Last Updated: June 27, 2024
From hand-painting custom figurines to hand-pouring resin pieces, the art of handcrafting brings you joy. It also might have the potential to bring in some cash.
With the growing popularity of online marketplaces and local art festivals happening weekly nationwide, you might be wondering if turning art into a business is actually possible…
(Spoiler — it is!)
By combining your creativity with strategic planning and hard work, your craft can support you financially and enrich your life in countless ways. So, take the plunge, trust in yourself, and take your hobby to the next level.
9 Steps For Turning Your Hobby Into a Career
- Make a “launch” plan
- Research your market
- Look at the legalities
- Write a business plan
- Understand your finances
- Build a website
- Start social media accounts
- Stock up on inventory
- Start your business
1. Make a “launch” plan – You can’t necessarily quit your day job tomorrow and expect your hobby to start turning a profit by the end of the month. You also can’t run your business if you can’t pay your bills.
It’s going to take time to get things off the ground, so it’s best to have about a year’s worth of personal and business expenses saved up before quitting your job. Your launch plan should be your plan to start saving and slowly working on your business before you commit to it full-time.
2. Research your market – Before you start your business, it’s wise to know if you have a viable market to work with. If there are already too many sellers or not enough market interest, you could have a tough time making your business profitable.
Look for competitors, similarly priced products, estimated costs to run your business, possible events you could attend, and where you’ll need to market your products.
3. Look at the legalities – Depending on your hobby and the type of business you want to start, there are some legal things you need to do. This can include registering your business with your local or state government, obtaining a business license, setting up an LLC, buying artists insurance, and getting a sales and use tax permit.
Be sure to research what laws are in place for new businesses in your state, city, and neighborhood. For example, some homeowners associations (HOAs) have guidelines around home-based businesses, and some cities require businesses to register.
4. Write a business plan – Your business plan should reflect everything about your business’s current situation, as well as where you want your business to be in the future and how you’re going to get there.
This includes pricing your products, planning your marketing, researching competitors, creating calendars, setting goals, and mapping out how things will operate from creation to shipment to product reviews.
5. Understand your finances – Part of planning your business and having a launch plan is knowing how you are going to finance your full-time entrepreneurship. It’s also important to know how you are going to save for an emergency fund.
You may need to apply for a business loan or seek out artists’ grants, some of the most popular being the National Endowment for the Arts, CERF+, and Americans for the Arts.
6. Build a website – The reality of the digital age is that your customers could be almost anywhere. This means that to reach them, you need to be easily accessible. The easiest way to do this is by setting up a website. If you’re not web-savvy, you can find affordable freelancers on sites like Fiverr who can help.
Don’t cut corners here. Your website is like your digital storefront. This will be the face of your company for many of your customers. Make sure your website matches your brand, is easy to use, and has a secure checkout process.
7. Start social media accounts – A business without social media is like a paintbrush without paint. You need to have a social media presence that engages current and potential customers. Not everyone is on the same platforms, so find the social media channels that reach and appeal to your customers.
Posting regularly and with a variety of content will keep your customers engaged, so create a social media calendar with the types of things you want to post and when.
8. Stock up on inventory – You know how doomsday preppers have an insane stockpile of gear and food? That’s basically what you want to do for your business (except a little less of the powdered milk and a little more of the crafting and shipping supplies!)
Consider all the things you’ll need to have ready and start investing in them early. Items like a label printer, boxes, business cards, and even pre-made products will make your initial launch much smoother.
9. Start your business – The more you can do before you launch, the better things will go after you launch! Have a set date for when you want to publish your products, post your first photos to social media, and send out an announcement that you’re open for business.
Try getting an ad in a local newspaper about the launch of your new business or running some social media ads to boost your initial traffic and brand awareness.
The Do’s and Don’ts of How to Monetize a Hobby
Monetizing a hobby can be a rewarding way to turn your passion into income. Here are some do’s and don’ts to help you navigate this process and successfully balance your passion and business responsibilities:
- DO set realistic short and long-term goals
- DO focus on providing quality products
- DO leverage multiple platforms
- DO give yourself grace and time
- DO offer excellent customer service
- DON’T pursue something you can’t see yourself doing every day
- DON’T overextend yourself
- DON’T start with too many products
- DON’T underprice your work
Is Now the Right Time for Turning Your Art Into a Profitable Business?
One of the first things you need to consider is if making your art or crafts hobby a full-time business is really something you want to do. Sometimes things change when you “have” to do them.
For example, you need to be sure that you will still find the same excitement and enjoyment when you start creating full-time.
To help you navigate this change, and know if making the switch is right for you, ask yourself the following questions:
- Do I love my hobby enough that I can see myself doing it full-time, even when it becomes work?
- Am I comfortable spending roughly 50% of my time doing business-related tasks?
- Is there a market for this? Or is it an oversaturated industry?
- Do I financially have the wiggle room to support myself when first starting out, or when sales may be slow?
- Are there legalities involved with selling my product for profit?
- How will this affect my work-life balance?
- Am I (and any family or dependents) prepared for the changes in my lifestyle and daily routine?
- Do I have other hobbies I can turn to in my downtime?
There is always the possibility that your passion for your hobby might change once you make it your full-time gig. Take some time to consider your answers before making the leap!
FAQs About Monetizing Your Hobby
How do I market my hobby-turned-business effectively?
You can effectively market your hobby-turned-business by:
- Posting and advertising on social media
- Building a website
- Finding the best-selling platforms (e.g., Etsy,
- Amazon, and others) or events to attend
- Networking with others in your industry
It can also be helpful to share your story on your site and social media pages about why you chose to go full-time with your art, and things you are learning along the way.
What legal considerations do I need to be aware of when turning my hobby into a career?
Legal considerations when turning a hobby into a business include (but are not limited to) registering your business, understanding sales and use tax regulations in your state, securing necessary permits, and obtaining intellectual property protections.
What challenges should I expect when turning my hobby into a career?
When turning your hobby into a career, you can expect challenges like initial financial instability, long working hours, balancing your passion with business responsibilities, and potential burnout.
How can I ensure my business remains profitable?
You can ensure your business remains profitable by continuously innovating your products, adapting to market changes, managing expenses, and providing excellent customer service.
It’s also important to have a savings account you can rely on when sales are slower or accidents happen.
How much money can you make before a hobby becomes a business?
The amount of money you can make before a hobby becomes a business is not a set dollar amount. The Internal Revenue Service (IRS) considers if you are trying to make a profit and if you are successful in doing so in at least three of the last five years.
It’s always best to consult with a tax professional or accountant who can provide legal guidance based on your specific circumstances.
What if my business doesn't succeed?
If your business doesn’t succeed, it’s always best to have a backup plan, learn from your experiences, and be open to pivoting your business model or trying new ventures.
