If you’re looking to make a little money on the side and do something you’re passionate about, turning your hobby into a side hustle can be a great way to do it. Here’s a step-by-step guide for turning your hobby into a business:
- Decide which hobby to pursue: Before you begin, it’s important to figure out what hobby you’re most passionate about and is most likely to bring in some money. Consider the demand for your products or skills, the time you can commit, and the growth potential.
- Figure out whether you have time to take on the project: Before taking on a side hustle, you need know it won’t interfere with other commitments or responsibilities. Evaluate your current workload and consider what kind of time commitment this may require.
- Test the waters: It can be a good idea to start small and test things out before investing too much money or energy into the project. Doing some market research and gauging interest in what you offer can help determine whether there’s potential for success. Testing the market can be hands-on as well—for example, if your hobby is making soap, you might book a local craft fair or set up a table inside another business for a weekend.
- Come up with a business plan: Once you’ve tested the waters and think the idea is viable, create a business plan to outline how you’ll turn your hobby into a business. Include things like your goals, target market, marketing strategies, and financial projections.
- Make sure the financials will work out: Before investing money into the project, make sure it has potential to become profitable. It may take some time to make money, but you should have a plan for how to become profitable eventually.
- Start building your presence online: Creating an online presence is essential for success in today’s world. Make a website that details the products and services you offer. Create accounts on relevant social media platforms so people can find out more about your business. You can also use these platforms to promote and sell your products.
- Come up with a marketing plan: Once you have an online presence, it’s time to spread the word. You can do this by creating content such as blog posts, videos, and podcasts, or running ads on search engines and social media platforms.
- Connect with your customers: Figure out how you will connect and form relationships with your customers. Consider what’s appropriate for your customer’s demographic. Do you need to offer regular discounts? Keeping in touch with them through email, social media, or even over text can help build loyalty.
- Network: Don’t forget the importance of networking! Attend events in your industry or related fields to meet potential partners, clients, and collaborators who could benefit your business.
- Consider what will happen if this becomes your full-time gig: If you successfully turn your hobby into a side hustle, you may eventually want to make it your full-time job. Start thinking about how it could work as a permanent venture—for example, whether you’d need an office space or additional staff. If there’s a chance you’ll become self-employed, consider how to make sure you have a steady income and benefits such as health insurance, dental coverage, and life insurance. You may even want to consider getting a permanent life insurance policy like whole life insurance. Whole life insurance builds up cash value over time, which you can access for any reason. This can be helpful for a small business—owners can use the money to increase cashflow or buy new equipment or supplies if needed.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value to supplement retirement income will reduce the death benefit and may affect other aspects of the policy.