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“Do everything you love and the amount of money will observe.” Entrepreneurs have heard these suggestions countless times over time. What’s wrong with it? A lot of people who make an effort to turn their leisure pastimes right into a business fail at it miserably. They end up getting a big, expensive hobby, not really a successful small company.
Related: HAVE YOU GOT your small business…or a Big Hobby?
Then there will be the lucky few, who successfully combine their passion with business smarts and create money that revolves around something they love.Why is the difference? An excellent example of how exactly to run a hobby-based business is on Travel Channel’s new show, Toy Hunter.
The show follows toy dealer Jordan Hembrough as he combs through toy-collectors’ attics, garages, garden storage sheds, and basements searching for valuable collectible toys. Clearly a toy nut himself — his t-shirt proudly proclaims “still plays with toys” — Hembrough relishes spending his days perusing the toy bins for valuable gems.
Listed below are five tips for turning your hobby right into a business inspired incidentally Hembrough has made his toy mania pay:
1. Buy right. Know the real value of your product, and become willing to reserve your own wants. Keep your hobby-self in balance, or you’ll end up getting a closet filled with unsalable stuff.
Sometimes collectors counter-offer and want Hembrough to pay more because of their toy. He’ll often spread the purchase because he knows what toy collectors are prepared to pay for that one item for the reason that condition. He could be dying to possess that toy, but he stays centered on the profit-and-loss realities.
2. Cultivate supplier relationships. Choose creating a strong relationship over making the largest profit. Hembrough isn’t out to rip off toy collectors, as he’s hoping another and visit them again to create more purchases. He approaches each collector with respect, and always asks every time, “Do you want to sell me this?” before he names a cost.
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3. Stick to top of marketing. Getting you message out is simply as important as having good products. When Hembrough requires a risk and makes a big purchase, such as a Star Wars pedal car from the 1980s, he calls his assistant from the street to get her started making marketing calls immediately. With a higher-ticket item, it’ll take more marketing to locate a willing buyer, so he gets to it.
4. Watch the money flow. In the collectible business, it is important to be sure to don’t tie up excess amount in inventory, or soon you do not have grocery money. A lot of Hembrough’s toy purchases are under $20, however the Star Wars speeder was a $750 purchase — even more reason to locate a buyer quickly to get that cash liquid again to cover bills.
Related: 7 Frugal Startup Tips from Millionaire Entrepreneurs
5. Stick to everything you know. Toy collecting is an enormous arena with many regions of specialty. Hembrough smartly sticks using what he knows best and has cultivated a person base for — classic TV and movie-related toys, primarily from the 1980s.
Perhaps you have turned your passion right into a business? Leave a comment and share how you make it pay.