Good Sports

Get off the sidelines and into the game! Starting a business based on professional sports could put you in the big leagues.

The crunching of body parts, as 300-pound linebackers slam into each other. The crack of the bat, as Sammy Sosa slams another ball, whipping through the air and into a stadium full of thousands of cheering fans. Millionaire giants lunge for a ball, hoping for the chance to seize a brief moment of glory and win one for the team.

There are a hundred dozen ways to explain the appeal of sports--and yet no way to explain it. You either get it or you don't.

But one thing is for sure: "Sports" is plural; it's almost always about the team. There are a few exceptions, like golf and tennis, but most sports are a group effort. That's why fans always shout "We won," instead of "You won." But as some entrepreneurs know, you can be part of a winning team without being able to pitch a 95-mile-an-hour fastball. You don't even have to paint your face green and scream like a lunatic in 25-degree weather. You can be part of a team by starting a business in the professional sports industry.

Sure, you can focus your company on college sports, where everybody is making money, even the players--or do you think free college tuition and other perks aren't forms of money? Or you might make a mint with a business aimed squarely at the high school or kiddie sports crowd. But arguably, your best point spread comes when you can attach yourself in some way to professional sports, where there are more teams and fans, and where there's more money. In part, that's because it's an ever-changing, ever-evolving industry, says Skip Horween, president of Chicago-based Horween Leather Co., which has been providing leather for NFL footballs since the 1950s. "There are a lot of barriers," he says of entering professional sports, citing a base of established competitors, many of whom are running lean by outsourcing their operations. But on the plus side, "there's differentiation and specialization," more so than in other industries. For instance, Horween, 47, knows of an entrepreneur who sells briefcases, watches and other leather-made gifts, all manufactured from old major league baseball gloves. That type of innovation is rooted in the history of the sports industry.

And so if you want the best odds to create your own winning team, you may hit a home run by starting a business based on professional sports.

From Fan to Fortune

Brian Feeny, 30, has fond childhood memories of watching his heroes slide into home and get crushed into dust near the end zone. "All my friends were into watching sporting events. I think it's a law in western Pennsylvania," says Feeny, who was also influenced heavily by his mom. "My dad wasn't into baseball games, but my mom and I would watch the Pirates, and we'd go to the stadium two or three times a year."

But while Feeny was a sports science major in college, he opted to study business in graduate school. "I thought I could marry the two, business and sports," says Feeny, whose first enterprise had nothing to do with sports. He founded Heirloom Gift Bazaar LLC. "I learned that general gift items is a really tough, tough market. It's more of a shotgun approach, where when you're marketing, you're saying 'I want to find somebody who is looking for gifts.' But it's a lot more focused when you're trying to reach a football fan who wants Pittsburgh Steelers merchandise."

Feeny sold Heirloom Gift, which is still up and running at Heirloomgift.com, and for less than $1,000, he started an online store (SportsFanfare.com) that sells thousands of officially licensed products from universities and professional sports teams in baseball, basketball, hockey, football and golf, as well as from auto racing. As Feeny explains it, "This is the place for the displaced fan. If you're from Texas A&M University or Indiana University, or if you're a Philadelphia Eagles fan, you're probably not going to easily find merchandise if you live far from those venues. If you want a hat or a blanket, you'll have to go online to get it." Preferably, Feeny hopes, at SportsFanfare.com.

And many people are doing just that. Feeny started the company in 2002, when he had a day job as a business analyst at an insurance firm. Soon after, he gave his notice. "It just grew so fast, tenfold what my other business had done," marvels Feeny, who now has three full-time employees. He finished 2003 with around $3 million in sales, and he projects the company will earn nearly $4 million in 2004.

There's no easy answer for how Feeny became successful, of course. Clearly, sports fans are a formidable customer base. He says that a lot of what he does has to do with his knowledge of how to get appropriate placement in Internet search engines, and the odds of him sharing his formula for that are about as likely as the Cubs or the Red Sox ever winning the World Series. However, Feeny says he also recognized that his market wasn't yet saturated. GSI Commerce Inc. is his biggest competitor, selling merchandise through regional sports outlets like Dick's Sporting Goods and national fitness centers like Bally Total Fitness. GSI's net revenue in the third fiscal quarter of 2003 was $47.5 million, if that gives you an idea of just what he's up against. But Feeny says that as big as GSI is, they aren't yet a Barnes & Noble or an Amazon.com. (Feeny had been interested in selling books online, but he quickly realized that it would likely be a lost cause.)

Feeny also notes that it's important to "forge relationships," which he has done with dozens of distributors and manufacturers. It might feel intimidating to work with major companies that distribute officially licensed products of teams, some of which you have worshipped since birth. But even if you feel small, the people you work with aren't going to think of you that way, says Feeny. "If you place a sizable order, they won't care who they're buying from."

