Do You Have a Business or Hobby?

So what makes something a business or a hobby?  Let’s take a look.

  • Why are you in business? Is it just for you or are you looking to make a bigger impact? Is your business just about you? Did you just want to work from home so you could have freedom/flexibility in your day for you and my family? Are you passionate about your business or do you have a hobby with a passion?
  • Do you have the right business structures in place? If you are in business you need to get the proper structures in place – taking care of the legal, insurance, financial and tax side of things. What about the marketing? These are the things that many of us dislike and/or try to ignore… and if we aren’t careful they could truly make or break our businesses.
  • Have you invested in a mentor to help you get clear on strategies to build your business? Or are you just winging it? They say that if a lawyer chooses to represent themselves in court, then they have a fool for a client.  Do you have someone to talk to, or are you just continually talking to yourself?
  • Are you making money? If you are in business and you choose not make money, then it is definitely a hobby.  But if you are in business and one of your goals is to make money and you’re not, then regroup and re-examine your business and personal direction.
  • Are you willing to ask for the help you need?  Or are you trying to learn and do everything yourself? There are many folks who try to save money and do everything themselves.  – this is impossible if you want to grow a business. Not only will you run out of time (especially as your business grows) you will not be able to do a good job of everything… and your business will suffer for it. You need to be willing to invest in getting the right team in place.

What else do you think makes something a business vs. a hobby? What has your journey been like?  What do you think?