Coaching Tips

Could My Hobby be a Viable Business Idea?

Does your hobby have what it takes to be transformed into a startup business? Or is it just that – a hobby? If you have a hobby it can be hard to figure out whether it could be made into a viable business idea. Hobbies can cloud our judgement because they are usually something we enjoy or are passionate about. If you are thinking about turning your hobby into a business, let’s take a step back and find out whether it is a viable business idea.

Do you want to start a business?

This is the first questions you should ask yourself if you are thinking about turning a hobby into a business. Do you actually want to be a business owner? There is a big difference between enjoying a hobby and running a business. It comes with responsibility and a range of added tasks such as account management, marketing and making sales. Do you want to add these extra tasks to your hobby?

Do you know the market?

Are there many businesses in your area with the same business idea as you? Before investing your time, money and energy into a business start up you should research the prospective marketplace and determine whether you have a competitive edge. You should seek to understand this marketplace fully so that you can determine any problems with your business idea.

Do you have customers who are willing to pay for your product and/or service?

In order to turn your hobby into a feasible business you need paying customers. You need to find out if people will actually pay for your products or services. Family and friends don’t count as customers and are not a realistic way to measure the feasibility of your business idea. If people aren’t willing to pay for your product and/or service your hobby most likely does not have the potential to develop into a business.

Do you have all the components you need to make it into a business?

Before you get dreamy eyed about the prospect of starting up your own business, take a step back and think about the various components you will need to turn your idea into a business. While you may love creating your product and/or delivering your service, will you enjoy the other aspects such as sales, accounting, marketing and product distribution? Do you have the skills or capacity to handle the various facets of a small business?

While turning your hobby into a small business is an exciting idea you should take the time to consider what this would involve. If you are struggling to remain impartial whilst considering whether your hobby is a viable business idea you should talk to a professional business advisor.