How to Be a Contender

So you love sports, and you love the business world, but you're not sure what type of sports business you want to start? Here are but a few ideas:

• Sports fantasy camps: Think City Slickers, only with baseball. These are growing in popularity-they let fans experience what it's really like to play on a professional basketball team, baseball team or what have you; generally, some sort of former professional athlete is on hand to give an aura of authenticity.
• A sports magazine: The title Sports Illustrated is taken, but you could look for an underserved market with a growing fan base and start putting a magazine together.
• A Web site devoted to a sport: You could sell officially licensed products and books on the sport and offer chat rooms, scores, articles and information about said sport.
• Finding and buying a sports-related franchise: Velocity Sports Performance is but one example, and it's an unusual one. The Alpharetta, Georgia-based company, which had 15 franchises across the country at the end of 2003, specializes in training athletes--helping them increase speed, power and agility, while preventing sports-related injuries.
• Sports-themed restaurant or bar: Who doesn't like to eat? For other ideas, simply think of the business first, and then apply sports to it. If you've always wanted a video production company, you could specialize in producing sports documentaries; if you're interested in printing, you could produce inspirational sports posters and sports-themed greeting cards; if you've always dreamed of creating snacks or drinks, veer toward sports drinks and energy bars; if computer games are your thing, specialize in developing sports video games. The list goes on and on.

The Sports Culture

Innovation, market trends, manufacturers, distributors--there are a lot of terms thrown about in the sports industry that you'll also hear in the corporate sector. So while it's obvious, it still needs to be said--a sports-related business is a business. "Once you get past the point of being amazed that 'Hey, I'm working with really tall people in basketball,' you'll realize you're marketing a product like Coca-Cola or anything else," observes Dan Mannix, CEO of LeadDog Marketing Group in New York City and adjunct professor at New York University, where he teaches classes in sports entrepreneurship and sports events tourism.

Echoing those thoughts, former business consultant Jennifer Munro says, "You still have to have the right sales, accounting, the capitalization and management. You're working with the same principles as an accounting firm." Munro knows of what she speaks. She's now the president of corporate sales at Golf Digest Schools in Palm Beach Gardens, Florida, and specializes in hosting corporate programs that bring business concepts and the sport of golf together.

But Munro concedes that while it's a business, the sports industry is "glamorous; it's more exciting, if you're into drama and excitement and visibility. And it's simply more fun."

"The sports-industry crowd is much more fun, and more satisfying [to be a part of], than the corporate sector," agrees Ed Estes, owner of Cincinnati-based DigitalBang LLC. "Of course, I love sports, and that's a big part of it."

Estes' company, which employs seven people, was an all-purpose marketing firm when it began in 1997--until Estes discovered sports. Today, sports-related marketing accounts for approximately 75 percent of his business, which stands to make $2 million by the end of 2004. Estes' first foray into sports was Hoops Frenzy, a software program that helps people run their own men's college basketball contests online. In a nutshell, Hoops Frenzy capitalizes on the office basketball pools across the country, and it makes it easier and quicker for the office pool manager to keep track of scores, teams and who in the pool is winning what. From there, DigitalBang moved on to creating online sports games that customers can play at company Web sites, which offer consumers fun but also ask questions about their buying habits along the way. The company now has products relating to everything from NASCAR to football.

Estes, 38, says it's always a challenge to serve impassioned customers: "You're going to hear very quickly if you get something wrong. If we accidentally input a score wrong [using the Hoops Frenzy software], we might get a dozen e-mail messages. But as long as your answer to your customer is accommodating, people [will] forgive those bumps. Just make sure you are ready to respond quickly when you do mess up."

But even the messing up isn't so bad, because it's linked to a lifestyle and culture that Estes feels passionate about. "This is so much more satisfying than any other industry I've been involved with," says Estes, who used to work in IT sales. "In the corporate world, you're working on what the client needs done, and you often don't feel that great about the product you're working on. But when it's related to sports, because most of us here enjoy sports 24 hours a day, seven days a week, we feed off that satisfaction. And so even though it's a business, suddenly it becomes a much more interesting one when it's spun around a sporting event."

A Hole in One

If your business is a success, chances are good that, at some point, the sports community is going to notice-really notice. Maria Erickson, is president and CEO of Fantasi International, a company known forBette & Court, a clothing line for women golfers. She has 35 employees as well as a couple dozen independent sales representatives working for her. Erickson has had pro golfers approach her to be paid spokespeople for the Bette & Court division--which brings in $8 million to $10 million annually.

Not a bad take, especially considering that her initial investment was only about $13,000 from her savings, although Erickson, 43, says she ultimately had to take out loans to keep the business running in the lean years. "We were definitely operating on a shoestring budget," says Erickson, who's fallen into a few sand traps and made a shank or two over the years.

