Mark Lyttleton is an experienced speaker, business mentor and angel investor who
supports small businesses and early-stage companies with a special focus on
helping ventures created to have a positive planetary impact. This article will
look at the recent exodus of workers from the labour force, transforming their
‘side hustle’ into their full-time job and creating profitable businesses from
interests they are passionate about.
Many people dream of doing the thing they love
full-time, but is it really possible to turn a hobby into a lucrative business?
The world of work is rapidly evolving, with people venturing into entrepreneurship in increasing numbers and building a career on the foundation of their
favourite hobby.
Every
profitable enterprise is built upon a well-crafted business strategy. The
entrepreneur must first consider what the business will actually do. There are
a range of options beside making or selling physical products. For example, the
business may centre around providing a service, for example translation or
accounts. Alternatively, its value proposition may be teaching other people
valuable skills. Will the business sell direct to consumers (B2C) or to other
businesses (B2B)?
Next, the
founder must conduct extensive research, first and foremost to gauge whether
there is a market for the product or service the business is selling. It is
also vital to assess the competition, as well as weighing up major costs and
price points across the relevant industry. This research will form the
foundation of the business plan, a critical document upon which the founder
will base all of their activities – and one which is crucial in terms of
attracting investment.
The founder will also need to decide how they will
structure the business; for example, will it be a sole proprietorship, a
partnership or a limited company? Corporate structure is incredibly important
in terms of business success, with different legal requirements attached to
each. Many founders turn to professionals such as lawyers and accountants at
this stage to help them weigh up the pros and cons of the different types of
business structure and choose the most appropriate type for their venture.
In addition to coming up with a name, the founder
needs to learn how to market, build an online presence and manage their time
efficiently. In monetising a hobby, it is crucial to adopt a professional
approach right from the off, keeping a close eye on financials, identifying
long-term goals and mapping out actionable steps to help the enterprise achieve
those objectives.
