You may be standing there in your kitchen chomping away at your freshly-baked chocolate brownies thinking, ‘Could this be my next money spinner?’ Perhaps you have decided that your caregiving skills should be monetised? Or maybe, your prowess with the written word should be available for everyone who seeks professional writing services?
There is a myriad of possibilities out there, when determining whether your hobby should be converted into a business. Let’s explore 5 of the most important questions that need to be answered when determining whether you should convert your hobby into your own business…
1. Are You Prepared To Do All The Research, Marketing & Promotion To Get Your Product To Market?
There is an old expression that states: There is Nothing New under the Sun. In other words, everything that exists has always existed in some form or another, meaning that your product or service may not be as unique as you think. It’s not always the uniqueness or the type of product that matters – it’s the way you promote it. Therein lies the challenge: Are you prepared to do whatever it takes, spend what needs to be spent, and go door-to-door if need be to market your product?
This is a massive undertaking. For even if you have the best brownies in the business, the best caregiving skills, or you are a wordsmith of note – without anyone knowing this, you will remain an enigma and veiled from the world. So how can you improve these aspects of your own performance? For starters, get a business plan. Print business cards, flyers, brochures, create YouTube pre-rolls, prepare video retargeting campaigns etc. The biggest challenge with any new business is letting consumers know that you exist.
2. Are You Ready To Quit Your Day Job To Make Your Hobby A Money Spinner?
Ever heard the expression: A Leap of Faith? That’s what every successful entrepreneur on this planet took when they decided to do what they love and get paid for it. A hobby is something you enjoy doing in your free time. It may be a means of escaping the rigours of daily life. If you have a hobby that you are good at such as designing clothing, playing video games, or understanding the inner mechanics of chance-based outcomes such as slots games, you may wish to take things a step further.
Nobody’s suggesting that you quit your day job to play jackpot slots at William Hill, or to spend all day at the video arcade, but you may wish to dedicate more of your time towards those activities that you are good at, and immerse yourself completely during allocated sessions. The safest way to move from a hobby to an income generating activity is incrementally.
Experts advise new business owners to enjoy the benefits of a stable income for as long as possible before going cold turkey with a new business venture. Use the weekends to develop new games, implement new gaming strategies, design clothing etc. Conduct the marketing and research, and test the proverbial waters. Once you approach a hobby from this perspective, you will see how effective you can be in a money-making capacity.
3. How Can I Monetise My Hobby?
This is the million-dollar question. How do you take something you enjoy doing and make money off it? Chances are if you feel confident about the quality of the product or service that you create, others will appreciate it to. There are ways that you can go about doing this, for example you can approach stores and offer them your goods on consignment. If they agree to keep your products in store they will pay you when they sell.
If you have an eye for fashion and accoutrements, approach retailers and e-commerce platforms that may require your services. You can command high fees as a consultant if the quality of your products and/or services is up to scratch. If you are a content creator, use your skills for creating banner ads, SEO work, marketing campaigns, converting copy etc. The business world never sleeps, and neither should your marketing initiatives.
4. How Do You Compare With Others & What Makes You Different?
You’ll be pleased to know that many companies offer similar products and services. This shouldn’t act as a disincentive to you – it should propel you. Sure, too much competition can saturate the market and drive down demand for your product. But if you offer a unique product, or a quality product or service, you’re in the pound seats. Market research is highly recommended before you launch a service. You may be in a market saturated with competition.
This means that consumers are likely aware of your products/services, and you’ll have to do less marketing work. However, you will have to provide proof of quality, service excellence, and go above and beyond. Even in a market with no competition, your success will invariably draw other players into the market and detract from your profitability. Give 100%, and you will reap the rewards.
5. What Are Your Long-Term Goals?
Before you rush off into making a strategic decision about generating money from your hobbies, ask yourself what you’re looking to achieve. Part-time income is one thing, but foregoing the stability and security of a full-time job is another. You may want to think about this decision carefully. Startups invariably require significant capital investments, but once you’ve gotten over the hurdles and you’re up and running, it is pure magic. Do you enjoy being your own boss? If so, you should turn your hobby into a business.