Yahoo Finance 
How to turn a hobby into cash
Do you have a skill or something you love doing that you think might be able to earn you some cash on the side?
You may never have considered it before but most of us have some passion or talent that can be transferred into a money making venture. While it’s not an easy process, and there is no guarantee of success, most of our hobbies would require minimal financial backing up front to establish as a mini business. Instead, what it takes is time and dedication – which, if you’re following a hobby you are passionate about, shouldn’t be too hard to manage.
Also read: This start-up wants your next glass of milk to be man-made
The best thing about this sort of a money making endeavour is that you can invest as much or as little time as you want, meaning it can either supplement your current job or become a new career.
If you’re looking to turn a hobby into cash, then there are some important steps to follow to make sure the venture is worth your while.
The financials before
If you’re going to be earning some extra money, then there are some things you should check to make sure the venture will be worth your time. These include:
How much money you can make before it affects you pension or other government payment
What you will be taxed on a second income if you currently have a job
If your current contract with your employer says you must declare a second job
Identify something that people want
Once you have established that turning your hobby into a business is a good financial move, the first, and most important, step is to find out if anyone wants to pay money for what you’re offering. This may mean doing some research online or even asking around to see if there is any interest in your local community. The biggest mistake would be to invest time in planning and promoting your services only to find that there is no demand for them in your area.
Research the space
After you have established that there is some level of demand for what you have to offer then you can go into the finer points of research. Find out who your competitors will be and how much they are charging – this will give you a good idea of where to set your own prices. It may also be good to find someone who you think is doing what you would like to successfully and take a few pointers from their set up. How you do this research will again depend on whether you are going into an online market or a local community scene so make sure you know what is most appropriate to your chosen space.
Also read: Your top 10 money questions answered by an expert
Establish a presence
Once you have identified where the potential customers are, and where you will be best positioned against your competitors, then it’s time to start establishing a presence. Depending on the skill or product you are offering this may mean setting up a social media presence, website or blog, a market stall, putting up posters or doing a mail drop in your local area. The possibilities for how you can get the word out about your services are endless but only a few will be the most effective for your chosen niche. This is where your previous research will be invaluable.
Network
To ensure that your money making venture is an ongoing success it is advisable to network in order to grow your customer base and opportunities. This may mean reaching out through a blog or social media page to potential clients or simply getting to know people in your area who may require your services. Looking for opportunities to link up with other small businesses to promote your products or services can also be a good way to spread the word.
The financials after
Now that you’ve got your hobby-turned-business up and running and you’re making some money, here are some suggestions on how you can get the most out of your extra money:
If you have high interest debt (for example, on a credit card) pay this down first
Put the earnings into your mortgage to reduce the life of your loan
If you’re saving the money, make sure it’s earning as much interest as possible
If you don’t need the cash right now, consider contributing some of your money to your super account
Also read: 3 ways the Army prepared me for entrepreneurship
Some hobbies that can be turned into cash
Photography – Try event photography or sell photo prints
Writing and/or editing – Set up a freelance service for publications and websites
Jewellery making – Sell your creations online or at markets
Art/drawing – Sell prints of your work online or at markets
Sewing – Offer a tailoring service
Cake decorating – Decorate wedding or birthday cakes for a fee
Make up and/or hair services – Offer your services for formals and special occasions
Tutoring - Teach a subject you are passionate or know a lot about
Growing fresh produce – Sell your produce at a farmer’s market
Animals – Walk dogs in your local area or house sit for people with pets
Music – Teach a musical instrument or music theory
Sport – Coach a team sport or referee for your local club
Fitness and training – Offer personal training services or boot camp classes
Carpentry - Sell your creations online or at markets
Social media – Assist local businesses or community groups with social media strategy and content
Graphic design – Design logos and templates for local businesses
Filming and editing – Make videos for local businesses or community groups
Coding and web design– Offer your services on a freelance basis
