Being passionate about something can often be a terrific motivator, so the thought of turning a much-loved hobby into a money-generating small enterprise can be tempting.
While there are many hobbyists that have successfully turned their passions into thriving businesses, a hobby-based business may have limited market scope and potential, thus making it difficult to support its growth and viability.
If you’re at the cross-road of whether to turn a hobby into a business, here are a few things you should consider before hanging the shingle outside your door, as well as taking into account whether you have that entrepreneurial drive to support your business’ development and growth.
Business Coaching Tip 1: Research, research, research!
Undertaking some research to understand whether or not there is a market for your product or service is vital, as insufficient customer demand may eventually lead you down the path of failure.
- Who is your target market?
- Is there a demand for your product/service?
- Who are your competitors? What makes your product/service unique or better than your competitors’?
- How are you going to advertise and market your product/service?
- How much money will you need to start up and keep the venture operating on a day-to-day basis?
Business Coaching Tip 2: Commitment
How committed are you to putting your plans into action and following them through?
- Are you the type of person who likes to try their hand within a number of areas without any real commitment?
- Would you be the type of person who could easily become distracted by another potential business idea that seizes your interest, without really dedicating any time to seeing your previous idea grow and prosper?
- If faced with a challenge, do you have the strength to work/struggle through it, or do you generally waver and try to avoid arising issues?
Business Coaching Tip 3: Optimism
Are you able to see the positive side and seize positive opportunities when in the grip of a challenge?
- Can you keep your confidence and optimism up, thus motivating yourself and (future) staff if confronted by any obstacles?
When operating your venture it is important that you are able to persevere during the difficult times to ensure your business keeps growing.
Business Coaching Tip 4: Decision Making
If you dislike and often avoid having to make decisions, then establishing your own business may not be the right option for you, as you will be faced with having to make numerous decisions for your small start-up business.
- Should you operate from a home base or a hired business location?
- Where should you advertise?
- How much should you spend?
- What type of marketing campaign should you run?
- What price should you put on your product/service?
Running a business, even if it stems from the hobby you love, will still require you to make real decisions that ultimately have financial implications. You need to consider whether or not you are going to enjoy having to do this.
Business Coaching Tip 5: Marketing and Selling
Running your own business will see you speaking to potential customers and promoting your product/service on a daily basis. This is a crucial element in gaining exposure within the market and hopefully subsequent sales, so you need to consider whether or not you are going to be able to market and promote your product/service effectively.
In summary for those of you who answered a resounding ‘yes’ to the above areas, you may be one step closer to transforming your hobby into a business.
However, for those who have wavered in their responses, you may wish to evaluate whether this is a viable option at this stage.
Do you have what it takes to be an Entrepreneur? Why don’t you take our Are You An Entrepreneur Quiz to find out.
What was your score? Let me know!