Do you have a hobby that people line up for to buy from you? If so, you really could create a profitable business. If you can do something you love and get paid for it, that’s not real work right? But before you go and quit your day job, I want to encourage and caution you at the same time. There is a big difference between making some extra pocket change at holiday time and running a small business full-time. Here are six steps to turn a hobby into a small business.
Do a Self-Assessment. 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.
Start Your Business as a Side Hustle. You need to first test the waters while you are still working to make sure you have a viable revenue model for your small business. Be sure to check out my recent series on the Do’s and Don’ts of Side Hustling Part 1 and Part 2. You don’t mess around and lose your day job before you are ready to leave to pursue your business full-time.
Nurture Your Network. Start networking like it’s a new job. Reach out to all your contacts from college and any business associates to update your contact database. Spend time on at least one social media site to gain insights about your target customer. Use your downtime to do internet research for sourcing vendors and suppliers and to confirm your target market.
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 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 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.
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 to do? Just do your research before you start your business. Take the time to write business plan. You’ll need a lot more customers than the 30 people that buy your jewelry to replace your full-time salary. Make sure there’s a market for your goods and services, and start saving money. And remember to give yourself 12 months to develop a plan to become your own boss.
I definitely agree with starting as a side hustle. It’s like that phrase “don’t quit your day job”. I started my first business as a side hustle. During lunch breaks I was able to jump on the phone with clients or work on their projects. It definitely helped when I was ready to make the leap to working my business full time.
Desiree–
No doubt it’s less scary if you go slow like that. Thanks for sharing your experience!
-Melinda
As I teach photography lessons & workshops, there is seldom a week goes by that someone isn’t dreaming about this. Given the low cost of some cameras now, it might seem easy to just “hang out a shingle”. My advice is always to seek out a photographer who is doing the kind of work you’re interested in doing and assist them. Leave your camera at home and just be an assistant. Learn what it really takes – psychology, science (lots of math involved in making great photos), and a head for business are not nearly as “fun” as shooting. When you turn what you love into WORK it feels a lot more like – well – work!
Also we have a great SCORE chapter in Cincinnati that can help prepare someone for reality.
I’m so thankful for the guys that let me work for them when I started out. And I wouldn’t trade it for anything of course! Especially now that I’m helping others make amazing photos!
Malinda–
That’s great advice! I love the idea of hands-on learning.
-Melinda
My husband and I really love to remodel homes. At first we kept doing projects at our home but then we decided to turn our passion into a rental business. We buy projects, work on them, and put them out to market. Now, we have nine properties and it has been really fun for us. At first, we didn’t see it as much of a business but then we started looking into marketing tips for small business owners. After applying the tips we now have a small waiting list for our homes and it gives us more of a drive to keep doing what we’re doing.
Raylin–
Thanks for sharing your story! It’s inspiring. You know you’re onto something when it doesn’t feel like a business, but feels like fun!
-Melinda
This is so true! I started doing my side hustle of event planning because it didn’t feel like a hobby or a hustle just something I am so very passionate about doing. I kept being surrounded by people with no creative ideas and just wanting to do the basic celebration balloons and done. You know when this is your knack when you start thinking creatively as the person is talking versus handling it as a business where money motivates you only. For me the event motivates me primarily the money is not paramount because – I still have the day job.
Sophia–
It sounds like the perfect side hustle to turn into a business! Good luck!
Melinda