Does Your Hobby Have Business Potential? Here's How to Tell

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Four things to think about before you turn your hobby into a business.

With your entrepreneurial mindset, 2.1 million sellers on Etsy alone, 42 percent of startups fail, competitive analysis, put together a business plan

If you’re like most people, you have at least one hobby that keeps you busy and helps you stay entertained outside of working hours. You might practice woodworking, paint abstract art, improve your flexibility with yoga or chart the patterns of stars in the night sky.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

With your entrepreneurial mindset, it’s tempting to think that there’s some way to make money from this hobby, in addition to bringing you personal enjoyment. But does your hobby really have business potential?

You might be surprised to learn the answer.

Monetization options

Global Tech News Daily

For a business to be successful, it needs to have a way to make money. Even if you’re pursuing this mostly because of your passion, you’ll still need a stream of income to offset your costs and keep the business running.

Accordingly, you’ll need some way to “monetize” your hobby. There are a few possible options here:

  • Production. One of the most straightforward options for hobbies that involve physical production is selling the physical goods you create. You can sell your art, your crafts and your structures for a price that exceeds your costs. Thanks to the prevalence of online platforms, this is a highly popular option: There are 2.1 million sellers on Etsy alone.
  • Viewership/readership. You can also make money just by attracting a sufficient readership or viewership. Producing blog content or regular video streams about your hobby can be your route to a steady audience; from there, you can monetize your practice with sponsorships, affiliate links and advertising.
  • Education. Even if the other paths don’t pan out, there may be a path to monetization by educating people on how to engage with your hobby. You can charge for lessons, private coaching sessions or group seminars; the only prerequisite is a sufficient skill level.
Global Tech News Daily

These are just a few ideas, and there might be more creative ways to monetize your hobby. However, the bottom line is that you’ll need to find some reliable way to generate revenue. This is possible for nearly all hobbies but is more promising for some hobbies than others.

Once you learn that a revenue stream is possible, you’ll need to consider whether it can be substantial enough to justify the business’s existence.

Target demographics and consumer interest

Unfortunately, just because you’re good at your hobby doesn’t mean people will be interested in seeing you practice it (or in buying your products). Before you get too excited about your prospects, it’s important to research your target demographics and gauge consumer interest. How many people would be interested in this hobby? How many people are buying products like the ones you’re making? According to CB Insights, 42 percent of startups fail simply because there is no market need.

Later on, as you flesh out your business idea, you’ll need to answer question like “Who are my target demographics?” and “How can I sell to them?”

Competition analysis

You’re not the only person who aspires to turn their hobby into a full-fledged business. Chances are, there are already hundreds, thousands or more people who do what you do and already make money from it. If you want a slice of the pie, you’ll need some way to differentiate yourself from the competition. What is it that makes your brand unique? Would customers be willing to pay more for your approach, or would they favor your products over your competitors’? A thorough competitive analysis is required here.

Costs and profitability

Next, you’ll need to think about your financial model. What are your expenses going to be, and what is your potential profitability? For some hobbies, like practicing yoga or playing music, the recurring costs are miniscule. For others, like woodworking or painting, you’ll need to carefully calculate the costs of your supplies and the prices that customers would be willing to pay.

From there, you’ll also want to chart the growth potential of your prospective business. In other words, what avenues do you have to increase your revenue over time while also reducing costs and minimizing the time you personally need to invest? Can you find a way to expand your business? Is that even an important goal for you?

The death of a hobby

Before you get too excited about the prospect of turning your hobby into a business, a word of warning: converting a hobby into a business might mean some loss of the enjoyment you gleaned from the hobby originally. Once you start to think of this task as a job, your relationship with the activity is going to change — and likely for the worse. Additionally, you might be forced to think about your hobby, or practice it in a different way, than you’re used to. Some entrepreneurs aren’t willing to make this transition.

Obviously, turning your hobby into a business is more complex than this article would suggest. You’ll still need to put together a business plan, secure funding (if you need the initial capital) and establish a brand for yourself. But knowing that your hobby has potential as a business idea is the best possible start.

