Jocelyn Elizabeth never thought a $5 lamp for sale at a church would change her life.
In 2011, the Pennsylvania mom was working part-time as a marketing administrator when her father showed her a lamp he found at a church yard sale and pointed out that a similar lamp was selling for $70 on eBay, CNBC Make It reports.
The following weekend, Elizabeth took her son to a thrift store in a stroller, hoping to turn her bargains into extra income. (1)
Little did she know at the time that that experiment would become the basis of a seven-figure business. Today, the 37-year-old runs Crazy Lamp Lady, a thriving YouTube channel, and NikNax, an online flea market with more than 5,000 sellers.
So far this year, NikNax alone has brought in more than $5.2 million in revenue, with Elizabeth personally receiving 5% of each sale, totaling $260,000.
Her YouTube channel brought in another $298,000 in advertising revenue, and she now employs two people, rents two commercial spaces, and works 50 to 100 hours a week.
“It’s definitely risky,” she told CNBC Make It. But her philosophy has never changed: “I think anyone can do it if they put in the effort.”
Elizabeth says starting a business sounds easy, but is it really something anyone can do? Understanding financial risk is an important part of the entrepreneurial mindset.
Starting small is key. Turning a side hustle into a full-time job isn’t always easy, and many self-starters fail to make the leap.
Across the country, Americans are opening businesses at a record pace: 16 million business applications have been filed so far in 2021. But according to small business research, many founders underestimate the true cost of starting a business, which can lead to cash flow issues that can cause new ventures to struggle prematurely. (2)
This is the cold reality:
-
The cost of starting a business ranges from $3,000 to $500,000, depending on the type and location.
-
Online or home-based businesses like resale shops are on the lower end: $3,000 to $10,000.
-
Retail storefronts and restaurants can cost $50,000 to more than $500,000 before opening.
-
About 20% of new businesses close within the first year, according to federal data.
Elizabeth took huge risks but also acted strategically before the rewards came. She quit her part-time job only when she had an income.
She also invested in leasing commercial space and hiring employees, both ongoing expenses. It hasn’t been all plain sailing: Her company has experienced a drop in advertising revenue, especially during the pandemic.
Even if she succeeds financially, working 50 to 100 hours a week may not be possible for many people.
Her story illustrates what it takes to build a successful business.
Read more: This is the portfolio shift many wealthy investors are quietly making in 2026. Should you consider this too?
If you’ve dreamed of turning a hobby or side hustle into a real business, Elizabeth’s story may inspire you, but inspiration alone isn’t enough. The real question is whether you are financially and emotionally ready to take the risk. Here’s how to find out.
Many entrepreneurs significantly underestimate their early-stage expenses, especially when hidden expenses like payroll taxes, software subscriptions, marketing, and scheduling inefficiencies start to appear. List your numbers ahead of time to help determine if your idea is feasible or if you need more time to save.
Running a business is only part of the cost. You also have to pay your own bills before you can turn a profit. This means saving a few months of living expenses, plus enough cash to cover the running costs of the business until it becomes self-sustaining. If losing your job will immediately put you in debt, it’s not too early to quit your job.
It’s also smart to test your ideas in a low-risk way before taking action. If you plan to sell products, try listing your items on an existing platform. If you offer services, build a small client base while still employed. Early revenue, even in small amounts, is a strong indicator of true demand.
Many successful founders, including Elizabeth, eased into starting a business by holding on to traditional jobs until their side income became more reliable. Some key milestones can help you decide when you can safely transition to full-time employment, such as:
-
Continue to earn a meaningful share of current revenue
-
Save at least three to six months of personal expenses
-
Demonstrate stable, predictable demand for your product or service
Ultimately, the best time to start a business looks different for everyone. Elizabeth’s journey shows that you don’t need perfect conditions to start, but you do need a plan.
With realistic expectations, a financial cushion, and a willingness to start small, you can reduce risk and give your new venture a better chance of lasting.
We rely only on vetted sources and reliable third-party reports. For more information, see our Editorial Ethics and Guidelines.
CNBC (1); Base (2).
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
