2016-11-10 00:00:00 Growing a Business English Get five tips on how to turn your hobby into a profitable small business, including how to create a business name and build an online... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/record-shop-owner-talks-about-record-collecting-hobby.jpg https://quickbooks.intuit.com/ca/resources/growing-business/taking-fun-to-financial-success-5-tips-for-turning-your-hobby-into-a-business/ Taking Fun to Financial Success: 5 Tips for Turning Your Hobby Into a Business

Taking Fun to Financial Success: 5 Tips for Turning Your Hobby Into a Business

2 min read

Many people who are enthusiastic about their hobby pursuits have wondered whether they could earn a living from the hobbies that they enjoy. Expert business coach Joyce Reynolds says that looking at hobbies and interests often provides the best direction for creating a successful career or small business.

Follow these tips to create a successful venture as you create a business based on your hobby.

Evaluate the Market Opportunity

Choose the best way to monetize your hobby. For example, would it be easier for you to teach others about what you love doing, or would selling a product or service related to your hobby interest offer an easier path to financial rewards? Take a careful look at yourself in terms of your knowledge and skill, and then carefully consider the marketplace demand for what you have to offer. Research already successful entrepreneurs with businesses related to your hobby and study their business plans, and find out how they generate income from your hobby interest.

Figure Pricing

Price the products or services you plan to offer at a level that will pay you a satisfactory income. Figuring out that price level includes factoring in what prices you can reasonably charge, your operating costs, and intangible elements, such as the time it takes you to make products or provide services. Consider taxes in your calculations, although one of the benefits of turning your hobby into a business is being able to deduct your hobby expenses as business expenses. Use software designed to support accounting for small business, such as QuickBooks Online, to track your revenues and expenses.

Create a Business Name

Choosing a good name for your business helps to create a brand identity that makes your business more memorable for people. A good business name communicates the essence of your business and is easy for people to remember. Check available domain names before settling on a business name choice; it’s best if you create a business name that can also be your website domain name.

Building an Online Presence

One of the best ways to grow a small business is by establishing an online presence. There are many free or low-cost tools available for easily creating a website. Enhance your online presence by publicizing your business on social media. If appropriate, consider opening an online storefront at sites such as eBay or Etsy.

Creating a Marketing Plan

Once you establish your business, create a marketing plan designed to attract customers. Factoring in the funding you have for promoting your business, figure out the best free or low-cost ways to get the word out. Options to consider include business cards, publishing content on your website and creating a Facebook page for your business. Utilize websites such as Twitter and LinkedIn to connect with people who share your hobby interest.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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