Best Startup
For the majority of us, it’s the perfect scenario to be paid for doing something you love. This is the reality for many Brits across the country when they turn their hobby into a small business. The pandemic saw a massive uptick in transforming pastimes to full-time work, with two in five individuals seeing the opportunity to make money from their hobby.
This is by no means a get-rich-quick scheme though as turning your side gig into a business takes serious dedication and planning. If you’re serious about it and put the right steps in place, however, there is no reason this couldn’t be you! Read on for our guidance on how to turn your hobby into a small business:
Research your market
Whether you’re making jewellery or painting works of art, it’s essential to understand your market. Before jumping in headfirst, consider how saturated the market for your product currently is and if you’ll be able to cut a niche section where your service will thrive. You’ll also need to identify consumer trends and desires, as well as pinpoint realistic competitors.
There are many key steps to market research, including collecting data on the effectiveness of competitors and identifying objectives for your small business. This can help ensure longevity for your venture and will guide your future business decision regarding marketing and financial goals.
Funding
Determining the scale and scope of your business will depend on how much funding you have available. This could come from your savings, a business fund, or investment from family and friends. If you are applying for business grants or even personal loans, it is important to build your credit history up so when you are applying, there is a lot more options available.
You need to calculate your business start-up costs, which can include business registration, accountant and legal fees, website creation, marketing materials and renting premises. Understanding your start-up costs, fixed costs and variable costs will help you determine how much funding you will initially need.
Marketing
Brand awareness and engagement are crucial for growing businesses. Getting your logo and brand name out there will create a client base for your product and help your business to reach its highest potential. Increased brand recognition not only helps you maximise returns on investment but keeps you competitive.
Your marketing strategies could include sales promotions, creating targeted advertisements, or utilising marketing analytics.
Set boundaries
It can be easy for something you once loved to start feeling like a chore, so setting boundaries is essential to prevent burnout. Be sure to give yourself the time and flexibility to enjoy your hobby and explore other avenues organically without forcing yourself to keep a good balance.
