How to Turn a Hobby Into a Successful Business As a Teen
Brainstorm., Establish your market., Mass produce., Advertise., Price your merchandise., Be patient., Keep records., Congratulations!
Step-by-Step Guide
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Step 1: Brainstorm.
As is the case with any newborn business, you're going to need a lot of preparatory brainstorming before you even think about peddling your wares.
Now is the time to think about big picture issues, like where you will get your supplies and how you plan to advertise.
Most important of all is the question of whether or not you really have the time and means to start a small business.
If you're keeping your grades up with ease and still have time to kill,have at it! However, if you're already juggling school, friends, part time jobs, and household responsibilities, taking on anything else will burn you out.
Small businesses are a labor of love, but are nonetheless demanding of time and resources.
Ideas could be:
Sew things, Make clay pots, etc. -
Step 2: Establish your market.
Who will be buying your product? How will you get it to them? What's more, how will you inform them that your business exists in the first place? High school is a great market for most crafts, since teenagers seem to go through spending money like water.
Just make sure you narrow down your field of potential customers, or you'll be wasting precious time marketing your punk fashions to the Preps, or vice versa.
By thinking in advance about your clientele, you'll spare yourself the hassle of working low traffic venues and marketing to the wrong crowd. , If you're confident that your product will be profitable, it's time to start mass-producing your product.
Get your supplies together (you may need an initial loan from Mom and Dad to get your business off the ground, which is perfectly fine so long as you repay them in a timely manner), then get busy! Come up with several basic prototypes, then replicate them over and over and over again.
Once you have a significant inventory, you don't have to worry about crocheting in the wee hours of the morning to fill your orders. , Come up with a catchy name and slogan for your business (e.g.
Precision Gadget Cases- Precise quality and value), then print up flyers, signs, any ad that's within your means.
These can easily be created on most home computers; if you've got a privileged friend with a color printer, have them hook you up with some nice, professional-looking business cards (make sure they include your name and some sort of contact number, at the very least).
This is when you can utilize those computer wiz friends of yours to their full potential; have them set up a nice website for your business (offer them a nominal reward in return; if you act professional, your friends will treat you like one).
Ebay and Craig's List are also options if you don't mind individual piece-work.
Make sure you get permission before posting ads in public.
Remember, the simplest way to advertise is to carry your merchandise with you.
If you make jewelry, wear it! , Make sure that you price your wares so that each piece is increasing your income.
A good way to price is to calculate how much you spend on the materials per each item, then double it.
This is a 50% profit margin, which is a good starting place.
If you find that your business competitors are getting better business than you, see how they're pricing theirs, and offer a slightly lower price (just make sure you still have a profit margin!).
Overpricing is bad, but underpricing is worse. , Now that you've developed and inventory and your name is out there in the open, all you can do is wait for interest in your product.
Hand out flyers, business cards, etc. when you can, but don't be too pushy.
You may be raking in the greenbacks in a seeming matter of minutes, or it may take a little longer; every business is unique in this respect. , Eventually, whether you make money or not, you'll have to face the monetary music sooner or later.
This can be a lot less painful if you make an effort early on to keep track of every sale and expenditure you make (this means throwing away receipts is strictly taboo).
This way, you won't be suckered into thinking you made $5 grand when it was really more like $50, and you'll know where your money went.
Every so often, check the numbers to make sure that your income is greater than your expenditure, or you're in for a lot of trouble when the time comes to pay off your overhead and other debts.
Make it a habit of putting 50% of your net income (income minus overhead and expenses)into a savings account, which will help you resist the temptation to blow your entire profit margin in one fell swoop.
All you really need to keep is enough to cover your past overhead and another shipment or two of supplies., You've launched your very own business! -
Step 3: Mass produce.
-
Step 4: Advertise.
-
Step 5: Price your merchandise.
-
Step 6: Be patient.
-
Step 7: Keep records.
-
Step 8: Congratulations!
Detailed Guide
As is the case with any newborn business, you're going to need a lot of preparatory brainstorming before you even think about peddling your wares.
Now is the time to think about big picture issues, like where you will get your supplies and how you plan to advertise.
Most important of all is the question of whether or not you really have the time and means to start a small business.
If you're keeping your grades up with ease and still have time to kill,have at it! However, if you're already juggling school, friends, part time jobs, and household responsibilities, taking on anything else will burn you out.
Small businesses are a labor of love, but are nonetheless demanding of time and resources.
Ideas could be:
Sew things, Make clay pots, etc.
Who will be buying your product? How will you get it to them? What's more, how will you inform them that your business exists in the first place? High school is a great market for most crafts, since teenagers seem to go through spending money like water.
Just make sure you narrow down your field of potential customers, or you'll be wasting precious time marketing your punk fashions to the Preps, or vice versa.
By thinking in advance about your clientele, you'll spare yourself the hassle of working low traffic venues and marketing to the wrong crowd. , If you're confident that your product will be profitable, it's time to start mass-producing your product.
Get your supplies together (you may need an initial loan from Mom and Dad to get your business off the ground, which is perfectly fine so long as you repay them in a timely manner), then get busy! Come up with several basic prototypes, then replicate them over and over and over again.
Once you have a significant inventory, you don't have to worry about crocheting in the wee hours of the morning to fill your orders. , Come up with a catchy name and slogan for your business (e.g.
Precision Gadget Cases- Precise quality and value), then print up flyers, signs, any ad that's within your means.
These can easily be created on most home computers; if you've got a privileged friend with a color printer, have them hook you up with some nice, professional-looking business cards (make sure they include your name and some sort of contact number, at the very least).
This is when you can utilize those computer wiz friends of yours to their full potential; have them set up a nice website for your business (offer them a nominal reward in return; if you act professional, your friends will treat you like one).
Ebay and Craig's List are also options if you don't mind individual piece-work.
Make sure you get permission before posting ads in public.
Remember, the simplest way to advertise is to carry your merchandise with you.
If you make jewelry, wear it! , Make sure that you price your wares so that each piece is increasing your income.
A good way to price is to calculate how much you spend on the materials per each item, then double it.
This is a 50% profit margin, which is a good starting place.
If you find that your business competitors are getting better business than you, see how they're pricing theirs, and offer a slightly lower price (just make sure you still have a profit margin!).
Overpricing is bad, but underpricing is worse. , Now that you've developed and inventory and your name is out there in the open, all you can do is wait for interest in your product.
Hand out flyers, business cards, etc. when you can, but don't be too pushy.
You may be raking in the greenbacks in a seeming matter of minutes, or it may take a little longer; every business is unique in this respect. , Eventually, whether you make money or not, you'll have to face the monetary music sooner or later.
This can be a lot less painful if you make an effort early on to keep track of every sale and expenditure you make (this means throwing away receipts is strictly taboo).
This way, you won't be suckered into thinking you made $5 grand when it was really more like $50, and you'll know where your money went.
Every so often, check the numbers to make sure that your income is greater than your expenditure, or you're in for a lot of trouble when the time comes to pay off your overhead and other debts.
Make it a habit of putting 50% of your net income (income minus overhead and expenses)into a savings account, which will help you resist the temptation to blow your entire profit margin in one fell swoop.
All you really need to keep is enough to cover your past overhead and another shipment or two of supplies., You've launched your very own business!
About the Author
Mary Patel
Creates helpful guides on crafts to inspire and educate readers.
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