Do you have a hobby? Passing the time doing something you enjoy keeps you engaged with life. It’s a way for our minds to focus, and it helps develop concentration. Messing around with your hobby is also a great way to relax and relieve the stresses of the day.
Millions of people share the same hobby, no matter how obscure it seems to others. If you think that you’re the only person in the world that enjoys your favorite pastime, then think again. Whatever hobby you can imagine, there are probably millions of people doing that right now.
Many people often wonder how they can turn their hobby into a legitimate business. Can you imagine the thrill of being excited to go to work each morning?
When you choose to follow your dreams and start a company based on your hobby, you are turning your vocation into a vacation.
The Benefits of Working with Your Passion
- 1 The Benefits of Working with Your Passion
- 2 8 Tips to Turn Your Hobby into a Business
- 3 1. It All Starts with Desire
- 4 2. Begin with the End in Mind
- 5 3. Do Your Due Diligence
- 6 4. Create a Business Plan
- 7 5. Work with a Mentor
- 8 6. Build a Website
- 9 7. Market on Social Media and Build a Brand
- 10 8. Hire an Accountant
- 11 The Final Thought – Hang in There
When you decide to start a company based on your hobby, it benefits your life in numerous ways. Most people work at a job they hate and then return home exhausted, with little time or energy to spend on their families or their interests.
However, when you start a business based on your hobby, you’ll enjoy your work, and the time will fly by during the day. As a result, you’ll have more energy when you return home, and you’ll be in a better mood.
Many Americans work in a job that elevates their stress levels, leading to the development of mental health issues, such as high-anxiety disorder and insomnia. It’s tough trying to fall asleep at night when you know your boss is going to chew you out in the morning because you didn’t finish that report.
By working with your passion, you eliminate the stress from your life. Working somewhere that you want to be each day is a rewarding experience that improves your quality of life.
8 Tips to Turn Your Hobby into a Business
So, how do you get started with turning your hobby into a viable business? Follow these eight steps to success, and you’ll never feel like you are working again.
1. It All Starts with Desire
In the book, “Think and grow rich,” The author, Napoleon Hill, talks about the most important characteristic for entrepreneurs. The first chapter, entitled, “It all starts with desire,” shows the reader the importance of wanting to achieve your goal. When your heart fills with a burning desire to achieve your goal, the universe will move out of your way and give you what you want.
This book teaches entrepreneurs that the fight for survival in the business world comes from within. You need a sharp mind and plenty of mental fortitude to persist through the dark times in your company – and there will be dark times.
However, when you have a burning desire to achieve your goal, you’ll think about your situation harder. Those individuals that don’t have a vested interest in what their company produces are more likely to fold when they experience difficulties.
By building a desire to succeed with your business venture, your RAS will find opportunities to help you out of your current situation. The reticular activating system, (RAS), is the region of the brain that identifies patterns in your life.
For instance, have you ever bought a new car, and found that you start to see them everywhere on the road in the days after your purchase? That’s your RAS at work, focusing your attention on what you value.
The brain is a miraculous and complex organ, and we still don’t understand its full potential. However, by tapping into your desire, your mind finds a way to help you achieve what you want. You may start to experience eerie coincidences that benefit your company. The key takeaway here is that “what you think about, you bring about.”
2. Begin with the End in Mind
What do you want out of your company? Some people answer with monthly cash flow, others an income-producing asset. However, most business owners will have the goal of eventually selling their business when they retire. They then invest the proceeds into a low-risk investment that pays them a monthly income.
What do you have to do to make your business an asset that an investor would want to buy? Setting up your business infrastructure to include systems and operating policies that meet international standards is an excellent place to start. By creating systems in your company, you can run the business – instead of the business running you.
Policies and procedures allow you to step away from the business when it’s profitable, without affecting the company’s bottom line. You need systems to cover every aspect of your business: operations, production, marketing, financials – everything.
If you struggle to identify key core competencies in each area of your company, hire a business consultant. These consultants help you build a policy manual that’s in line with international standards.
3. Do Your Due Diligence
Before you commit your time and effort to start a business, it’s best to take a look around to see what your competitors are doing. Research your niche on social media, YouTube, and Google to see what other companies have on offer.
Make a list of 10 top competitors and analyze everything about their market presence. Look at their website and note its functionality, and check how they rank on Google search. Review their product range and suppliers and check out their engagement rates on social media.
