This is the first of a two part blog series on how to turn a hobby into a small business.
Hobbies are fun personal interests that people pursue out of love. Some use hobbies to spend quality time with loved ones, friends or themselves. Some people use hobbies to relax. Popular hobbies including scrap booking, fishing, quilting or writing. Some people make scarves, bake cakes, party favors or frame special mementoes. If you are someone who has a hobby that people line up for–you could be on to a profitable business idea. It’s ideal to do something you love to do and get paid for it. But there is a big difference between making some extra pocket change at holiday time and running a business full-time. Here are some tips on how to turn a hobby into a small business.
There are many ways to turn a hobby into a business.
You can sell products, but don’t forget that you can also sell information as a business model. If you like collecting coupons — you could create a subscription service to notify people of the best supersaver deals each week. If you like baking, you could start selling brownies and pies or you could create a membership website for recipes for homemade baked goods that are for people with food allergies that are wheat/gluten free. Now the greater your production demands eventually you’ll need access to a commercial kitchen–but some economic development agencies across the country are creating food incubators for this very reason. If you enjoy making jewelry, why not sell your products via an online store, rather selling through the typical route of women’s conferences, craft fairs or boutiques. All these pastimes can be turned into lucrative businesses.
Freelancing is a great way to transition your hobby into a full-time business. I recently conducted an interview on #Smallbizchat with Pete Savage, the co-author of The Wealthy Freelancer. He’s got great insight into starting slow and building strong. Here are six additional steps that you should take if you want to start a full-time business.
Be Honest With Yourself. Do you have the energy and stamina to crank out your hobby in volume enough to make it a viable business? Make sure you don’t ruin something that brings you joy. People pursue hobbies to blow off steam. If you add a lot of pressure–you could blow your stack. Do your research to make sure there’s a paying customer before you bet the farm on your hobby. Successful businesses require dedicated work and responsibility. It’s easy to take the fun out of your hobby if you do not plan well.
Use Low Cost Business Resources. Once you decide that starting a business is for you, there are many books that you can read to develop your plan including my new book Become Your Own Boss in 12 Months. This book gives a comprehensive look at starting a business. It takes you month-by-month through a planning system to help you transition from having a job to starting a business. You should also make an appointment with your local Small Business Development Center and sign up for a business planning course or SCORE chapter which can provide online and face-to-face counseling.
Check Out Your Local Library. You can get plenty of market research data help from the business librarian at your local branch. Also, find out information on legal entities, sales taxes, business insurance and small business accounting systems. There is also opportunity to learn about any business licenses or regulations that you will need to comply with to start your business.
Start While You Are Still Working a Job. There are two reasons why this is a good idea.
- You need to save a significant amount of money before you leave your job to become an entrepreneur–so it’s best to keep the paychecks rolling in as long as possible.
- Your job is one of the best sources for a customer base, particularly if your hobby has nothing to do with your day job.
Update Your Contacts And Skills. Start networking externally. Reach out to all your contacts and make sure you have your contact database on a flash drive that you keep at home. Learn the latest social networking sites and how to write press releases. Use your down time to do internet research for sourcing vendors and suppliers and to confirm your target market.
Figure Out How to Stand Out. It is very difficult for small businesses to compete on price. You must clearly identify your niche customer and spend some time developing a signature product or signature services. Anyone will buy something once. How will you get them to buy it over and over again from you?
Turning your hobby into a full-time business is a great way to become your own boss. Why not work at something you love – and earn a living from it? Do your research before you start your business. You’ll need a lot more customers than the 30 people that buy cakes from you every holiday to replace your full-time salary. Make sure there’s viable market for your goods and services, and start saving money at least 12 months before you start your business.
Next Week: 7 Questions Hobbyists Should Consider When Starting a Small Business
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Melinda Emerson, known to many as “SmallBizLady,” is a Veteran Entrepreneur, Small Business Coach and Social Media Strategist who hosts #SmallBizChat weekly on Twitter for emerging entrepreneurs. #Smallbizchat is the trusted resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business. Her first book Become Your Own Boss in 12 Months was released in March 2010.
Great article with great pointers to get you in the right direction!
love it. nice post.
Thank you so much for supporting this blog.
Melinda Emerson