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Jessie Eby contributed to this blog.
In today’s economy, the idea of turning a hobby into a thriving small business can be appealing. Whether it's baking, woodworking, gardening, or crafting, many hobbies have the potential to become profitable ventures. But how do you make the leap from hobby to business? And should you? Here’s a comprehensive guide on how to successfully make this transition.
Can my hobby be turned into a business?
Nearly any hobby can be turned into a business, as long as you have a passion for it and there is a market for it. Although product-centered projects like crafting or baking are often thought of as “business-ready” hobbies, the opportunity doesn’t end there. Even if your hobby doesn’t involve creating a physical item, you can likely find a way to monetize it. Is your hobby something you could offer as a service, or teach to others? Perhaps you could even create a website about it and earn money from running ads or working with related businesses.
Tip: Pay attention when you’re scrolling on social media. Are you seeing any common thread on problems people are trying to solve or products or services people are looking for? If your hobby could fill those gaps, you may have the beginning of a promising business.
Starting as a side gig
As tempting as it may be to go all in and make the leap toward a full-time business, the smart option is to start transitioning your hobby to side hustle status. If you can build your business up gradually, you’ll experience less financial risk and less risk of burnout. Starting slowly allows you to test the waters, refine your products or services, and grow your customer base without the immediate pressure of putting food on the table for you and your family.
Tip: Take a look at your schedule and see where you may be able to devote some time to building your business. You may be surprised by just how far you can get with a couple of hours of focused and intentional energy each week.
Don’t lose your passion
One of the common drawbacks to transitioning from hobby to business level is that you may grow to resent something you once loved. If you don’t ease into your business and find ways to streamline the work, you may find yourself grinding out joyless hours, longing for the days when you loved the process.
Tip: If you start to feel burnout creeping in, take a break. Sometimes a little bit of distance can help you remember why you started in the first place.
How can I turn my hobby into a business?
If you’re interested in taking your hobby to the next level, there are a few things to think about.
- Evaluate your space and resources: Where will you run your business? Is there room in your home, or will you need to rent a space? Are your current resources suitable, or will you need to upgrade? Will you need storage?
- Licensing: Will your new business require any licenses or permits?
- Branding: Put some time and thought into developing a strong brand identity, including a logo and packaging (if applicable) that represents your business.
- Pricing: Calculate your overhead and think about how you need to price your products or services to earn a profit.
- Evaluate your processes: Whether your business is a service or a product, you’ll need efficient processes. Think about the best way to maintain consistency and quality.
- Marketing: How will you market your business? Social media is an excellent tool and has a low barrier to entry, but don’t forget about local markets, radio advertisements, newspapers, and word of mouth.
- Continuous improvement: Regularly assess your business, learn from feedback, and adapt to market changes.
My experience: building Sugar Shuggah Freeze Dried Sweets
The act of preserving food goes way back in my family. I grew up canning and freezing garden goodies, a tradition passed down through the generations. I decided to give freeze-drying a try, and a whole new world of opportunities opened up for me; Sugar Shuggah Freeze Dried Sweets was born.
When the pandemic hit, I, like many others, was laid off from my full-time job. With a little bit of determination (and a lot more time on my hands), I decided to turn lemons into lemonade and pursue my small business goals harder than I had before. I was able to make connections through area farmers markets and I grew my brand. It took a lot of hard work, but it has been a gratifying experience.
Blending passion with entrepreneurship can be rewarding. With careful planning and a willingness to learn, your hobby can become a fulfilling and profitable venture. If you’re looking for support as you launch your business, we can help! We have resources available to help you get started, and we can guide you through the process. Here are a few articles you may find especially helpful:
Step by Step Guide to Start a Business
Small Business Series: Resources for business startups
New program created to assist Nebraska small business owners
Growing with your business
Visit cfra.org to see these articles and more, connect with loan specialists, and access a wide range of services to help you get your business started.
