3 Reasons Profit Should Come Before Passion
Follow your passion...
Ever heard that before?
It's all over the internet and in all kinds of training. The problem is that more often than not - it is just plain wrong!
Before you start hurling insults at the screen and talking badly about me, bear with me for a few more moments and let me explain.
Of course everyone is happy to hear what they WANT to hear. Saying follow your passions is one of those things everyone loves to hear - which is why it is repeated so often blindly.
But what if your passion sucks - from a money making point of view?
Many people have just such things that they personally love and love to do - yet no matter how hard they may try those things are just NOT good businesses.
So does that old advice to just "follow your passion" hold true for them... the answer is clear. Of course not.
So what should they do that would be BETTER business advice?
Find something that is PROFITABLE first and fore most and do that. There are many things that they (and YOU!) may not be exactly passionate about - yet may at least like to a point and find interesting - and that can and will be very profitable!
If that is the course of action one takes then there will be more than enough money and free time soon enough to go spend some of it on that other passion thing and enjoy it too - but as a hobby vs. a main business focus.
Make sense?
So with that in mind let me share three reasons profits should come before passion when you are working to build a successful business;
- The Primary Purpose of a BUSINESS Is To Make a Profit - While it is true a business can and should do many other things, this is it's prime directive that MUST be achieved - and without which nothing else is possible.
- Markets Determine Value - What people want as consumers, as buyers is what drives dollar amounts of value. Not seller passions - and if you misunderstand that you are already doomed from day one in business. You must understand market value of any product you seek to offer.
- Profits Allow You Freedom and Leverage - Make money first and then worry about your passions. Once you achieve enough business success then you will have the time and the money to be able to do what ever you are passionate about more and more the more money you make.
Closing Remarks
Obviously when you have a passion that is also profitable then that is great and it is the absolute best of both worlds at the same time. Yet for many people that simply is not the truth - and sweet little lies will make you feel good momentarily yet keep you broke for life!
It's kind of a red pill or blue pill choice - which do you choose?
Feel free to share your own thoughts below.
Best regards,
L.D. Sewell
Recent Comments
29
Hi L.D.
Thanks for a very thought-provoking post.
I believe that there are very few things people are passionate about that cannot be turned into a profit.
Those who select niches that are very unusual find out that there are people who have similar interests who are not served well. Therefore it is possible to reach these folks through search engines without having too much competition.
I agree with you that these unusual niches must have products and services that are marketed in these areas. If there are no affiliate programs here, then no amount of passion can make money.
My conclusion is not to choose a niche purely based on your passion. Some research is first necessary to see if any business potential exists.
If the answer is yes, the next question is how big is the competition. If it is big, perhaps a less competitive niche should be chosen. If not directly aligned with your passion then pick something that comes as close as possible that has marketable products and services.
Newbies should start off with less competitive niches to help achieve results sooner rather than later.
Does that Make sense L.D.?
Cheers.
Edwin
Edwin, that is all good information for all to consider and is in alignment with my thoughts too.
The best of all worlds is when profits and passions can be aligned - yet profits (in Business anyway) always take precedence. Otherwise one will not remain in business very long.
Thanks for sharing your thoughts and ideas too my friend.
Best regards,
L.D. Sewell
This is a great post. Everyone has a passion and most of us pour money into that passion with blinders on, simply because we are passionate about it.
Businesses are either profitable or they are not. If we are so passionate about something that we cannot see this, then we are on the wrong road.
Most material I have read about starting a business or selling something says that we should determine our market first. If the market is not there, then we should not try to sell something in it.
It is great to be passionate, but we should have our objectives laid out clearly first.
Alex
Exactly right Alex. Sound business fundamentals require exactly that. Profit is the primary consideration - all else comes after that. Get that wrong (as many do) and the business is doomed before it even starts.
Best regards,
L.D. Sewell
Hi, LD
What you say is true, but you typically need to be prepared to write hundreds of high-quality articles before you become profitable enough to call it a full time business.
At that point you’ll probably be able to outsource some or all of the content writing.
Writing consistently in a niche that you’re not passionate about requires a lot more focus and determination.
For those that are willing to do this it can certainly be financially rewarding.
Frank
Well said as always LD, but... how do we know what will be profitable and what is not?
