This Side Hustle Spotlight Q&A features Zach Downey, owner and CEO at Distinctive sellingwhich operates cotton candy machines in high-traffic locations such as resorts and amusement parks.

^{Image Credit: Courtesy of Seller Badges. Zach Downey.}

What were you doing before you started? side hustleand why did you get interested in entrepreneurship?

As I started the car dealership my freshman year of college, entrepreneurship It's been a journey I've been on for what seems like my entire life. One of my first business experiences was going door to door with a power washer and window cleaner, which developed into selling model mini guns (it failed and I have 200 units of mini guns in my apartment). Each business iteration was one IMPROVEMENT in the last, leading me to where I am today: cotton candy vending machines.

Connected: I turned my side hustle into a passive income stream that made over $1 million – but making money isn't even the best part

When did you start your side hustle and where did you find the inspiration for it?

This particular business didn't take off the way it should have, and just me upside down for him from the lack of options. Originally, my goal was to add a pizza vending machine to the campus of James Madison University. The idea was approved and the space built for it, but we lacked the funds to get the machinery UL certified (meaning the product or service meets local and federal environmental and safety regulations). Surfing the web for solutions to our UL problem, I accidentally discovered the world of cotton candy vending machines. I realized that the market had not developed at all, so I started contacting businesses to see if there was one DEMAND – and there was.

Did something go wrong in the side hustlethe first few days? How did you fix it?

I started with two machines inside a resort, and then two months later both machines stopped working at the same time. I remember driving from Virginia to Texas on a stretch just to make sure we didn't lose the resort business. It was one stressful period, but I learned a lot.

How long did it take you to see consistent monthly income? And how much did the side hustle earn?

Having our machines in such a high traffic location, we started seeing revenue within 10 minutes of deploying our first machine. It's a strange feeling, seeing one the idea comes to life and numbers on the screen. In our first weekend, we made over $800 in revenue with just one drive.

Connected: The layoff allowed him to focus on his sentimental rush. He is now on track to earn over $700,000 in 2024.

You have returned yours side hustle into a full-time business. How much average monthly or annual income do you bring in now?

As you can imagine, our monthly revenue is cyclical, with a larger percentage of revenue occurring during the summer. In a good summer month, a car can make anywhere from $6,000 to $15,000 in revenue. You get 10 cars and you're bringing in $100,000 a month – the key is finding a good location. In 2024, we are on track to do $500,000 in revenue. Right now, we own and operate 10 machines with plans to add 25-50 in the next year. Like us widenwe are focusing on locations that allow the possibility to place multiple units.

like liabilities is it business now? Do you have employees to help with machine maintenance?

Cotton candy vending machines aren't as passive as regular vending machines – and that's by a long shot. You need an employee to clean the bowl lid and burners after about 100-150 uses. The employee will also need to refill the supplies after 300 uses. The biggest problem we've run into is failed dispensations, which happen from time to time. For example, I just fixed a car we have in Texas that had a moisture problem. The built-in dampener wasn't doing a good enough job, so when the machine produced the cotton candy thread, it wasn't sticking to the paper stick. We increased the machine's base humidity and solved the problem — but be prepared to deal with such issues on a weekly basis.

Technically, we don't have any employees and we classify all our workers as independent contractors, which saves us money in payroll taxes. We typically hire a different independent contractor for each location, unless we have a high concentration of machines in one area.

Connected: He started a side hustle in his parents' basement and won big on Richard Branson's TV show. The business saw over $650 million in annual revenue last year.

What is your advice to others hoping to start a successful side hustle of their own?

As a startup, you should be fast. Many people wait until the stars align, until the seas part – but when that happens, it's usually too late. Everything you do should be quick and done yesterday. Startups live and die by how quickly they learn and implement those changes.