Turn Your Hobby Into a Business
Nearly everyone has a hobby that they love to devote their free time to. Whether that's knitting, making jam, or woodworking, we all have something. But what if I told you that you could start earning income through that very thing that you're already passionate about? As you read this article, I'm going to highlight some key questions and 9 pivotal steps that you can use to turn your hobby into a viable business!
What to Ask Yourself Before You Start
Prior to embarking on the journey of entrepreneurship, make sure that you ask yourself these three questions. Be honest during this inquiry, as your answers will determine whether or not your hobby will make a good side hustle, and if you're up to the task of being a small business owner. The three key questions are;
1. Is There Demand For Your Product?
First off, you must engage in market research about your potential industry in order to determine if there is even going to be demand for your product. Some great ways to go about doing this are; asking family and friends to test out your product (and be honest), go to where your competitors are selling a similar product and see if they have demand, and use key words on web searches and social media to see if people are are engaged with those topics in your area.
2. Can Your Hobby Become a Scalable Business?
According to investopedia.com, the term, "Scalability refers to a business or other entity's capacity to grow to meet increased demand." Once you have determined if there is demand for your product, you must ask yourself, how big would you be willing to grow? Do you have the workspace available? The resources? The time? Or the energy in order to make it happen? If the answer is yes to all of those questions, than you are good to move onto the next step.
3. Would You Still Love Your Hobby as a Business?
For most hobbyists, they spend time engaging in these activities because it is something that they love to do. One of the most popular reasons that I hear for people not wanting to turn a passion into a side hustle is, "I don't want to fall out of love with what I do." That is a fair worry to have, as a business requires you to constantly be taking constructive criticism about your products, and having the stress of meeting deadlines for customers and retailers, all while balancing all of your other work and life responsibilities. If you aren't someone who handles stress, criticism, and deadlines well, then maybe it might be best to leave your hobby as a hobby.
9 Steps to Turn Your Passion Into Cash
Once you have truthfully convened with yourself about the three questions above, you are able to begin the journey of turning your hobby into a booming side hustle. There are nine steps that are pivotal to making this happen. They are;
1. Construct Your Business Model
Before you are able to determine anything else about your business, you need to answer some key questions, such as;
We know that figuring out all of this information can be difficult and overwhelming, especially if it's your first time. Thankfully, the Business Centre has a FREE Business Model Canvas template, available for download!
2. Develop Your Business Plan
Benjamin Franklin said, "If you fail to plan, you are planning to fail." Your business venture is no different. Be sure to get your business plan in writing, to help you convey key elements of your business, like; your start-up budget, estimated sales, marketing strategies, and so much more. If you want to have an experienced professional walk you through the elements and steps to writing your business plan, than click here to schedule a FREE, 1-on-1 advisory session with the Business Centre's expert advisors.
3. Build Your Brand
Nothing is stronger than good branding. It can help you captivate and excite your target audience, skyrocketing your company to the front of their minds. However, this doesn't come easy. You will need to formulate an enticing logo, slogan, brand colours and imagery, and that's just the beginning. When creating your website and social media channels, it is crucial that you incorporate the values of your brand, while being visually appealing and user friendly. Not to mention, since you are the face of your brand, you must live your life in accordance with your brand vision. Regardless of whether you are selling in person, or online, and no matter the marketing channels that you use, keeping your branding consistent across all platforms is the most important thing that you can do for you brand!
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4. How Are You Going to Fund it?
Since this future business is your hobby, it would be fair to assume that you already have much of the tools necessary to make your products. However, you may need to upgrade some equipment, buy supplies in bulk, and maybe even update your workspace. With this ever-growing grocery list of expenses, the question becomes, how are you going to fund it? Firstly, you can look into Business Centre funding and training programs, like Summer Company, Starter Company+, or Digital Main Street, to see if you and your business can qualify. If you have the funds available, you can also use Bootstrapping techniques, which is when you use your own money to fund your start-up. Finally, you could look into borrowing money from friends, family, or financial institutions. However, be very cautious when using this method of financing, because regardless of whether or not you make any sales, you will still be on the hook for repayment.
5. Construct Your Space For Success
While running your business, you will likely be spending much more time in your workspace than you ever did while it was a hobby. Now that you are a professional in your industry, your workspace should reflect that. Try to upgrade your work area to increase its efficiency and comfort level to make it more conducive to spending long hours.
6. Where Are You Going to Sell Your Products?
Knowing what your new business is going to sell is only half of the battle; the other half is figuring out where you're going to sell your products. Thankfully, there are plenty of options for you to consider. You could do in person sales, through places like farmers markets, event spaces, or even in your own brick-and-mortar store. E-commerce is also a great option, with tools like Shopify, Square, Etsy, Facebook Marketplace, and so many more at your disposal. The way that most retailers choose to operate is by using omni-channel selling. This is a perfect blend of both worlds; combining the in-person connections with the convenience of online. Need help figuring out which sales method is right for you? Check out the Business Centre's FREE, 'How to Get More Sales' workshop on October 26th, starting at 12 PM!
7. Make Sure to Take Time For You
Setting up a new venture can be fun and exciting; but don't be surprised when it's also a lot of work. That's why it is extremely important for you to set guidelines for yourself about the amount of time that you wish to spend working on your business. In order to prevent yourself from getting burnt out, or not being able to fulfil your other life commitments, be sure to set aside a certain amount of hours each day that you devote to your business. If you begin to see that you are consistently being required to exceed your preset hour limit, it may be time to either scale back, or look to take your business to the next level. This could even go as far as using your side hustle to replace your full time job.
8. Open and Market Your Business
Congratulations; you have officially made it to the point where you can launch your business! But now it's time for the real work to begin. The first customers that your business will likely have are those closest to you; your family and friends. Use these people to help you amplify your business' message. Ask them to share your website, and social media content with their networks and tell their family and friends about your business. By constantly putting out entertaining, engaging, and informative content across your social media channels, you will grow your following, and subsequently your brand awareness and sales.
9. Set Yourself up to Scale
Now that your business is up and running, you must ensure that you set aside enough time in your schedule to scale your business and meet the needs of your current customers. This means making sure each and every customer is receiving a high quality product, on time, and with the best possible customer service. Along with keeping your current customers happy, you need to constantly be engaging with your target market by regularly posting across social media channels and engaging with your follower base, both in person and online.
The final piece of advice that we will leave you with today is that we all aspect our businesses to take off and skyrocket. And that very well could happen if you put in the work. However, don’t get discouraged if it doesn’t happen right away. Building a successful business from scratch takes time. Instead of trying to build your business to new heights all by yourself, use the expertise of the Business Centre to help you get there. We offer plenty of programs, events, resources, and advisory sessions to help you start and grow you business.
Written By: Matteo Furfaro
Sources:
Hayes, A. (2023, July 28). Scalability: What a scalable company is, and examples. Investopedia. https://www.investopedia.com/terms/s/scalability.asp#:~:text=Scalability%20refers%20to%20a%20business,McKinsey%20%26%20Company.
Winter, D. (2021, December 1). How to turn a hobby into a business in 8 steps. Shopify. https://www.shopify.com/ca/blog/hobby-to-business