Personal Finance
Key takeaways
- It helps to schedule time for your new endeavor and stick to it.
- Social media could be a great way to market your services or products.
Do you have a hobby? Maybe it’s reading, painting, or fishing. Or do you have some specific expertise? Maybe you restore or repair cars, woodwork, garden, or play video games. If so, you could start turning passion into profit. And you could enjoy doing something you absolutely love while earning money.
Many people use their experience and talent to add income beyond their 9-to-5 day job. This article will look at some of the key ways you could turn passion into profit.
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Turning a passion into profit could help to make your finances a whole lot friendlier — and there’s another way. With access to your credit score, and tools to help you take charge, Best Egg Financial Health makes learning about your financial health and reaching your goals easier than ever.
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The passion
Perhaps you’re particularly good at something or just very knowledgeable in a particular subject. You could turn it into a thriving business. With a good business model, you might even (eventually) be able to ditch your full-time job. Lots of experts offer a variety of do-it-yourself videos. Need to change an alternator in your car? Restore a picnic table? Bake and decorate a beautiful cake? There are videos out there for all those topics and more.
Notice how, every time you view one of those videos, you usually have to watch an ad first? That ad probably generates profit for the video’s owner or creator. It might be only a little bit, earned with each view. But, if a video becomes popular, those earnings could add up. If your video gets enough views, that income might allow you to replace your full-time job. You might even start your own business. That’s how you might turn your passion into your own company.
If you’re an expert in a field, you might choose to create “how-to” videos and share your knowledge. Or you might take it another step and create online courses to teach others the essentials. From cooking to painting to rebuilding race car engines, there’s an audience out there for just about everything.
Sometimes, successful experts graduate from producing online content and advance into the role of public speaker. They travel the world, share their expertise with others, and get paid to give talks at different events. Sounds good, right?
Creating treasures
Even if you’re not an “expert,” you could still share your passion and potentially earn from it. You could earn, while your viewers learn. There are plenty of viewers who just like to watch someone do something well. Finding treasures at thrift stores, creating ice sculptures, mowing overgrown lawns — there’s no end to what folks will watch.
And let’s not forget that you could also create a physical product. You could sell it on Etsy, eBay, or Craigslist. If you enjoy making something — almost anything — a good marketing strategy could lead you to a business. Decide what you like to create. Check to see what others are offering. Explore the going rates and prices. Find out if they’re commensurate with what you need to make in order to be profitable.
Many folks are able to focus their passion into marketable content. You may be able to do that, as well. Funding a passion project is a way to let you enjoy your favorite activities, while potentially making a profit. It’s a way to live the “dream life” — doing what you want, while others pay you to do it. Not a bad way to earn a living!
Making the time
Moving forward, you’ll need to make the time to do it, though. Most people say they live a busy life — but there could be some time available. Allocate on your calendar some time to devote to your project. Perhaps just an hour a week, to start. Maybe an hour early in the day, before the rest of the family is awake. Or one hour late in the evening. Maybe you can do two 30-minute sessions a week, during your lunch breaks.
Whether you use the time to explore different business models, edit videos, or market yourself, stick to your schedule. Keep a log or a journal and justify what you do with the allocated time. Success rarely happens by accident — to reach your goals, you’ll need to work at them.
Getting started
Start small. If you start with smaller goals, your mistakes will likely also be small. And you will make mistakes — we all do. But that’s how you’ll learn what does and what doesn’t work. Test the market waters lightly. Wise business owners always see if there’s demand for their product before they scale up production.
Break down big plans into smaller segments. See if any goals are more immediately achievable, and then focus on those first. Planning and scheduling are the best tools to use to achieve successful results.
Consider who your customers will be. Will your product or service create viable sales or be popular enough to attract viewers and generate revenue? Research what others are doing.
The financial angle
It’s great that you want to go “all-in” on your new business but go slow. Keep your new business as a side hustle at first. It’s common for new business ventures to take some time to become profitable. Having a steady job to cover your living costs is a smart idea. (It’s hard to turn passion into profit if you’re worrying about how to cover your next rent payment.)
Don’t abandon your full-time job until your new project is profitable, and you have six months of savings accrued. It’s better to wait until your project is earning 75% of your regular income, and that income is increasing. At that point, you might consider making your new business into a full-time gig.
Don’t be afraid to outsource some business needs. Tax laws are complex and consulting a CPA might be worthwhile. IT support, marketing, social media posts, digital marketing, content writing — all of these can be outsourced. Sometimes, it’s better to use the talents of others rather than struggling with things yourself.
The methods
If you are creating products — clothing, artwork, jewelry — there are countless sales avenues. Etsy, eBay, and Craigslist are popular choices. Facebook Marketplace and OfferUp are others. If you’re providing a service, like writing content or organizing closets, Craigslist also has a services/gigs category. Many areas have smaller, local papers where you can place a listing for your service.
And creating your own website has never been easier. A full, custom-made website may cost thousands, but there are other ways to start. Google offers free personal web pages and email accounts. So do GoDaddy, WordPress, and many other providers. Templates can help you get started and let you create your webpage with minimal effort.
If video is your game, start a YouTube channel. You can begin creating your content right away. YouTube offers free video recording, editing, and background music. And there are lots of tutorials available to help you master the ropes even more quickly.
Podcasting has become a popular format for those who want to talk about their passion. There are many podcast providers that let you get started for free or for a minimal monthly payment.
Growing your customer base
Some providers (Facebook, Google, etc.) also provide advertising services for a price. That lets you target ads at those who’ve searched for items or services like yours. With targeted ads, your advertising money is aimed at those most likely to become customers.
How will you find customers? That depends on your service or product. Network with others in your field; that’s a good way to cultivate cross-advertising. Contact bloggers for interview opportunities — many are hungry for chances to interview someone. That goes for podcasters, too. Search for those interested in what you do and see if they are willing to partner with you. Offer to be interviewed or to have your product reviewed. Attend trade shows for a wider base, to make contacts, and to observe others’ offerings.
With the right application of knowledge, spirit, and business planning, you could turn your passion into profit. Why not give it a try?
This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.