Have you been doing your hobby for a while and now wondering can this be a business? Get your pen and pad. You will learn the 8 steps to take to turn your hobby into a business.
Step 1. Validate your Hobby as Profitable Biz Idea
Before you jump into getting your LLC and telling people you are a Boss. Pump your brakes. Validate that your hobby is a profitable market, where people are willing to pay you to learn your expertise. Look at Amazon or Facebook Groups to get an idea. If you find there is a market for it. Great you can move to step 2. If not, then try to go a little broader, maybe your search was too narrow.
Step 2. Nail Down Ideal Client
You are cooking with grease now. You have hobby is a profitable biz idea. Now you need to nail down who you serve. Who is that person or type of business? One way to get started is look at who has ever asked questions about your hobby or showed interest in it. Start with that person and start to create an avatar around them and who they are. Here are some things you need to know: Demographics, their pain point around not being able to do this thing, what is their dream state in knowing how to do this thing.
Fill in as much as you can. This avatar is always being updated, so don’t get down on yourself if you have little info at first. As you start to build a business, you will learn and add more info.
Step 3. Conduct Competitor Research
A lot of people skip over this step. But it so rich in information to help you figure out your ideal client, competitive edge, social media accounts.
When you did you validated your profitable biz idea, you probably saw names of authors if you went on amazon or owners of Facebook groups about your topic.
Well guess what, they are considered competitors. Go back and write their name down. Then do a google search to get their website. And definitely join their Facebook group. I do not believe in stealing people, but as research only.
You will want to look at some of the following:
- Services / offerings
- Price points they are selling at
- Social media accounts they are on
Pro-Tip – you can use online tools that does this for you.
Step 3A. Competitor Research Online Tools
Compare traffic, referrals, visitor behavior, keywords and search rankings, paid ads, and site by site social metrics. Stay updated with competitor emails. You can input competitors to track, or let Kompyte suggest them based on the keywords you are tracking. Prices start from $95/month, with a free 14-day trial.
Provides an overview of website traffic, referrals, search traffic and keywords, social media, display advertising, audience, and similar sites and apps. Prices will depend on what you want from the service.
You can get some great insight by looking at the people who follow your competitors on social. With Audiences, you can analyze a following and look at their demographics, influencers, and the content they share. You can even download their followers as a list to target them
The free tools allow you to search for content by keyword or entering a competitor’s URL. It also has a trending section for different industries. More data and tools are available in the paid account, with prices starting at $99/month.
There is no shortage of news aggregator sites available. Feedly allows you to customize the sites you are following, so you can segment by general industry trends, clients, competitors. A browser extension exists to quickly add sites to your feed.
Prisync tracks competitor prices and available stock automatically and reports this in a web dashboard or e-mail alert. This means you no longer have to continuously manually check your competitor’s websites. A free account is available
NOTE: I have no connection to them and will not receive any money if you sign up for their services.
Step 4. Determine Your Business Model
By doing your competitor research, you should be able to determine their business model. For example, are they e-commerce, coaching, consulting, selling digital products. You need to determine which business model you will like to have to service your clients. If you want more information how to do this, then check out my video, “How to build your business around your personality.”Related Reading – Build your business around your personality
Step 5. Package your service (Signature offer)
For Online biz – I highly stress you package your service, instead of trading dollars for hours. Meaning you put bundle services and put a price to it. You can also do stand-alone services that can be an add-on to your packages as well. This is just one suggestion.
For Service base biz & physical products biz – you can create add-on packages to your offerings. For example, you can add a pdf or video series that shows the client how to use the product or maintain what they purchased. I hope this is getting your creative juices flowing.
Step 6. Legalize Your Business
You should set up an LLC (Limited Liability Company). I am not going to go into detail on this video. Because I have a video that takes you through “How to make your business legal in 5 easy steps.”Related Reading – Make your business legal in 5 easy steps
Step 7. Automate Your Services
You will want an autoresponder for your email sequence and give out your lead magnet. A website where you have your blog, home page, about me, work with me, and where they can sign up for your lead magnet. Pro-Tip: this is where you will put in place your branding. Your colors, logo, font.
Step 8. Create Social Media Accounts
You should only set up no more than 3 social media platforms where you know your people hang out on. Eventually you could add on others. But start out manageable. Pro-tip: start out on our social media platform for brand awareness. Getting your new tribe aware of who you are and how you can add value to them.
Where are you in the process of turning your hobby into your business? Let me know in the comments. Or have you done this already?
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