The saying goes: “Do what you love and you will never have to work a single day of your life.” Once you have been working for a while, you realize that it is not as simple as following your heart.
You need to plan how to make money from your hobby if you’re looking to leave your 9-to-5 job and start a business.
Note:
Set short and long term goals, do your research and think about your finances.
You should plan well before you start writing your resignation letter. It’s best to start planning long before you begin drafting your letter of resignation.
Tips to Turn Your Hobbies into a Career
1. Start Small
Money is the main reason to start earning money from your hobby, before you even consider turning it into a profession. You’ll want to have a few months’ worth of expenses, separate from the costs of starting your business, saved up before you start. This will ensure that you can live comfortably while things are getting started.
You can also start your business while still at your current job to get a better understanding of the need for the product or service and the amount of work involved in producing it. This will help you determine the details of your finances later on. This is discussed in detail in the section no. 5.)
Working two jobs is exhausting, but it can also be a great way to ensure that you will still enjoy your new career, even if you are doing your hobby solely for the money.
2. Make Connections
The social media revolution has made it much easier to connect with people who share similar interests, a great benefit for small businesses. LinkedIn, Facebook Google+, Twitter Tumblr Pinterest etc. can help you meet people in your field virtually.
Remember to proceed cautiously: Some people may not be willing to give business advice to an opponent. It is best to establish connections before asking specific questions. It is not time to send a form letter asking strangers for their advice. It is important to join a community and not just mine for ideas.
3. Do Market Research
Get a rough estimate of what other businesses charge by using your online connections and in-person contacts. This can be done by simply looking at online marketplaces to see what other people charge.
Take a look at the current landscape and see how your business fits in. What are your competitors offering? What are the needs that your business fills, but theirs does not? What makes you different from your competitors?
4. Plan your day
It’s not the most glamorous aspect of starting a business, but a plan can be crucial, especially if your goal is to seek funding from external sources. A business plan is essential, even if you intend to fund your venture with your own money. It will help organize your thoughts and reveal any problems.
5. Plan Your Finances
Calculate your monthly expenses and projected income. Also, include any startup costs you may incur, such as membership fees to professional associations, online marketplaces or accountants and tax preparers.
Plan to pay quarterly estimated taxes including self-employment tax.
You’ll eventually have to decide if you want to be a sole owner or if you prefer to form a business entity such as a limited liability company, S corporation, etc.
6. Spread the word
Internet makes it easier to tell people that you are open for business. You might have spent a large part of your budget on advertising and lead generation in the past, but you can now get started by simply posting to your favorite social networks to let people know that you are open for business.
Note:
Remember that you may need to remain discrete if you are still at work.
If you meet all of these conditions, write a one-line description for your business. If you can meet all of these conditions, create a short description about your business and share it.
7. Reassess your goals
You won’t really know how it feels to run your business until you try it. It’s important to periodically reassess goals to ensure that you are on track.
You’ll probably find that your goals change over time. For example, you might decide to focus more on an area of your job that you enjoy more than another. You might find that your product’s market is smaller than you thought, so you decide to change directions slightly in order to gain more business.
When you work for yourself, your job will always evolve. Understanding this will help you to be able to adapt and change your course when needed.
The Key Takeaways
Turn Your Hobby Into a Part-Time Job First:Starting Small allows you to discover what you enjoy and dislike about this type of work.
Determine what the market will bear:Conduct market research to determine how much your product or service can be sold for.
Create an Business Plan:Calculate expenses, including start-up costs, and estimate your potential income.
Be an Active Community Member: Use social media to build your network and to get to know your new colleagues.