We all have our dreams about owning the perfect business, making heaps of cash and enjoying ourselves every minute of every day...
But a business that made a fortune a short while ago might make us nothing today in the ups and downs of the world we currently live in...
It is a red or blue pill decision, I personally go for the green one my friend! :-)
I hear you.
The answer as to how you can know is through comparative market analysis - which is just a fancy way of saying to look at what is already working for others and then figure out how you can do it BETTER.
Yes there are many ups and many downs too - and few things are certain at all. Industries change faster than ever and profitability can advance or retreat in the blink of an eye.
Understanding specific business/industry patterns helps you be able to "forecast" and predict likely outcomes - still it is a chance - as are all things in business.
Yet when we make more intelligent and better-informed decisions we tend to do Better... and that's the idea.
Best regards,
L.D. Sewell
Good to hear from you again LD, I hope all is well with you and yours my friend...
I totally get the concept of doing and providing more than our competitors do, but in the topsy turvy world we live in... things are easier said than done!!!
But the cream will always rise to the top in the end my friend!!
You definitely speak true words, LD, but one of my tongue-in-cheek answers will be that since our inflation is at an all time high, we might make money from something other than our passion, but in the end, did we really make money? It is worth so much less now.
People literally do not have the money to spend on my business, which in the past, had been quite successful!
I still pursue my passion, which is writing. You make very valid points here to a fault.
There are too many people for too few jobs, and with our Southern border essentially a revolving door, that only gets worse!
The "cream" might rise to the top, but where does that leave everyone else? Points to ponder for sure!
Enjoy a wonderful Saturday!
Jeff
Thanks Jeff. I appreciate your thoughts as always my friend.
It's always complicated - and ever-changing - that's for sure.
Yet in my area companies are BEGGING people to come to work and paying insane amounts of money even for unskilled entry-level labor and trainees.
So my advice to people in areas where there is no such opportunity is simple - move.
Either do that - OR - Find a way to do something else from where they are that can be done well enough to earn what they want and need.
As I say often, the ideal is when passion DOES align with profits - but reality requires business decisions for business success. So if it comes down to it profits (profitable business pursuits) take priority over passions - which is exactly the opposite of what GG People so often teach.
Why? Truth is harder to sell and less profitable too ; ) Of course, that's in the short term - but to build a long-term business (in training/coaching, nonfiction publishing, etc) absolutely requires truth so students and clients achieve real results and both will buy again and again and bring referrals.
That's as opposed to GG People spreading Fair Dust Covered BS - and making quick (dishonest) big bucks doing it at the expense of all who fall for their nonsense.
Best regards,
L.D. Sewell
In a perfect world, moving would be an option, but I would need a fleet of semis to move everything I own, because A lot of what I own is inventory. I would not be one that could move, and I am sure there are many others like me!
Yes, there are money grabbers out there, so we must be cautious.
Some good thoughts here, my friend!
Happy Frisatsu!
Jeff
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Thank you for your post it was a stimulating read.
What I have found in life is that passion becomes profit as I have never followed trends or done what I was supposed to only what I have found that brings happiness.
The 4 fields of passion that I have remained consistent in and upskilled in is: Technology, Training, Troubleshooting and Transformation I have applied in the Community, Government and Business sectors in both a profitable and non profitable in a holistic context.
I have never put profit before passion when building a successful business and I wonder if this is due to gender example in theory most women not all would prefer peace over war, family over work etc
1. While the Primary Purpose of a BUSINESS Is To Make a Profit if there is no passion or creativity then this reflects in the example of the product, a bakery supermarket bakery makes 1000's of loaves per day yet a home based bakery is making 100 home-made bread with love and keeps running out. Here passion is the profit
2. Markets Determine Value - What people want as consumers, as buyers is what drives dollar amounts of value. Not seller passions
A classic example of sellers passion is Elon Musk when he needed to raise money for his underground company he always had a passion for designing a flamethrower which consumers did not need , their was no market for it and it had no value . All it was was, was a very expensive toy that was able to sell as Elon was the market.
3. Profits Allow You Freedom and Leverage - When you study successful entrepreneurs , they always have a goal , passion and become focused or fixated on it, this then equates to profit.