If you’re creating products or delivering services as a hobby, it can be hard to know when and where to take it to the next level. We’ve put together our top tips for navigating the transition from a hobby to a hustle, to get you reaping rewards for your skills and effort.
Test your product
It’s crucial to really put your product to the test in the most cost-effective way possible, before taking it to the next level. Know who your target market is and get your product in front of them. Do they frequent markets? Book a stall and put your products on display. Ask questions. Listen to feedback. Really listen. Implement any changes that are suggested to make your product more relevant to your target customer. People often gravitate towards asking their friends and family for feedback as this is the easiest option, however your friends and family aren’t necessarily going to be the ones that are going to buy your product, so they aren’t going to provide relevant feedback, not to mention, they’re more likely to sugar coat their real feelings. Even though it’s natural to want everybody to love your product, it’s really important to hear from people that don’t. Gather as much feedback as you can, both positive and negative, and make any changes necessary.
Pricing structure and costs
Before you start selling your goods, it’s important to have a profitable pricing structure that covers all bases. Understand your costs, both fixed and variable, and make sure you’ve allowed enough room between your cost and your sell price to make a profit. Now think about HOW you will sell your product and work out pricing for each method. For example, will you accept customised orders? If so, you may need to charge extra for purchasing short run raw materials to fulfil your order. Do you want to offer discounted promotional pricing for multiple items, like 1 for $20 or 3 for $50? Do you offer delivery, holds, pre-orders or do you take deposits? Make sure you consider returns, refunds or exchanges, as well as the payment methods that you will accept. Financial record keeping is incredibly important, so if you’re at a market and dealing in cash only, have a cash receipt book on hand and a float of change. If you take bank transfers or card payments, ensure you’ve set up a business account for easy reconciliation. Considering and planning for every scenario upfront takes time but will hold you in good stead for building a profitable business in the long run.
Research markets and platforms
You now know what you’re selling and how much it will cost. Next, it’s time to decide where you’ll be selling your products. Brainstorm places your target audiences visit and shop. Look into makers markets, industry expos, community fairs and even events needing sponsors. Selling online is also an excellent way to reach many different audiences, and it doesn’t have to be expensive! It’s easy to feel intimidated by all the flashy online stores and expensive quotes, but there are plenty of budget friendly alternatives. Wix and Squarespace are just two of many low-cost build-your-own website platforms with online shopping capabilities. When you start to sell, ask your customers for testimonials (either in person or online) – ask your customers to post about your product on social media, or leave a review, to help build credibility. Having some testimonials or customer content will always be helpful, and helps new customers build trust in your brand if they can read reviews from customers who have had a good experience with your business.
Once you’ve considered each of these areas, you should be in a good position to either resolve any major issues you have identified or proceed to selling. Our main piece of advice is to act now and review later – just start! If you spend months and months developing strategy, marketing plans and waiting for the “right” time to sell your product, you may find it only becomes harder and harder. Maintain a sales-first mindset to earn yourself some funds, then review and further develop your plan and business as you go.