Can Your Hobby be the Next Business Idea?
Many stories of entrepreneurial success started out as hobbies.
Is there something that you enjoy doing? Have you considered the possibility that you can earn a living from doing it? Is managing your own business right for you? These questions are the first step towards the proverbial pot of gold at the end of the rainbow.
Sep 14, 2009Stop! Don't get excited. I don't mean to rain on your parade but this first step of asking the question could quite possibly be the most important step since this is where you need to determine if self employment is right for you and can your hobby actually make money. In other words is there a market for your product and do you have the passion, drive and ability to find that market?
I am not talking about just day dreaming on the seashore. I am urging you to take a long hard look at yourself and your potential product or service.
The first question you should ask yourself is, "Am I a finisher?" What do I mean? There are many talented people who have the ability to be good at any number of things and are persistently starting new projects but are involved in so many things they cannot complete one. Owning an emerging business calls for 100 percent commitment and the willingness to see it through even when the going gets tough. It is important to note that while a hobby or an occasional pastime are fun diversions from the everyday humdrum a business can become your everyday humdrum. Owning a business is very hard work.
In her article Fun Money in Entrepreneur Magazine, Nichole L. Torress says, "Turning passion into profit takes serious work... Just because you love making pottery doesn't mean you know enough to create a profitable business from it." Does the idea of sales make you cringe? Asheesh Advani, president of Circle Lending, a loan administration company that facilitates personal loans, small-business loans, and mortgages raises this question in an article on the entrepreneur.com website, Should You Turn Your Hobby Into a Business?
He said, "When I interview candidates for a position at my company, I ask them how they feel about selling. Some of them inevitably shift in their seats and give a half-hearted answer that they do not mind selling when they are asked to do so. Other candidates brighten up and persuade me that selling is a natural part of any job - even if they have never had a sales job. As an entrepreneur, you work in sales. You will have to sell your products, sell your vision for the company and sell yourself. And you will have to do this every day, multiple times. And you will enjoy it - that is, if you are suited to be an entrepreneur."
Great you have determined that you have what it takes personally to be an entrepreneur. Congratulations. Now it's time to research your market. Can your product be sold? Who will buy it? What exactly do they want? Sherrilene M. Collymore of HQ2 in her presentation: An Excellent Life in the New Caribbean Business Environment said, "You know that you are competitive when you have taken a critical look at the market and determined that there is a demand for what you are offering and that you have the requirements to fulfill that demand."
The importance of market research cannot be underestimated. It provides you with everything from the decision to go into business to how to position your product or service to have that competitive advantage.
Keerti Melkote, Chief Technology Officer and Director of Aruba Networks, Incorporated said in a monthly Syracuse Technology Roundtable that, “Some of the most important work in starting a business is done before hiring a single employee or even before formally incorporating a company… Customers will lead you down a path,” he said. “They’ll tell you what you want to hear. It all depends on how you ask the question. In this space, you have to be brutally honest with yourself.”
Your research does not have to be high tech. It can be basic potential customer interviews and in the Caribbean this can be an informal conversation over drinks. It depends on the type of business you are considering and who you need to talk to. Don’t cut corners. Interview as many people and ask the probing questions.
Finally, do you have the finance or can you source investment for your business idea? Where will you get the seed capital from? This can sometimes be a crippling question. But if you believe in your idea and you have done the leg work, chances are someone else will. Be sure to use all that valuable information you garnered in your market research and launch into the second phase of your ground work? What are the financial and human resources you will need to make your business a reality. Research investment potential opportunities and be prepared to see your idea.
Regardless of whether your hobby is baking cakes, building computers, transportation services, tours and travel or laundry services you will need to incorporate the elements of this article before you make that giant leap. Self introspection and research.