From Nike to Ikea, Amazon to Google, these global names all started from nothing. And it’s because of the dedication of their founders that their hobby turned into a profitable business. Whether you want to become a global household brand or you’re just looking to bring in enough income to support yourself, we’ve got some tips to help you transform your hobby into a profitable business.
Dedicate yourself
A hobby may be fun when you’re doing it in your spare time but turning it into a business is a different matter. It requires much more persistent effort and a daily commitment. If you’re unable to dedicate your free time every day to your business it will take longer to succeed.
If you’re working a full-time job, carve out time either before or after work and use it solely to work on your business – and show up every day.
Think like a business
To take the next step, you should treat your hobby as if it’s already a profitable business. From using cleaning equipment like brooms and brushes, to wiping down surfaces on a daily basis, tidying stacks of paper away, and keeping a generally ordered environment, to creating pricing points – and sticking to them. And remember to treat friends and family as if they were customers going to another retailer for a product or service.
Research
Before you quit your day job and launch straight in, you should do your research to ensure there’s enough demand for your product or service. Look at your competitors and their price points, and even their reviews. Figure out your major costs and how much you should sell your product or service for so it makes a profit – without pricing you out of the market. And speak to your target audience, what do they want? And what do they look for? Even when you’ve set your business up, it’s important to continuously research.
The businesses that have survived the pandemic are the ones who have adapted to changing times and changing consumer behaviours.
Make it legal
Before you go on to launch your business, you’ll need to make sure you’ve fulfilled all the legal requirements. If you’re setting up a limited company, you’ll need to register through Companies House. And if you’re operating as a sole trader, you’ll need to tell HMRC that you’re self-employed. This will mean you are responsible for paying your own taxes and filing your annual Self Assessment Tax Return.
Perhaps the most important thing to remember when turning your hobby into a profitable business, is that success is not linear – you will have your ups and downs, but it’s how you navigate them that will decide whether you have a business or hobby.