There are millions of hobbyists across the globe creating an array of wonderful things whenever their free time allows. For many, the idea of ditching their day job and turning their hobby into a full- time job is something they long for every day. If you fall into this category, then you are probably wondering how viable it might be.
Turning your passion into an income stream isn’t easy, and there are many things to think about before taking the plunge, but that is not to say that your dream is out of reach. With research, focus, and lots of hard work, it could be achievable.
Here are 5 things you need to consider if you are thinking of turning your hobby into a business.
Is It The Right Time?
Before making the leap, the timing must be right. Running your own business isn’t easy, particularly when you are starting out, so you need to prepare for it being relentless at times. If you have other commitments that take up much of your time, you need to be realistic as to whether it's the right time to proceed.
You must also consider whether it's the right time for your creations to hit the market. Are many of them likely to do better at certain times of the year? Do you perhaps need to expand your product line? Consider your timings carefully before launching.
Can You Afford To Quit Your Job?
You may have grand plans to quit your job and focus all of your attention on your hobby, but whether you can afford to do so is a different matter entirely. If you have no financial commitments, then it might not be as much of an issue, but assuming you have a mortgage and other bills to pay, it is not a decision you can make lightly.
Before making any rash choices, you need to be realistic about the level of income you feel your hobby can generate. Is it enough to live off? Will you need to change your lifestyle to make your business work? If it isn’t going to be affordable in the long term, it could be over before it's even begun. If you are unsure, it's probably a good idea to keep your existing job and start your business in your spare time alongside it. That way, you will continue to earn, and it will give you time to figure out whether your business is likely to take off.
Make Sure You Are Fully Insured
Many hobbyists don't appreciate the responsibility that comes with selling their products. When you sell to the public or run a business from home, you must have the right insurances in place. Contact your home insurance and let them know your intentions. Your policy may need to be adjusted, and additional premiums paid, so don't forget to make them aware of what you are doing. You could hit problems further down the road, and any future claims may even be deemed invalid.
Product liability insurance is also necessary when selling to the public, so be sure to get the right cover and that you have adequate protection for all eventualities. There are many instances of product liability cases where people have been injured or hurt, and claims have been made. If you aren’t insured, you could end up massively regretting it, so don't cut corners and don't take any chances.
Will You Continue To Enjoy It?
You may love your hobby now, but will you still be as passionate about it when you are doing it full time? You will be working longer hours and be under pressure to achieve sales, so it may completely change the experience. There could be times that you have to churn out multiple numbers of the same product. Will that continue to excite you and make you as passionate as you are now, or will you find it rather mundane?
When you have a hobby, you can pick and choose when you do it. When it's your business, you don't have the same flexibility. If a customer expects an order by a specific date, you need to fulfill your promises and have it ready. If you can’t be bothered or are not in the mood, you have to continue regardless. Take time to establish whether this change in dynamic could be too hard to maneuver, or you could end up hating the very thing that you were once passionate about.
Is Your Workspace Big Enough?
If you currently do your hobby at home, you need to think about whether you have the space to scale it up. At present, you may only have one thing happening at any given time, but once it becomes a business venture rather than a hobby, you might need a lot more space. If this could be an issue and you think you may need additional space, you need to consider how you will achieve this.
Could you convert your garage, extend your home or have other space in your property that you could use? Will you need to rent a storage unit or premises to work from if things progress? Figure out what you need and whether it's viable, especially if there is a cost implication. Premises can cost a lot to rent, which will eat into your bottom-line profits, so you must think ahead and figure out what you need to make your business a success.
Conclusion
For various reasons, a large percentage of small businesses fail within the first two years, but if you go into it with open eyes and a realistic attitude, there is no reason you can make a success of your hobby business.
Research suggests that small business owners achieve the best results when doing something they are passionate about and are good at. If you fall into this category, then it's a step in the right direction to fulfilling your dream of turning your hobby into a business.
