Looking to make money from a hobby? Welcome to the world of being a business owner!
If you’re looking to make money from a hobby, the good news is that it is more accessible than it has ever been before – but that does mean you may be facing more competition. Let’s dive in
The digital age
You may not be a fan of every aspect of the digital age that we’re in, but a serious advantage is that there are now many platforms and sites that offer ways to make money from a hobby.
Whether you’re looking to set up a creative shop (check out Etsy), sell your books (Amazon could be for you) or turn your hobby into a paid service (think Instagram), there are countless ways to get started.
It’s well worth spending time researching what others are doing, what is popular, and what sells, to try and gauge how much market demand there is for what you do. This will really help you to establish whether you can make money.
Think local
I have coached small business owners who started offering their products and services on a very local level, whether through selling crafts at your local fair or setting up a local Facebook page. You don’t have to go international from Day One! This is also a great way of finding out what people think of your services or products and, really importantly, how much they are willing to pay.
Thinking like a business owner
Having a hobby is fun and a leisure activity (that’s what a hobby means!) But making money from a hobby becomes a different ballgame altogether: to be profitable, you’ll need to get your business brain into gear.
If you need supplies, it’s important to cost these out. You’ll need to consider how much time you’ll be spending and how you intend to sell.
If you’re opening a website, a physical shop space or online store, there will be running costs involved that will have to be covered before you can make money.
Making a profit
If your hobby is baking pastries and you’re looking to make money from it, you’ll need to consider whether you will enjoy doing this over the long term. There’s a big difference between making pastries as and when you have friends over, versus making them day-in and day-out. If you aren’t sure, then take a week off and spend it doing your hobby continuously. If it has sucked the passion away, maybe it’s best to stick to the day job!
How much money can you make?
For many people, their hobby can turn into a neat side-hustle that gives a monthly employment salary a good boost.
But it is entirely possible to become very wealthy from your hobby and have this as your sole source of income.
The people that are really success will begin to think like a business owner and put together a business plan.
If you’d like to do this, you’ll need to consider your branding, target audience, financial plan, marketing strategy, and what you will do when you’re on holiday or sick.
If you’re earning money from your hobby you will also need to ensure you’ve registered your new business or organised your personal taxes. It’s best to check your local area and what you need to do.
There are many rewards to starting a business which go beyond just financial gain – check out my blog post on the rewards of starting a business.
Learning to sell
Learning to sell is something that really differentiates hobbyists from business owners and if you’re serious about making money, you’ll need to get comfortable with it. Whether you’re selling at a local fair, managing online sales calls or heading into meetings, the ability to negotiate, build rapport with clients and sell at the price for you will all make a huge difference to your business success. Check out my online sales coaching if you’d like to get some 1:2:1 support with this area.
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