One such year was around 1996, when she thought "Oh, boy, the market's going great with the ladies--let's get into men's clothing." What she didn't realize at the time was that the "barriers for entry [were] much greater," she says. "The rules of business, the way the business game is played, is much different than the one I had come from. I thought we could take the exact formula and replicate it with the men's [clothing]." We'll resist the urge to make a pun about a clothing company losing its shirt, but Fantasi, based in Hialeah, Florida, did lose "a significant amount of money" because Erickson had plunged into an area of business that she hadn't fully researched.

Add to that the sagging economy of recent years, which hammered away at Erickson's business. "When the economy is tough, golf is a luxury. And when there are corporate layoffs, and you're worried about your job and working twice as hard because you've lost half your staff, the last thing you want to do is spend frivolously on golf."

This is one reason why Erickson's business is still going after new golfers, expanding its female clothing by marketing to senior citizens and even girls. "I think the future is very bright, but you always have to be cautious," says Erickson, which is why she's not likely to join forces with an athlete to promote her clothes, even though her experience with having a spokesperson was largely a positive one. Erickson brought aboard Michelle McGann--who was and still is a force on the Ladies Professional Golf Association Tour--as a paid spokeswoman. That was about four years ago, and McGann represented the company for approximately three years.

For those who are interested in having a celebrity athlete as a spokesperson, Erickson says you can realistically expect to pay an athlete anywhere from $15,000 to $100,000 per year to market a brand. And, of course, you're talking about a scenario of "how much money have you got?" if you want a Michael Jordan type of player hawking your wares. But Erickson cautions, "You really have to look at the big picture and ask yourself 'I've got $40,000--if I spend it here, what are the pros and cons?' Having a celebrity spokesperson could potentially bring you nothing--and if you do lose that 40 grand, then that's 40 grand less that you could have spent on something else." That's an expensive lesson.

But perhaps the most important tutorial is imparted by Munro, who observes, "Just because somebody loves a sport doesn't mean they can necessarily market a business." The subtext here is that you have to love and understand the inner workings of the business world as well.

Mannix, who often meets young entrepreneurs with basketball on their brains, seconds that. "I think the most common mistake entrepreneurs make is thinking 'I love sports, so I want to work with [it].' What does that mean, anyway?" wonders Mannix. "I love cheesecake, but that doesn't mean I should start making it for a living."

Getting Equipped

Dan Mannix is CEO of LeadDog Marketing Group in New York City and adjunct professor at New York University, where he teaches classes in sports entrepreneurship and sports events tourism. We asked him for some ideas on where to turn if you're interested in learning more about starting a sports-related business.

Periodicals

• Street & Smith's SportsBusiness Journal: "A publication everybody seems to get," says Mannix.
• The Licensing Letter: A newsletter, published by EPM Communications, providing news and statistics on the licensing industry. "A great resource for someone who wants to do something in sports licensing," says Mannix.

Web Site

• SportsBusinessDaily.com: Essential reading if you want to stay on top of the sports-business industry. It also has a daily newsletter, The Sports Business Daily, and this, says Mannix, is a venture that's only a few years old-"a perfect example that there's always room for something new in the sports-business industry."

Books

Curiously enough, the two books Mannix considers essential reading for his students are not specifically sports-related books, but they're written by the founder of International Management Group (IMG), considered the leader in sports marketing worldwide:

• What They Don't Teach You at Harvard Business School: Notes From a Street-Smart Executive (Bantam) by Mark H. McCormack
• Never Wrestle With a Pig: And Ninety Other Ideas to Build Your Business and Career (Penguin) by Mark H. McCormack

Fun Money

Whether your passion is pottery, painting or playing video games, there's money to be made from your hobby.

Spending your free time gardening, restoring classic cars or collecting antique jewelry can be a joy, right? It's the thing that renews your passion, the thing that makes you feel that all is right with the world. Wouldn't it be great to find a way to make money doing what you love? Turning your treasured hobby into a business will take hard work and a truckload of creativity, but the rewards are endless. You'll be doing what you love--and getting paid for it.

The benefits of starting a business based on your hobby are many, according to Rachna D. Jain, founder of business coaching firm Excel With Ease Coaching in Columbia, Maryland. "Many times you'll have a lot of knowledge about [your hobby] already," she says. "And the most successful entrepreneurs are the ones who have a passion for the work they do.

Turning passion into profit takes serious work, though. Just because you love making pottery doesn't mean you know enough to create a profitable business from it. Experts and entrepreneurs stress the importance of researching any business idea before jumping in. Denise O'Berry, president of business consulting firm Small Business Edge Corp. in Tampa, Florida, notes that research is one of the most important first steps: "You need a full plan of how you're going to address your objectives. It's all that stuff everybody hates to do."

You may know everything about your hobby, but you only know it from a hobbyist's point of view. Think like a business owner by conducting a market analysis and a competitive analysis to see if existing businesses are similar to your idea. Is there a similar business in your area or nationally?

Next, find out if selling your hobby wares will sustain you. Jain echoes that sentiment: "Once you have a market identified, canvas Internet neighborhoods and invite people to meet with you [for focus groups]." You may even consider contacting a mentor who can point you in the right direction while you're researching your business plan.