News Related

OTHER NEWS

First Trust Energy AlphaDEX Fund (FXN) Hits a 52-Week High

The First Trust Energy AlphaDEX Fund FXN is probably a suitable pick for investors looking for momentum. FXN hit a 52-week high and is up 59.6% from its 52-week low ... Read more »

Meta Threatens To Close Facebook And Instagram In Europe Over Data Scramble

In a document filed with the U.S. Securities and Exchange Commission (SEC), Meta Platforms Inc (NASDAQ:FB) has warned it could be forced to close Facebook and Instagram in Europe if ... Read more »

How a To-Don't List Can Help You Achieve Your Goals

To-do lists are helpful tools for many people, but they can quickly take over our lives, making daily living feel like just another item to cross off of a never-ending ... Read more »

Immunovant (IMVT) Reports Wider-Than-Expected Loss in Q3

Immunovant, Inc. IMVT reported a net loss of 36 cents per share in the third quarter of fiscal 2022 (ended Dec 31, 2021), wider than the Zacks Consensus Estimate of ... Read more »

Buckle's (BKE) Sales Run Continues in January, Comps Gain 4.2%

The Buckle, Inc. BKE looks well poised on the back of its robust strategic efforts, including strength in e-commerce business and an impressive sales trend. BKE has been putting up ... Read more »

6 Best-Leveraged ETF Areas of Last Week

Wall Street put up a moderate show last week with the S&P 500 (up 1.6%), the Dow Jones (up 1.1%), the Nasdaq Composite (up 2.4%) and the Russell 2000 (up ... Read more »

Interpublic (IPG) to Report Q4 Earnings: What's in the Cards?

The Interpublic Group of Companies, Inc. IPG is scheduled to report fourth-quarter 2021 results on Feb 10, before the opening bell. – Zacks Let’s check out how things have shaped ... Read more »

Mednax (MD) Buys Night Lite Pediatrics to Boost Portfolio

Mednax, Inc. MD and its affiliated practices Pediatrix Medical Group recently acquired Night Lite Pediatrics, LLC in Orlando, FL. Night Lite is a private 13-clinic pediatric urgent care practice. The ... Read more »

Best Growth Stocks to Buy for February 7th

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 7th: – Zacks Apple AAPL: This company whose business primarily runs around its ... Read more »

Gol Linhas (GOL) Stock up 16.2% in a Month: More Upside Left?

Shares of Gol Linhas GOL have displayed an uptrend on the bourses over the past month, gaining 16.2% against its industry’s 3.1% decline. – Zacks Image Source: Zacks Investment Research ... Read more »

Top Research Reports for Bank of America, Coca-Cola & salesforce

Monday, February 7, 2022 The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Bank ... Read more »

Sanofi's (SNY) Enjaymo Gets FDA Nod For Rare Blood Disorder

Sanofi SNY announced that the FDA has approved its monoclonal antibody, Enjaymo (sutimlimab-jome), to decrease the need for red blood cell transfusion due to hemolysis in adult patients with cold ... Read more »

The Zacks Analyst Blog Highlights: Alphabet, T-Mobile US, Advanced Micro Devices, Mondelez International and Chubb

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

Why Mid-America Apartment Communities (MAA) is a Great Dividend Stock Right Now

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

On Core Values, Self-Honesty and Having Fun with Jairek Robbins, the New President of SUCCESS

“You gotta answer your DMs, man,” says Jairek Robbins, half laughing, in his latest Brilliant Thoughts interview with Tristan Ahumada. Robbins, who is an acclaimed business coach, best-selling author and ... Read more »

Surging Earnings Estimates Signal Upside for Xilinx (XLNX) Stock

Investors might want to bet on Xilinx (XLNX), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and ... Read more »

BCB Bancorp (BCBP) is a Top Dividend Stock Right Now: Should You Buy?

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

The Zacks Analyst Blog Highlights: AbbVie, Merck, Eli Lilly, Novartis and Pfizer

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

BankUnited (BKU) Stock up 3.4% on New Share Repurchase Plan

BankUnited, Inc. BKU has announced a new share repurchase plan. The company’s board of directors has approved the repurchase of up to $150 million in shares of BKU’s outstanding stock. ... Read more »

TEGNA Inc. (TGNA) Soars 7.4%: Is Further Upside Left in the Stock?

TEGNA Inc. TGNA shares rallied 7.4% in the last trading session to close at $21.34. This move can be attributable to notable volume with a higher number of shares being ... Read more »

Can BCB Bancorp (BCBP) Run Higher on Rising Earnings Estimates?

BCB Bancorp (BCBP) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue ... Read more »

Earnings Estimates Moving Higher for Marathon Oil (MRO): Time to Buy?

