10 Tips to Turn Your Hobby Into a Business

It can be scary to contemplate leaving your steady 9-5 full-time job to start your own business, particularly one that involves your handmade items. However, we’ve put together a post with our top 10 tips on how to turn your hobby into a successful career. If you’re ready to take the leap, keep reading!

Here are our 10 tips on how to take your handmade hobby into a full-time business.

1. Have a Business Plan

The first and most crucial step in turning a hobby into a successful full-time business is to develop a comprehensive business plan.

What is a business plan, exactly?

A business plan is a written roadmap that outlines the goals and strategies necessary to achieve them. Although it is typically used by startups to attract investors, it can also be utilized by solo entrepreneurs to maintain focus and ensure steady growth.

While creating a business plan may not be the most exciting part of turning your hobby into a career, it is absolutely essential for keeping your eye on the prize.

2. Detailed Financial Plan

Many people dream of turning their side hustle or hobby into a lucrative source of income. However, to achieve a successful business, it’s essential to ensure profitability with every sale.

In addition to a business plan, a solid financial plan can help you align your monthly expenses with building a profitable enterprise. This plan should include the total startup costs, expenses for new equipment, fees associated with online marketplaces, and most importantly, the cost of materials required to create your unique handmade items.

3. Start Small

The most apparent reason people start a side hustle is to supplement their income. However, many new entrepreneurs may become discouraged by how long it takes to make their first sale.

Rather than giving up, take this time to enhance your product listings by improving their details, updating the prices, uploading new product photos, and promoting them on social media. You can also reach out to friends and family to support your business by sharing your listings.

4. Get Social

Creating an Instagram and Facebook page is an excellent way to promote your business and increase your following. You can post high-quality product photos, work-in-progress videos, new product updates, link-backs to your shop, and answer user questions.

5. Understand Your Audience

Utilize your social media and shop platform to gain a better understanding of your audience. Facebook provides an excellent set of tools to help you learn more about your audience, including their age, gender, location, and other demographics.

Read through customer feedback to see how you can enhance your product, and shipping process, or even add new products to your shop that your customers may want.

6. Price Your Products Correctly

Many beginners in the world of selling handmade crafts struggle with pricing their products appropriately, which can lead to a loss of profits and a struggle to keep their business afloat. However, having a detailed financial plan can help make pricing your products an easier process.

Here is a simple pricing formula you can use for your products. For more information on how to price handmade items, check out our article titled How to Price Handmade Items.

  • Supplies Cost + Labor Cost = Item Cost
  • Item Cost x Markup Price = Wholesale Price
  • Wholesale Price x Markup = Retail Price

Supplies Cost – Cost of supplies used to create one of your items
Labor Cost – Your hourly rate multiplied by the number of hours spent crafting one item
Markup – A markup price is added to the total cost in order to cover the cost of running your business and making a profit. A 2.5 price markup is recommended for most handcrafted products.

7. Treat It Like a Full Time Business

If you’re serious about turning your side hustle into a full-time career, it’s essential to treat it like a real business by being consistent and having a schedule.

Allocate 3 or 4 hours per day to work on your business, which can include tasks such as creating new prototypes, updating listings on your online shop, answering customer inquiries, keeping your books balanced, or organizing supplies. Consistency is key to pushing your business forward and having a significant impact on the future of your career.

8. Handle Criticism

Receiving customer feedback is an essential part of running a business, and it’s important to be prepared for both positive and negative reviews. While it’s great to receive wonderful feedback, it’s equally important to handle negative feedback professionally and respectfully.

As a creative entrepreneur, it can be challenging to receive criticism, but it’s crucial to remain calm and respond professionally to any negative feedback. Avoid getting defensive and instead, try to understand the customer’s perspective and address their concerns in a courteous manner. Remember, how you respond to negative feedback can greatly impact your reputation and the success of your business.

9. Teach Others

Sharing your skills and knowledge with others is a great way to establish yourself as an expert in your field and gain credibility as a professional. Teaching others can also help you build a loyal customer base and generate more interest in your business.

One effective way to create helpful content is to look at the questions your customers are asking and turn those into blog articles or videos. By addressing common questions or concerns, you can provide valuable information to your audience while showcasing your expertise.

Consider setting aside a few hours each week to create content that can help your customers and potential customers. This can be in the form of written blog posts, videos, or even live demonstrations on social media. By sharing your skills and knowledge, you can establish yourself as a go-to resource in your niche and grow your business.

10. Have Fun

The most important thing to keep in mind when making the transition from hobby to full-time is to keep the fun aspect alive. There are many reasons why many choose a hobby, but the most important reason is simple – it’s fun!

Taking the leap from creating a business does not mean the fun has to be left behind. Instead, make sure you still enjoy working on your craft as you grow your business.

Leave a Comment

Your email address will not be published. Required fields are marked *

Shopping Cart
Scroll to Top