9 Reasons Why Starting a Business as a Hobby First is a Great Idea
Starting a business can be overwhelming, especially if you have more than one business ideas that you’d like to test out. Read on to find out how to start a startup that you can run at your own pace to see if it’s what you really want to do and find that one business idea that you’re truly passionate about.
Starting a new business is often accompanied by advice to treat it seriously and not as a hobby. You’ve probably heard of the phrase “treat your business as a business and not as a hobby.” While this approach has its advantages, considering your new business venture as a hobby can sometimes be a more effective way for getting started. However, pinning too much pressure on one idea can prevent you from actually getting started, which is why testing the water and treating your new business ideas as a hobby can allow you the freedom to explore any ideas that appeal to you. Let’s delve in and further explore this less popular concept to starting a business.
How to Start a New Business without Feeling Overwhelmed
Most advice on business basics will advise you to treat your new startup as a business and not as a hobby. Even a small business idea where it’s just you working on your own should typically be treated as a business and not as a hobby. While there certainly is a reason for why people recommend this approach, it can lead to overwhelm and stop you from actually launching. There are so many business ideas out there that it can be difficult to choose the best option for you. This doesn’t mean that you have to limit yourself to just one idea and stay in it forever. There are those small business owners have a fixed idea on the kind of business they want to start, along with a clear business plan outline on how to reach their goal. For others, they’re constantly exploring different small business ideas, hoping to find their true passion. If you really want to open your own business but haven’t yet niched down on that one thing that you’re really passionate about then this is where treating your new business as a hobby can be a really helpful way to get started.
How to Test Out Your New Startup Business Ideas
One of the first things to know before starting a business is that you need to love what you do. Business is full of ups and downs and that doesn’t stop once you get past the startup phase. Your business will face its own challenges throughout this journey and that’s ok, it’s normal. The difference between those who fail and those who succeed is that more often than not, those who succeed love what they’re doing and have the motivation to carry on even when things are difficult. If you don’t enjoy what you’re doing then it will be very difficult to continue.
Best Startup Business Ideas
When exploring new business startup ideas, you will find that there are many different ways to earn money and provide products or services. If you’re interested in learning which small business ideas succeed and why, read this post on why “boring businesses” are usually more successful. Your business marketing plan and the way you operate your business will vary greatly depending on whether you choose to provide products or services, and whether those products are digital or physical. For example, you might be swayed towards passive income ideas, such as starting a digital marketing agency or opening your own media company, where operations are handled digitally and you can work from anywhere in the world. On the other hand, you might also be keen on starting your own fashion brand and working with physical products that you can see and hold.
What is the Best Small Business Idea to Start?
If you’re experimenting with multiple ideas then you could take the more innovative approach and merge them into one business model. So if you’d like a digital business selling your own physical products then dropshipping or affiliate marketing might be the way forward for you. If you’re trying to decide on the best small business idea to start based on which business idea has the least amount of problems and earns the most money then stop right now. Almost all business ideas have the potential to become profitable and successful, provided that you have a good business strategy management in place and pour time, energy and passion into the venture. Don’t choose one startup business idea over something you’re truly passionate about based on the fact that you think it would be more profitable and successful in the long run.
Instead, ask yourself the following questions:
- What kind of business would you like to start?
- What do you enjoy doing?
- What would you like to be known for?
- What industry or role could you see yourself working in for the next 5, 10, 30 years?
- What are your skills?
- What are your values that you’d like to bring to this business?
- When friends, family, colleagues come to you asking for advice, what is it that you help then with most? You are the go-to person for….?
If you have multiple skills and interests, you can also try to combine them into one unique niche and diversify your offering.
Why Starting a Business as a Hobby First is a Great Idea
When everyone tells you to treat your business like a business and remember that it isn’t a hobby, why is starting a business as a hobby first such a good idea? While the latter doesn’t suit everyone, it is ideal for those who are feeling overwhelmed or want to test out multiple ideas. This approach of treating your business like a hobby can also be used as a mindset you go back to if you have tested an idea in your business and it hasn’t worked. Here are 9 ways when the starting a business as a hobby first approach can be beneficial:
The Freedom to Innovate and Try New Things
Starting a business as a hobby first gives you the freedom to test out all of your ideas without worrying about which one will work. If you have several small business ideas that you’d like to pursue then treating them as a hobby first to see how you enjoy how each business model works on a basic level gives you the freedom to test the water before you find that one thing you most enjoy. It also gives you the chance to start to explore your business ideas without making it known to everyone around you. By not getting hung up on earning money but simply, learning what your average working day would look like, what is required of you and how you enjoy this revenue stream, you can start and quit as many ideas as you choose.
