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Making a living doing what you love doesn't have to be a pipe dream. Here are some tips on turning your hobby or favorite pastime into a profitable business.

FRIENDS SHOOK THEIR HEADS WHEN PATRICK SINCERE Thompson made a dramatic career change 12 years ago. He was pulling in $80,000 as an investment broker for Morgan Stanley in New York when he cashed it all in to work as an intern at a recording studio for $5 a day.

"My mom and others thought I and his current billings are about $1 was crazy," says Thompson, "but it million. His first promotional project wasn't about the money. It was about the experience and the opportunity to do something I loved. I dipped into my savings and just did it. Being successful meant more than having money. [Being] happy meant doing what I enjoyed, and I enjoyed being around the music and entertainment business."

Today, the 31-year-old runs Front-line Marketing & Promotions, based in Harlem, New York, where his clients include artists such as Chico DeBarge, was developing a series of events in New York, Atlanta and Los Angeles to promote R&B singer Erykah Badu's album Baduizm. More recently, he's developed promotional events for HBO, AT&T, Rock Star Games and Sony PlayStation. Not bad for someone so passionate about music he built a makeshift recording studio in his home at age 19.

Thompson is living proof you can turn your passion into profits. Many people dream of getting paid to do what they love. While some dream, others make it happen.

Eight out of 10 small business start-ups are the outgrowth of hobbies or long-term interests, according to Max Fallek, director of the American Institute of Small Business in Minneapolis. Though many small businesses fail, those started from hobbies tend to be quite successful. "When entrepreneurs love what they do, they work harder at it," Fallek notes. "And they convey a positive attitude about their product that gets others excited."

Of course mere passion isn't enough. Before you ditch your 9 to 5 and take your product or service to the marketplace, you have to learn all you can about the business you're planning to start. Will the thrill of your hobby dissipate once it's a daily task? What price should you charge for your product or service? How will you market the business? And how do you weather the pitfalls that are likely to occur along the way? With strategies from business experts and entrepreneurs who have done it, we'll show you how to turn your hobby into a successful business.

KNOWLEDGE IS POWER

How do you know if your hobby or interest will make a viable venture? Entrepreneurs who've made the leap say they do extensive research that goes well beyond the library walls. Attend industry conferences, trade shows and seminars to talk with people in the field and find out what it takes to start the business you're interested in.

"Stop people you know and ask if they'd be interested in buying your product or service," suggests Susan Brandt, a spokesperson for the Hobby Industry Association in Elmwood Park, New Jersey. "Or ask a shop if they would sell your crafts on a consignment basis so you can test the market."

Learning the nuts and bolts of an industry before you hang out your shingle is key. An excellent way to do this is by going to work for a company where you can be trained, and where you can decide if it's truly your calling. It's also a way to make mistakes with no personal financial loss. "I encourage people to get a job in their field of interest," says Fallek. "Many people say they want to sell their product, but they know nothing about sales. Even a one-day sales training seminar at a department store during the holiday season can give you some experience."

As a little gift, Kimberly Lee Minor of Columbus, Ohio, began designing and sewing dresses on her mom's sewing machine. She even designed and sewed her own prom dress. Today, her clothing label, MSL Collection, is sold in boutiques, featured in fashion magazines and earns this 34-year-old $100,000 in sales annually.

But Minor first learned her industry. Before launching MSL Collection in 1998, she worked as a junior executive for Macy's before being recruited by the Limited Corp., where she worked in the planning and allocation and fashion and merchandising departments. As a regional distributor for the company's Express division, Minor was responsible for 200 stores. "I got to [choose] fabrics, styles, colors, lengths, and I got the opportunity to meet with vendors," says Minor. "It was a tremendous learning experience."

A challenge from her mom to "live out her dreams"prompted her to leave the company and design her own dothing line. "As a buyer for the knit tops division, I was pretty much running a $350 million enterprise for the company. I was responsible for product, sales, staff and financial plans. I thought, `Why am I running someone else's business? I can put this experience to work for me.' So I did!"

Joscelyn Wainwright also had exposure to his industry before cutting his entrepreneurial teeth. Wainwright, 58, transformed his passion for African American art into the National Black Fine Art Show: a massive exhibition of African American artists' work attended by thousands of art lovers each winter in New York City. After retiring from the New York City police force after 21 years, Wainwright went to work for Sanford Smith & Associates, a small firm sponsoring antique shows, where he learned the business side of art.

"I started doing security for their art shows, then eventually I became operations director," says Wainwright. "I had a chance to experience the ins and outs of getting shows up and running, from hiring security to interfacing with dealers."

Getting a job or internship in your hobby industry is also a great way to build a customer base. Although Thompson's internship at the recording studio didn't earn him much money, it brought him into contact with artists and executives in the music business. "Back in those days, guys like R. Kelly, Rakim or KRS One would come record there," Thompson explains. "I also got to attend seminars and conferences where I met record company executives."

By working those contacts, Thompson landed jobs at a number of record companies, including one at Polygram Records. "This business is all about relationships," says Thompson. "By the time I started Frontline Marketing, I had enough contacts to use to begin representing artists."

Robin Petgrave didn't intend to start a business. Growing up outside Boston, a young Petgrave would sneak away to Logan Airport to watch helicopters take off and land.

While working as a flight instructor for a small company at the Torrance, California, airport, he gained a strong reputation for his flying skills. His services were in such demand that he had a large clientele when he left that job. "I had no planes, but I had a number of people who wanted me to teach them how to fly," says Petgrave, who opened up shop next door to his former employer.

Now 36, Petgrave teaches others the joy of flying and offers aerial tours of California through his Torrance, California-based company, Bravo Helicopters & Wing, which grossed $3.2 million last year.

THE PRICE IS RIGHT

For all the effort that you put into your product or service, you should establish pricing that is competitive and that will earn you a profit. Brandt says novice entrepreneurs often make the mistake of underpricing their product--especially when it comes to crafts such as jewelry, gift baskets or baked goods.

"Think about how much you want to earn per hour for your labor," says Brandt. "The joy of your hobby can quickly turn to resentment if you realize you're only getting the equivalent of $1 an hour for your product. You have to figure out exactly how much it costs you to actually create the product."

Minor did just that when setting prices for her clothing line. "Everything that goes into a garment has a price. I created a worksheet listing everything from the cost of the fabric to the thread and trim. From that, I get a figure of what it actually costs to make the outfit. Then I add my profit to get the wholesale price."

If you're not sure your price is a fair one, test it on the open market. Shirley Frazier, author of How to Start a Home-Based Gift Basket Business, has been making and selling gift baskets for 10 years through her company, Sweet Survival, based in Paterson, New Jersey.

"I had no idea what to charge when I began making my gift packages," says Frazier. "I introduced them at a craft show to test the buying crowd and myself. During the show, I got to talk with the customers and find out if they thought the price was fair. The show only cost me $60 to exhibit, so it was a good investment to get that kind of feedback on pricing."

MARKETING KNOW-HOW

When it comes to marketing your business, you have to be savvy.