Converting that hobby into business!

So you have a hobby that you think you may be able to turn into a business. You may have this idea due to people showing interest in your hobby, people may have commented that you are very good at what you do, or you may just be looking for a way to make money. Turning a hobby into a business is a great thing considering hobbies are usually something you enjoy and are passionate about. These are both important elements to have when running a business.

Although passion and talent are great, alone they do not constitute a viable business. There are some other things you need to consider. Here is a small check list to see if converting your hobby into a business is viable and realistic.

1. Have you tested your product/service with friends and family and have them give you feedback?

2. Do you have the knowledge and experience to convert your hobby into a business? You may be naturally talented at what you do, however your skill level may fall short of the skills required to be paid as a professional. To upgrade your skills, you may need to undergo some training and/or study further. It is important that you have the skills, qualifications and experience to ensure what you offer is high quality.

3. Have you spoken to other people about your idea? Especially people who share the same hobby and people who are already in the industry and running their business. Getting advice and bouncing your ideas off other people can be really useful in determining whether you are on track or way off base.

4. Have you undertaken research to establish who your market is, how you will market your business, what do your competitors offer and what prices do they charge?

5. Do you know what is involved in setting up a business?

6. Converting a hobby into a business requires a lot more work. Are you willing to put in the time to do bookwork and market your business? It is not like having an employed job where they pay you for your time, take your tax out and pay your superannuation. When you have your own business you have to ensure you are making enough money to cover not only your time, but also your expenses, income tax, superannuation and make a profit. A business is not viable if it cannot make a profit.

7. When you have an employed job you usually go to work, do your job and then come home. When you have a home business, then you need to have boundaries and the discipline to separate work and business. Otherwise you may find yourself working ridiculous hours.

8. Is it the right time to convert your hobby to a business? If you already have other commitments such as juggling young children, study, work, another home business, moving etc. Then you need to be realistic in adding another big responsibility to the mix. I am not saying it is impossible, all I am saying is be careful not to take too much on at once, otherwise you might risk burning yourself out. I have added this here because it is so easy for us mums to take a lot on and try to be supermums. We can have it all; sometimes it is not possible to do it all at once.

Passion can be a great driving force behind a business. To keep this passion burning, ensure you do the research and fully understand what is involved in running a business. You don't want to lose the passion due to stress or jumping in the deep end without knowing what is involved.

Kym Presdee - Owner Work at Home Hub