Can you turn a hobby into a Small Business?

Can you turn a hobby into a small business? Here are some questions to assess if this is a viable option for you.  First, we’ll assess your hobbies.  Second, we’ll consider ways your hobby could be used to earn money.  Third, we’ll evaluate if you have what it takes to start a small business.

Assess your Hobbies

Ask yourself a few questions to assess whether your hobby could be successfully turned into a job.  Dig deep with your answers to consider if a hobby would bring you satisfaction as a job.

• How will I feel about my hobby if it is now my work?
• Will I still enjoy the hobby under a deadline?
• Do I need the rejuvenation the hobby brings separate from the money?
• Is the hobby something that would be of interest to others?
• If there is more than one hobby, is one more likely to be successful as a business?
• How will starting a small business with my hobby impact my time, resources, family, and other commitments?

Consider Ways a Hobby could earn money

There are several ways that a hobby could be used to bring in income.  Many artists on Etsy, E-Bay, or other web sites earn a steady income from what they sell.  Will this work for you?  Here are a few ways your hobby could earn money.

• Sell your craft. Can you find a cost efficient way to make your craft and then sell it. If you are an artisan, you may be able to make a designer belt buckle, cowboy boots, or quilt and sell it at a high price online. In the alternative, you may prefer to come up with one design and produce multiple copies of it to reach consumers. Consider if your craft will sell and how you want to approach the sales.
• Teach others about your hobby. You have expertise you have developed from your hobby. Can you share your expertise with others by teaching a class or holding a seminar that explains “how to” do what you know how to do? This can be a rewarding way to encourage others to engage in what you like to do.
• Write about your hobby. Do you want to tell others about your hobby by writing about it? Maybe you want to write and publish a book, prepare an e-book to sell online, or write a short document that explains “how to” do what you know how to do.
• Sell or fix items related to your hobby. There are often items that you need to do your hobby. If you are a gardener; you need seeds, tools, and gardening gloves. You need the “tools of the trade.” Some small business focus on selling the tools needed to engage in the hobby. Others fix or prepare items needed for the hobby. Maybe you know how to fix computers, can prepare computer software, or other information that allows other people to do your hobby.

Evaluate if you have what it takes to start a small business

A small business takes time and money to start – do you have the commitment, time and resources to do it?

• Do you have the gumption for an uphill climb from nothing to a viable business?
• Do you have a strong support network of family, friends, or experts to advise and support you as you start the business?
• Do you have the skills and know-how to start the business? If not, what do you need to learn, or who do you need to partner with to have these skills benefit the business?
• Are you self-motivated and able to set and work towards your own goals?
• What community resources are available to help small business? Can you tap into these resources to get started?
• Do you know how to write a business plan and put a budget in place? If not, how can you learn how or get help in doing this? Creating a Successful Business Plan may jump start your small business.
• Do you want to start your own business?
• What training do you need to start a business? Start your own small business, Starting a Consulting Practice, Start and Operate your own Home-Based Business, Learn to Buy and Sell on eBay, or Start your own arts and crafts business may help you get started.

Once you have completed your evaluation of whether you can turn a hobby into a small business, you can decide if you are ready to move forward with an action plan for your business.  Don’t be in a rush!  Take the time to assess your hobbies, consider ways your hobby could earn money, and evaluate what if you have what it takes to start a small business. There are no right or wrong answers – only what is right for you!