s simple to list your items.
Poshmark calculates exactly how much you’ll receive after your fees are taken out.
What’s not so good about Poshmark:
It can be time-consuming as you have to build followers, share your items, follow other sellers, list regularly and do even more to keep your store relevant.
The shipping fees can be off-putting.
There seems to be more emphasis placed on selling over buying, so there’s more competition.
Shipping
There’s a flat-rate fee of $7.11 for packages weighing 5 lbs. or less.
Fees
You pay a $2.95 fee for sales under $15 and a 20% fee for transactions over $15.
Pro Tip
Want to get started with Poshmark? These five expert tips will set you up for success.
Mercari
Mercari is a simple resale platform that gives users the ability to sell everything, including technology, handmade items, home goods — and clothing.
What’s good about selling on Mercari:
It’s easy to list your items.
The commission you have to pay is lower than some other platforms.
What’s not so good about Mercari:
Shipping
You have three options:
Buy shipping labels through Mercari at up to 60% off retail.
Purchase separate shipping.
Use Mercari’s pack and ship service.
Fees
Mercari requires that you pay a flat 10% commission on each sale. No listing fees or varying percentages.
2. Choose Your Inventory Wisely
After choosing a platform, it’s time for the fun part — shopping!
You have a few different ways to build inventory for your reselling store:
Retail arbitrage: This is when you go to buy items that are on sale at a deep discount and resell them for a profit.
Resell pallets: Retailers like Amazon and ThredUp sell resell pallets featuring customer returns in bulk. This allows you to buy a lot of inventory at a discount. You can purchase a ThredUp Rescue Box on their website. You’ll have to do some research to track down resell pallets from other retailers.
Thrifting: Thrifting is a common way to find inventory. Just visit your local thrift store and look for quality items to resell online.
When looking for inventory, you’ll want to avoid:
Items with damage, stains or holes.
Items with strong odors.
Luxury goods that aren’t authenticated. If an item doesn’t state that it’s authenticated, you’ll want to inquire about whether it is and request an authentication card or certificate.
Items missing brand or size tags.
Tina Russell/The Penny Hoarder
3. Set Your Price
The price you set for your inventory can be the difference between making money and breaking even — or losing money — as a reseller.
When pricing your items, you’ll need to keep the following things in mind:
What prices similar items have sold for.
What you’ll have to pay if you offer free shipping.
The fees charged by your platform.
The costs of packaging.
Don’t forget to include the cost of your time and your overall income goals.
4. Take Pictures That Sell
Pictures are worth a thousand words — so think about what you want your items to say.
Here are some tips to keep in mind:
Lighting: Use natural light when possible or invest in artificial lighting that will accurately showcase your items.
Camera: Most smartphones can take high-quality pictures. Just be sure you use the right settings and angles.
Styling: Decide whether you want to use a mannequin for your items, create a flat lay, or hang them. There’s no right or wrong answer; it often comes down to preference.
Here are some more general tips to help you make the best of your visuals:
Keep your background free of clutter and distractions.
Stage your photos.
Don’t use flash.
Enhance your images with light editing.
Zoom in on the details.
Clearly show any imperfections.
5. List the Details
Your listing information — like your pictures — can make or break a sale.
It’s essential to include both basic information and any additional info to help your potential buyer make a decision.
Here are some things to include in your descriptions
Item measurements.
Color.
What occasion or activity it’s best suited for.
Anything that makes it special.
The material.
Size, including special sizes like petite, wide or big & tall.
Condition of the clothing item.
6. Promote Your Listings
Once your listings are live, you can set it and forget it, or you can promote them to try to sell your items quicker.
Here are a few ways you can promote your listings.
Social media: Set up a social media profile for your reselling business. Add images of new items to your profile listing where they can be purchased and the price. You can also consider sharing behind the scenes of your reselling business to drive traffic to your selling platforms.
Paid advertising: Some platforms like eBay and Mercari allow you to promote your listings, which helps them get seen by more people. They have a simple advertising system, so it’s easy, and you only pay if you sell the item.
Facebook groups: There’s a Facebook group for everything. Connect with other resellers and thrifting lovers to get more eyes on your store and the items you have for sale.
Quiana Darden is a contributor to The Penny Hoarder. Freelancer Kent McDill contributed to this report.
Saving has always been a challenge for me. While I continuously applied the pay-yourself-first principle to my finances, I struggled to stick to my budget.
So when I wanted to start a cake-decorating business, I needed another way to cover my startup costs. I preferred not to take out a loan because of interest charges.
The West African tradition, which is also popular in the Caribbean, requires a group of people to contribute a fixed amount of money either weekly, bi-weekly or monthly to a group account, with one member responsible for collecting the cash.
