Is it a business or a hobby?
Many clients approach SCORE with ideas derived from established hobbies. Before investing large amounts of time and money to launch a new business the owner needs to consider whether “It’s a realistic business opportunity or an expanded hobby”.
The dream of earning a living doing what you love can be a strong entrepreneurial motivator. However, before “taking the plunge” you need to address the fundamental question, “Can my hobby become a sustainable business and am I the right person to launch it?” Turning your hobby into a successful business means a conversion from an activity you enjoy doing to something you must do --- even when you aren’t inspired.
Below are certain basic questions to be considered.
- Will you still enjoy your business when you may have to devote 50 - 60 hours per week managing it?
- Is there a commercial market for your product or service? Is the market large enough to support and sustain your business?
- Do you have the requisite business skills e.g. accounting, sales and marketing and operations to create and sustain a “scalable” business?
- Will you be able to acquire the necessary startup capital to grow the business to and beyond a breakeven cash flow point?
- Do you have a clear understanding of your product or service costs and market pricing to enable you to determine potential profitability?
- Are you in the right stage in your life to undertake a risky career move?
There are many other issues to be explored and you are urged to work with a SCORE mentor who will guide you in creating a well-thought out business plan. This plan should help you determine if there is a strong business case for your hobby. Statistics show that entrepreneurs who create an effective business plan have a strong record of success.