A hobby can be anything you do on the side, something that makes you happy or keeps you sane. It can be building wooden pieces, knitting hats, pouring candles, or anything that produces a physical or digital product. Something you have done over the years practiced, and perfected. To a point where you get requests for your products and have even been encouraged by family and friends to sell your items.
While it may have been going on for you, you finally dared to ask yourself “how to turn your hobby into a business”. While it sounds simple enough, there are a few things we suggest you take under consideration.
Think of the product you will be selling, and what market you should target. For instance, if you harvest fruit and make jam you can supply it to local bakeries or even some restaurants. However, this is just the beginning. There are endless factors to consider such as:
1) Does your hobby have potential?
2) Love, Money, or both?
3) Side hustle or full-time business?
4) What will be your learning curve?
Answering these questions can help you get an idea of what you are getting into, and how you see yourself shaping up in the years to come. A general idea of what you might wish to take on, and how best to set up a long-term plan.
8 Steps to Turn Your Hobby into a Business
- Business Model – The first thing you need is a business model, something that can help you shift your hobby into a business. You need to think of things such as where will you be running your business from, do you need to outsource, are you offering a finished product or services, will you sell online or in person, etc.
Start from the beginning of the process, and list down everything that is included in the process. For instance, you can start with the raw material or products you need, and work your way down to the courier company or place where you will be selling your items. An efficient and effective business model can help you plan how to roll out the business, and even help you figure out things such as launch timeline, funding, and other needs based on your business.
- Brand Development – Your brand is based on who you are, and what you have to offer. There are times when your brand is your products, or yourself. Based on what you are offering, choose wisely, and set up a brand that defines what you have to offer. Along with brand representation, brand voice, visual guidelines, and a brand story. Something that can help potential customers learn more about your brand, and form a connection. Moreover, you will need things such as social media content, logo, packaging, and a few other things based on what you are selling.
- Funding Options – One of the best things about turning your hobby into a business is that you already have most of the equipment you need. However, when you are looking to sell your products you will need to upgrade your machinery, purchase products in bulk, or even get a workspace. All of which requires an investment, one that you make in yourself. Based on what you need you can apply for a small business loan, grant, dip into your savings, start a campaign, or look into other types of funding.
- Workspace – Where you are working now might be a good fit, but once you start to mass-produce you will need a bigger space. For instance, if you upscale furniture pieces you can easily fit them in your garage. However, when you take on multiple projects you will need a bigger space to work on each piece without overlapping with others. It’s time to consider setting up a workspace, something that can help you get started as a small business.
- Sales Channels – The next thing to consider is your sales channels, it’s best to keep your products in mind and keep your options open. For instance, if you are selling handmade goods such as scarves, belts, and/or other accessories you can rent a stall in the local market, talk to a few shops about putting up a rack, or set up online on websites such as ETSY, Amazon, eBay, Shopify, and others.
On the other hand, if you are selling a service we suggest you use social media to make an impact online. Handout flyers in the neighborhood, and run a small ad campaign. Make sure everyone in the area knows you are open for business and will be taking on orders.
- Launch & Market – It’s time to launch your brand and think of a marketing strategy for the month. When running a side business it’s best to plan, so it does not take over your day job. You do not want to be pulling all-nighters when you can plan content and set it out in an effortless manner. This is why it’s best to start small, something such as a social media profile, where you can get some buzz going.
- Strike a Balance – Your hobby-based business should not overtake your life. This is why you must consider creating a system that allows you to strike a balance. One that lets you focus on your full-time job, home life, and your new venture. It might sound easy, but it will be a great undertaking. This is why it’s best to set boundaries from the beginning and allow yourself the time you need to enjoy your life.
- Plan Ahead – It’s best to start your business with a positive mindset. Think about what you will do when it catches on, and how you will manage it with a full-time job. The best way to ensure you are on the right track is to hire help and ensure your customers are not waiting too long.
Building your hobby into a business is no joke, and requires a great deal of hard work and dedication. We suggest you keep your eye on the prize and keep working towards building a life where you do what you love.