Both are a labor of love, both are SUPPOSED to give you joy, and both have potential to make money. So how do you tell the difference? How much does it really matter? In this article, I’ll explain why this distinction of “business or hobby” could make or break your success.
This may strike you as a strange question. Depending on how much energy you’ve invested into your hustle, it may even come across as insulting. Knowing what sets the two apart, however, is vital to the survival of your business!
After answering some of the questions I ask you below, you may begin to reassess your entire business structure. You could even drastically change your priorities.
Online business owners – and even coaches – can easily “open their doors for business” without a firm business plan in place. Some may test the waters to see if they attract any clients.
They start out doing this online work as a side gig while still working their full-time job. So, if this is how you opened your business, do you have a business or a hobby?
Business or Hobby… Which is it? How can I tell?
Traditionally, a hobby is an activity that brings you pleasure that you do in your spare time. A business, on the other hand, provides a service or products to clients.
Aside from that, it has regular business hours and strives to make a profit. Here are some questions to ask yourself to determine if you are working a business or a hobby:
Are your business hours firm and well-planned, or are you working sporadic hours whenever your family or full-time job allows?
Do you make the most of your business hours or work time, working as efficiently as possible, or do you get distracted by social media or other behind-the-scenes tasks?
Do you have a business plan, even for one year, which includes expected profits?
Are opportunities something that you make happen, or do you wait for them to come to you?
After clients pay, do you withdraw every little penny? Or, do you give yourself a pay structure and reinvest some of your profits into software, training, or other business expenses?
You should have an idea now about if your business is truly a business.
Hire a Business Coach to Guide You
Not everyone needs a business degree to start a business; sometimes a unique product idea or a strong desire to offer services is enough to get started. However, hiring a business coach is necessary to set up your company to grow and generate profits.
You don’t know what you don’t know. Without a business coach, you will make many trial and error mistakes, some of which could cost you substantial money.
Instead of closing your eyes and hoping for the best, a business coach will create a business plan with you and will guide you through the next steps of the plan with tried and true business advice and strategies.
A good business coach also serves as your accountability partner. You need someone who wants to hear from you about your progress, and who will have the guts to call you out when you don’t do as you promised.
Often, knowing someone is expecting results is enough to spur people into action because they don’t want to let down the coach.
So, if you want to turn your hobby into a true business, let’s chat!