6 Steps In Earning Extra Income

Lady surrounded with cashWhen faced with financial worries over debt and loan payments, earning an extra income can be a budget lifesaver. But there are a lot of people undecided on how to get started on earning extra income. Even before they start, they are already taken aback with the failure rate in start up businesses. Statisticbrain.com shares that there are about 25% of start up business initiatives that fail in their first year. A lot has got to do with incompetence and going into it for the wrong reasons.

If start up businesses has this failure rate, what more people who will just look for an extra income. Something to earn on the side. A hobby that can be used to bring in much needed cash into the budget. A lot of people are taking on side jobs to increase income but there are some that are finding it too difficult to juggle two to three jobs. It is taking a toll on their bodies.

This is the reason some people are leaning towards their hobby as an alternative source of extra income. More than just taking another four to five hours of extra work that you may not like, this is time spent on doing something that you love to do. And finding a way to earn off of it is a big plus. It could be similar to what some athletes keep on saying during interviews that when you are doing a job that you like to do, it does not feel like work.

Extra income from your hobby

There is no doubt that increasing the income can help avoid debt.  It can provide much needed boost in funds to at least keep the payments afloat and steer clear of past due and delinquent status on payments. There are also some people who are getting by their income but wants to start planning for the future and needs extra funds. Others, they just have a target in mind that is why they are looking for extra income.

Whatever the reason, there are a few tips on how to get started in earning extra income from your hobby.  These are meant to help and guide you in making the most out of your journey to financial maturity.

Hobby monetization

The number one objective of this undertaking is to use your hobby to earn extra income. That is why you need to find out if your hobby can be monetized. There are various hobbies and it would be a good idea to do a quick research if other people are able to earn off from the same hobby.

It could be that your hobby is collecting limited edition items that you can sell to earn extra income. It could also be that your talent is something you can pass on to others by teaching them how to do it like candle making or t shirt printing. It could also be that you are a gifted speaker and you can conduct some workshops for other people. Also, Howstuffworks.com shares that writing is also another hobby that you can earn extra income from.

Check competition

This is part of of your due diligence and researching on the industry your hobby is leading you into. This is also a little bit tricky because if there are other individuals that are doing already what you are planning to do, it means that there is already a demand for it. But the trick is finding the balance in your competition. Too few competition can mean the market is not yet ready for what you have and too many players can make your efforts a little more challenging.

Unique selling proposition

This is a term used mostly in marketing and business plans where it identifies if the service or product has something unique to offer consumers. Is it something new and fresh or is it another arts and crafts hobby that can be easily bought by potential customers in a nearby mall. You need to set yourself apart from competition by offering something unique and extraordinary.

Reality check

One crucial step in your effort to earn extra income is to put your feet back on the ground and do an honest assessment of your current situation and how you see yourself in a few years down the road. This is just similar to an exercise where you ask yourself some tough questions. It is better that you search for the answers now rather than later.

One is capital money. It may be a hobby but you would still need some start up cash to jump start your plans. If it is arts and crafts, you would need money to buy the trinkets and other items you need to make your product. If it is a talent, you need some capital to make sure that you are able to perform to the best of your ability. If you are a handyman, them you would need to buy tools to be able to make repairs.

Legal paperwork

It is great to start this income earning hobby project on the right track. Make sure that you have all the right and legal paperwork straightened out before you start pursuing your passion. There is no other way to do it than to do it legitimately because it will set you off in the right direction. Choosing otherwise can ripple out to a lot of different problems that can derail your efforts and bring you back to the drawing board.

Marketing

There is no sense in turning your hobby into an income generating project when you are the only one who know about it. You could be the greatest singer, painter, plumber, speaker on the planet but if you do not let other people know about it, then it will all just go to waste. You need to put yourself out there and let potential customers know what you have to offer.

You can start with family and friends and ask them to refer you to other people that they know. Making use of the digital platform can also benefit you immensely. Set up a website or use the power of social networking sites to reach out and market your hobby to start earning extra income.

Here is a video showing how a woman laid off from work turned an obstacle into an opportunity:

Being hired to build someone else’s dream

According to BLS.gov, unemployment rate at mid 2014 is at 6.1%. This basically means that over nine million Americans are left to look for income outside a steady employment. There are those that dream to be their own boss but are afraid to try. So most of the consumers are looking for work day and day out because this is the most steady stream of income available. But being employed is not your dream, it is the dream of other people and they are hiring other people, including you , to build that dream.
Earning extra income from your hobby can be a great way to augment your monthly budget. But more than that, it could also be your testing grounds to see if you have what it takes to start following your own dreams and building a life in doing what makes you happy.