Hustle, Hobby, or Business: Finding your path
Are you running a hustle, a hobby, or a business? Knowing the answer is crucial. The way a growing small business with aspirations of exponential growth operates is completely different from how a side hustle or hobby business functions. Let's explore the differences and what they mean for your entrepreneurial journey.
My Journey from Playground Candy Seller to Business Mentor
I've had numerous businesses throughout my life. My first venture was an underground elementary school candy sales operation. My biggest seller? Ziplock bags of pre-mixed Kool-Aid and sugar. I'd store the contraband in my McDonald's lunch box and distribute it on the playground.
This early experience ignited my entrepreneurial spirit, teaching me invaluable lessons about supply, demand, and customer satisfaction. Little did I know that one day I’d be helping entrepreneurs grow their businesses.
Defining a Hustle or Hobby Business
A hustle or hobby business typically operates loosely, with no employees and limited income. While the IRS has specific criteria to define a hobby vs a business, my observation is that generally, the owner of a hobby business is also the operator. They may generate significant revenue but often work a full-time job without intending to quit.
Examples of Hustle or Hobby Businesses:
Doing hair for a small fee for your friends and neighbors
Selling knit hats and sweaters online
Selling handmade pottery at weekend farmers' markets
Providing services part-time as a 1099 contractor
These endeavors are excellent for those looking to earn extra income or pursue a passion project without the full commitment of a larger business.
Transitioning to a Full-Fledged Business
When I was selling candy on the playground, I was just trying to make enough money to buy a donut from Albertsons after school. Running a successful business involves strategic planning, financial planning, and the support of contributors and staff. If you want to build a business that generates consistent revenue, you need an approach that includes the following:
A Business Plan: A business plan doesn’t need to be a 100-page document. However, it does need to clearly define the goal of the business, how that goal will be accomplished, and the resources necessary to succeed.
A Financial Plan: Growth requires investment. If you plan to grow your business, a financial plan can help you understand how much your growth plan will cost, and how long it will take to recoup your investment.
A Team: The biggest brands we know are only successful because of the skilled people working to push towards their goals. You may not be able to hire hundreds of people. However; many aspects of your business can probably be delegated to contract consultants and part-time hires.
Structure: A sound business requires systems and processes that can scale and sustain growth. Without these basic disciplines, failure is inevitable. Good operations will not make you more money, but they will help you keep more profit in your pocket.
Final Thoughts
Whether you’re running a hustle, a hobby, or a full-fledged business, understanding your goals and the nature of your venture is key. Each path has its own set of challenges and rewards. Reflect on what you want to achieve, and don’t be afraid to seek guidance and support along the way.
If you're ready to transition from a hustle or hobby to a business that generates consistent revenue, contact me. Together, we can build a roadmap to achieve your entrepreneurial dreams.
Embrace your entrepreneurial journey, whether it’s a hustle, a hobby, or a business. Each step brings you closer to your goals and dreams.