How to Turn Your Hobby into a Great 50+ Business
By Jeff Williams, Bizstarters.com
The number one ground rule that I advise my 50+ clients to set is: pick an
activity for your business that you love doing.
The way some 50+ folks assure that they will be starting a business that they
love is to convert a hobby into a profit-producing enterprise.
This can be an intelligent way to get started, but first you should answer some
key questions.
KEY QUESTIONS TO ANSWER
It is very advisable for anyone thinking of turning a hobby into a paying
business that they carefully research and consider the key skills, activities and
techniques necessary to earn an attractive income from sharing their beloved
past-time with others.
Some key questions to ask and answer include:
1. Will you still enjoy your hobby activity if you find yourself having to work at
it eight hours per day, five or more days per week? Or do you derive joy
from your hobby because you use it as an escape from your work life?
2. Do you have a clear idea of approximately how many other people enjoy
your hobby? A round number will do, such as "more than 100,000 people".
If you don't already have a sense of the size of your hobby-users group, visit
your library's reference room and ask to see the Encyclopedia of Associations.
Look under the alphabetical category that contains your hobby, such as "F" for
flying.
See if there is a trade association that serves individuals who participate in
your hobby. If there is, use the phone number in the Encyclopedia to contact
the association. Ask for some general information on the number and
characteristics of your fellow hobbyists, such as the approximate number of
participants.
2. Do you know everything you need to know about how to replicate the
hobby for others, such as where to buy supplies at wholesale cost, how
much money it takes to start the business full-time, whether licenses or
permits are required to run such a business, etc.?
3. You know what you pay to enjoy your hobby. Are your costs typical of other
users? If so, how much do you think you can charge per hour, per trip, per
unit of product, etc.?
4. At your proposed price per use, how much profit (dollars or %) do you think
you can make?
5. How many users will you have to sell in a year to cover your expected
business expenses...and pay yourself your desired salary?
6. Can you find at least one other person in the U.S. (or overseas) who has
successfully turned your hobby into a profitable business? If yes, try
contacting them to see if they will chat.
Some questions you can ask them include:
* How long did it take you to make a regular profit?
* What were your most effective sources of customers?
* What was the most unexpected challenge you faced?
THERE ARE PEOPLE CONVERTING HOBBIES INTO BUSINESSES
ALL AROUND YOU
I've worked with dozens of 50+ people who have found their inspiration for
starting a business in their hobbies.
For example: Tom, who started a fishing expedition company after retirement
near his favorite vacation spot. Or, Sue, who turned her experience
redecorating her condo on a budget into a profitable home rehab business.
The key to success is to not let yourself be blinded by the belief that because
you enjoy the hobby and are good at it, then surely many others will want your
help doing the same hobby.