A hobby is any activity a person does for pleasure during their leisure time. It can be in any form, such as blogging, singing, dancing, making crafts, cooking, etc. Some people spend so much time doing their hobbies or just want to make a profit from something they truly enjoy.
Although it’s an inspiring idea, you must consider many factors, especially if you haven’t tried running a business before. Still, it’s not entirely impossible, and with proper planning and process, you can achieve it with enough motivation and effort.
To help you get started, here are five ways that you can turn your hobby into a business.
Like any other business, you must first start with an idea to start one. With an idea, you can create a concept for the business you’re planning to launch. However, before that, you must ask yourself if you’re ready.
It’s because a hobby is supposed to be something you do for fun during your free time. So, earning money for something you love doing doesn’t fit with the description. However, if you’re ready and you’re willing to make an effort, then you must commit and be passionate about the idea,
Aside from this, you should also consider whether your hobby can generate a profit. Though, if you’re creative enough, you can earn enough money and figure out how to do so in several ways. However, if you’re considering doing this full-time, the money should continue flowing for a long time, bringing you to the next part. Are you planning to make this your full-time job or side hustle?
On the other hand, you should also consider your resources in producing this service or product. Do you know where to gather the tools for hobbies that you’re about to produce and sell (or resell if you’re planning to be a retailer)? Do you have enough funds to maintain the amount of production you’ll need? Is your supplier someone near or far from your area?
A business plan is the backbone and foundation of every business. That’s why you must prepare this part carefully, and it’s alright to take your time. Furthermore, writing a business plan will allow you to think about your idea thoroughly and make everything official. A business plan contains the following:
- Executive Summary
- Business Description
- Marketing Strategy and Sales Plan
- Products and Services Description
- Operating Plan
- Financial Plan
Moreover, writing a formal business plan will allow you to find possible investors and seek business loans. It’s because there are financial institutions and investors that require a business plan to further what your business is about and what you’re planning to work towards.
Aside from that, the Strategic Entrepreneurship Journal also mentioned that business owners who write a formal plan are 16% more likely to achieve success than those who don’t.
Setting your goals will give you an idea of where you want your business to be. It will motivate you when running your business and let you get a clear focus on what you’ll need to work on. Also, it will serve as a personal criterion to check the success of your business.
When writing your goal, it should be a SMART one: specific, measurable, attainable, realistic, and time-bounded. The primary reason is to help you move forward efficiently because you see a vision and know that it’s something you can complete. As such, a SMART goal is classified into short-term and long-term goals.
Short-term goals should be something that you can achieve within 12 months. However, you should be specific when writing about it. For instance, your short-term goals include sending a combination of 100 orders within the next five months nationwide. It’s specific and measurable that mentions a total of 100 orders that you can keep track of within five months, making it measurable, realistic, and time-bounded.
This is also the same with long-term goals, but it should be something more ambitious but still realistic, achievable, and something you can complete within three to five years or longer.
Launching a business will not only take too much of your time but will also require a relatively huge amount of money, depending on the nature of your products or services. Fortunately, there are several options that you can take to assist you, such as taking a loan or making use of your savings.
Still, it’s not going to be easier since there are loan providers that have strict qualifications. Fortunately, there are several others that you can look into, including the following:
- Personal Loan
- SBA Loan
- Line of Credit
- Invoice Financing
- Peer-to-Peer Loan
Starting a business will be challenging, especially if you’re planning to launch something closely related to you. Sharing your hobby and making a profit out of your hobby can feel very personal. However, due to the hefty process and your achievable goal of growing your business, you’ll need to consider hiring people to be with you throughout the process.
In line with this, hiring employees is more than selecting interested people to work for you. There’s a proper process for doing so, and it should be in line with your state regulation. Iring employees state regulation.
The recruitment process and placement activities will differ depending on where you’re from. Nonetheless, as a business owner, you must ensure that you’re not disrespecting any person’s right and legally regulating your business under the legal law.
Whether you’re planning to be a reseller of collectible items or sell your artworks, if it’s something you can earn money for, then doing a business out of it is possible. What just started as a hobby is now something you can profit from, and it’s enough motivation to help you start this exciting business venture. Thus, if you’ve already asked yourself if you’re ready and already have the idea, it’s time to follow what was mentioned above.