Marathon Oil (MRO) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue ... Read more »

Transport ETFs to Buy on Solid Q4 Earnings

The fourth-quarter earnings picture for the transportation sector has been robust. This is especially true as earnings of 95.2% of the market capitalization of the sector that has reported so ... Read more »

The Zacks Analyst Blog Highlights: STMicroelectronics, BP and Asbury Automotive Group

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

Earnings Estimates Moving Higher for Robert Half (RHI): Time to Buy?

Robert Half (RHI) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue ... Read more »

Are You Looking for a High-Growth Dividend Stock? Bar Harbor Bankshares (BHB) Could Be a Great Choice

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor’s dream. But for income investors, generating consistent cash flow ... Read more »

Comcast vs. ViacomCBS: Which Stock is a Better Buy for 2022?

The entertainment industry is growing rapidly, with surging demand for over-the-top (OTT) content and other services. Therefore, prominent industry participants Comcast (CMCSA) and ViacomCBS (VIAC) should benefit. But which of ... Read more »

Here's Why You Should Add Quidel (QDEL) Stock To Your Portfolio

Quidel Corporation QDEL has been gaining on the back of its strong diagnostics portfolio. A solid third-quarter 2021 performance, along with solid potential in In-Vitro Diagnostics (“IVD”) products, is expected ... Read more »

Why State Street Corporation (STT) is a Great Dividend Stock Right Now

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

FAA Approves Request by 19-Year-Old to Continue Tracking Elon Musk's Jets

The ongoing drama between Elon Musk and 19-year-old Jack Sweeney on Twitter seems to have reached new heights as Sweeney has now doubled down on receiving legal documentation to continue ... Read more »

Here's How Small Businesses Can Survive the Post-Pandemic Economy

The last two years have been especially difficult for small business. The good news is that it’s made many entrepreneurs smarter, stronger and more adaptable. The bad news, though, is that ... Read more »

How Business Leaders Can Thrive in Puerto Rico

Having helped several entrepreneurs move to and establish themselves in Puerto Rico, I’ve noticed that the island’s tropical lifestyle, enticing tax incentives and booming financial sectors have attracted many successful business owners. ... Read more »

5 Reasons Why You Should Give Gifts to Employees Any Time of Year

Ask around, and you’ll find that many professionals don’t feel they work in the most optimistic or fun-loving environment these days. The ongoing health crisis continues to make working from ... Read more »

'I Do Not Believe Silencing Joe is The Answer': A Complete Timeline Of the Spotify and Joe Rogan Controversy

The past few weeks have been a whirlwind of controversy surrounding Spotify and Joe Rogan’s podcast The Joe Rogan Experience. The streaming platform, which signed a reported $100 million deal ... Read more »

Spectrum Brands (SPB) Q1 Earnings Lag on Cost Inflation

Spectrum Brands Holdings Inc. SPB reported mixed first-quarter fiscal 2022, wherein the bottom line missed the Zacks Consensus Estimate, while sales beat the same. Strength in the pet segment and ... Read more »

Tyson Foods (TSN) Q1 Earnings Top Estimates, Sales Up Y/Y

Tyson Foods, Inc. TSN posted impressive first-quarter fiscal 2022 results, with the top and the bottom line increasing year over year. Sales and earnings surpassed the Zacks Consensus Estimate. – ... Read more »

Diodes (DIOD) to Report Q4 Earnings: What's in the Cards?

Diodes DIOD is slated to release fourth-quarter 2021 results on Feb 9.For the fourth quarter, the company expects revenues of $476 million (+/-3%). The Zacks Consensus Estimate for revenues is ... Read more »

What to Expect Ahead of Sonos (SONO) Q1 Earnings Release?

Sonos, Inc. SONO is scheduled to report first-quarter fiscal 2022 results on Feb 9.For fiscal first quarter, the Zacks Consensus Estimate is pegged at $647.17 million, indicating a year-over-year increase ... Read more »

Hasbro (HAS) Q4 Earnings & Revenues Beat Estimates, Stock Up

Hasbro, Inc. HAS reported impressive fourth-quarter fiscal 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The bottom line outpaced the consensus mark for the sixth straight quarter, ... Read more »

Zacks Industry Outlook Highlights: GoDaddy, QuinStreet and Asure Software

For Immediate Release Chicago, IL – February 7, 2022 – Today, Zacks Equity Research discusses GoDaddy GDDY, QuinStreet QNST and Asure Software ASUR. – Zacks Industry: Internet Delivery Link: https://www.zacks.com/commentary/1862576/3-internet-delivery-stocks-to-watch-in-a-challenging-industry ... Read more »