5 Ways To Turn Your Hobby Into A Million Dollar Business

by Karen Dodd

Remember the "old days" when people would talk about marrying for love or for money...as if they were mutually exclusive? Somebody's mother was famous for saying, "Dear, you can love a rich man just as easily as a poor man."

Similarly, many people feel that if they turn their hobby or outside interest into a business, they have to choose between "sharing" their passion for free, or nearly free -- and making it a hugely profitable business. In fact, in mentoring clients over the years, I have noticed that when they're not getting paid for something, they can't keep quiet about it. As soon as they charge money for sharing the same information, their tongue gets tied and it becomes a challenge just to say hello!

Why is that, do you think?

I believe it is my duty to share what I know, with as many people as I can. In fact, my personal concept of becoming a millionaire (besides the money) is to touch at least a million people in my life, through my paid and volunteer work. In order to do that, I have to have my basic needs met. I have to be well-fed, clothed, housed and rested. I need to feel good about myself and my independence in the world, in order to reach out and pull others up. I believe that one of the best ways of achieving your Inside Every Woman There's a Millionaire® lifestyle, is to start your own business.

Now if you love, love, love your job -- please don't stop reading! Being happy and secure in a job where you just can't wait to get up and experience each day, is truly a blessing. Long may it last. However, while you are in that enviable position, why not look at your passion or hobby outside of your work and see how you can turn that into passive and leveraged income? If you're already in your own business now, ask yourself if it's meeting your criteria for "love and money" and look at creative ways of achieving both.

Scour any business magazine and you will find scores of successful entrepreneurs who have successfully parlayed their hobby into a viable business -- in some cases, multi-million dollar ventures.


Your mentoring assignment -- should you choose to accept it:

1. Do your due diligence. Do everything in your power to research your market and figure out if what you are about to offer will cause people to pull out their credit cards. Check out your competition and everything about them. Don't be discouraged if someone else is baking cupcakes with their grandmother's world-famous recipe -- just be sure you have something authentic that isn't just another me-too product. In doing your research, use online tools like doing surveys within your natural network. You can do this via a simple email or use a free and easy survey service like Survey Monkey.

2. Do over-estimate the time and money it will take to get up and running profitably. With so many home-based businesses today, it is possible to start on a shoestring and largely control your outlay. However, it is critical that you know exactly how you will finance your venture and more importantly, how you will finance yourself personally until you can draw an income. If you are going to need to borrow from the bank or raise private investors, you will need a solid business plan. Invest both the time and money necessary in having your plan put together by an expert.

3. Do ask yourself if you have the both the skills and the temperament to start your own business. Some people have turned their hobby into a business, only to discover that they hate the pressures of their own business so much, that they no longer enjoy what used to be their passion. If you love to cook and think that you might like to start a catering business, see if you could go to work for a caterer, to get a real sense of what goes on behind the scenes. As a newbie in your own business, chances are you're going to be working long hours, often with very little pay -- at least at the beginning. Are your psyche and your pocket book going to be okay with that? How will you handle not being able to take regular vacations for awhile, or having to cancel personal plans when something unforeseen comes up in the business?

4. Just because your hobby has become your business, don't give away your power. If you truly have a well-researched idea and a solid plan to take it to the market, don't underestimate your value, both in terms of time and money. I see many solo-entrepreneurs shrug off their accomplishments or hesitate to charge what they're worth because they are so closely tied to what they do. For example, someone who can whip up a six-course gourmet meal for twenty guests, at the drop of a hat, might be reticent about charging a handsome fee for her services. The reality is that what you take for granted is what others will gladly pay for. If you are going to run yourself into the ground, charging little or not enough, your passion (and business) will fizzle, over time.

5. Look for ways to recycle your expertise into passive and leveraged income. If you retail a product or service in your market, don't limit yourself to your geographical area. Perhaps you've turned your love of animals into a dog-grooming business. Obviously you can only only groom so many animals (even with staff) in a given day -- thus, you can only make so much money. That approach provides only "linear income." However, what if you have someone video what you do in your shop and then market that online to people all over the world who have difficult pets to bathe? Or, you might write a simple how-to manual and sell that online. You do the work once but you continue to get paid over and over -- creating passive income. A great way to get the ball rolling on passive and leveraged income is to get really connected to your customers and prospects via a weekly or bi-weekly online newsletter, known as an ezine.

Okay -- you've done your homework, you've written your business plan, you've got your finances ready and you're ready to rock! But you've got to get the word out to your public, right? Remember what I said about your tongue getting stuck to the roof of your mouth, when money gets involved?

Look at your business this way. If you were opening a restaurant or a dress shop, you'd probably need to advertise, correct? If you'd just written a book, you'd have a book launch party. As with birthing any "baby" it takes time from the creation of your idea until it becomes a fully developed venture. So, start the buzz early. Use emails, a weekly ezine, free and paid publicity -- and just about every other crazy personality-infused technique you can -- to build excitement before your opening. And Voila! You will be well on your way to the fame, fortune and freedom that having your own successful business can provide.

Need some help to figure out how to really focus in on implementing these tips? Then be sure to go to my Events page to get more information about my Inside Every Woman There's a Millionaire® Tea Party. If you are not in our local marketplace, then click here to register for my small group 5-week teleclass.

[Editor's note: Karen is available to work with you one-on-one, to help you identify your niche and implement a step-by-step strategy to build your business and attract your ideal clients. Please email her at Karen@KarenDodd.com for more information.]


©2009 Karen Dodd International

WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEBSITE? No problem! But here's what you MUST include:
Working with everyone from moms to millionaires, Karen Dodd helps you connect with your unique gifts and talents, ignite your passion, and take inspired action so you can Focus On The Dream(TM). To learn how you can start or move your business to a level that you've only dreamed of, register now for Karen's free articles at: www.Karendodd.com.