Do You Have A Business Or A Hobby? Blog

I always thought I had a business.  I remember creating my business in the fitness industry and gaining clients.  I worked very hard.  However, about 3 years ago, I realised I had a been treating my business like a hobby. I didn’t really have any concrete financial goals,  I didn’t have marketing systems in place.  I wasn’t even paying myself all the time.  I paid all the bills first and would scrape what was left over and that was my pay.

Don’t get me wrong, I loved what I did.  It didn’t feel like work but I knew I had to make a change.  I needed to run a profitable business.  That shift in mindset was huge for me and has allowed me to create what I have created today.

Now I am a mentor and coach, one of the biggest troubles I find that entrepreneurs have, is that they say they have a business but they treat it like a hobby.

Here are some questions you answer to discover if you have a business or a hobby?

• Does your business have the purpose or plan to make a profit?  When you start a business, you need to have a money plan.  How are you going to make money?  How are you going to track your money?  What are your financial goals?  If you are sinking everything back into your business and do not look like making any money in the near future, it is more likely you have an expensive hobby.  I understand it does take time to build a business but it is important that you have profit plan in place with time frames.  Otherwise all you do is keep pumping money back into your business and you never make any money.

• How many hours do you spend on your business?  If you only spend a couple of hours on your business each week, it is likely you have a hobby.  That is ok.  Some people enjoy making a few dollars on the side.  But if you are serious about starting a business that will become the major income provider for your family, then you need to dedicate the hours necessary to making that a reality.

• Do you have any marketing plans in place to grow your business?  Again, one of the biggest things I see when speaking to entrepreneurs, is that they have big goals and dreams but no strategic plans in place to make that goal become a reality. In order to grow your business, you need to have a 12 month marketing plan that you follow. If you just do a bit of marketing here or there, that is a hobby.

• Do you have the right mindset to run your business? When speaking with entrepreneurs, I can tell very quickly whether they have a hobby or a business by listening to them explain why they are in business.  If they think small and just want to help a few people, they have a hobby.  If, when they talk to me, they can articulate their vision and are already speaking like a successful business owner, I know they are serious.

Remember, treat your business like a business.  In order to be successful, think, plan, market, save and work towards your business goals.

Would love to hear your thoughts and comments below.