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Turning a part-time hobby into a home business

You see them. You may even know them; and quite possibly, you look at them with a twinge of envy in your eye as you wonder how they were able to take their hobby and turn it into a profitable, home based business. You may even find that you want to be like them, owning your own business so that you may spend your days doing something that you love.

Are you one of thousands who dream of turning your hobby into a full time income only to find that fear prevents you reaching for the prize? If so, I understand your fear because I stood where you are standing and let that same fear hold me back. I used to look at those who had achieved the dream I wanted for myself with envy. I wondered what secret they had uncovered that I could not see. I asked myself what makes them a marketing genius. What makes them so business savvy that everything they touch turns to cash? Then I realized that when you stripped away their hobbies and examined the rest, what remained was a practical business model that supported each of their home based businesses. They all began with a solid business plan.

Define your product or service.

Before you can market your wares, you need to be able to define what it is you are doing. Whatever your niche may be, clearly outline what it is you will be doing. In the same vein, outline what you will not be doing as well. This keeps you focused and prevents you from scattering your efforts in areas that you have outlined and identified as danger zones.

Know Your Limits:

This one can be tough because it may mean saying no to a customer when you want their business. However, saying no to one job may actually bring you in more business than saying yes, and performing poorly.

For example, you want to provide desktop publishing services for a small community where the nearest printer is three towns away. There is a need for your service and your reputation for producing quality work on time brings you new business each week from word of mouth advertising. A company contacts you with a job that is larger than you can handle or that is beyond the scope of your capabilities. Saying yes would bring in a good deal of money but you know the job would not be up to your standards, if you could pull it off at all. You really want this company as a customer so you find yourself in a bit of a pickle. This is where knowing your limits must take precedent over the desire for the money. Meet with this customer in person; sell yourself within the limits you defined in step one. The customer will appreciate your honesty and will be more likely to contract smaller jobs with your firm. Additionally, that this company will provide you with excellent word of mouth advertising because of the integrity you have shown them.

Know What You Are Worth

This is an area where many individuals fail. It is not easy to place a dollar amount on the product or service you provide and many sell themselves short. Consumers are quirky. A less expensive item, even if it is of high quality comes across as cheap simply because the price is set too low. Know your target audience. Research your competition. Become familiar with the rates or prices they charge for similar products and services and adjust yours accordingly.

Other areas to include in your business plan are marketing provisions, parameters for handling profits, taxes, and expansion. A good business plan is a living entity. Review it often and change it as needed to meet the needs of your growing business.

Learn more about this author, Mary Clark.
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