Estimated reading time: 4 mins
If you have a hobby that you’re really passionate about, then being able to take it to the next level, and become a source of income for you, can be really be the dream. As the old saying goes, when you enjoy what you do, then you don’t work a day in your life. But what are the steps that you need to turn your passion into dollars? Here are some steps that you need to be thinking about or doing, so that you can make your hobby become a small business for you.
Plan and Self-Assessment
In order to make a successful business, then it does require a certain kind of person. You need to be driven, motivated, and determined to see it succeed. So making plans and assessing yourself as to if you have what it takes is a good place to start. Will making your hobby into a business take the fun out of it, or does the fact that you’ll be doing it more and more appeal to you? Plan out who your customers are and what they would be willing to pay. Is there a market for your product or service, and who are your competitors? How much do they charge? How much would you need to break even? There are several questions that need to be answered in the first instance.
To start things off, you might want to try just registering as self-employed first of all, and making the business a bit of a side hustle, rather than going out to register a company off the bat. It can be a good way to test the waters and see how much demand there is for you. Can you get your products made as and when you need them to be? This can be a good way to test out how much it might take for you to give up your day job and do your business full-time.
If you’re going to be starting a business, then you need customers, as well as needing vendors to supply materials to you. So getting out to events, as well as speaking to everyone you know can be a good idea. Share your business with family and friends, as well as across social media. The latter can help you target your ideal customer base and help you to know how to market to them. But you may know people that know people, that can offer you discounts on certain things, as well as some contacts to help get your business launched.
Figure Out Your Finances
If you want to take your hobby to the next level, then you need to have your finances figured out. How much money do you need to get the ball rolling, so to speak? How much inventory do you plan on having in, and what equipment or machinery do you need to start and launch? Once you know this, you can start looking at the best ways to fund your business. Do you need to start looking for business loans or do you have enough saved up to self-fund the business? If you’re going to a lender, just make sure that you have a stellar business plan with some realistic projections as to what your business will be making and by when.
Use Business Building Resources
A lot has to be said of going to your local library or searching online for some small business tips and tricks. Things like completing an invoice or chasing payments and the legality behind it, as well as VAT and tax can all be new to a someone that has never been in business before. So using free or low-cost business resources so that you know what to do can make a big difference as you take the leap to working for yourself. Even speaking to friends or family members that have done the same, or are very experienced in business, can be a good path to pursue. It can be stressful and busy enough with the day to day running of the business, let alone all of the things behind the scenes that you may not understand.
So really, the main steps are doing your research to start with, making plans, and checking that it would be a financially viable option. The second best piece of advice is to not rush anything and to make sure that you give yourself enough time to prepare and set up so that you can launch the business with a bang.