Mentors can also offer guidance about what kinds of businesses are a natural fit for your hobby. To jog your brain for any possible business ideas, Jain suggests listing 20 ways you can use your knowledge, skills, talents or hobbies.

Beware of Burnout

Once you've found your passion and turned your favorite hobby into a profitable business, you're home free, right? Not quite. As many a hobbyist-turned-entrepreneur has experienced, burnout tends to set in. Think about it: Once you get your hobby-based business off the ground, you start to live and breathe that hobby 24/7. "You're no longer doing [the hobby] for your enjoyment," O'Berry explains. "You're doing it for your livelihood."

Before you make the leap, you should think long and hard about whether doing your hobby as a business will ultimately drain your enthusiasm for it. According to Jain, you'll have to ask yourself "If I never did this for fun ever again, how much would I miss it? Is it replaceable by something else?"

One way to avoid burnout is to continue learning new things about your hobby. Another is to spend your free time pursuing an entirely different hobby. That's what entrepreneur Steve Edmiston has done for years. In the early 1990s when he ran a law firm, game-making and writing screenplays were two of his favorite hobbies. When he chose to pursue game-making as a full-time business, screenwriting naturally took over as the fun outlet.

In 2000, Edmiston sold his interest in the law firm and launched a Seattle business that manufactured coffee table games. "I had that desire for game creation that had nothing to do with being a lawyer," explains Edmiston, co-founder of Front Porch Classics Inc.

It all came together after he met a few contacts at the local Young Entrepreneurs Organization, who also wanted to start a new business. Edmiston, 41, then decided to join forces with Mark Jacobsen and Mark Pattison, both 41. In 2002, their game, Old Century Baseball, earned the Toy of the Year honor from Disney's Family Fun Magazine.

Currently on Front Porch Classics Inc.'s agenda: marketing Dread Pirate, a treasure hunt game that Edmiston had originally created for his daughter's birthday a few years ago. With sales exceeding $1 million, the hobby has certainly proved to be more than just a game for this trio.

The Next Step

Now that you've done all your research, and you're sure that this is the business for you, how do you get going? Most hobby enthusiasts start their businesses part time.

But still, to project a professional business veneer, there are a few things you should do. Get a separate business phone line, for starters. Says Jain: "Marketing begins at the point of contact. You don't want your child answering [the phone]." You'll also want to set up a professional Web site and get a dedicated fax line (or an e-fax). And make use of some small-business Web site tools, such as those available from bCentral.com, Entrepreneur.com and Jian.com--there, you'll find how-tos and tips on everything from marketing your business to making your Web site e-commerce ready.

In terms of looking more professional, the experts suggest ditching the free e-mail services (such as Hotmail or Yahoo!) and instead paying for an e-mail address and Web site with your business name (such as Alice_Ent@GroovyPottery.com).

Looking professional, however, is not your only concern. Overcoming the skepticism about your hobby product or service will be a big part of your start-up strategy as well. Keep in mind that although you have a vision for the product, communicating that to investors and clients can be a challenge.

Case in point: When Angel Munoz started the Cyberathlete Professional League, an organization for professional computer game players, he faced skeptics from all sides, as investors and even players doubted his vision. This Irving, Texas, entrepreneur fought against disbelievers by remaining unwavering in his devotion to the concept and by surrounding himself with a core group of key people who did believe in his business idea. Because the interactive entertainment industry is so tight-knit, "you can't turn your back on the skeptics," he explains. "I stayed in contact with them and [let them know] about every milestone we accomplished."

This "show-don't-tell" mentality helped win over those early dissenters. When the players scoffed at the idea of a professional league, Munoz, 42, made certain to raise the professional level of events with state-of-the-art equipment and services. His strategy was so successful that his company and the league have grown solely by word-of-mouth.

Though it wasn't easy in the beginning, Munoz started the league to establish standards and rules of play--as well as make some money from his target market, the nearly 145 million Americans who regularly play video games, according to the Interactive Digital Software Association. Having structured his revenue plan around membership in the league, admission to events, sponsorship, and TV and broadcasting rights, Munoz has grown sales into the seven figures.

David Silberman is also a hobbyist-turned-entrepreneur who truly understands the importance of educating your target market about your hobby business. As the founder of Starfish Imports Inc. in New York City, his niche is importing Murano glass. When he started his business in May 2002, Silberman decided to market his concept to as many people as possible--to both Murano glass enthusiasts and the general public.

Silberman, 34, learned the art of purchasing his inventory with a careful, objective eye. For instance, he might choose an item that doesn't fit his personal style, but that he knows would make an interesting offering for his customers.

That willingness to educate customers as well as learn from them has helped Silberman grow a glass importing business based on his love for Murano glass stemming from his childhood. Today, he continues to glean new knowledge from customers. For instance, although Silberman initially focused his marketing efforts on people in urban areas, he was surprised to find orders coming in to his Web site from places like Arkansas. "I learned there are more customers out there than I previously thought," he says. To further expand his customer base, Silberman is looking into wholesaling to specialty boutiques as well as selling via his Web site. That wide range of customers has helped Silberman grow his business to about $120,000 a year in sales.

