Transforming a hobby into a living is never straightforward, but in the modern startup economy, it’s possible to start a business of your own doing something you love and to profit significantly (even if that hobby is crochet). In this article, we’ll explore the steps you can take to get started and build momentum for future growth.
Preparing Your Business
Before you take on your hobby as a full-time occupation, it’s important to cover all administrative bases and enter into the situation gradually.
- Side hustling: Before quitting your day job, it can be wise to first use your hobby as a side hustle. This will give you time to build your knowledge of business and test the waters before making a full-time commitment.
- Business plan: A business plan is a roadmap that outlines your goals, target market, competition, and financial projections. This will help you to stay focused and organized as you build your business.
-Competitor analysis: When starting a new business, a competitor analysis can help identify strengths and weaknesses in the market and inform strategic decisions. This can be carried out by researching and comparing similar businesses in terms of products, services, pricing, marketing, and target audience.
Launching Your Business
Once you’ve written a plan and you have a clear understanding of how you’re going to operate your business, the next step is to press launch and get your enterprise off the ground.
● Business formation: It’s easier than ever to form a Limited Liability Company (LLC) with the help of formation services - doing so can help you to benefit from tax advantages, reduced paperwork, and personal liability. Using a formation service will also help you to save on expensive lawyer fees; just be sure to read reviews to determine the best available service.
● Permits & licenses: Obtaining permits and licenses for a new business in the USA can be a complex process depending on the type of business and location. Generally, businesses need to register with the state in which they will operate and obtain any necessary licenses or permits specific to their industry. This can include obtaining a business license, sales tax permit, and any professional or occupational licenses required for the specific type of business.
● EIN: Businesses may also need to comply with federal regulations, such as obtaining an Employer Identification Number (EIN) from the IRS and obtaining any necessary permits from federal agencies such as the FDA or OSHA. There are plenty of guides to help you with this online.
Growing Your Business
With a fully formed business, your work is only half done. The next step is to work towards growing the enterprise and increasing revenue.
● Digital marketing: For a growing business, marketing should be a key focus point. You can start by building a marketing plan to help you reach your target market and promote your business. This should include strategies for social media, content marketing, email marketing, and other tactics to help grow your business.
● Physical marketing: So much of business is now conducted in the digital space, but that doesn’t mean you can’t still rely on a few older methods. You can, for example, enhance your content with business cards - it’s easy to design a personalized card using pre-made templates, then adding images, text, color schemes, and fonts of your choice.
Starting a business in the crafts can be a lot of fun and highly rewarding. However, it's important to remember your business basics if you want to find success. Whether you’re writing a plan, creating a business structure, or marketing your services, remember to stay focused on your goals, remain persistent, and always be willing to learn and adapt.
Author: Jenna Sherman
