Jocelyn Elizabeth never expected a $5 church lamp to change her life.
In 2011, the Pennsylvania mom was working part-time as a marketing manager when her dad showed her a lamp he found at a church yard sale and noticed a similar lamp was listed for $70 on eBay, according to CNBC Make It.
The following weekend, Elizabeth headed to a thrift store with her son in a stroller, hoping to flip her own finds for extra income. (1)
She didn’t know it then, but that experiment would become the foundation of a seven-figure business. Today, the 37-year-old runs Crazy Lamp Lady, a thriving YouTube channel, and NikNax, an online marketplace that hosts more than 5,000 sellers.
NikNax alone brought in over $5.2 million in revenue this year, and Elizabeth personally makes 5% of every sale, for a total of $260,000.
Her YouTube channel generated another $298,000 in ad revenue, and she now has two people, rents two commercial spaces, and works anywhere from 50 to 100 hours each week.
“It was definitely risky,” she told CNBC Make It. But her philosophy never changed: “I think anyone can do it if they put in the work.”
Elizabeth makes starting a business sound easy, but is it really something anyone can do? Understanding financial risks is an important component of the entrepreneurial mindset.
Starting small is the key. Turning a side hustle into a full-time job isn’t always easy, and many self-starters don’t make the leap.
Nationally, Americans are starting businesses at record rates: 16 million business applications were filed as of 2021. But many founders underestimate the true cost of starting a business, which can lead to cash flow problems that sink new businesses earlier, according to small business research. (2)
Here’s the reality in cold, hard numbers:
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Starting a business costs between $3,000 and $500,000, depending on the type and location.
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Online or home-based businesses (such as resale shops) are on the lower end: $3,000–$10,000.
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Retail storefronts and restaurants may require $50,000 – $500,000+ before opening day.
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About 20 percent of new businesses close in the first year, according to federal data.
Elizabeth took significant risks before the payoff arrived, but she also proceeded strategically. She left her part-time job only after she replaced the income.
It also invested in renting commercial space and hiring employees, both of which are ongoing expenses. It hasn’t been smooth sailing: Her company has suffered declines in ad revenue, particularly during the pandemic.
Even with her financial success, her 50- to 100-hour work weeks may not be possible for many.
Her story shows what it takes to build a successful business.
Read more: This is the quiet portfolio shift many wealthy investors are making in 2026. Should you consider it too?
Elizabeth’s story can be motivating if you’ve dreamed of turning a hobby or side gig into a real business, but inspiration alone isn’t enough. The real question is whether you are financially and emotionally ready to take the risks. Here’s how to make sure.
Many entrepreneurs dramatically underestimate their early expenses, especially when hidden expenses like payroll taxes, software subscriptions, marketing, and scheduling inefficiencies come into play. Run your numbers ahead of time to help you determine if your idea is feasible or if you need more time to save.
Running the business is only part of the costs. You will also need to cover your own bills before you make a profit. That means having a few months of living expenses saved up, plus enough money to cover the operating costs of the business until it becomes self-sustaining. If losing your job would immediately put you in debt, it’s too soon to give up.
Before taking the leap, it’s also smart to test your idea in low-risk ways. If you plan to sell products, try listing items on an existing platform. If you offer a service, build a small customer base while you’re employed. Early revenue, even in small amounts, is a strong indicator of real demand.
Many successful founders, including Elizabeth, started entrepreneurship by holding down a traditional job until their side income became more reliable. A few key milestones can help you decide when it’s safe to go full-time, such as:
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Consistently earn a significant portion of your current income
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Save at least three to six months of personal expenses
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It shows a steady and predictable demand for your product or service
Ultimately, the right time to start a business looks different for everyone. Elizabeth’s journey shows that you don’t need perfect conditions to get started, but you do need a plan.
With realistic expectations, financial cushioning and a willingness to start small, you can reduce risk and give your newbie a chance to last.
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CNBC (1); home base (2).
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
