Turning something you truly love and enjoy into a flourishing business that generates a constant flow of revenue can be an exciting and fulfilling experience. Perhaps you’re currently unemployed, you’re looking for a side hustle to increase your earnings, or you just want to leave your job and become the CEO of your life by building a thriving empire that generates Millions like the famous Dan Peña did. The good news is that you can turn something you do for fun into a thriving and sustainable business. But that will require thoughtful planning, commitment, skillful management, and a business mindset. Here are 6 practical tips to help you get started.
1. Set a Clear Goal
Choosing to build a business out of your hobby isn’t a goal. You’re looking forward to working on something you truly treasure, but do you want anything else from that business? Are you planning to run it part-time or full-time? Do you want to create an extra source of revenue? Or do you just want to challenge yourself?
Answer these questions and set expectations for your business. Clearly outlining your goals can help you remain committed to turning your hobby into a profitable business empire.
2. Do Thorough Research and Pick your niche
When you’re building a business out of something that you’re truly passionate about, it’s easy to get carried away and skip the research part. It happens all the time with entrepreneurs who are in love with a business idea. Don’t fall into that trap. Instead, do thorough market research to ensure your business idea isn’t making sense to you alone.
Market research involves you collecting as much information as possible regarding your target customers, asking the right questions, analyzing potential competitors, and discovering your target market. It also involves knowing how to monetize your products and/or services. Corona forced the would to go online and you could ride that wave and create a business line Dan Peña but with live events and video streaming on zoom leveraging new platforms like stream.club.
How will you integrate your business into your everyday life? Being able to perceive the big picture will help you spot and tap into new opportunities. Here are the questions you need to ask yourself:
Would turning something you do for fun into a revenue generator be exciting, fun, and fulfilling?
Would the business generate revenue that can sustain your current lifestyle?
Would this business be a key to your financial freedom?
What other benefits will you gain from this venture apart from the cash flow? Perhaps you want to create awareness and build an identity for your online business. If that’s the case, many online business coaches out there will help you reach a global audience and position yourself as an authority in your specific niche.
Does it have the potential for capital growth?
4. Come up with a Business Model
Developing a business model is an important part of building a successful revenue generator. It’s easy to identify a problem, get an idea, and embark on product or brand development right away. But if you don’t have a clear way to monetize your product and/or service, you’ll never turn your hobby into a long-term, sustainable business.
You must strive to know the amount of money that will go into developing your product or service, the appropriate pricing, and the amount your target consumer is willing to pay. You’ll also need to know how you’ll sell your product or service. You may opt for a one-time purchase or adopt a subscription model. Other options for selling your product include leasing, crowdsourcing, franchising, and ad-revenue. Next, choose a platform that suits your target customers, products/services, and pricing strategies. As an example: if you’re a podcast enthusiast, Supercast is the go-to platform for monetizing your podcast.
5. Develop a Business Strategy
You might be great at your hobby, but without a well thought out strategy, you’ll never turn it into a profitable business. Having a good strategy in place will help set your new business for success.
What do you want your business to achieve in the long-term? Your answer to this question must be captured in your business strategy. Other things worth incorporating in your strategy include your offerings, your long-term and short-term goals, your business values, your value propositions, your financial projections, and your marketing strategies.
6. Implement Your Strategy
Now that you have a business strategy, the next step is to put it into action. To implement your strategies, you must accompany each of the strategies laid down with specific action plans and the relevant steps to help you reach the intended destination on time.
You must come up with the right action plans and be ready to act in order to implement your business strategy successfully. And if the strategy isn’t bringing the desired results, be prepared to adjust it, or adopt a whole new strategy altogether. Be sure to take advantage of the latest technology to make your business strategy implementation a bit easy. For instance, if you’re building an online fitness business, incorporating Sutra software into your site will help you stay on top of your schedule, sell courses, and earn money from your fitness videos. What’s more, you can use sites like reach.live to host live fitness events. In fact, Sutrafit like McKenzie started teaching yoga on Reach.live during a crisis.
Turning something you do for fun into a profitable business is a fantastic way to make your life more exciting and satisfying. But you must follow the above steps to successfully turn your hobby into a reliable revenue generator.