Getting paid for something we enjoy doing is what everyone wants. For some that might mean turning their hobby into a business.
The decision to turn a hobby in to a business will be based on careful evaluation of priorities and will be different for each person. For instance, it may be driven by lifestyle or circumstance. It may involve some compromise and it may affect others in your life.
Whatever your reasons for taking the steps to turn your hobby in to a business, if you have the time and commitment to make it work, the rewards will speak for themselves.
So what kind of hobbies might make a good business?
Crafting
If you enjoy making things by hand, there is a market for your products. With a little marketing, you could sell your creations online or at local craft fairs.
Explore the local craft markets. They may have a waiting list and this should be factored in to your business plan.
Woodworking
If you have a knack for working with wood, you could create custom pieces of ornaments or furniture for customers. You could also start a business repairing or refinishing furniture.
Artist
If you enjoy painting, drawing, sculpture or any other form of art work you could sell your wares at markets, online and via gift shops. You could offer your services as a commission-based artist or you could teach art classes to beginners.
Photography
Photography is another art form but might also be a commercial skill for architects, advertising agencies, marketing agencies and events’ organisers. If you have an eye for taking great photos, there are many ways to monetise your talent. You could also sell stock photos online, start a photography blog, or even offer your services as a professional photographer to the general public.
Baking
If you love baking desserts, there could be a market for your creations. You could sell your baked goods at local farmer’s markets or start your own bakery business. If your interests extend to cake decoration you could tout your services to event organisers for weddings and birthdays. This is a busy market so you would need to do your research to test demand before investing in business start-up costs.
Building the business
Start by doing your research. Find out if there’s a demand for what you want to sell. Research whether people are actually interested in buying what you have to offer. If you are selling handmade crafts you could try taking a stall at a crafts market on a casual basis. Bear in mind, depending on the craft, there may be times of year when people are more likely to buy your product than others.
Once you’ve started to sell some of your product and established there is a market, you will need to grow that market. The best way to do that is through word of mouth. Build and maintain relationships with your customers. Offer discounts for repeat purchases and referrals.
You can use traditional marketing methods like print ads to get the word out about your business.
Consider a website. It’s possible to build your own website online. For instance, Shopify will provide a website with credit card facilities to take payments. You could promote discounts via the website and offer a loyalty programme as a way of saying thank you to repeat customers. Loyalty programmes are also useful in collecting data for market research. The data will help you target your product better to your customers in the future.
You can also use digital marketing like search engine optimization (SEO) and social media marketing to build traffic to your website and to reach potential customers online.
Apart from craft markets, gift shops and via your own website you could sell products via Esty. Esty is a great platform to establish your new brand and from which to sell your handcrafted wares to an existing and very large audience.
Getting ready for growth
It may be that you want your business to remain small, with perhaps 1 to 3 key people. However, if your business takes off, things can move quickly. It’s important to be prepared for growth and managing the cashflow that comes with it.
One of the first things you’ll need to consider is when to start employing others. This will depend on the type of business you’re running and how much you can realistically handle on your own. If you start taking on too much work, your quality will suffer and this could have a negative impact on your business. However, if you take on people your overheads will increase, so you need to plan how you are going to manage this first.
It may be that you can consider outsourcing some of the work in the early days. This can be done either to freelance contractors or other businesses. Then, when your turnover has increased sufficiently, you might consider employing the skills you need for the long term.
Financing growth can come from a business loan and doesn’t have to come from turnover alone. But consideration of how you maintain any finance will be crucial to your survival. If you can’t make the loan repayments you could easily get into debt. Plan your way forward. Whether its inventory and equipment or manpower, be careful not to spend too much of your profits or you’ll find yourself in debt. It’s important to have a solid plan for how you will finance expansion so that you don’t put your business at risk.
And finally…
If you are able to make a comfortable living from a small cottage industry business, selling your lovingly crafted wares, then good for you. You will have achieved what many can only dream of. A career and lifestyle that makes you happy. However, if you do want grow your business be prepared.
As your business grows, don’t forget to take care of yourself! Growing a successful business takes a lot of hard work and dedication. Make sure to schedule some time for yourself and your loved ones so that you can enjoy the fruits of your labour. Always remember the reasons you wanted to turn your hobby in to a business in the first place and make sure your priorities are still being met.