If you love what you do you will never work a day in your life. Most of us have heard of this popular saying but very few actually chose a career based off of interests and likes. The idea of turning your hobby into a business can allow you to do something you love while making an income running your own small business. If you think you may have a hobby that can turn into something more it is important to weigh your options before jumping in with both feet.
Many people are interested in a particular hobby because they simply enjoy doing it but it is important to ask yourself if you would still enjoy it if it came with schedules, financial goals, and meeting the expectations of others. If the joy of the hobby could be taken away by one of these pressures then it is best to keep your hobby as something fun rather than turning it into a business. However, if there is a market for your product/hobby and you have a passion and commitment for what you do, it may be time to develop a business plan and execute your new venture.
Turning your hobby into an income requires you to treat it like a business. This means creating a separate business bank account, credit card, and potentially formalizing your business into an LLC (limited liability company). By formalizing your organization, it allows you personal protection liability, tax deductions, and a more trusted consumer base. Formalizing your business also helps present your organization as more permanent than just an individual. This provides more credibility to a lender when you are ready to consider a small business loan. A small business loan might be beneficial to expand on your hobby and create a more serious business venture by taking your business to the next level of success.
Whatever your goals are with your hobby, if you see a potential to create income by doing something you love you should consider doing so. If you have questions, please contact your local Guaranty Bank Branch.