For More Information

Check out a few of these books and organizations to get the heads up on your hobby business.

• Association of Crafts & Creative Industries: a craft industry organization with information, statistics and more
• The Complete Idiot's Guide to Making Money with Your Hobby (Alpha Books) by Barbara Arena and Phillip L. Reed
• Hobby Industry Association: sponsors the HIA Convention & Trade Show, a national trade show for hobby industry businesses held in January
• ihobbyexpo.com: the official Web site for information on the 2003 International Model and Hobby Expo, to be held September 11-14 in Rosemont, Illinois. The site also includes links to details of past shows.
• TheHobbyPortal.com: a directory of hobby industry Web sites with categories like antiques, arts & crafts, cooking and so on
• You Can Make Money from Your Hobby: Building a Business Doing What You Love(Broadman and Holman Publishers) by Martha Campbell Pullen

Long Live the Passion

Once your business is up and running, you'll have to strive to keep your love of your hobby alive. Says Jain, "[It's about] constantly pursuing higher knowledge to keep it fresh." Visiting trade shows, conferring with experts and exploring new advances in your hobby can keep that passion burning.

Sara Brook was keeping her love for cooking alive long before the start of her Dessert Gallery Bakery & Cafe in 1995. A veteran entrepreneur, Brook has built three businesses based on her hobby. "Keep it alive so you'll stay great at what you do," she says. "For me, that may have [meant] taking classes, reading or trying new desserts or finding new recipes."

With a degree in computer science, Brook, now 40, decided while in college that baking was her love; she opened her first dessert baking business after graduation at age 21. Six years later, she sold it and created a chocolate sauce manufacturing company. Six years after that, she sold that business to try her hand at an entire bakery and opened the Dessert Gallery Bakery & Cafe in Houston. "Having had two successful businesses before, I felt like this would be the culmination of all I had learned," she says. "I like to think it's my best effort."

Brook's efforts to freshen her concept have included adding some peripheral items to a menu that once included only desserts. "[Those items] were really in response to customer demand. I certainly never dreamed in a million years that I'd have sandwiches and wraps and salads--'real food,' as I call it," says Brook. "It's opened a lot of doors for us because corporate catering is a huge market." With $1 million in sales projected for 2003, Brook's instincts have paid off.

As these entrepreneurs have found, a passion for a hobby can help you start a business. But ultimately, hard work and a willingness to handle the not-so-fun aspects of running a business are what spell success. Done right, your hobby business can provide you with a great living--and an even greater source of joy. "For seven years I've been running the company," says Munoz, "and I am as enthusiastic about it today as I was the day I started."

Not-So-Trivial Pursuits

Stumped about what kind of business your hobby might make? Check out these hobby-type businesses--they'll either work for you as they are, or at least get your creative juices flowing to help you make a decision.

• ANTIQUE-RADIO COLLECTING:
  If you have a talent and passion for antique radios or record players, you can restore these pieces or sell your services to other less handy collectors.
• COMPUTERS:
  If you love computers and the Internet, you can sell your services to help people set up their computers. You can even start a Web design business.
• COOKING:
  Love to cook? Start a catering business. You might also specialize in one food--custom-made cookies or cakes, for instance.
• EXERCISING:
  If you love to exercise, you could become a certified trainer and sell your services to help others reach their fitness goals.
• FLOWER ARRANGING OR PRESSING:
  Try pressing flowers into pictures, picture frames, cards, stationery or other gift items to sell.
• MAGAZINE COLLECTING:
  Do you hoard magazines such as Cosmopolitan? Peddle them on eBay--issues with a famous person on the cover can fetch high bids from fans.
• PET CARE:
  If you love spending time with animals, open a dog walking business or a cat grooming service. People love pampering their pets but don't always have the time.
• PHOTOGRAPHY:
  Sell photographs, create and sell greeting cards with your photos or sell your photography.
• SCRAPBOOKING:
  Love putting memories together? You could sell your scrapbooking skills to others--make money while you preserve their memories.
• VIDEO GAMES:
  Consider opening a computer gaming arcade, which is similar to an internet cafe, but with games as the main focus, not just the Net.
• WINE COLLECTING:
  Sell a peripheral product (such as an innovative wine storage system) to other wine connoisseurs.

How to Freelance Your Expertise

If you're tired of being on the employee treadmill, now may be the best time to consider freelancing your hard-earned skills.

Are dreams of freelancing dancing through your head? If you're nodding yes, now's a great time to give it a whirl. As companies scale back on their expensive, benefit-heavy workforce, they're increasingly turning to outside--freelance--help. If you've got expertise in the right areas, there's a good chance you can parlay it into a freelance career by sharing your knowledge and skills with a variety of clients.

