Most people have finally realized the benefits of owning a business rather than staying employed by someone else’s. One great benefit is being able to start a career you enjoy – what’s best, you can even turn your hobby into a business right at the comfort of your home. Do you enjoy photography? Start a home-based photography business? Are you an expert cook? Start a home-based catering business. Like to travel? Start a travel agency.
First things first, do you own a property or are planning to get one soon? You may need licenses and registrations if you want to set up businesses like consultancy, trading, hairdressing, online business, etc. Home loans from NPBS, for instance will help you securing a property that can double as your home.
Turning your hobby into a business significantly reduces the learning curve since you’ll be most likely already adept at doing the hobby. Moreover, if people already know about your hobby, you’ll be able to get customers/clients faster. Here’s how you turn your hobby into a home business.
Consider if turning your hobby into a job would ruin the fun. One benefit of having a hobby isn’t just the fun, but also the relaxation and satisfaction that comes with it. We love our hobbies since it provides a break from the rigors of work. When you turn the hobby into a business, it changes its focus from enjoyment to financial necessity, which can make the enjoyment you feel lesser.
Evaluate what it would be like doing your hobby all the time as a way to pay expenses and see if you want to make the hobby into a “must do” position.
Assess if there is a market for your hobby business. Sure, your friends and family love your photographs, but will they pay money for it? You might be an expert baker from the remarks of your neighbors, but will it be the same for a larger market? Your goal when doing market research is to know if people will be willing to pay for what you offer, not really what they would pay for the product/service in general. In short, your product or business should be of professional quality.
Do a test drive. You can earn money from your business without really forming a formal business, which means you are allowed to test it out before fully investing to it. Start part-time, or running the business around your job. Testing it will let you work through any issue and see if it’s something you want to go with full time.
Make it legal. Your government may allow business tax deductions if you can prove that you have transformed your hobby into a business. It starts by determining the businesses’ structure, such as a sole proprietorship or a limited liability company (LLC). Regardless of your business structure, you need to open a separate business account and preferably your own home as a base of operations. Home loans from NPBS can get you started down this road. You will need to show activities, such as marketing to show your intent to be a business.
Turning your hobby into a business can be a great way to make money while doing something you love. But even if you’re having fun while doing it, you still need to treat it as a professional business. Best of luck!