Do You Want to Turn Your Hobby Into a Business?

Tip: If you do, you can’t treat it like a hobby

Dear Fred and Lyna,

For the past few years I have been making dolls as a hobby.  Everyone who sees my work says I should be selling these. I am seriously thinking of going into business and was wondering if you have any advise as to how I start?

Fred: Many successful business have started out as hobbies and there’s no reason yours cant also . . .

Lyna: But first you need to do some homework. Your friends may ooh and aah over your dolls, but will they actually get the check  book out and pay you for one?

Fred: Also, will your hobby bring a long   term demand to ensure that your business can prosper?

Lyna: You also need to realize that hobbies don’t have a time limit. They can be done when you feel like it.

Fred: When it becomes your bread and butter, you have to work at it even if you aren’t in the mood.

Lyna: And that means marketing, advertising, paperwork as well as making the product.

Fred: You need to set up the business as a bonafide company. You might want to look into incorporating and getting a business checking account.

Lyna:You need to keep accurate records  and keep track of your income and expenses.

Fred: There are numerous books available on how to start a business that will give you all the basic info you need to get started. One  that explores taking a hobby and turning it into a business is called  The e-Myth.

Lyna: We suggest networking with other business owners and learn what they did to become successful.

Fred: You also need to plan for growth. If you’re making these dolls by hand how many can you make in a given period of time?

Lyna: I would sit down and figure out how many you can make in a day or week and calculate if you will be making money.

Fred: If not, you may need to hire independent workers and create a cottage industry.

Lyna: Or consider finding a manufacturer to produce them…which would change your focus from making dolls to just selling them.

Fred: If you aren’t set on having your own business as much as having an incentive to make more dolls- and create an income to get materials to make more- you may want to think about a part time venture.

Lyna: Go to local gift shops and sell them on consignment if the owner won’t buy them out right.

Fred: Or sell them on ebay to reach a bigger audience.

Lyna: Can a hobby become a business? Absolutely!

Fred: But if you make it into a business, be prepared to find yourself another hobby.