My advice about converting a hobby into a business is, don't think you have to do it all at once if you aren't ready for it (with the exception of things like manufacturing a product that requires injection molding or something where there's really no way to do small quantities economically). You can ease into it and gradually increase your volume (and the expenses and complications that come with it) as you're ready. There is no need to bite off more than you can chew - trying to grow too fast is a big reason a lot of startups and small businesses fail. Keep it slow and steady, at a pace you can manage. Heh, just like feeding a baby snake, right? Don't try to power feed and don't feed a meal that's too big and likely to be regurgitated - let your operation grow with you.
There will come a point when you have to make a decision to give up your day job, and that's a big step. If you're lucky, you may be able to do it gradually too - I was fortunate to be able to gradually decrease my hours at my day job over a couple of years instead of having to make the leap all at once. Aside from the financial reasons, it's also hard to go from having a regular routine at a separate workplace, with coworkers you interact with, etc, to working at home by yourself all day every day even if you're basically doing things you enjoy.
I do know something about this, because that's how I started my business, and I'm happy to share my experiences and what I know... but at this point maybe that discussion is best conducted via PM or email, or at least in the Business or O-T sections?
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