The group holds a random draw to determine the order in which each person will receive their lump sum payment. However, once each person receives their cash, they still have to contribute until everyone gets paid.
A sou-sou could run for six months or up to a year — it all depends on how many people are in on it. Sou-sous continue until everyone receives a payout at least once.
How I Used a Sou-Sou to Start a Business
Here’s how I started a sou-sou to help me make enough money to get my cake-decorating business off the ground.
Determine How Much Cash You Need to Start Your Business
I created an inventory of supplies I’d need, then calculated the total cost of buying them. This helped me make sure I’d be able to get started once I received my payout.
Next, I shopped around to find the best prices — then asked vendors about a discount for buying in bulk. It never hurts to ask! It helped me save 20% of the original cost when I eventually bought everything.
Find Cash in Your Budget and Earn Extra Money
I needed to free up some money to go toward my sou-sou, so I decided to eliminate one bill from my monthly budget.
I compared my cable and internet bills to see which was costing me more, and then canceled my $50 per month cable service.
To earn extra cash, I sold cakes at community events at a reduced price.
Need a banking service that’s built for gig workers and freelancers, helping you save for taxes and keep track of your expenses? Check out Lili. (It’s free!)
Form a Group
Everyone in my department had previously been involved in a successful sou-sou, and since we were all working toward financial goals, it was easy for the team to get on board.
A total of 10 colleagues joined the sou-sou, but you can start one with any number of people. Ask co-workers, relatives and fellow church or gym members if they want in.
Choose a Cash Collector
We nominated my supervisor as cash collector and placed our money in a locked box in her office. Two people had to be present when money was deposited or paid out.
Since we all earned monthly salaries, we decided on a deadline for everyone to pay up.
My supervisor was also in the sou-sou. If the person collecting the cash isn’t in on it, they’re sometimes paid a percentage by each member. If my supervisor hadn’t been a member, she would have received 5% of our earnings for managing the sou-sou.
Decide on a Reasonable Contribution
We considered our final objectives and unanimously decided on a realistic amount each person would pay.
With 10 members, we decided to each contribute $100 per month — meaning we’d each get a $1,000 payout.
A few members were unable to contribute the full amount, so they joined with another member to each contribute $50 per month. When their payout time came, each person received $500 — a 50% payout.
I decided to double my contributions and pay $200 a month, meaning I’d get two $1,000 payouts to help me fund my business.
Propose Accountability
We suggested each person in the group be accountable to another member to make sure they spent their money on fulfilling their goals.
For example, I chose an accountability partner who would make sure I invested my $1,000 in my business.
If I didn’t, I’d have to pay my partner 20% of my payout — a huge amount we chose to help motivate me.
How My Sou-Sou Worked Out
Our sou-sou began in January and I received my payout in May. Since I doubled my contributions, I received another payout in November, which I also put toward my business.
The group initiative was a huge part of my motivation, and everyone agreed that having the support of other members of the sou-sou was crucial to our success.
My choice to use a sou-sou rather than take out a loan paid off. I didn’t owe the bank any money, and I saved $200 I would have paid in interest charges.
With the assistance of friends or family, saving money to start a business is possible. Making $100 or $200 contributions may not seem like much, but with time, it could be enough to get your business off the ground or help expand it without a loan.
Editor’s note: This post was originally published in 2016.
Kerry Mc Donald is a contributor to The Penny Hoarder. Freelancer Kent McDill contributed to this report.
Hey Penny Hoarders! As many of you know, we have a Community site that’s a gathering place for folks to discuss all things money. Through the support of fellow Community members, the site has helped people tackle their debt, increase their credit score and even book a dream vacation.
We’re excited to announce our Community site just got a makeover – one in which we feel provides a much more user-friendly experience. We wanted to share some things you can expect when you visit the new Community site.
What to Expect in the New Penny Hoarder Community
First up, The Penny Hoarder Community is still the place to share tips and find support on all-things money. Besides contributions from other Community members, you’ll also find our staff sharing personal stories on topics like frugal finds, money wins and fails, and more.
Earn Badges
So many badges. On the Community site, you can now earn badges for all sorts of things – creating or commenting on a post, or liking someone else’s post. Even just visiting the Community site on a regular basis. Also, the more badges you earn, the more things you’ll unlock on the Community site. Do you have what it takes to be a top contributor? You’ll not only earn the respect of your peers, but also gain access to exclusive opportunities and offers from The Penny Hoarder.
Events, Feedback and More
Badges are just the beginning. Throughout 2023, we’ll be adding more new elements to the Community site. We’ll use it as a spot to post and host regular Penny Hoarder events where we dive into pressing money topics together and let attendees connect with experts from The Penny Hoarder (and elsewhere).
