Do you have a hobby? Do you dream of setting your own business? Setting your own rules, working at your own pace, no long hours, or denied leaves— why would you not? Working within a strict set of rules often terminates creativity. So, if you don’t want to be an employee, what option do you have left? It’s obvious, start your own business. But are you willing to work day in and out on what you love? Or are you satisfied with doing it occasionally? Making use of your hobby to make money is fulfilling, but nothing comes easy. Let’s find out.
Read this article for step by step advice on how to transform your hobby into a business.
What Makes An Entrepreneur?
An entrepreneur is technically a person who initiates a business enterprise. Still, it’s not only about starting the business but also about bringing coordination, coming up with innovative ideas, and shouldering the responsibility and risk.
Most people dislike their job because it takes up your entire day, eats into personal time, and disregards their work pace, forever making demands. Getting things done within the specified time, but when your hands are full of looking after parents or kids, managing home and social life, completing assigned tasks, there is too much to do. Often the debts are high, and the salary low, which creates an imbalance.
Yet, leaving a job, an established source of income, is a colossal risk, one that cannot be avoided or delegated. Turning your hobby into your income then seems like an easy remedy but, it isn’t. What an entrepreneur need is the willingness to make sacrifices, pour heart and soul, and work smartly into turning the dream into reality.
8 Effective Steps to Turn A Hobby Into A Business!
1. In-Depth Research
Research is the first step in getting started with your business. Research is imperative because it helps develop the market sense, understand the demands, the strategies, and the audience. It educates about the likes and dislikes of the target audience, how to market the product for it to sell. For example: consider baking, research about the people living in that area, their taste and preferences, what prices are acceptable for baked goods, and more.
Check out the competition, look for things that make their business successful, and how you can be better and different from them because business is all about skill, persistence, and innovation.
2. Chart A Financial Or Capital Plan
Finance is considered the lifeblood of any business. You require money to make money. Whether you use personal savings or decide to borrow from financial institutions, finance is central to starting a business. But, just having money is not enough: you require a plan. A plan that will help you utilize money carefully without wasting much.
A well-thought-out financial plan is necessary. It gives you a clear-cut idea of the total capital you will require, the amount of recurring and non-recurring expenses, and sources from which you will borrow funds. It helps minimize the wastage of money, and you can later invest the profits into some return generating options.
Decide where you want to set up your business. If your business is home-based, it will reduce costs such as commuting charges and payment of rent. If you rent an apartment as a business space, then go for a location with the accessibility of raw materials and your product’s market niche to minimize transportation costs. If the business space has visibility to the target audience, it can give the business a boost.
4. Work The Details
How you decide to produce your product will depend on your hobby or the type of business you plan to start. Say your hobby is baking, if you know how to bake, you don’t have to find another person who could bake for you, you can do it. But if you were a chef specializing in a particular cuisine, you could hire another person if you are looking to expand your clientele.
Maybe you want to write books and self-publish, the type of paper, the printing press, you would need to consult and collaborate within the local industries for cost-effective publishing. The proofreading, editing, and printing can be in-house or outsourced, depending on how you want to produce. Chalk out the production process details.
There is no need to hire a graphic designer to design posters or your business card. Many apps and software, such as Canva or coral draw, are available where graphic design is effective and free. The presentation of the brand plays a crucial role. Customers get drawn to creative and innovative ventures. See that your business card and your logo is simple yet attractive. Hiring a graphic designer can dig a deep hole in the account book, and start-ups should watch out for these costs.
Advertising comes under sunk costs or non-refundable costs. Be very precise as to how you choose to market and advertise your product. First, begin by giving free samples to your family and friends so that they can provide feedback for both the advertising strategy and the product or service. Then go ahead and organize small contests or giveaways on social media or offer them at attractive prices. A happy customer is the best advertisement.
Spending an astronomical amount on advertising is unnecessary when you can do it all by yourself using social media platforms such as Instagram, Facebook, and many more. It will help reduce advertising costs and increase your sales. In the case of services, give a free trial, this will also help increase your sales.
7. Pricing The Product
While pricing your product, always consider your costs and the amount that you think that the customers are willing to pay. There are different methods of determining the price of your product. For example, pottery, to price pottery, has two methods: one being the supply-demand method and the second being the hourly rate method. Most prices of products are determined using the supply-demand method.
8. Slow And Stress-Free
You cannot start your business overnight. It requires planning, research, passion, and patience. Anxiety builds up stress.
Start slow. Business ideas may come in a rush, but the process of implementation should be slow and steady. It would not do good to disappoint the initial potential customers because word of mouth is the fastest advertisement service: it can make or break your brand. Trust the process. Panicking is counter-effective. Doing everything alone can be a bit overwhelming, partner with someone you trust. It will help in better decision making and divide the workload. Work every day with the same zeal, enjoy the journey and success will follow.
With the strategies of a successful start-up in mind, buckle up, and start working on your project. Make today your day one; success is not for the complacent. Hustle away.