Let Freedom Ring

There's no question about it; freelance doesn't start with the word "free" for nothing. Freedom is a major perk of freelancing. As a full-time freelancer, you'll work when you want. You can take vacations when you want, for as long as you want. Weekend getaways won't have to be confined to weekends, and business suits are mostly a thing of the past. There's no boss breathing down your neck, nagging you. And there are no irritating co-workers slacking off at the water cooler, driving you nuts.

But in exchange for all those freedoms comes risk and insecurity. As a freelancer, your next paycheck is never guaranteed. Anxiety about where the next job is coming from plagues many freelancers, no matter how seasoned. But insecurity comes with the turf, and dedicated freelancers learn to make peace with it.

The best way to ensure your freelancing future is to offer a service you know people want. Just because you'd like to do something doesn't mean that there's a readymade market for it.

"'Follow your heart and do what you love' is just a slogan. You need to get real," says Kelly James-Enger, author of Six Figure Freelancing . "If you're not offering a service people are willing to spend money on, you're not going to be in business [for long]."

Search your local paper and the Internet to see who's doing what you want to do, what they charge and who their clients are. Talk to everyone you know until you turn up freelancers doing what you hope to do. Then call them up and pick their brains about which segments of the market are growing and where most of their work comes from. This information is critical to helping you carve out a niche and fill a current opening in the market.

Think about this: Ten years ago, web designers made a pretty penny freelancing their services to corporations, but today the demand has lessened as all those laid-off dotcomers have created a glut in the market. On the other hand, small-business owners are more keen then ever to learn web design themselves, as are retiring baby boomers, so teaching web design may prove more lucrative than doing the actual design work right now.

Don't Quit Your Day Job--Yet

Once you've decided what aspect of your field to freelance, take the time to establish yourself. "The biggest misconception people have is that they're going to jump right into it and start making money," cautions Laurie Rozakis. "Not true. Just because you build it doesn't mean they'll come."

Rosakis, who is a freelance writer and editor, and the author of The Complete Idiot's Guide to Making Money in Freelancing , says it can take months--even years--to develop a reputation and client base. For that reason, many freelancers start by moonlighting while still holding on to their day jobs.

"Everyone thinks it's going to happen overnight, but I don't know a single freelancer who immediately started making a six-figure income," maintains James-Enger.

A good rule of thumb is not to give up your day job until you have between six months and one year's worth of savings, more if you're the sole support for your household. "Don't leave your job until you're confident you can pay your mortgage and healthcare and put money into a retirement account," James-Enger advises.

Of course, moonlighting while working for your current employer can be tricky-especially if you're freelancing in the same field. Let's say you're an advertising copywriter who wants to start freelancing on the side. You'll probably need to tell your employer, who may require you to sign a noncompete agreement in which you promise not to steal, or "borrow," clients. If, on the other hand, you're an advertising copywriter who wants to do freelance Japanese translations, your employer probably doesn't even need to know what you're doing after hours.

Generating Business

As in any business, your freelancing career is only as strong as the sales you make. Finding clients is the number-one challenge for any freelancer just starting out. It's almost a catch-22: How do you attract clients when you've never had any? Here are some practical steps that will propel you out of the conundrum and into business:

1. Develop a portfolio to demonstrate the scope of your skills.If that means working for no pay or low pay initially, do it. Samples of your work will be your best calling card.
2. Tell everyone you know--colleagues, friends, family, neighbors--about your new freelance gig. Referrals will make up the bulk of your business initially.
3. Join professional organizations--online or in the community--that serve your field. In addition to all the other benefits you'll gain, you'll also pick up insider tips of where to find work.
4. Join local organizations, like the chamber of commerce or Rotary club. "Creative people often overlook organizations like these, thinking they'll be filled with stiff bankers and businesspeople," notes James-Enger. "And they may be--but that's who'll be hiring you to do your creative work."
5. Volunteer in the community doing something you love , and you'll broaden your network of potential clients.
6. Cold call. Yes, everyone hates cold calling, but the reason freelancers need to do this is because it works.

Another important point to remember is that freelancing doesn't solely mean doing the thing you love. It also means knowing how to sell and market your services. When starting out, about 90 percent of your time will be spent on sales and marketing tasks. "Work won't just stumble upon you," says James-Enger. "You can be as talented as anything, but it won't mean a thing if you can't sell yourself."

Rozakis agrees. "A lot of people go into freelancing thinking, 'I've got the talent.' What they need to realize is a lot of people have talent. What makes a successful freelance business is how strong your client list is."

And building a client base requires that you plug away tirelessly without getting discouraged. Expect rejection. It comes with the territory--and often. But don't let that stop you from trying again.

"Think of a salesperson at The Gap who gives you a pair of pants to try that don't fit," says James-Enger. "A good salesperson doesn't sulk away, dejected. She hands you another pair and another pair until you buy something."