Already a member of The Penny Hoarder Community? Be sure to read our post on logging in to the new site. We hope to see you there!
Will Simons is a community marketing product manager at The Penny Hoarder. Originally from Omaha, Neb., Will loves to help people get talking about bettering their finances.
So you want to start a resale business? If you’ve been considering striking out on your own in this realm, you’re not alone. Ever since the beginning of the COVID-19 pandemic, online shopping has seen the biggest boom in history — and not just for big-name box stores.
According to Digital Commerce 360, consumers spent $870.78 billion online with U.S. merchants in 2021, which is a 14.2% increase from what they spent in 2020. The good news? Online shopping isn’t going anywhere anytime soon, meaning selling goods online might very well become your next lucrative side hustle.
The bad news is that the market is pretty saturated.
“The number of online sellers have doubled since the pandemic,” said Kim Alsbrooks, owner of the Etsy shop FernvaleVintage. “It’s not a lazy person’s game. Whether you sell at a flea market or a shop or online, it’s something that needs a lot of attention to succeed.”
How to Start a Resale Business
So how exactly can you start your very own successful resale business that will stand out amongst the crowd? We’ve got the scoop on all that and more right here.
1. Do Your Research
This might sound obvious, but the best way to start a successful resale business is with a bit of research. Mainly, you’ll want to figure out what you want to sell and where you want to sell it.
“You’ll learn and evolve as you go, but taking some time to research as much as you can beforehand is helpful,” said Kari Durm, owner of vintage Etsy shop The Cherry Attic. “Compare platforms, other sellers’ shops, various resell items, pricing, etc.”
2. Follow Your Passions
Once you’ve started the research phase, you’re going to want to determine exactly what it is you plan to resell. Maybe its books, clothes, antiques, decor — you name it. But rather than just picking something arbitrarily (or because you think you can make lots of money selling it), Durm recommends selling something that actually interests you.
“I think you should have a passion for what you’re selling as opposed to just copying what someone else is doing because they seem to be doing well,” Durm said. “A huge misconception is that reselling vintage is an easy, quick way to make a lot of money and there’s nothing further from the truth. I’ve had many weeks where 30-plus hours were spent only on shipping. It can quickly become exhausting and if you don’t love what you’re selling, keeping that pace could be difficult to sustain.”
3. Think Logistics
With an idea of your prospective goods in mind, now’s the time to figure out exactly how you plan to sell things: Online, in-person, or some combination thereof? Decide this early on and it will in large part determine how you spend your time growing your business.
For example, online business owners tend to spend lots of time on shipping and advertising, while an in-person resale business will require you to physically be on-sight for a certain number of hours per week to sell your goods.
Given these limitations, many successful resellers suggest sticking to an online-only business model.
“People are used to shopping online, and it also means you can work from home and set your own schedule, while maintaining a huge customer base,” Alsbrooks said. “You could also do both (online and in-person) but you’d probably need employees to delegate certain tasks to, and it would be a lot of work.”
Another bit of logistical detail to work out? Figuring out how and where you plan on storing your inventory of goods.
“Additional shelving and stackable plastic tubs are helpful, but if you have a small space and plan to keep a large amount of inventory on hand, you might need to get more creative with storage,” Durm said.
4. Source Your Goods
No matter how you plan on selling your goods, you’re going to need to know how to source them. For this, Alsbrooks recommends taking stock of what’s locally available to you.
“It can be as simple as shopping at your favorite thrift stores or checking out local flea markets, large and small,” she said. “I’ve become very familiar with a local auction house that sells in my price range and always has interesting quality auctions. Then there’s my favorite — estate sales.”
When it comes to sourcing online, Alsbrooks cautions against it.
“You will seriously be surprised — good and bad — at half of what you get, when you finally see it in person,” she said.
With the number of people buying online, this can also make it harder to get a good deal, which in turn can affect your ability to turn a profit. Alsbrooks recommends focusing on buying things in person for a good price, and scouting out which locales offer the best goods at the lowest prices.
5. Pick a Platform
With your supply chain figured out, now’s the time to get your business established. While setting up a brick and mortar will involve a lot of extra steps (like finding a space to rent or buy, applying for a business license in your community), getting set up online is actually fairly simple. All you really need to do is pick a platform.
While there are plenty of these to choose from (notably Poshmark, eBay, and Gazelle), the resellers we spoke to said they prefer to use Etsy.
“Etsy has been the only one I’ve stuck with,” Durm said. “I know quite a few people who do well on eBay, but I just couldn’t get my shop going there. I also prefer Etsy’s overall look and user interface over eBay and other platforms.”
Alsbrook also prefers Etsy, but cautions that it takes more work to be successful on Etsy than it would on say, eBay.
