“Whatever you like to do, make it a hobby and whatever the world likes to do, make it a business.”
— Warren Buffett
Most of us have something greater within us. Something that starts from a hobby and turns into a passion. In the middle of it comes a sudden thought “What if I start my own business?”
Perhaps it’s not a sudden thought at all. Perhaps your friends and families recommended it after seeing the potential of what you do. It could be a simple crocheting you’ve been doing since you could remember. Or you’re a creative crafter with several cute designs created for family and friends.
There is always a certain demand for everything. No matter how big or small your business idea is, trust me, you already have a market. You just have to find them. And to do that, you have to start your business first! To better help you, here are the easy steps in turning your hobby into a business.
7 Easy Steps In Turning Your Hobby Into a Business
If this is your first time venturing into the business industry, it can be scary. If not your first time, it still is scary. It’s your passion after all. What if people don’t like your creation as much as people around you do?
But do not fret! The more it scares you, the more you should do it. In this guide, we’ll help you conquer that fear of turning your hobby into a business, and why you should start doing it now. Let’s start!
1. Ask Yourself: Am I ready?
Set aside the opinions of others and assess your skills on your own.
Are you skilled enough to turn it into a business?
Do you have the passion to sustain it in the long run?
When you do your hobby because it’s a hobby, you can stop when you get tired. You can simply set it aside and come back whenever you want.
It’s different once you enter the business world. You’ll invest more than just time and inspiration. You cannot walk away because there are significant resources invested, both tangible and intangible.
Think of turning your hobby into a business a commitment to yourself, your vision, and the customers you serve. To see the rewards of your hard work, you have to treat it with the dedication it deserves.
Do you think you’re ready for that? Through blood, sweat, and tears, are you confident to start this? Yes, it can sound daunting, but it is worth it!
That’s all you need: confidence, commitment, and hard work. Think about it for ten seconds and if you still want it, then continue with the next step.
2. Identify Your Hobby
What kind of hobby do you currently have? Is it something you do with your bare hands or digitally? Something you do inside the house or outside?
Doing so can help you determine the nature of your hobby. It will determine how to monetize it while considering the market potential, production requirements, and target audience.
3. Conduct Market Research
Whether it’s your first time starting a business or not, you should still start from the basic: market research. Your market is already out there. But before they know you, you should know them first.
You must:
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Define your target audience: demographics, interest, purchasing behavior
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Assess Competitors: strength, weakness, strategies, and their offerings
It’s important to identify what customers are currently looking for (or the trend). But remember the basics of economics (the higher the demand, the higher the supply). In order for your products or services to have an edge over the competition, they should be unique and valuable to your customers.
What sets your hobby apart from competitors?
What value do you offer that others don’t?
If your hobby is more into digital designs, look for something with less competition but higher demands. If your hobby involves cooking, research the popular food trends in your local area and add something unique to that recipe.
4. Develop a Business Plan
Not only will this make your planning more professional but a comprehensive business plan can also help sort out your future business. You can do it by yourself, backed by the result of your market research, or ask for professional guidance.
Your business plan should include sections of the following:
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Business concept
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Market analysis
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Marketing Strategy
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Operation Plan
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Financial Projections
5. Build Your Brand
If you’re new to sales and marketing, branding is one key to its success. This is where you finally will introduce your business to your target audience. You know who they are, what they like, and where to find them, so it’ll be easy to show them your offerings.
Develop a consistent brand identity across all touchpoints, including your website, packaging, social media profiles, and marketing materials.
If your hobby-turned-business is baking specialty cakes, emphasize creativity, quality ingredients, and/or personalized service. Your brand elements from colours to fonts, and imagery should reflect all those values.
6. Start Small
You have to start somewhere! Nothing gets big overnight.
Instead of diving headfirst into full-scale production or launching a store, why not start with a small-scale operation? Test the waters. This will minimize the risk and validate your business idea.
If you’re into photography, you could start by offering photography services for events like weddings or portraits on weekends. Both have been popular lately. You just have to find the right people and the right place to do it.
Once you gain confidence and understand how to better do it, you can gradually scale up and refine your offerings.
7. Always Love What You Do
Stepping out of our comfort zone is always a fun and scary thought. It’s the same thing with the mere idea of turning your hobby into a business. There will always be questions and uncertainty. No one knows what the future holds and you will never know how far you can get until you try to take that small step. Just always remember the easy steps in turning your hobby into a business as discussed above.
At the end of the day, what matters is your unrequited love for your passion. Whether it succeeds or not, your hobby will always remain yours. Keep hustling and continue loving what you do.