How to Turn a Hobby into a Freelance Business

Jan 25, 2023
9 min read

Most people have a hobby – something they enjoy doing for fun in their free time. But what if you could do it for more than just fun? Sometimes, what we choose to do as hobbies could actually become a very lucrative freelance business.

If you love reading, writing, visual art, music, browsing products on the internet, or many other leisurely activities, there is a way you can take your pastime and start doing it professionally.

In this post, we’ll explain how to turn a passion into a side hustle or full-time freelance business.

How to Turn Your Hobby into a Business

Whether you want to start selling your homemade brownies or get involved in book editing, you can make a business out of just about any hobby. But there’s a big difference between doing something for fun and doing it for a living.

So, before you dive straight into launching a business, there are a few things you’ll need to consider. Here are eight things to do prior to taking the leap.

1. Assess Your Level of Commitment

First, you must figure out how much time you can commit to starting your own business. Are you looking for a side hustle to complement your existing job or routine, or do you want to start a full-time business?

Here are some other questions to ask yourself:

Are you willing to dedicate significant time and energy to this venture?
Can you handle the potential stress of turning your hobby (something you previously only did for fun) into a business?
Will you still enjoy the activity if it becomes a source of income?
How much do you expect to earn? Will it be enough to cover your expenses?

2. Conduct Market Research

Before starting any new business, you need to ensure there is a demand for what you plan to offer. You also need to identify your target market and analyze your potential competitors.

Utilize some of the following resources to determine if your hobby is viable as a business:

Market research tools
Industry reports
Social media trends
Online and local business networks (Chamber of Commerce, LinkedIn, Business Networking International, etc.)
Customer surveys

3. Update Your Resume or CV

When launching a freelance business, you must let potential clients know you have the necessary experience. The quickest way to do this is by updating your resume. Don’t panic if you lack formal work experience in your chosen industry – any work done informally for your hobby is evidence that you have relevant experience.

You likely possess desirable skills from work in addition to those from your hobby. If you feel you are lacking, consider offering your services voluntarily to friends and family. With a little experience, you can write a client-winning freelance resume that highlights your talents.

4. Write a Business Plan

A freelance business plan will help you determine what you need to start your business and how to grow it as your career progresses. Business plans usually cover the following:

A company summary: This is a summary of what your business offers and what you plan to achieve with it. It should include the value of your business, the services you offer, who your target clients are, and an estimated budget.
Goals and targets: This is a combination of short- and long-term business goals, such as increasing your number of clients within a given time frame. Just remember to keep your goals SMART.
Marketing strategies: This section defines how you plan to find and reach out to potential clients and your financial projections. We’ll explain more about marketing as a freelancer later.

You should also check if there is any paperwork you need to fill out to legally do your new job where you live. For instance, in the US, you’ll need to apply for an IRS Tax Identification Number. And once you start freelancing, clients will give you 1099-MISC forms, which you’ll use to file your taxes.

5. Organize Your Finances

One advantage of working for someone else is that they take care of your pay and any benefits like medical insurance and retirement funds. It can be a big adjustment when you transition to freelance work and have to deal with this on your own (although hiring an accountant is an option).

You’ll need to organize your finances and have a clear plan to make sure all of your expenses are covered. There are five types of savings every freelancer should have:

Personal: This covers your day-to-day expenses like housing, gas, and food.
Business: This money is for sustaining and growing your business (e.g., buying equipment or marketing costs).
Taxes: As a freelancer, you’re responsible for paying your own taxes at the end of each year. You’ll need to make sure you understand your local tax laws and save a percentage of your earnings toward tax each month.
Buffer or emergency: Working as a freelancer can be unpredictable. Therefore, it is advisable to save three to six months of your average earnings to cover months with less work or any emergencies (e.g., medical bills or vehicle repairs).
Retirement: None of us want to work for our entire lives! So, come up with a plan for when you want to retire and set aside the right amount of money in a separate account so you’ll be comfortable when the time comes to stop working.

6. Set Up a Workspace

Once you have your finances in order, it is time to organize where you will work. If you spend a lot of time on your hobby, you might already have a workspace set up. But if you don’t, it’s essential to establish a functional base from which to run your business – or you might just need more equipment or materials to upgrade your hobby to a business.

When starting out as a freelancer, your workspace will likely take the form of a small office. You might adapt a spare room, use a quiet corner in your house somewhere, or rent a space.

Wherever you set up, your workspace needs to be:

Quiet and free from distractions
Well lit, with as much natural light as possible
Outfitted with comfortable, ergonomic furniture
Tidy and uncluttered, with necessary storage space so you can focus on your work
Well connected, with plenty of plug sockets and a reliable internet connection

You can even decorate your office with art, plants, and other personal items to boost your mood and help you stay motivated.

7. Network and Market Yourself

Networking is essential to any business, especially freelance businesses that tend to rely on word of mouth to find clients. The manner in which you market yourself will vary depending on what you are offering, but develop a strategy that includes different tactics to reach your target audience.

Here are some ways to network and market your freelance business:

Build your branding: Creating a strong brand is one of the most effective ways to stand out in a crowded freelance market. There are two parts to this. Your personal brand should reflect your unique strengths, values, and the type of work you want to attract. Your business branding – your color palette, logo, fonts, and tone of voice – should be consistent across your website, social media accounts, and client communications. This builds trust and helps clients remember you.
Set up a website: Creating a website for your business has many benefits, from attracting potential clients to boosting your credibility. You can also use your website to showcase your portfolio, share client testimonials, and even host a blog where you can write about your hobby-turned-career!
Use social media: Setting up professional social media accounts is another great way to network and find clients. LinkedIn is specifically built for professionals, making it an obvious choice for freelancers looking to grow their business. Check out our do’s and don’ts for setting up your LinkedIn profile to make sure you get off on the right foot!
Cold email potential clients: If you have an idea of who could become suitable clients, you can send them a cold email – an unprompted but professional message offering your services.
Join freelance marketplaces: Websites such as Fiverr and Upwork allow freelancers to sign up and list their services so clients can contact them for work. These marketplaces are convenient, but they tend to offer lower-paid work and can be highly competitive. Still, they can be a good way to gather those early testimonials or pieces for your portfolio.

8. Take an Online Course

Finally, make sure you possess the skills necessary to turn your hobby into a professional business and keep that training up to date. This will include a combination of soft skills and hard skills.

Whenever you feel like you need to develop your training, online learning can be a great option. The benefits of online learning include:

Full flexibility when it comes to location and study time
More affordable course options
Unique ways of learning, such as interactive elements and international webinars
Frequent updates and life-long access for continuing professional development

Turn Your Hobby into a Freelance Business

Transforming a hobby into a successful freelance business is a journey of passion, strategy, and perseverance. While challenges are inevitable, the potential rewards – both financial and personal – can be immensely satisfying. Remember that success doesn’t happen overnight. It requires continuous learning, adaptability, and unwavering commitment.

Want to start your journey but don’t know where to begin? Our Becoming A Freelancer course is the ultimate step-by-step guide. We even have more specialized courses if you’re interested in becoming an editor, proofreader, copywriter, brand ambassador, and so much more.

Updated on April 28, 2025