After spending a few hours on this exercise, you’ll have an idea of what you’re dealing with from your competition. What you uncover shouldn’t deter you from starting a business, it should give you ideas about forming a model yourself. Look at what you think the competitors are doing wrong, and gain yourself a competitive advantage. By identifying inefficiencies in your competitor’s core competencies, you can offer products or services that are unique to your company and brand.
4. Create a Business Plan
After completing your due diligence, it’s time to get to work. You need to start by building the foundation, and that comes with writing your business plan.,
A good business plan provides direction for your company. It’s also the first thing most investors want to see when you apply for funding.
Key areas to focus on with your business plan include your financial and marketing strategy. These are the two areas investor will spend the most time reviewing. The financial plan involves all of the numbers in starting and operating your business.
You need to tackle in account inventory, equipment, and overhead costs like office rental and payroll. Remember to include cash flow and sales forecasts that extend to three to five years.
Your marketing plan encompasses how you intend to capture market share from your competitors. Outline details of online and offline marketing strategies, as well as inbound and outbound marketing strategies.
After completing your financial and marketing plans, it’s time to wrap things up with a brief, but informative, executive statement. Your executive statement gives the investor the critical points of your presentation. You should include the amount of funding you need, and a brief overview of your business and its competitive advantage.
5. Work with a Mentor
Business owners don’t have to go it alone. Find yourself a mentor when you start your company. There are numerous places where you can meet a mentor; at your local business meetings, through social or business events, or online.
A mentor has already been in your shoes, and they know what pitfalls lay ahead for you. Working with a mentor reduces your learning curve, allowing you to learn from their mistakes. The mentor identifies pitfalls where your business may suffer, and you get to avoid a setback that could last for years and nearly cost you your company.
Most successful business owners have a mentor, and they continue the relationship even after they experience success themselves. It’s a lifetime commitment, and you’ll become close colleagues and friends over the years.
However, some people may struggle to meet a mentor in the real world. Fortunately, the advent of the internet connects people all over the world. As a result of internet freedom, you can find thousands of mentors online that are willing to help. Look through business chatrooms and learn all you can from the members.
Some mentors even offer paid programs to teach you how to succeed in your niche. Spend some time reviewing mentorship programs to find a mentor with a style that’s suits your personality and business ethics.
6. Build a Website
Before you even think about opening a retail location or production facility – invest in a website. E-commerce is the wave of the future, and it won’t be long before all retailers are online. A website is an essential tool for any business. Claiming your piece of virtual real estate is a vital part of starting your company.
However, most business owners put up a website, and then do nothing with it but leave it as an information site. As a result of not using your website, you miss out on a lead-generating platform that brings business to you.
If you have no idea how to start a website, then arrange a consultation with a development and management team. These professionals can walk you through a customized site designed for your specific needs. The designer should also include monthly retainers for managing your website and its components.
7. Market on Social Media and Build a Brand
Gone are the days of relying on flyers, radio ads, and billboards to market your brand or company. These inefficient marketing methods are overwhelmed by social media in the digital age. You can guarantee that all of your customers are on social media.
Facebook has over 2-billion monthly users and Instagram nearly 1.4-billion. It’s probably safe to say that a significant chunk of your market is using these platforms as you are reading this article. Facebook relies heavily on marketers for income, and they make it easy to use the ad manager feature of your account.
Use the ad manager to identify your target market, and then run ads to them that land up in their social feeds. The cost of reaching millions of people is minimal when you consider what some companies are paying for billboards and other forms of outdoor media.
8. Hire an Accountant
Managing your money is a critical part of owning a business. You need to recognize every dollar that comes into the company, and every cent that leaves your bank account. Most entrepreneurs don’t work well with numbers, and they rely on an accountant to help them with analyzing the figures.
An accountant can tell you if you are making money, and help you build cash flow projections into the future. Part of being a successful business owner is working with a good team. Your accountant is possibly the most important person in your organization. Therefore, make sure you only hire the best CPA possible.
The Final Thought – Hang in There
Starting any business is a challenge. Many entrepreneurs find that their business plan doesn’t work out like they thought it would. As a result, they have to improvised and change directions to keep the company alive.
Speak to any business owner that’s in the first year of founding their company, and they will tell you they are dealing with plenty of stress.
The chances are that it won’t be any different for you. However, by using your hobby to start a business, you can weather the storm of uncertainty in your first year as a business owner.
Working with your passion makes you more durable to unexpected events. You feel a more profound sense of attachment and commitment to your business, and this characteristic helps you persist when times get rough.
Eventually, you’ll reach a place where you start to turn a profit with your company. At this stage of the game, you can give yourself a pat on the back – You made it happen!