💸 The Side Hustle Trap: Why Smart Entrepreneurs Buy Businesses Instead

Hey Reader!

Last week, I was in Austin for Bitcoin Startup Day, sipping an overpriced cold brew at a trendy coffee shop near the convention center.

That's where I met Mark - a young developer with dark circles under his eyes who recognized me from Twitter.

"I've tried everything," he confessed after we got talking. "Dropshipping, Amazon FBA, day trading crypto... none of it sticks."

I smiled, because I'd heard this story a hundred times before.

The problem wasn't the business models. It was how he approached them.

The Fatal Flaw in Most Side Hustles

The world keeps getting more expensive.

Housing prices? Insane. Inflation? Still biting. Job security? What's that?

So people frantically jump from one "get rich quick" scheme to the next.

But here's what separates the people who build real wealth from those who don't:

They don't chase side hustles. They acquire assets with proven cash flow.

The Graveyard of Abandoned Side Hustles

"Dropshipping is dead!"

I literally had to stop myself from laughing when a 23-year-old "guru" told me this at a conference.

I actually know someone doing over $300,000/month dropshipping specialized equipment.

I know of another entrepreneur pulling in around $40,000/month with a content site in a "boring" niche that hasn't changed in 20 years.

The difference? They didn't invent something new. They bought something that was already working.

The Math That Changes Your Life

Let's break down what happens when you buy a small, established business making $1,000/month and grow it to $3,000/month:

• That's not just $2,000 more in your pocket each month.
• That's not just mortgage-payment money.
• That's $50,000-$100,000 of enterprise value you've created.

Read that again.

When you sell, businesses typically go for 24-50X monthly profit.

So that $2,000/month increase? That's potentially a $100,000 payday when you exit.

All from a business you didn't even have to build from scratch.

The Reality Nobody Talks About

I recently heard about someone whose story really stuck with me:

Three years ago, a woman I'll call Sarah lost her corporate job of 15 years. At 47, she was terrified of starting over.

Instead of panicking, she bought a small Etsy shop making around $1,200/month selling digital planners.

She didn't reinvent the wheel. The business was already working. It had product-market fit. Customers loved it.

From what I understand, she simply improved the marketing, added complementary products, and optimized the operation.

Today, that "side hustle" reportedly generates five figures monthly, and she apparently turned down a substantial acquisition offer.

"I never thought of myself as an entrepreneur," she reportedly said. "I just wanted something stable that I controlled."

The Blueprint for Real Wealth

This isn't about dropshipping vs. SaaS vs. content sites.

It's about the approach:

1. Find businesses with proven demand (2+ years of sales history)
2. Look for opportunities others overlook (boring niches win)
3. Buy the business (often for surprisingly reasonable prices)
4. Optimize what's already working
5. Scale methodically
6. Enjoy the cash flow or flip for a life-changing exit

Whether it's a micro-SaaS tool, an e-commerce brand, or a media site – the formula works if you work it.

Your Next Move

Look around you. The most successful people I know aren't chasing the latest fad on TikTok.

They're quietly buying cash-flowing assets that others have already proven work.

And unlike real estate or stocks, these online businesses are still massively undervalued.

So here's my question for you:

What's stopping you from making your next side hustle your last side hustle?

Hit reply and tell me your biggest obstacle. I read every response.

Thanks y'all!

James

P.S.

We're opening up 3 slots for one-on-one help finding a business within your budget and putting together a plan to potentially double your revenue in the next 12 months.

Reply with "LAST SIDE HUSTLE" if you're interested.