“If I post something on eBay, it might take all of three minutes,” she said. “A single listing on Etsy takes hours. Why? Items must be cleaned and in top condition, photographed well, researched (listing description has to be interesting and accurate) and you do your own SEO. Not to mention buying time, and the pressure to get good reviews. But the profit of the same item is at least twice what you’d get from a bargain basement like eBay.”
Keep in mind that you also have the option to cross-post your goods on multiple platforms, but this will add to your overall workload, both in time spent posting and in taking down sold inventory.
6. Hone Your Skills
After logistics, comes goal-setting, and a great way to approach this aspect of your business is by focusing on what skills you want to develop in order to succeed.
“Understand the process and fully address each job skill required,” suggests Alsbrooks. “You will never get found among the competition if you just open an e-commerce shop and then forget about it and expect people to find you and buy. It’s not that easy. It’s very competitive out there, especially post pandemic when the number of online shops more than doubled. If you’re not near the top of the game, it will be difficult to be found online.”
To keep an edge on the competition, Alsbrooks recommends focusing on developing actionable skills like perfecting your product photography, business branding, and even your SEO abilities—all of which will help you appear in more search results and as a result, gain more loyal customers.
7. Master The Financials
Last but not least, you’re going to want to wrap your head around the financial aspect of your business. This includes things like tracking your income, setting aside enough money for taxes, and paying whatever fees are required from your chosen platform (or city) to comply with the legalese of owning a business.
No matter what you end up selling, starting a business will take time and work. If you can get really clear about what you want your business to be, and then focus on attaining the skills necessary to make it successful, you’ll be halfway there.
It’d probably have to do with food. Ideas include low-carb chocolate that actually tastes good, organic Slurpees or a wine-and-cheese package — you know, already paired.
However, I don’t have the money for that. Nor do I know anything about the food industry, but that’s not the point.
But maybe you have the time — and the perfect business plan — but just need some money to push you along?
Or do you have a business you’re struggling to get off the ground? Resisting a high-interest loan or giving part of the power to an investor?
Applying for a business grant might be your perfect solution.
Many grants cater to various demographics, and because I’m all about empowering women, I compiled a list of six grants for women-owned businesses.
5 Small Business Grants for Women
If you’re a woman who has a business or wants to start one, take a gander at these grants.
If the application window isn’t open yet, set a reminder. You’ll want to give yourself plenty of time to craft the perfect application and gain a competitive edge.
1. #Girlboss Foundation Grant
Awarded biannually to female entrepreneurs chasing their creative dreams — including design, fashion, music and the arts — the #Girlboss Foundation Grant honors forward-planning.
If selected, you’ll win $15,000 and business exposure through #girlboss channels.
Apply now to be eligible for this spring’s award. It’s free to apply, and you just need to enter the basics: name, contact information, a description of your project, the amount of money you need and an end goal.
2. The Amber Grant
Each month, The Amber Grant‘s panel of judges grants a winner $2,000. Then, at the end of the year, one of the 12 monthly winners is eligible to win an additional $25,000.
The nice thing about this grant is you don’t have to use corporate language or fancy synonyms. Judges look for passionate and heartfelt ideas and businesses — from dog walkers to scientific investors.
Again, the application is straightforward: name, company and other basics. You just type a few sentences about your business, what you’d do with the money and any other comments you think will help set you apart.
Note: there is a $15 application fee, but it’s totally worth it if you win.
3. Halstead Grant
This yearly Halstead Grant is offered only to women in the jewelry-making business. The application deadline is Aug. 1.
The winner receives $7,500 and a $1,000 shopping gift card to Halstead, which sells wholesale jewelry supplies.
Other perks include a trophy (best part, probably) and a trip to the company’s Arizona headquarters.
The application is straightforward — basic information plus short- and long-answer questions.
4. Idea Café Small Business Grants
OK, so this isn’t solely for women-owned businesses, but the majority of the Idea Cafe’ Small Business Grant’s winners have been women, so it’s worth mentioning.
This $1,000 grant is for anyone who creatively solves an everyday problem. It’s not an astounding amount of money, but it’s a great start, so keep an eye open for when the newest application is posted.
5. InnovateHER Challenge Award
The InnovateHER Challenge Award for woman-owned (or even man-owned!) businesses and is awarded to those producing innovative products and service that impact and empower women and families.
Past winners include an app to find babysitters, a program that delivers fresh ingredients to your door or a Bluetooth that looks like a designer bracelet.
And there’s a whole lot of cash at stake — $70,000. First place gets $40,000, second place wins $20,000 and third place takes home $10,000.
Dates for the next challenge haven’t been posted yet, but there are no entry fees, so don’t hesitate to apply.
