Should you turn your hobby into a business?
So … you make clothes, design websites or take photographs? Should you turn your hobby into a business? You will need time, money and a long-term commitment to run a business. But you should also be able to answer these questions.
- Your product or service – what is its unique point of difference? Does it solve a problem, address a gap in the market-place or offer some tangible benefits to potential customers? Is it protectable?
- The market – who will buy it? Where, when, why and what price will they pay? Have you checked out your competitors?
- The team – will you need employees, contract workers, outsourcers? Do you know how to find and manage them and your legal obligations?
- Distribution – how will you promote and sell your services? Online, retail outlets, via distributors, strategic partners? Do you have a marketing strategy?
- Financials – do you have the funding to support the business until you became profitable? Do you know your break-even point? Are you aware of your GST, tax, legal and other obligations?
- Business plan – do you know how your business will work and how to get started?