Did you know you do not have to be employed for you to have enough money to pay your bills? Look at that home-based hobby that you love too much. You can turn it into a fully-fledged business and create a career that makes you money out of it.
Can you cook? Is photography running through your veins? Do you enjoy traveling? If you do, why can’t you start catering, photography, or even a travel agency or blog? You can make enough money running businesses born from your hobbies.
However, most people do not know how to do this. Here are a few things you should do to turn a home-based hobby into a fully-fledged business.
1. Research
Creating a product or offering services from something you love is a business just like any other. It does not make it any easier. You, therefore, need to do some research to find out if the business idea appeals to everyone else, not just you.
The first thing you should do is to understand your customers. Ask them anything that you need to know. Scrutinize the market, look at competitors, find out what makes your business different from theirs, and understand the hidden risks for new businesses. The aim is to make sure that your business idea has potential in the market.
2. Test Your Hobby
Did you know that you do not have to form a legal business entity to make money from your home-based hobby? This is important in allowing you to test the hobby before you can stop everything else you do to start focussing on it.
If you have a full-time job, do not quit at this time. Instead, find some time to run this hobby around what you do. Sell to your friends, colleagues, and family members. Ask them what they think and if they will keep buying from you. This will give you a chance to identify issues and how you can iron them out when you start the business.
3. Write a Business Plan
Now that you have tested your hobby and think that it is going to be a great business, it is time to create a business plan. This is a document that outlines how you will run your business, the goals you want to achieve, and how you will achieve them.
No matter how good you are at your hobby, ensure that you have not skipped this step. Even if you think you have identified everything you need to know when testing the hobby, make a business plan. Planning and assessment are very critical to the success of your business.
4. Invest in Appropriate Business Software As Your Company Grows
The fact that you have completed the first four steps means that your business has great potential. Chances are that you realized that you have different processes to follow when you were testing the business.
You, therefore, need to invest in appropriate software to manage all these processes. If, for instance, you are running a brewery, you might find yourself using Google Sheets for your records. Instead, switch from Google Sheets to a software application such as Ollie that allows you to manage all your brewery processes.
5. Create a Legal Business Structure
This is a very important step when starting a business. There are different business legal structures to choose from, including sole proprietorships and limited liability companies, among others.
The IRS will need to prove that you are running a business, not a hobby, for them to start tax deductions. They will need you to formally create the business and determine the business structure that you need. Ensure that you have opened a bank account for your business to separate your personal finances from those of your business.
6. Market Your Business
Your business cannot survive if you cannot reach your customers. You, therefore, need to learn about the basics of business marketing when starting your business. You can find multiple affordable marketing tutorials online if you are just getting started.
Evaluate the different marketing methods available today. Look at the ones that you think might work for your business. Do not forget about digital marketing because every business can benefit from it. In addition, do not forget to create accounts on social media platforms. You should also build a website for your business.
If you love doing something, you can monetize it and turn it into a fully-fledged business. All you need to do is to follow the steps discussed in this article and start reaping the benefits of entrepreneurship.
