Do you have a Hobby or a Business

Last Update: January 27, 2017

A post by Mel some time ago got me thinking about whether I have a hobby here on WA or a business.

https://my.wealthyaffiliate.com/onmyownterms/blog/...

So my question is: Do we have a hobby or a business. Now let us be clear, you can have a hobby and it can also be a business or turn into a business. AND the question then is: can you have a business that is just a hobby? The answer to that one is: I doubt it.

Many people say, yes they have a business. But that answer may not stand up to scrutiny. What would your business need to "look like" to distinguish itself as a business and not a hobby only?

I like to think in pictures so I did a Google search 1. Hobby Images 2. Business images



So the two search images a very different. If a fly on the wall was observing you would they see that you have a hobby or a business (that could be a hobby too). For example

  • Do you have a business plan .. is it written written?
  • Do you have a financial (money) plan (budget)?
  • Do you have a work plan?
  • Who is on your Team (eg. Lawyer, Accountant, Mentor etc)?
  • Have basic accounting in place?
  • Have the basic registrations required in your jurisdiction been done?
  • Do you have legal issues such as copyright covered?
  • Do you have a have a Brand strategy?
  • Do you have a marketing strategy?
  • Do you have a sales strategy?
  • And more .. there are more skilled people here than I who could add to this list.

So look at what you are doing .. are you operating a hobby or a business (and to be clear, something that can be a hobby can be a business so don't use the terms to confuse).

Because here is the deal: if you treat your business as a hobby you will see hobby outcome/results, if you treat your business as a business you will get business result .. which do you want?


Cheers, William.

Stay Focused, Move Forward.

Join the Discussion
Write something…
Recent messages
Marlene2 Premium
I like how you have graphically illustrated with the accompanying questions
Reply
WilliamBH Premium
Thanks Marlene .. Cheers, William.
Reply
Marlene2 Premium
Okay!
Reply
minitrio Premium
Very good point, thanks for sharing. :)
Reply
WilliamBH Premium
Thanks Marek .. Cheers, William.
Reply
xanfo Premium
Thanks for sharing, is good knowing the distinction between business and hobby,if you're just trying to earn a little money on the side or you want to turn into full time.hobby doesn't generate losses whiles business attracts taxes etc.
Reply
WilliamBH Premium
Thanks Alexandra .. Cheers, William.
Reply
reanna1 Premium
Thanks for sharing, William!
Reply
WilliamBH Premium
Thanks Rebecca .. Cheers, William.
Reply
KMeyer Premium
Interesting perspective of how we perceive our businesses. Thanks for sharing.
Reply
WilliamBH Premium
Thanks Kevin .. Cheers, William.
Reply
Top