You might have never thought about this, but are you a hobbyist or an entrepreneur? There IS a difference between a hobbyist and an entrepreneur, and we are going to take a look at that.

Many successful businesses have been born out of someone’s hobby or passion. This chart illustrates where the differences lie. It’s important to really examine your motives and your thinking if your business idea is an outgrowth of your hobby.

 

It centers around 6 important areas. Let’s look at them:

 

• First, what is your Profit Motive?
  • Making money is an important part of being in business. It’s actually what makes it “a business!”  Your mindset on this can give you a clue as to whether this is a hobby for you or a business. Beyond just making money there is the expectation that you can make a profit. Is there a reasonable expectation that what you want to do can make a profit or is money not really the driving force for you?
• Then there is the Effort and Income involved.
  • Don’t let anyone fool you into believing that being an entrepreneur is easy or necessarily “cheap.” Being an entrepreneur might be one of the hardest things you will ever do, but it can also be the most rewarding if you are an entrepreneur and not a hobbyist. You go into this knowing you will invest significant time and effort, but you are expecting it to generate income. If not then maybe  this is more of a side-hustle you do in your free time and your income will come from somewhere else.
• Then there are Reasonable Expenses.
  • For some, thinking about what it will cost you never enters your mind. You just want to make that widget or provide that service that you are good at without considering the costs involved. So, ask yourself: Are your expenses more in line with what is “normal” or are they more likely based on spending what you want, when you want.
• Then there is your Background.
  • The more depth of experience you have in the industry you want to start a business in, the better. That experience will help you make smarter decisions and remove some of the potential for errors. Where do you fall here: Do you have a track record in this industry and/or a history of making a profit or do you have no industry experience or history of turning a profit.
• Next is Clients.
  • It’s not all that hard to get your friends and family to support your business idea. The real question is: how many outside that circle are wanting what you have to offer? Ask yourself: Do you have a wide variety of clients or are your clients mainly friends and relatives.
• Finally, there is Professionalism.
  • Your records and financials are professional. You have professional marketing materials, business cards and a branded website. The hobbyist is the opposite. Your record keeping, your presentation to the public is amateur or non-existent.

As you look at this, examine your mindset and where you really fall in this comparison. Are you more of a hobbyist or an entrepreneur.

It will make a difference in how you run your business and how successful you can be.

If you feel like you are a hobbyist but you’re ready to transition to an entrepreneur, we are here for you. Our one-on-one coaching will allow us to focus on everything you need to start a business you can be proud of.

Email us and we can set up a time to chat.

rhondaloweconsulting@gmail.com