Is it Worth Turning a Hobby Into a Home Business?Many home businesses start out as being a hobby. People have been saying for years now about turning your passions or interests into a home based business. In most cases it's easier said than done. If your home business isn't planned out well, the hobby you once was very passionate about could turn into a financial nightmare.
Ask yourself these 7 questions before you transform yourself from hobbyist to entrepreneur.
1. Do I have enough knowledge, skills and experience?
You are considered the expert. You will be in many roles from decision making, communicating, marketing, troubleshooting, accounting and so forth.
2. Do I have a product or service that is marketable?
You can have a brilliant idea or a hobby you love doing, but is it something people want or need or is it an answer to someone's problem? Test your market to see if this is a product or service that is in demand.
3. Do I have the capital/finances to start my business?
Some businesses require a lot or little start up costs. Be realistic because you have to put something in to make some money. Also take note how long will it take before you see a profit. You don't want to be struggling with money when you're building your business.
4. What is my business plan?
A written business plan is essential to all entrepreneurs. These are your projections of short-term goals and some long-term goals, strategies, mission statement, specifics of your business and so on. Refer to it often to make necessary changes.
5. How much time can I commit to this?
Starting a new home business takes a lot of time, long hours and commitment. The truth is you will be sacrificing something while you grow your business. How will you balance family and your new business?
6. Who is my competition?
Knowing who your competition is and knowing what their products or services are will help you tremendously in setting yourself apart and what you can do better in your business that will be attracting the same customers as your competition.
7. Do I need to build an online presence?
Even if you're a local home business you want to build an online presence for the reason there's money to be made. It will depend on the type of home business you have. Just think of the potential customers you could be attracting if you can ship your product anywhere in the world. It's also a time saver for you if you have all your business information online accessible to anyone 24/7.
These are just a few of the many questions that require answers before you think of turning your hobby into a successful and profitable home business.
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