The Hobby/Business Dilemma

Well friends, there is a real "catch 22" that occasionally comes up when we start a new business. We all know that the best business people are those who absolutely love what they do. They get out of bed in the morning excited because they find pleasure in their entrepreneurial endeavors.

So should we try to make a business out of the hobbies we love so much? Will we eventually get burned out and start hating our hobby? Or could it be the perfect path towards the best way to make money we could ever ask for?

If you have decided to start turning your spare time enterprises into cash flow, here is an article from the National Federation of Independent Business that could help. The NFIB is a solid and trusted resource for small business people.

Turning Your Hobby Into a Business
01/ 24/ 2007

Do you have a product or service that you enjoy offering to grateful friends and family members? Perhaps you've been thinking lately that going professional would be a great way to earn some extra money, or even start your career as a small-business owner. While many successful businesses have been built on a hobby's foundation, so have many failed ones. Here are a few precautions--and tips for proceeding if you decide this is the right move for you.

Precautions

Loving what you do isn't enough. What are your reasons for wanting to turn your hobby into a business? If your only reason is really enjoying your hobby, this simply won't cut it. While having passion for what you do can be a factor in running a successful business, there are so many other considerations in starting up and running one. Also consider that even if you love what you do, running a business will still be work, and you may find yourself loving what you do less and less when you're required to do it instead of wanting to.

Make sure the logistics work

Let's say you edit and offer suggestions on your friends' term papers and are thinking of offering your services campus-wide for a fee. How long does it take you to read and critique a single paper? How much time could you devote to this enterprise without affecting your own studies? If you took on more essays, would you still be able to offer the time and care you're currently taking, which is what makes your service valuable? Could you charge enough to make it worth your time? Figure out all the pertinent logistics before leaping ahead.

Scope out the competition

Sure, your friends might love the mittens you knit them at Christmas, but that doesn't necessarily mean they'll be willing to pay for them. Take a trip to the businesses in your area that offer the same services. Compare their pricing with what you're planning to charge and compare quality, too. Can you offer something the competition lacks? If not, it might be hard to draw existing customers away.

Proceeding

Don't skip any steps. Even if you've been at your hobby for years, going into business with it is still an entirely new venture. You'll need a business plan, including cost and earnings projections, space and supplies needed, and so on.

Enlist friends and family to help with the transition
Making the people close to you part of the business launch perhaps will alleviate some of the tension you might feel over asking them to start paying for the services you've always given them for free. Ask them for testimonials and other marketing help. You can offer them a discount for their help, which could further dissipate any awkwardness.

Manage your time like a professional, not a hobbyist
When this was your hobby, all you had to think about was making the product and perhaps filling a few orders. Now you need to think like an entrepreneur, budgeting time for all aspects of your business, such as research and development, marketing and more.

Turning your hobby into a business can be a great thing. You likely have a built-in customer base who knows you're passionate about your offering and will happily help you spread the word. Just take the necessary steps to ensure that your passion can sustain all the headaches (albeit often rewarding ones) that come with owning your own business.

When Inspiration Hits You!

The great motivator Earl Nightingale said "Everything begins with an idea". You probably get them all the time. But are they all worth pursuing?

Here is an article from our good friends at articlewiz that might help you find the answer.

How Good Is Your Big Idea

By: Tim Knox

Q: I want to start my own business. I have tons of business ideas that all sound great to me, but my husband is not so sure. He says that we need to figure out a way to test my ideas to pick the one that has the best chance of succeeding. I’m ready to just pick one and go for it. What is the best way to determine if a business idea really is as good as it sounds?
-- Hannah C.

A: Heather, I know you probably don’t want to hear this, but your husband is right (first time for everything, huh): before you just pick a business idea and go for it you should test the feasibility of your ideas to make sure they really are as good as you think they are.

Every business idea, no matter how good it sounds while bouncing around inside your head, should be put to the test before you invest time and money into its execution. Success lies not in what you think of your idea, but what the buying public will think. Many entrepreneurs find out too late that the public’s opinion of their idea differs greatly from their own. Wasted time and money aside, the last thing you want to do is hear “I told you so!” from your husband, so take a deep breath, slow down, and let’s look at the ways you can test the feasibility of your idea.

There are many ways to test an idea’s feasibility, though some ways are not nearly as effective or accurate than others. Most people start out by asking everyone they know what they think of their big idea. This is a good way to start the wheels turning because you may get feedback that you have not considered before, but be warned: this is NOT the best way to test the true feasibility of an idea. Never start a business simply based on what your friends and family think.

There are two things that will happen here. First, your mother will tell you what you want to hear and your best friends will be equally kind. No one who really cares for you will want to rain on your parade no matter how insane your parade might be, so take the wisdom you gain here with a hug and a grain of salt.

On the flip side, your coworkers and casual acquaintances will probably tell you the opposite of what they really think. If they think your idea stinks they’ll tell you it’s great and if they think your idea is great they’ll tell you it stinks. Please don’t preach to me about human kindness. Human kindness is often bested by human nature and we humans, by nature, are an envious lot. We hate to see anyone doing better than we are doing and we hate to see anyone who has the potential to leave us behind. Go watch the movie “Envy” and consider this: why would someone who is broke or stuck in dead-end job with no other prospects want to see you succeed? They wouldn’t. End of story.

