We all have hobbies. The things that we love to do in our spare time. Maybe during the Covid-19 pandemic you had a chance to develop your hobby more, or you found new hobbies that you love. Have you ever thought about turning your hobby into a business? In this blog, we are going to look at how you can start making money from your hobby.
There are a few things to work out before you decide if you want to take this step.
Does your hobby have the potential to become a business?
Unfortunately, just because you love your hobby, it doesn’t mean that other people will be interested in it in a business sense. Research what it is that you can offer consumers and see if there is a demand for it. Is it something that could be scaled up? You will also want to make sure that you really have a passion for what you’re doing as you don’t want to end up hating what you once loved because of a need to meet deadlines and please customers.
Full time business or side hustle?
Turning your hobby into a business doesn’t need to be a full time thing, especially right away. It might be a good side hustle to start to bring in a little bit of extra money. The amount of time you will be able to commit is something else you’ll need to consider. If you already have a full time job, you might not feel like dedicating your evenings and weekends to trying to start a hugely demanding business.
If you decide that turning your hobby into a business is something you want to try, try these steps to get you started.
1. Write a business plan:
The first thing to do is to come up with a business plan. If you want more in-depth help on how to do this, check out our guide on how to write a business plan.
Your business plan should include your strategy for how to get things up and running, with clear goals and a timeline of when you want to achieve certain things. Something else to include is how you are going to fund things and the budget you’ll need. Your business plan will also give you insights into the market you plan to enter and your strengths and weaknesses. When you have your business plan, don’t feel like you can’t change and adapt it. It will develop as your business does, but it is one of the most helpful tools to keep you on track.
2. Build your brand:
Branding is an important part of starting a business. It is how you will be recognised. You’ll need a business name and logo, both of which should really showcase what you do and convey your business personality. Both need to be something you’d be happy to see on business cards and social media etc. Branding correctly can take your business from amateur to professional and will help when it comes to creating all your business assets like packaging, websites etc.
3. Get a website:
This one is really important because if you want to establish yourself as a trustworthy business amongst your competitors, you really need to have an online presence. When turning a hobby into a business, a lot of people start out by relying on word of mouth or posting in Facebook groups. This does work for a limited amount of time, but if you want your business to have longevity, then you need to have an online presence. Somewhere you can direct your clients to get a strong feel for your business. The best way to do this is to have a website. If you are selling handmade items, online marketplaces such as Etsy may meet these needs initially, just be aware of any commission and costs.
4. Keep an eye on finances:
Going from a hobby to a business can mean that you forget you should still be making a profit. Keep track of all your outgoing costs to ensure that you are at the very least covering these to begin with. Having a separate business bank account will help you keep track. If you’re setting up a Limited company then this is something you definitely need to do.
5. Build an online presence:
Social Media will play a significant part in helping to showcase your business. Having accounts on popular social media sites like Facebook, Instagram and LinkedIn can help you get seen and enable you to sell your products/services to more people. Pairing social media with advertising and SEO can really help to catapult your business to a much wider audience.
6. Keep track of your progress:
There’s no end date that you have to have in mind for the success of your business. If you have the funds and dedication, then in theory you can keep going for as long as you want, but you should be monitoring your progress. Use your goals set out in your business plan to measure your progress and see if you are on track as planned. You can see what is working and what you can change to make improvements. Keeping track of your progress will allow you to see whether you want to scale up your business, or if you want to scale it back to just being a hobby for you to enjoy again.
The fact of the matter is, not every hobby will become a profitable business. It can take a lot of time and dedication to make it successful, but it is definitely possible in many cases. We’ve put some packages together, aimed specifically at people looking to start a business. They include all the things you need to get your business up and running.