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Over the last year or so, many of us have had more time to work on our hobbies and side projects. For others, it may have been the time where you’ve found a new pastime or activity you enjoy. But what about turning your hobby into a career? We take a look at how to make money from your hobby.
As well as providing some tips for making a business from your side project, we’ve also looked at how to find a hobby and some things to consider before you pursue it as a career. As usual, we’ve also picked out some useful courses that can help you along the way.
First things first, let’s look at what we mean by the term hobby. Essentially, a hobby is an activity that you regularly do for enjoyment, relaxation or fun. Usually, a hobby is something that you do in your spare or leisure time. However, as we’ll see, it’s also possible to turn that hobby into something more structured.
This broad definition means that there are many different activities that count as hobbies. Whether it’s a popular creative pastime with lots of fellow enthusiasts and resources or a more niche way of spending your time, most people have hobbies.
If you’re looking for new ways of filling your time, there are plenty of options to choose from. In fact, we’ve dedicated a whole article on how to find a new hobby. As the world slowly starts to return to normal, there will be more options than ever before when it comes to trying something new.
Some considerations when looking for a hobby include:
Of course, the thought of having a side hustle that makes some extra cash is an appealing prospect for many. So what are some hobbies that make money? In reality, there’s no straightforward answer – it often depends on your skill, dedication, and the market conditions.
That being said, there are certainly some trends that seem popular at the moment. We’ve picked out a few examples of hobbies that make money below:
Of course, these are just a few ideas to get your imagination running. In reality, if you have a unique enough idea and the passion to complete work to a high standard, you’ll often find people who are willing to pay for your craft.
That being said, picking up some casual income from a hobby is entirely different from making a business or career from it.
It’s important to make the distinction between a hobby and a business. There are several reasons for this. Perhaps first and foremost is that, depending on where in the world you are, if you’re making money from your hobby, you might need to think about the tax implications of this.
In the UK, for example, you have to declare the money you make from a hobby to HMRC. However, there are some exceptions to this, mainly that you can earn £1,000 tax-free from your hobbies.
Another consideration is what you’re pursuing your interest for. Do you want to rely on the income you make, or are you purely in it for the enjoyment? A hobby is something that you can pick up and put down according to your schedule, while a business is something that takes time and dedication.
For some people, the transition from hobby to business is a gradual and often unconscious one. What starts as entertainment can gradually end up as a side-hustle as time goes by. For others, there is a more definite transition. But from a legal standpoint, when does a hobby become a business?
In the UK, there are some ‘badges of trade’ set out by HMRC that determine whether or not your hobby is a business. Essentially, if you’re making money from it, you’ll need to declare it for tax purposes if that amount is over £1,000. Similarly, if you’re making regular transactions, repairing or modifying people’s assets, or borrowing money to fund transactions, then it’s considered that you’re ‘trading’.
Alternatively, you could go through the process of setting yourself up as a sole trader or limited company before you start selling your products or services. This can mark the start of your hobby becoming a business (more on this further down).
This question isn’t always a straightforward one. Although there’s a lot to be said for doing what you love, turning your hobby into a career means a lot of hard work and sacrifice. Here are some questions to ask yourself while you’re deciding:
Going from a hobby to a profession is often going to take some work. As we explore in our open step on making your hobby your job, it takes time, planning, and a fair slice of luck to get your venture off the ground. You need to determine whether or not you can dedicate enough time to starting a business.
If your plan is to transition from pastime to profession, at least some of your income will need to come from your new business. You’ll need to be honest with yourself when assessing your abilities. Will customers pay for your product or service? And are you good enough to bring in a consistent source of income?
Often, a hobby becomes a side-hustle before it becomes a career. However, trying to balance the two can often be tiring. As well as working full-time, you’ll also need to plan your business, find potential clients, and practise your craft.
Ultimately, turning your hobby into a business means that you might lose your hobby as a pastime. Instead, you’ll have to spend time doing it to make a profit. Although this can still be enjoyable for many, it can take the shine of it.
If you are going to monetise your hobby, you should make sure that you have other pursuits in your life that you do purely for pleasure and relaxation. Sometimes, by turning everything into a side hustle, you can end up burning out.
Tips for turning your hobby into a career
So, if you’re committed to making your pastime a professional endeavour and prepared for all that entails, you might be wondering where to get started. Of course, there are various ways you could go about it, and the below is just one such method:
One of the best places to start if you’re trying to convert your hobby into a career is to come up with a solid business plan for your idea. We’ve got a detailed guide on writing a business plan, so we won’t go into too much detail here.
Your plan should give you the vision, structure, and strategy for how you’re going to make your hobby into a money-making venture. It will help you identify the strengths and weaknesses of what you offer, as well as analyse the market you’ll be entering. You can check out our guide on how to start a business for more information.
One important decision to make fairly early on is what kind of structure your company will take. If you’re planning on being a freelancer and want the flexibility to make choices, you might consider registering as a sole trader. However, if you want to add credibility to your business and minimise your legal liability, a limited company could be a good option.
We’ve written in detail about business structure and registration, so it’s worth familiarising yourself with the various options available when you’re starting a business. And, of course, you can always start as a sole trader and build your way up to a corporate entity as time passes.
If you’re thinking about hobbies that make money, you’ve probably already got an idea of brands that you might aspire to. Thinking about your own branding is, therefore, a crucial step in making the leap to being self-employed.
You can learn more about market analysis and reaching your target customers in our full guide. You can also take our course on strategic brand management to find out how to build your brand identity and strategy.
Digital marketing will likely play a significant role in helping you shape your new business. Being able to access an online audience means you can advertise and sell your product or service.
Whether it’s through techniques such as SEO and Google Ads or creating a strong brand presence on social media sites such as Instagram, there are many ways you can get your name out there.
This point really ties together the previous ones. To ensure that you’re making a concerted effort across your branding and marketing activities, creating a marketing strategy is essential.
This article can give you the direction you need when it comes to getting your brand established in your niche. It will outline your approach to advertising and sales, ensuring you spend your money in the right places.
One of the hardest things when transitioning from a hobby to a business is to find people willing to buy into your idea. Of course, branding, marketing and an online presence will all help with this. However, you’ll also need to think about other ways of reaching people.
Whether it’s networking events, getting involved in local projects, or asking for referrals from your existing customers, there are various ways you can expand your user base and build business realtionships. If you’re trying to turn a profitable hobby into a profitable business, you’ll need to reach lots of people.
When it comes to hobbies that make money and eventually become a business, there’s no defined timeline to work towards. You might start off having your hobby as a side hustle, gradually building towards a fully-fledged business. Or you might take the plunge all at once. However, keeping tabs on your progress is essential.
As part of your business plan, you’ll set goals for your business. You can then measure your progress towards these aims, analysing what’s working well and what needs improvement. In doing so, you can figure out how you want your business to grow or whether you want it to be just a hobby once again.
Profitable hobbies certainly exist, and it’s possible to turn them into something more than a side-project. However, hobbies that make money often require a lot of time and dedication. Turning your hobby into a business involves risk and hard work, but it’s certainly an achievable goal.
Once you’ve found a hobby that might become a career, you’ll need to do a lot of research and planning into making your idea a reality. At FutureLearn, we have plenty of courses that can help you on your way. Whether it’s deciding on a business model or starting a business, you can learn how to master many of the key processes.
Source: CNBC
Image Source: Getty Images