Instead of conferring with friends and family you should run your idea past a number of neutral third parties who are knowledgeable about business and will give you an honest opinion. Contact the local Small Business Administration (SBA) or The Service Corps of Retired Executives (SCORE) offices and ask to speak with someone knowledgeable who has time to listen to your idea (don’t run it past the receptionist). Or speak with the small business liaison at the Chamber of Commerce. Or seek out a successful entrepreneur who is willing to listen and give you an honest opinion about your idea. Just remember, opinions are like belly buttons: everybody has one and they are all different.

A more accurate way to judge the feasibility of an idea is to create a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis will not only help you gauge the feasibility of your idea, but also help you build on your idea’s strengths, identify and correct the weaknesses, and spot ways to take advantage of potential opportunities while avoiding potential threats.

Here’s how to perform a simple SWOT Analysis. On a piece of paper draw a vertical line down the center of the page. Then draw a horizontal line through the center of the vertical line. The paper is now divided into four quadrants. Label the upper left quadrant “Strengths.” Label the upper right quadrant “Weaknesses.” Label the lower left quadrant “Opportunities” and the lower right quadrant “Threats.”

Now fill in each quadrant based on what you see as the strengths, weaknesses, opportunities and threats of your business idea. You should repeat this process for every idea you have and each quadrant should have something written in. If you can think of no strengths, weaknesses, opportunities, and threats for a particular idea, that means that you do not have enough information to complete the SWOT analysis, which means you also do not have enough information to effectively execute that idea.

Strengths are those things that make your idea a strong one. Strengths can be personal or product-oriented and may include: prior business experience and success; sufficient funding to start the business; having a customer in hand; having a unique product or service to offer; having an established market; etc.

Next list all of the weaknesses of your idea. It is important that you are honest with yourself and list as many weaknesses as you can. Don’t pretend that your idea doesn’t have any weaknesses because every idea does. You will hurt no one but yourself if you pretend that your idea is bulletproof. Weaknesses might include: lack of capital to start the business; lack of business or management experience; a crowded market place; large competitors; etc.

Opportunities are those things that you can tap into that might fast track your business idea. We’ve talked about opportunities before and how smart entrepreneurs seek out new opportunities rather than waiting for opportunities to come to them. Opportunities might include: a potential partnership with someone who sells products in the same market; a prime storefront location that is coming available; a competitor going out of business, leaving a hole in the market that may be right for you; etc.

Threats are those things that threaten the success of your business idea. Threats might include: uncertain marketplace conditions; strong competitors in the market with lower prices; possible laws or taxes that may impact your idea; etc. Like weaknesses, it is vital that you are honest when it comes to identifying threats.

Once you have filled in all four quadrants, you should have enough information to begin testing the feasibility of your idea. Do the strengths of your idea outweigh the weaknesses or do the weaknesses outweigh the strengths? Are the opportunities available to you ample or nonexistent? Are the threats many or few?

With this information in hand, you can move on to the most accurate method of testing your idea and that is the creation of a detailed feasibility plan, which we will discuss next time.

Here’s to your success!

Tim Knox is awesome. He is an author, speaker, teacher and entrepreneur. His site can be found here.

The New and Improved Journey Is Here!

After much anticipation, the long awaited second generation of "The Journey"” has finally been unleashed. I affectionately call it "J2" because it springs up from the original Journey with dazzling improvements.


The Journey is an amazing system that lays out the process of building a successful business in easy to follow steps.

WHAT'S SO AMAZING ABOUT THE SECOND GENERATION OF THE JOURNEY?

This is a huge step forward in the entrepreneurial experience for each person who has a strong desire to build a lasting business. There is an entirely new Portal which is bursting with state of the art technology, efficient services, vastly improved program content, and an armada of strategic partnerships which could mentor you from neophyte to tycoon.

WHY DO THE PATHS LOOK DIFFERENT?

The Journey is now comprised of four self paced paths which have been re-organized and re-engineered from the ground up to take your success training to a whole new level. The Journey begins with Path 1 which is entitled "Change Your Life"”. This includes the highly anticipated "J2" version of the goal setting system called "The Journey Map"”. This sets the foundation for success by focusing on goal setting and personal development.

Onward to Path 2 called "“Business University"” which gives even the most inexperienced in commerce the knowledge and skills needed to attain their desired level of accomplishment. Designed by Get Started Media, and inspired by some of the most successful e-learning companies on the planet, Business University brings the hallowed halls of business school right into the ease and comfort of your own office chair.

After graduation from Path 2, trek on towards Path 3 which is called "“Establish Your Business"”. This guides each entrepreneur through the key online and offline business building strategies.

Path 4 of the Journey is called "Manage and Grow Your Business"”. This takes the guesswork out of what a business owner must do to ensure stable growth and profitability.

YOU CAN FINALLY SAY THERE IS AN "“I"” IN TEAM!

