5 Questions to Consider Before Turning Your Hobby Into a Business

Most of us find it hard to resist the lure of safety and security promised by a full-time job, no matter how boring the work is.

But imagine how much happier you would be spending every day doing what you love while also making a reasonable living.

How can you make that happen? One idea is to turn your hobby into a business.

Before you give it a try, consider these questions:

Can my hobby be monetized?

You’re more likely to make money if your hobby provides a unique or in-demand product or service you can sell. Here are a few income-generating ideas:

  • Sell your goods. Set up a consignment agreement to test the waters, or open up shop on your own. Another option is to advertise your goods through online marketplaces such as eBay, Etsy or Craigslist.
  • Use your talents. For example, if you’re handy around the house, highly organized or a natural at color schemes and home decor, use those talents to get paid.
  • Teach your skills to others. Show others how to make something you created, or equip them with the skills to provide a service at which you excel.
  • Take your hobby on the road. Host live events for enthusiasts who share your hobby.
  • Write away. The internet isn’t going anywhere, and neither is the content that keeps the wheels turning day in and day out. Present yourself as a subject-matter expert and create a blog, a series of e-books or content for websites.

Have I scoped out the competition?

Consider the competitive landscape. If there’s competition in the field you’re looking at, there’s a proven market — but you also will have to offer greater value than your competitors.

If there’s no competition, you’ll be on your own to convince consumers they need what you’re providing. That’s a tougher sell.

On a positive note, if you do convince customers to buy, you should have the marketplace to yourself — at least for a little while.

Is my product or service competitive?

Test your product on family and friends in exchange for their honest opinion and feedback on how much they’d be willing to spend for it.

If friends and family aren’t exactly your target market, consider gathering feedback by setting up focus groups or creating a survey from an online platform such as SurveyMonkey.

If consumers aren’t willing to pay enough for your product to cover your costs, head back to the drawing board.

Do I know where to go for help?

You’ve probably heard that a small business should have a “business plan.” But do you even know what that means? Do you know all the other steps a new business must take?

Fortunately, the U.S. Small Business Administration offers some great information in the article “10 Steps to Starting a Business.”

You can also tap into the wisdom and advice of veteran and retired entrepreneurs through the SCORE program.

Is this really what I want and need?

Before you commit, ask yourself if this really is what you want to spend your days doing.

Even if the answer is yes, do you have the capital it takes to get things up and running and to sustain yourself during the startup period?

You will need to think hard about whether the business has the potential to financially support your family and lifestyle.

Still ready to proceed? Consider taking things slowly for some time until you get adjusted and demand grows for what you provide.

During this time, pay off high-interest debt such as credit cards. Being rid of that burden will ease the transition from the stability of your day job to the uncertainty — and excitement — of running your own business. You can get help with getting rid of debt in our Solutions Center.

Have you converted your hobby into a business? Share your experience in the comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
9 Purchases That Will Make You More Productive
9 Purchases That Will Make You More Productive

These Amazon products can give you an extra edge at work and other parts of your life.

7 Reasons Not to Move When You Retire
7 Reasons Not to Move When You Retire

Sunny skies and warm breezes sound great. But in reality, you might be better off retiring closer to home.

The 3 Worst Money Mistakes You Are Making at the Gas Station
The 3 Worst Money Mistakes You Are Making at the Gas Station

Beware these cash-guzzling missteps when you stop at any gas station.

7 Ways to Shop at Costco Without a Membership
7 Ways to Shop at Costco Without a Membership

You don’t necessarily need to join to get in on the warehouse store’s savings.

12 Ways to Never Pay Full Price for Anything
12 Ways to Never Pay Full Price for Anything

Stop paying retail prices. Here are plenty of ways around that.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Senior Discounts for Anyone Age 55 or Older
11 Senior Discounts for Anyone Age 55 or Older

There is no need to wait until you’re 65 to take advantage of so-called “senior” discounts.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

14 Things That Are ‘Free’ With Medicare
14 Things That Are ‘Free’ With Medicare

These services could save you money and help prevent costly health problems.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

10 Things You Should Never Do With Bleach
10 Things You Should Never Do With Bleach

Does the pandemic have you reaching for bleach more than ever before? Learn the ins and outs of using this powerful disinfectant.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.