If you have been working on a hobby for a while, and you really enjoy it, you might wonder what it would take to make some money off it. You might even wonder if you could make a full-time job out that hobby.
The short answer? Yes, you can make money off your hobby. But it's not as easy as that. If you're determined to try and turn your hobby into something that makes profit, here are a few tips to help you get started.
1. Start small. If you're like me, when you get excited about something, you want to jump in with both feet. Go big...or go home. Creative businesses need a lot of items just to produce the final product. Often times we spend hours creating and designing something, only to have people pay us prices that leave us little room to pay ourselves. Don't worry about starting in a big way, but instead be satisfied with slowly working up your inventory at a pace and cost that won't end up bankrupting you.
2. Learn about your customers. This might seem a little scary in light of the recent trends with the way data collecting has been mishandled. I assure you that I don't mean you should use underhanded tactics to gain information. Think about the people who benefit from your products and why they benefit, or what you have to offer that another creative business person does not. Once you have a better idea of who would appreciate your product, you'll have a better idea of how to reach those people. If you're selling to video gamers most of the time, you might not sell the same things at a local nursing home craft fair, or you might need to have more variety. Local libraries sometimes have demographic information that might be helpful once you know the types of customers that will appreciate your product.
3. Legal stuff. Turning a hobby into a profit comes with legal headaches. There are permits, licenses, and a whole host of obscure laws and regulations that--let's face it--the government hasn't exactly made easily accessible to anyone who isn't a lawyer. If you can't afford a lawyer to help you navigate all the rules and regulations, you will have to dump untold hours into trying to ensure you have all those rules and regulations followed (assuming you find them all first, of course). Don't forget that while there are federal rules and regulations, there may also be state and even city regulations for your business.
4. Funding. Sometimes funding, or lack thereof, can be the thing holding you back from success. If your credit score is struggling, then it makes things even more difficult. There are sometimes government grants you can apply for, and certain states may have artistic grants to help those endeavors thrive. If you are already well-known in a community of some sort, you might even be able to try crowd-funding.
5. Sources. There's a lot to consider when trying to turn a hobby into a profit. Find out about local resources when possible. If you're in the U.S. there are chapters of SCORE across the country, with volunteers who can help with many aspects of starting and maintaining businesses. Another source of helpful information is SBA.gov. I highly recommend signing up for their emails. They sometimes even offer a variety of classes geared toward entrepreneurs.Â
This isn't nearly all the information you will need, but I hope it at least sets you on the right track. It can be overwhelming, but remember that little steps will still get you to the goal.