Reduce Pressure
For many business owners who are years into their journey and are successful, are motivated to do what they do because they love it. Doing something you love each day is very similar to having a hobby. However, with a hobby, such as reading, travel, fashion or going to the gym, we often invest money and time into holidays, buying books, equipment, clothing, footwear. We are happy to spend time and money on hobbies that we have no intention of monetising, yet we are ok with the money and time we spend on these activities. On the other hand, when we invest the same amount of money and time into a business idea that doesn’t work, we lose faith and obsess about the amount of money lost. While it’s important in business to observe why a strategy, product or idea didn’t work so that you don’t repeat the same mistake again, bear in mind the amount of money you could be spending on other things that will not pay you back in the same way. Don’t obsess over the things that didn’t work but rather focus on the lessons you’ve learned.
Build New Skills While Learning
Starting a startup slowly and in your own time gives you the chance to learn and build new skills. A person can never know too much. We can apply so many of the skills we learn in past jobs to new career opportunities. Even the simplest of skills, such as discipline or organisation, are essential skills when it comes to running a business. Soak up as much information as you can and use this as an opportunity to learn. Learn about yourself, what you like and what you don’t like. Learn about how different revenue streams work. Learn business skills. Learn communication skills.
“You can’t learn without failing and you can’t fail without learning!”
Becoming Comfortable with Failure
The most successful founders start by pursuing one business idea first and putting all of their focus into that one idea. It’s very rare for a small business owner to start multiple small businesses at once and grow them passed the startup phase. Usually, those who have more than one small business set up all at the same time, never make it past the startup phase. A startup isn’t technically classed as a business, until there is proof that it has the profitability and strategy to succeed. Therefore, rather than starting multiple startups and then becoming disheartened when they fail or when you realise it’s not for you, treat it as a hobby or interest that you’ve pursued and quit.
Learn to Start Fast and Quit Faster
You might get to the point where you’ve monetised your idea and are earning enough to cover your experiment or even enough to live off. On the other hand, your business idea might not be working and everything might just feel a bit “off” to you. For example, you don’t enjoy the way you earn money. Perhaps you don’t feel comfortable with selling your time for money and not being able to scale. Maybe you dislike having an unpredictable affiliate marketing income. Learn to start your ideas fast, see what works and quit faster. If you really don’t like a particular way of working or the business itself then quit now during this early stage and move on to something you prefer. Don’t be afraid to quit even if you are making money. If it already feels draining to turn up to work each day and you get no enjoyment from what you’re doing then quit and try again. I’d highly recommend reading this book for more tips on how to test out your business idea in a weekend.
Understand What to Monetise and What Should Stay as a Hobby
The idea of turning your passion into a business sounds like a dream come true. But this isn’t always the case. This certainly works for some people but it’s not for everyone. How do you know if you should turn your hobby into a business? First of all, if you want to monetise your hobby then that is a good place to start. Remember that treating your new business startup like a hobby in the beginning isn’t a long-term business strategy. You will have to eventually treat your business like a business once you’ve decided on your business idea and want to grow. If you’re happy for your hobby to become a business and to treat it like a business then that’s a sign to go ahead. If you’re unsure about monetising your hobby, maybe because it’s personal to you or a way to unwind after a long day, or a pastime at the weekend then think carefully. Monetising your hobby makes sense for some people and not for others. If you are worried about losing passion for a hobby that helps you to relax at the end of the working day then it might not be the best option for you.
Build a Business in Your Own Time
Don’t get hung up on finding that perfect idea right away. In order to succeed in business, you need to fall in love with the process of testing out ideas and accepting which work and which fail. All business owners at all stages of their journey have one thing in common: they love running their own business over working for someone else.
Don’t Regret Not Testing out Your Ideas, Try Them!
If you’re one of those people who would rather take the risk and try something new over living with regret and always wondering “what if…?” Then this approach to starting a new business is for you! Try every idea you’ve ever had and that you have that itch to start, especially if you can test the idea on a small scale for a reasonably low cost. There is no such thing as “nothing lost, nothing gained” in business. You will always learn a valuable lesson from your attempts and mistakes. And who knows? You might just find clarity to start your dream business, based on the lessons learned from these past attempts.
Discover What You Really Enjoy (and What You Don’t)
Nobody knows what they’re going to enjoy until they actually try it. You might be surprised to learn that your first business idea doesn’t turn out to be the one you continue. Life is for learning and so is business. By treating your business idea as a hobby with the potential to grow into a business, you’ll be able to make bold decisions and creatively explore all of the avenues that interest you. If you’re just starting out, try to keep costs minimal and be prepared to throw a lot of spaghetti at the wall to see what sticks. Keep trying, keep on learning and develop your ideas. Starting a business is great for self-discovery and if you’re stuck, you could always try these journal prompts. You’ll be amazed to learn what you’re good at, what you like and more importantly, what you don’t like.
Turning a Hobby into a Business
In today’s world, it’s easy to compare ourselves to those we follow on social media and the success of others. Always remember to take things at your own pace and remember that even if you have spent time and money pursuing something that didn’t turn out to be your best business idea in the end, you’ve learn a valuable lesson by investing in yourself. Once you’ve fine tuned your idea, you’ll be ready to turn your hobby into a business, which is when you have to treat it like a business in order to see the growth and success you want.
Wishing you the best of luck with finding your best business idea!