That "I"” is YOU, and the team is the amazing group of "“Preferred Partners"” who are professionals at assisting entrepreneurs. Hand selected companies will offer you significant discounts in services ranging from legal, accounting, marketing, and advertising. In many cases those services are at "no charge"” to you. Free is good!

If you haven'’t gone to the new portal and started J2, what are you waiting for?

Your destiny of success and freedom is just one journey away.

Your Half Hour of Business Power!

If you haven'’t been joining us on Wednesday nights for The Essential Conference Call, you have been missing out on a great way to stay educated, motivated, and empowered to reach your entrepreneurial potential. Each weekly conference call lasts around 30 minutes, is absolutely FREE, and will put you in touch with some of the most informed business professionals from every walk of life.

(from left to right) Steve Foss, Davienne Neptune, and Jody Brothers

The call is hosted by three business savvy and highly entertaining telephone personalities. Steve Foss is the voice of much of the motivational content in the portal like "The Daily Spark" and the audio series "15 Minutes That Could Change Your Life". Davienne Neptune has a long, successful history of dealing with small business people. And Jody Brothers lends his expertise from his million dollar company www.justgolfbags.com. Together they present a synergy and a flow of information which challenges each and every listener to achieve maximum results.

THE PEOPLE YOU NEED WITH THE ANSWERS YOU WANT!

The strength of the Essential Conference Call lies in appearances by guest professionals from every aspect of small business. Imagine spending time with an attorney, financial advisor, marketing guru, professional website evaluator, or any of the myriad of business consultants we interview on a regular basis.

DON'T JUST SIT THERE...ASK!

Have a question, concern, or challenge? We take questions from the call family and have them answered "“on the spot"” via email and live chat. If you have an issue or are seeking advice, we give you expert information within minutes.

REPETITION IS THE MOTHER OF SKILL!

All the calls are recorded and put into the portal where you have access to them for future reference. You can stream them on demand 365 days a year at your convenience. You are never more than a few clicks away from the brightest and best entrepreneurial minds in America.

Corporate V.I.P. Dave DeWitt keeps each call to it's scheduled time

Make Wednesday nights a part of your success routine! Join us for The Essential Conference Call. You can find the schedule of all calls, as well as a library of previous calls on our web site.

When you learn, you will earn!

"Mentee" Thyself This Year

OK, so I used a funny word to get you to start thinking about something that you can do in 2007 to help you achieve your dreams and accomplish your goals. I am talking about being “mentored” by someone who has already attained the level of success that you are seeking. A person who is under the tutelage of a mentor is called a “protégé” or “mentoree”, and sometimes they can be referred to as a “mentee”. Here is what Wikipedia says about being mentored:

“This is the source of the modern use of the word mentor: a trusted friend, counselor or teacher, usually a more experienced person. Some professions have "mentoring programs" in which newcomers are paired with more experienced people in order to obtain good examples and advice as they advance, and schools sometimes have mentoring programs for new students or students who are having difficulties.

Today mentors provide their expertise to less experienced individuals in order to help them advance their careers, enhance their education, and build their networks. Many of the world's most successful people have benefited from having a mentor including:

• business people - Freddie Laker mentored Richard Branson
• politicians - Aristotle mentored Alexander the Great
• actors - Mel Gibson mentored Heath Ledger
• athletes - Eddy Merckx (five-time Tour de France winner) mentored Lance Armstrong (seven-time Tour de France winner).”

Have you decided who will mentor you this year? If not, please put some thought into that question. It doesn’t mean that you will select a person where you can actually meet face to face, although that is an optimum scenario. It simply means that you have chosen a person who has what you want to have, and has done what you want to do. This way you can learn from them.

One year I chose Herb Kelleher of Southwest Airlines. I ran a growing business, and he was one of the most successful, inventive, fun CEOs I knew. So I read everything there was to read about that man and how he made his airline into the epitome of success in that industry.

Last year I chose Vic Johnson. I subscribed to all of his web sites and received his daily email inspirations. I read his books, and practically any article I could get my hands on about his history, his philosophy, and his way of doing business to help people. I wanted to learn everything I could about the man.

This year, I have selected to be a student of Bob Proctor. I know the chances of us meeting are extremely slim. But I have already started devouring some of his DVD sets about accomplishment and mental acuity. He is in his seventies and has the energy and passion of a teen. He is doing and getting what I want to do and get.

Who will mentor you in 2007? Will it be the mainstream media via sitcoms and negative news? Will you be mentored by some “naysayer” in your life that sends you an endless supply of messages why you can’t be successful this year? Or will you take advantage of the amazing library of success motivation and instructional material in the success portal?

Jesus found twelve men he could mentor. Bach found himself surrounded by young protégés he could mold into great musicians. Donald Trump started Trump University to help others with the dreams and aspirations to become wealthy. Oprah Winfrey is always sharing her thoughts and dreams with young ladies from all over America.

What about you?

Decide today that you will find someone you respect and admire. Select someone who stands for your core values, and has attained a level of success that you are working towards. And place yourself under their wing. Before you know it, you will be exhibiting the same attributes to people looking up to you that you saw in your mentor. And then you can pay it forward to those who are then where you are now. Bring someone with you as you attain your success.