How to build a business around your hobby

The average Australian spends around 5 hours per day on leisure activities and hobbies. While most spend this time in front of the TV, plenty of people spend this time pursuing hobbies like mountain biking, crafting, gaming, or gardening. Over the course of a week, this amounts to 35 hours dedicated to honing your skills and perfecting your craft. But what if you could turn that hobby into a revenue stream? 

While there is no imperative to build a business around a hobby, starting a company based on your passions can be a great way to earn some extra income and is an easy way to begin life as a solo entrepreneur.

Building a business around your hobby may even help you dedicate more time to your favourite pastime. This can be a powerful change of pace if you’re used to working hard for somebody else. 

But, before you hand in your notice, there are a few practical considerations to account for. 

Monetising your hobby 

The idea of making money from your crochet projects or martial arts acumen might sound like fun at first. However, before you can start charging for your services, you need to take a business-minded approach to proceedings. 

Get the ball rolling by writing down a business plan that helps you assess your current situation. A business plan gives you a clear sense of direction and will establish your vision and mission. This is the first step towards creating a brand that will reflect your interests and appeal to consumers. 

You’ll also need to crunch the numbers before committing to building a business around your hobby. Set aside some time to account for costs like materials, shipping, venue hire, or labour. Once you have estimated your variable and fixed costs, figure out your break-even point. This will help you set goals SMART goals that are 

• Specific
• Measurable
• Achievable
• Relevant 
• Time-bound 

Great goals will round out your business plan and help you ascertain the strengths and weaknesses of your potential venture. This is key if you’re a first-time entrepreneur and want to minimize risk while starting a side hustle.

At the outset, you’ll need to understand how to balance your priorities — and make money from your hobby — even in the face of other daily concerns. If you’re still having to work another job, this will require carefully arranging your time in manageable blocks. You’ll have to say no to a great many other activities and maintain a laser focus on your hobby and goals. 

Consider reaching out to more experienced folks in your industry before leaping into a business around your hobby. Oftentimes, people who have been around for a few years can help you anticipate potential challenges and overcome common issues that new folks in the industry face. 

Speaking to an experienced peer can help you decide if you want to monetise your hobby, too. Life as a solo entrepreneur is exciting but can be demanding. A quick chat can give you a “behind the scenes” appreciation for the business and help you decide if you want to use your hobby for relaxation or to generate some extra income.

Rewarding side hustles

Most hobbies are primarily about building skills and relaxing after a busy day at work. However, these same pastimes can easily be transformed into a lucrative side hustle if you’re willing to put in a little extra work. This can be particularly rewarding if you’re approaching retirement or semi-retirement and want to make some extra money without taking on another job. Some of the most profitable hobbies for retirees include: 

• Beekeeping
• Cooking
• Gardening
• Brewing
• Photography

These hobbies do have a steep learning curve, and you’ll need to invest some cash before you can reap the rewards. However, side hustles like beekeeping and gardening are ideal if you already have some experience in the field and are looking for a cost-effective venture. 

If you have a passion for arts and crafts, consider setting up a small crafting business. Crafting is extremely engaging and constantly changing. You can make knitwear in the winter, candles in the summer, and wreaths during the festive season. These side hustles will help you connect with your community, too, as folks are always looking for more people to display their work at craft shows and community events. As your firm grows, you can even take to sites like Etsy, where you can sell your wares to an international audience. 

Customer Service

Building a business around your hobby is a great way to boost your income and take control of your work-life balance. However, you’ll also need to develop your customer service skills if you want your entrepreneurial project to succeed. 

Start by creating a robust refund and return policy. As disappointing as it may be, folks will want to return your knitwear or your jars of honey. This isn’t a reflection on the quality of your product — returns and refunds are a fact of life in the business world. A good return policy should detail: 

• The time frame for returns
• The condition that items can be returned in
• Method for returns
• Exceptions and exclusions

A good returns policy improves your customer service and brand loyalty. A reasonable policy can actually cut down on returns and increase your conversion rate, too. Just be sure to follow up on all queries with clear, professional communication that assuages consumer’s complaints and protects your brand reputation. 

Monetising your hobby can be an exciting way to enter the world of entrepreneurship. However, before you start charging for your services, be sure to create a business plan that details your mission and accounts for hidden costs. This will help you hit the ground running and improve your ability to build a brand reputation that customers love. 

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