Turning a Hobby Into a Business: How Working Capital Can Help

by | Nov 1, 2021 | Financial Advice, Insights To Business, Working Capital

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Hobbies are a great way to pass the time and let go of a little frustration. The time we spend creating can actually ease tension and clear our minds. There are times when people see our creations and ask where they can get them. Some of the most unique and best-loved items started out as a hobby in someone’s garage or basement. With a little luck and lot of dedication, you can turn a hobby into a business and and get paid for for doing what you love.

Check Your Hobby’s “Sellability”

While one or two of your friends may love what you create, it isn’t worth turning your hobby into a business if you don’t have a large market to focus on. Look around and see if anyone else is selling something similar. Ask your friends to see if they would spend money on what you are offering if it was available in the stores. If you can determine there is a strong market, you can start to develop a marketing plan.

Is It Feasible?

The next question to ask is if it is feasible both financially and schedule-wise. If you have the time and money to start small, you can still work at your regular job while you build up your inventory. Feasibility is also important when it comes to loving what you do. Do you love your hobby enough to do it as a full-time job? What once occupied your spare time will now be taking up most of your time. It may even take up the majority of your time to where you lose time with your family. If you can manage a work/home balance, you will have a job you love and be able to work from home.

Build a Brand

Your next step is to build a brand that will showcase your business in its best light. A brand is easy to recognize and shows your potential customers a little bit about your business. Include a logo or little jingle that will get stuck in peoples’ heads. Your brand needs to be strong and vibrant. It needs to have staying power that will carry your business forward.

Create a Business Plan

If you want to build a strong business, you need to map out your future so you have something to guide you. Creating a detailed business plan can be that road map. Include alternate plans so that you can continue to move forward even when obstacles arise. When you have a solid plan for the future, you are better able to stay focused on what you need to be doing now to turn your hobby into a budding and profitable career.

Find Working Capital

So you have started a business. You executed on your business plan and you’re actually generating income; in fact, more income than you initially imagined. Maybe you’re even thinking about quitting your job, because your ‘hobby’ which is now a lucrative small business is generating more income than than your 9-to-5. Typically a business making a $250,000 in revenue annually is ready to explore new shores. As a small business owner, you can work on finding the working capital you need to buy the supplies you need to grow your hobby into a lucrative small business. While you may already have equipment and resources you need in place because of your hobby, you will need to be able to purchase more in order to grow. There are several places to find working capital. Angel investors, small business loans organizations, and small business loan lenders who are focused on small businesses are all good choices.

Don’t wait to turn your hobby into a business. It’s not a hard goal to accomplish if you find the right lender to provide you with working capital. The key to being happy at work is doing what you love! Turn your hobby into a business and you will be able to make a living and love going to work every day, especially if your commute is a walk across the kitchen!