Turn Your Hobby into a Home Business in 5 Steps | Molly Ann Luna
Do you feel trapped in a dead-end job that you don't find rewarding?
The key to living a more fulfilling life is to permit yourself to do work that lights up. Being someone's employee often requires you to put your passions aside to work towards building their vision - not yours!
Becoming an entrepreneur is not for everyone. There are many obstacles between you and your dreams, including coming up with the willpower to get started on your project, finding the confidence to get through multiple mishaps, and devoting many hours of hard work to building your vision.
Being an entrepreneur is hard work and can be disheartening at times - but owning your business can be a fulfilling and freeing experience.
Back in my 9-to-5 grind days working as a Certified Financial Advisor, I woke up early to help friends and friends of friends get in shape. I would spend my lunch break reading fitness magazines and daydreaming about being my boss.
It wasn't until I implemented these five steps that I was able to kick my corporate gig to the curb and build a six-figure fitness business.
In this episode, I will share you with five steps to help you transition from hobby to work from home business.
If this excites you, let me know by smashing the like button and typing HELL YES in the comments below.
1. Identify The Expertise You'd Like To Monetize.
Not all hobbies are created equal, or at least that's true when monetizing them and turning them into a business.
When it comes to making your choice, you could base your business on a talent you have, a hobby you love, or your desire to make a difference in people's lives.
Or pursue something entirely brand new to you.
I wish I could say that went I quit my corporate gig, I had it all figured out, but that'd be a lie.
Even though I was interested in personal training and was doing it as a fun hobby on the side, it didn't occur to me to turn it into a business right away because I didn't think that I was enough of an expert to monetize it.
I landed on the decision to build a personal training business after I sat down, put pen to paper, and listened to all of my skills, knowledge, abilities, etc.
Something on that list included dog care because I had experience as an Animal Care Special in the US Army; I wrote down gun handling skills as I have extensive experience with the M16, financial advising on the table, and a whole slew of other random talents and interest. Still, If I was honest with myself, those options made me feel like I'd have to drag myself into action vs. naturally being pushed to explore my curiosity further.
In the end, fitness came out on top despite my lack of confidence in being able to call myself an 'expert.'
There is a widespread belief that it takes 10,000 hours of work before one can be considered an expert in any field.
Needing 10,000 hours of experience to be called an expert may or may not be accurate. But because of this thought, I initially put up unnecessary barriers around my business because I didn't yet have 10,000 hours of training clients 1-1. Still, the truth was I had pursued sports for the last 15 years, had experience leading my Army brothers and sisters in PT, and had an undergrad in Biology with an emphasis in sports medicine.
I want you to know that it's ok to permit yourself to pursue a business idea even if you don't feel completely ready.
Your business idea and business plan will grow you as you go.
Mine did.
I got my CSCS with NSCA and my master's degree in Sports Medicine.
When choosing the expertise you with to monetize, choose something you could see yourself doing for years. And know that you're not locked into any one decision; you can permit yourself to pivot at any point.
2. Create your business plan.
Creating a business plan is a systematic process that provides a blueprint for your business and will help you obtain funding for your project.
A common misconception is that it's a set-in-stone document that you address only once and then get on about building your business. This is not true. A business plan is a living, breathing document that's meant to reanalyze again and again as you grow your business. Think of it as your road map or compass for the exciting new and unexplored adventure of becoming the boss. As obstacles arise on your journey, you'll need to be able to pivot your plan.
I've created a straightforward and free guide for you with a more in-depth training video from a previous episode to start writing your business plan. I'll leave a link to both in the show notes.
Include the following in your business plan:
* Start by explaining your business's purpose and how you'll achieve it.
* Explain what kind of products you want to sell or list the services you'll be providing.
* Define your target audience in as much detail as possible.
* Create an outline for your marketing strategy and include your expected prices and how much profit you wish to generate.
3. Register your business and apply for the necessary licenses.
Registering your home business is a straightforward process.
All you need to do is register your business name through the U.S. Small Business Administration and apply for a tax ID.
You will also have to register your business through state agencies. Applying for licenses is necessary if your field is regulated. For instance, if you prepare food, work with dangerous chemicals, or provide services that require special qualifications such as legal advice or accounting.
I have produced a few episodes designed to help you establish your business and get your business correctly registered. I'll leave links to those episodes in the show notes.
I often get a question: When do I register my business as an LLC?
The short answer depends.
Suppose you're starting a business that involves license and insurance, like a personal training business or many other service-based businesses. In that case, you might register your business as a legal entity right away.
If you're starting an online business selling digital products or services, you might wait until your business is generating revenue before you file for your LLC.
Contact your local CPA and Lawyer to decide which move is best for you.
4. Get Your Finances Right.
Go over your budget and business plan carefully to assess how much money (if any) you require to launch your business, and then put a plan together.
I'm a fan of the bootstrap mentality. And I believe that it's not about your resources but about how resourceful you are.
Every business I've built has been off on my determination and grit.
However, I would highly advise that you separate your business finances from your finances, which I broke down for you in a previous OBC episode. Again I'll leave a link to watch that when you're done here in the show notes.
Borrowing money is usually your best option if you cannot find investors for your project. But if you are someone who needs capital to start your business, then you can get started by:
* Looking for investors among your friends and relatives or angel investors through local business associations.
* The U.S. Small Business Administration is a great place to get started with financing, but you could also contact your financial institution to learn more about business loans.
Again, get your finances right, and put a plan together to manage those finances. A point for going into business for yourself is to be your boss, and if you don't manage your money, it will work for you. After all, money is a terrible master but an excellent servant.