What are the signs that your hobby could grow into a full time business?
Not all hobbies may have what it takes to become really big fast growing businesses. Not every hobby is something you actually want to do full time. Some are, and some could be much bigger than you think. So, how do you know if yours could become a great full time business?
It’s All You Can Think About
If you can’t sleep at night for thinking about your hobby, and you wake up thinking about it, then that’s something that you are passionate enough about to be a business. That is the key to all truly successful companies. It still actually has to work as a business of course.
So, you may need to make some tweaks, create a real product or service that can scale, find the right role for yourself within the business, and learn how to operate it professionally. Though if this is what makes you feel alive, and was what you were born to do, then it is worth pursuing.
People Want To Pay You For It
Even though you may be practicing your hobby for fun and pleasure, you already have people offering you money for what you are making. Or at least for your input and advice. If you are getting inbound interest, and commercial interest without even marketing it, that’s a great sign that your hobby could grow into a full time business. It means that other people share your passion and vision, or have the same income problem and are interested in your solution for it. That’s what all great startups are built on and a critical part of the signs that your hobby could grow into a full time business.
It’s Making Money, And Just Needs More Attention
If you are already bringing in money with this hobby, and are confident you could multiply those results if you just put more time into it, that’s a great greenlight. Of course, it has to be at least enough to replace your existing income before you run out of money. Though more time spent on it could multiply your efficiency as well.
If you begin approaching it like a real business you should also find ways to bring down costs, and exponentially increase sales. It is likely going to take more than brute force. It will take hiring, learning and tapping experts if you really want to make it more than just a new full time job, but what would you rather be working on?
It’s A Really Big Market
There are lots of things you can do to make a paycheck and living wage. Doing something you love and getting paid for it may be more than most people can hope for in their lifetimes. Yet, if you want to go even further and build a real business you want to make sure there is a big market. Especially, if you hope to raise any money to fuel it. What’s big? These days it ought to be in the billions of dollars. You don’t have to have all of the market share. You may not even need the majority, but you do need the opportunity to be really big.
It’s A Growing Market
You don’t want to quit a comfy job and benefits package for a businesses and market that is shrinking and declining. This is critical when you are looking into the signs that your hobby could grow into a full time business. You won’t find many investors or highly experienced recruits that are going to want to jump into that either. Yet, if you are in a growing space, the opposite is true. Not just a current fad, but something that is emerging and growing and could be just opening up for the next ten or more years.
The market is always going to determine the potential returns that an investor will be able to obtain and for that reason is critical. If you are looking to build a billion dollar business you are going to be required to raise capital.
In this regard, keep in mind that in fundraising storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
You Are Willing To Take The Risks
Starting your own business is never without risks. Of course, many would argue working for someone else and abdicating your future and control over your destiny to someone else is far riskier. If you are going to make a bet, why not bet on yourself?
There will be many risks. There will be plenty of trial and error. Yet, you’ll also have far more control and the ability to pick an amazing team to make the right moves. This doesn’t mean being reckless. It is about calculated risks and de-risking at each step.
You’ll Regret Not Trying It
This is my favorite from all the signs that your hobby could grow into a full time business. If you know you will always regret not trying it, then you should absolutely go for it. No one dies thinking how wonderful it was working for the same company their entire life, while making their boss’ dreams a reality. Many people die every day wishing they had just tried something else.
What’s the worst case scenario? You get to take a year out to pursue your own dreams, test your limits, have fun, and learn a lot. The upside potential is incredible. If it doesn’t pan out, you can always go back to your career and pick up where you left off. Only with this great experience under your belt.
It’s worth pointing out that once people taste entrepreneurship, they never want to go back. Even if the first attempt doesn’t work out, you can always tweak it and go again.
There are also a ton of advantages when becoming an entrepreneurs. IN the video below I cover in detail the advantages of being an entrepreneur.
You Just Can’t Bear Your Job Anymore
If you just can’t bear to go to your job anymore, despite the pay, then life is too short not to try turning your hobby into a business. If getting up to clock in for someone else is just too depressing and you feel demoralized every day by lunch time, then stop punishing yourself. Make the leap.
Hopefully this post provided you with some perspective as you are looking into the signs that your hobby could grow into a full time business.
You may find interesting as well our free library of business templates. There you will find every single template you will need when building and scaling your business completely for free. See it here.