Get Serious

When you see that you're starting to make enough money that your freelancing is becoming a viable career, it's time to start putting the business building blocks in place that will ensure that you--and your clients--take your business seriously. That means going beyond ordering hot-looking business cards.

No matter what your field, contracts are important. Many freelancers overlook developing their own, instead letting clients design contracts or foregoing them altogether. That's a mistake--and it can be a costly one.

"Protect yourself," stresses Rusty Fischer, who wrote Freedom To Freelance . He recommends checking out contracts used by other freelancers you know, so you can borrow the best of what they've got and incorporate those ideas into your own contract. Then run your contract by a lawyer to make sure your rights are protected. "It's well worth a few hundred bucks to get it right," he notes.

Establishing an accounting system is also imperative. Not only will it help you keep track of what you're due, but it will simplify your life. Freelancers are on the IRS radar anyway, so good record keeping will give you peace of mind and make any possible future audit less painful.

"Get a great accountant or [take a] community college course and learn software programs like Quicken to keep your books," Rozakis recommends. "You skip this aspect of the business, and you'll be very sorry."

Depending on your industry, having a website may be helpful in marketing your services. If you have visual examples of what you do, say landscape design or theatrical costuming, a website will act as a portfolio and introduce your work to prospective clients. (Websites are obviously less useful to freelancers without visual examples, say, home inspectors or medical billing administrators.)

Know Thy Self

One of the most important decision you'll have to make before fully committing to running a freelance business is to determine if this type of lifestyle matches your personality. "Know thyself," says Rozakis. "Really think this through before you make a commitment to a lifestyle and work style you just may not be suited for."

And while you no longer have a boss, you do have to answer to someone--yourself. That's why self-discipline is key to taking your freelancing gig from an interesting hobby to a viable business. "It really helps to be a Type A personality because you have to be able to motivate yourself and manage your time," says James-Enger. "You can't be a slacker and have a successful freelance career."

Tempting as it may be to cut out mid-afternoon for a movie or a walk with the dog, most days those kinds of things just aren't going to happen. "Not only will you normally work way more hours per week as a freelancer, but your schedule probably won't wind up being as flexible as you think," warns Fischer. "Most of your clients are working regular hours, from 9 to 5. Being available to them means that most of time, you'll be working very regular hours."

The freelance life is a solitary life. If you're someone who feeds off the energy of other people, freelancing may prove too lonely a road to travel. Fortunately, for those who seek them out, there are solutions to the lack of daily social contact. Many freelancers fill their need to interact with other people by taking on-site freelance gigs, where they work--at least temporarily--among other people. Others turn to freelancer support groups where they meet once a month over a cup of coffee to swap tales of glory and woe. And others work on collaborative projects with other freelancers.

It takes time to grow a freelance business; it takes time to establish yourself; and it takes time to make money. All of this can be nerve-wracking and cause countless sleepless nights. But with talent, patience, tenacity and a touch of luck, freelancing can be among the most rewarding--and lucrative--ways to make money.

"Would I ever go back to working for the 'man'?" laughs James-Enger. "No way. For all the struggles and unknowns, I wouldn't give up freelancing and be somebody's employee for anything."

Freelancing Options

Think the freelance life might be for you? The good part is, if you do it, there's a good chance you can freelance it. Here are some of the most frequently freelanced gigs around:

• Accountant/bookkeeper
• Appraiser
• Cartographer
• Chef
• Computer programmer
• Corporate event planner
• Data entry/processor
• Editor/copyeditor
• Engineer
• Esthetician
• Film animator
• Financial planner
• Floral arranger
• Fundraiser
• Furniture restorer/repairer
• Grant writer
• Graphic designer
• Home inspector
• Interior designer
• Landscape architect
• Massage therapist
• Medical administration (billing)
• Package design
• Party planner
• Photographer
• Political consultant
• Private investigator
• Professional organizer
• Sales/marketing consultant
• Seamstress
• Set designer
• Telemarketer
• Translator/interpreter
• Tutoring
• Upholsterer
• Web designer
• Writer

All That Glitters

Dreaming of starting your own jewelry business? Be prepared--it's more elbow grease than glitz and glamour.

It's making something glittering and beautiful. It's creating a sparkling necklace or a pair of earrings. It's designing and manufacturing jewelry to your heart's content--while making profits at the same time. Think you can handle the glamour of running a jewelry business and seeing your creations adorn the rich and famous? Then prepare for the serious hard work it will take to get established.

"Sometimes [jewelry entrepreneurs] try to go too big, too fast," says Ann Barber, director of membership benefits at the National Craft Association, a professional trade association in Rochester, New York, for the arts and crafts industry. "One way to start is doing craft shows so you can get direct customer feedback." It's not just about setting up shop with your wares and expecting people to buy them--it's about researching the styles people buy, the prices they're willing to pay and what works in a particular geographic area. A key to success in the jewelry business? "Make sure your designs are unique," says Barber, "not something you can buy everywhere."

