Most everyone has a hobby and many hobbies have income-producing potential. All you have to do is figure out how to cash in on your hobby. Can you provide a product or service? Share your expertise with others through individual tutoring, group classes or in writing? There are many ways to make more money and below are some to help you start thinking about how to cash in on your hobby.
Tips To Cash In On Your Hobby
Sell A Product Or Service
If your hobby involves a special skill, consider providing a service. For example, if you enjoy cake decorating, you can make wedding cakes. If your hobby produces a salable product, you can earn money selling direct to customers or through retail stores. Brainstorm all the money-making possibilities and settle on those that are most attractive to you.
If your hobby involves a special skill, you can teach others. Offer group classes or provide private lessons… or do both!
Write A Book
In addition to (or in place of) the above, you can write a book. Self-publishing is now inexpensive and easy and your book can be published in hardcopy or digital…or both!
Things To Consider
- Analyze whether there is a market for your idea and how potential customers will find out about what you have to offer. If you plan to make a product to sell or offer a service, is there a viable customer base? Will you sell locally or online? How much competition will you have? Can your potential customers afford what you intend to charge? If you plan to tutor or conduct classes, where will this take place?
- Research whether there are zoning or other restrictions on your activity and if you need any permits or licenses to operate. For instance, most counties or cities regulate home businesses that involve food preparation but there may be regulations on other types of home-based business, as well.
- Figure out the financial side or your proposed endeavor and develop at least a simple business plan. If you want to make money, conservatively calculate what kind of return you can reasonably expect and liberally estimate your expenses. The goal here is an accurate picture of what you can realistically expect rather than what you hope to achieve.
- Consider the tax consequences. Here in the US, you will owe self-employment tax if you earn over $400/year. Based on your location, you may also be required to collect sales tax. In addition, you may owe property tax annually on any equipment you use to generate income from your hobby. Find out what taxes (if any) will apply in your situation and be sure to make provision for them when finalizing your pricing.
Cash in on your hobby is an enjoyable way to earn money. What activities or skills can you turn into cash? (For more ideas to make extra money, be sure to read this post. To find extra money, click here!)
You can start young and make some easy cash in college by making a living at your hobbies.