Turning a Hobby into a Business
At the end of a long workday, you head to your “happy place.” This could be your art studio, the gym, the garage or maybe the kitchen. Whatever your “happy place” is, you may have thought along the way “I wish I could just do THIS all day, every day.” Then reality sets in, you couldn’t possibly support your family and lifestyle doing your hobby full-time… or can you?
Some people only dream of doing their hobby as a full-time job, while others are ready to make it their reality. You may even already be working a side hustle while your full-time job is your main source of income. At some point though, you know in your heart that this passion needs to be your full-time job. So, what’s the first step? How do you make it actually happen? How do you really turn your hobby into a business? That’s where NEBAT comes in!
Step 1: Are you sure you want to turn your hobby into a business?
Before you go ALL IN, make sure this is really something you want to do full-time. A hobby is often an escape, or something you look forward to when not at work. Turning a hobby into a business may take away your current “escape.” Don’t let that stop you, it’s just something to consider. This is also why we suggest testing the concept first.
Step 2: Try out your hobby as a side hustle.
Opening a business is a financial commitment and can be a major lifestyle change. You want to make sure your business will be successful, and that you’ll appreciate the decision you made to open a business. One way to start is opening an LLC and testing your hobby as a side hustle. Begin selling to family and friends and see how business spreads. This allows you to learn who your customers are, how to price your product/service, income potential, marketing your business, and so much more! Not only are you learning your business, but this also gives you time to start building your brand: create a logo, social media presence, website, and/or any brand materials that make sense for your business.
Step 3: I’m ready to open a business.
Sit down and look at your finances. Before you decide to turn your hobby into a business and quit your full-time job, make sure you can still live the lifestyle you want based on your projected income. Consider benefits your current employer offers that you may need in your own business: healthcare, 401K, HSA/FSA, etc.
If everything checks out, it’s time to write your business plan. This is a crucial step so you can map out your business strategy and have a plan going forward. This is also what you’ll present to the bank to display how you plan to make money and pay off any business loans you take. By this time, you should have your business registered, branded, and a good steady customer base.
Depending on your business needs, it’s now time to talk to a business lender. Business loans can be used to expand your start-up and help pay for inventory, salaries, rent, furnishings, tools and machinery, and so much more. NEBAT is here to help grow and scale your business in whatever way that means. We’ll even help spread the word to our own friends and family!
Step 4: The rest is up to you.
Of course, your NEBAT Lender is always just a phone call or email away, but our job is to set you up for success and how you build and grow your business is all YOU! We’ll be cheering you on as you go, but this business is yours and we cannot wait to watch what you do with it. Thank you for your help growing and shaping our communities with your new business.