Once you set yourself apart as a hot jewelry designer, you'll be ready to approach trendy boutiques to carry your wares. First, create a catalog of your designs or sell sheets with your designs and wholesale pricing information. "Send the packet to the buyer from a particular shop, and then make an appointment to meet," says Barber. Many buyers have specified days and times to meet with new jewelry vendors. According to Barber, "When you go in, have everything ready on [your] order form so you can speed right through the process."

When Maya Brenner of Maya Brenner Designs in Los Angeles started designing jewelry part time in 1998, she successfully got the attention of a boutique owner. While shopping one day in New York City (her former home) and proudly wearing her creations, Brenner was spotted by the owner of a trendy boutique, who noticed her jewelry and ordered some on the spot. After that exposure, Brenner found a sales rep, and today her designs are in boutiques like Fred Segal as well as online at www.girlshop.com, pushing sales to about $200,000 annually.

Brenner, 34, who has even seen her jewelry adorning actresses Debra Messing, Rebecca Romijn-Stamos and Reese Witherspoon, found one of her biggest challenges was transitioning from manufacturing everything herself in the wee hours of the morning to calling for outside help.

Deciding when to expand depends on your volume, say experts. "The decision is dependent on your skill level, production size and cost-effectiveness. If you cannot make your jewelry by yourself well enough or fast enough, then you need to outsource," says Cindy Edelstein, founder of the Jeweler's Resource Bureau, an education and marketing consulting firm for jewelry designers based in Pelham, New York. "There are contract shops in many major cities, and many work by mail as well, so you don't have to physically be there."

In fact, the world of jewelry design is rife with options. In terms of what's hot, be aware of the fashion trends in your area. Edelstein notes that upcoming jewelry trends include a return to yellow gold (a rollback from the all-white gold and diamond phenomenon) and the addition of lots of color. Beads, stiletto earrings and layered necklaces are also heating up. But, warns Edelstein, "Long-term success comes from developing your own unique style through which you can interpret the ever-changing tide of trends." Bottom line--if you can dream it, it's a good bet that someone will wear it.

A Jeweler's Toolbox

Want to find out more about the jewelry industry? Cindy Edelstein of the jeweler's resource bureau suggests the following sources for information on the subject:

• American Craft Council
• Crafts Business
• The Crafts Report
• Jewelers Vigilance Committee
• Jewelry Design Professionals' Network
• Jewelry Information Center
• National Jeweler
• Modern Jeweler
• Women's Jewelry Association

Starting a Business as a Interior Designer or Decorator

Got a flair with furniture and a knack for cool color combinations? You might want to think about putting your design talents to work.

From private homes and yachts to commercial and government buildings, interior decorators and designers dress up the inside spaces of just about any place you can think of. They work with all kinds of furnishings, fabrics and building materials, and increasingly use computer-aided design software to design settings that give a new place its character and bring new life to existing residences, workplaces and public settings.

Both decorators and designers need to have a sense of color and balance or proportion, an ability to communicate through graphic presentations, and a positive attitude toward change so they can keep up with design trends while still being responsive to their clients' desires.

Interior decorators can--and often--do their work without formal credentials, but to call yourself an interior designer, you may have to have formal certification: More than 20 states require a state-issued license. Even in states that don't require a license, larger clients and most interior design or architectural firms are apt to insist on certification by the respected American Society of Interior Design. To get this certification, you'll need to pass an exam given by the National Council of Interior Design Qualification (NCIDQ).

To qualify to take the exam, you must have a combination of six years of design education and full-time work experience in the field. And don't think you're going to be tested on the best color combinations for an active child's room or the definition of the word "toile." Interior designers need to know whether it's possible to knock down a wall without damaging the structure of building, what's required to meet building and fire safety codes and how to do space planning.

Because of the tough licensing requirements of the interior design field, interior decorators tend to work more often in residential settings while interior designers work in both commercial and residential arenas (though they're apt to specialize in one or the other).

Decorators and designers charge for their services in several ways. Some request a flat fee for design work. Others bill by the hour, at rates ranging up to $200. Still others add a service charge of approximately 20 percent to the cost of items they buy for clients, such as furniture, fabrics and floor coverings.

Someone wanting to start a business decorating interiors can enter the field without the formal education required for certification by pursuing one of these paths:

• Taking a correspondence or distance learning program, like those found on WorldWideLearn. (Most of these programs don't meet the formal education requirements required for taking the NCIDQ examination or for most states' licensing.)
• Buying a franchise though a company like Interiors by Decorating Den. Initial and ongoing training are both provided as part of the franchise package.

Marketing a decorating or design practice is not unlike marketing other local services businesses--the best ways to drum up business include networking in organizations where there are potential clients or sources of referrals, gaining recognition through publicity and speaking engagements, generating referrals from satisfied customers and having a web site.

If you're interested in learning more about this field, check out the many links available at these two sites:

• HomeFurnish.com
• International Interior Design Association