Pursue Your Pivot: If It’s A Hobby, Call It That

A Word …

First, I want to say thank you, times infinity, for all of the love and kind words you sent me about my fur baby, Drake. I really appreciate it! I love y'all for real.

This past week was productive. I’m back going hard in the gym, completing projects, and making future plans for my business and myself. Some of that planning included thinking about pursuing other business opportunities and finding hobbies that I could become crazy amazing at. So, that’s what this edition is about: hobbies vs. businesses.

This is a longer newsletter, so grab a snack, and let’s discuss.

During a meeting I attended in early June, Bill Diggs, the Executive Director of the Miami-Dade Economic Advocacy Trust, spoke passionately about business owners taking their companies seriously. "If it's a hobby, say it's a hobby," he said several times. It got me thinking about whether I was being as serious about my business as possible. After some reflection, I concluded that I wasn't, if I'm being honest. Don't get me wrong, I run my business like a business, but I could be more intentional with marketing, business development, and bringing some of my many ideas to fruition. 

So, point taken, Mr. Diggs! There's always room for improvement. I'm more locked in now! He shared some other gems, but I'll save that for another edition. 

With that in mind, while pursuing your pivot or planning an exit, how many times have you found yourself working on a passion project and wondering, "Is this something I can turn into a business?" If you're anything like me, you've had this thought more than once, especially in the hustle age of social media, where everything you do should make you money, or it's a waste of time. The line between a hobby and a business can be blurry (unless you're an IRS auditor), but knowing the difference is crucial to your pivot journey. So, this week, I wanted to touch on this topic to help you gain clarity.

Last week, I encouraged you all to enjoy activities that are unrelated to your career. I don't believe that just because you're good at something, it should be a revenue stream since that can take away the fun and passion for that activity. However, if you want to make that change, let's discuss it!

Hobby vs. Business

So, what’s the difference? You pursue a hobby for enjoyment, relaxation, or personal satisfaction without the primary intent of making a profit. It allows for space for creativity, fun, and exploration, something that we all need, in my opinion. On the other hand, a business is an organized effort to create goods or offer services for profit. It requires strategic planning, consistent effort, and a focus on financial sustainability because bills don’t pay themselves. Some key differences include:

• Motivation: A hobby is driven by passion and personal fulfillment, regardless of income, but a business is driven by profit and growth. What is the intent? Are you making it for friends and family? Are you giving things away for free, or do folks know the pricing schedule?

• Investment: Hobbies can have minimal financial investment (although I’ve paid a pretty penny for a hobby or two), while businesses require more capital, time, energy, and resources.

• Commitment: Hobbies can be sporadic without negatively impacting your finances (hopefully), whereas businesses demand consistent effort and attention to thrive. I don’t know a sustainable business that has scaled and succeeded with minimal effort. 

Is Your Passion Project a Business or a Hobby?

Now that we have that baseline understanding out of the way ask yourself these questions to determine where your passion project stands:

• Why did you start this project? Was it for personal enjoyment or to create a revenue stream? It's okay if the reason that you still do it has changed, but what made you start this endeavor, and would your "why" change dramatically if it was a hobby vs. a business or vice versa?

• Are you willing to invest time and money? Are you ready to commit to a business's long hours and financial investment? If it’s a business, you're more likely to recoup your investment, whereas with a hobby, those funds were spent with mainly happiness in mind lol. Also, social media makes entrepreneurship look luxurious, but it’s no joke! 

• Do you have a market? Is there a demand for what you offer, and are people willing to pay for it? Even if it brings you joy, it doesn't mean people will feel the same ... the law of supply and demand.

• What are your goals? Do you want to grow, scale, and profit, or is it primarily for personal satisfaction? Again, it's okay if your goals change, but please be honest with yourself and what you want.

Transitioning from Hobby to Business

If you've decided that your passion project has the potential to become a business and you want to pursue it as such, here are some steps to make that transition:

• Be Real With Yourself: Be realistic (with a bit of delulu) and create and manage your goals and expectations around revenue, startup time, and growth. Establish short-term and long-term objectives to keep you focused and motivated.

• Create a Business Plan: Outline your business goals, target market, competitive analysis, and financial projections. Personally, I don't think you need to write a full-blown business plan to begin with, or more businesses wouldn't make it past this step. The good news is that with AI, this is easier than ever before, so take advantage of those tools.

• Market Research: Understand your market, identify your ideal customer, and analyze your competition. Michelle Talbert, Founder of Her Power Space, says if you're talking to everyone, you aren't talking to anyone, so get specific.

• Brand Development: Develop a unique brand identity that resonates with your target audience and allows you to show up as your authentic self. You aren't pivoting to stay in a box, so embrace that!

• Build a Network: Connect with like-minded entrepreneurs, mentors, and potential customers. This step is often taken for granted, but the return on investing your time in your network is invaluable.

• Legal and Financial Setup: "If it's a hobby, say it's a hobby," but if it's a business, please run it as such. Register/incorporate your business, set up a business bank account, and consult with legal and financial advisors to ensure you don’t have issues later.

• Create a Marketing Strategy: Develop a plan to promote your business through social media, content marketing, and other channels. How will people find you? How will you find your people?

• Monitor and Adjust: The good thing about these decisions is that they don't have to be permanent. I struggled with this initially, but truth be told, no one knows about behind-the-scenes changes but you. So, you should regularly review your progress and adjust your strategies as needed.

Resources For Your Pivot Journey

I love a good companion guide/ resource, so to help you along the way, here are some additional resources if you are on the fence about how to move forward with your passion project. 

• Entrepreneur: How to Turn Your Hobby Into a Successful Business 

• Forbes: 7 Strategies For Turning Your Hobby Into a Profitable Online Business

• Business News Daily: Guide to Starting a Business 

• LivePlan: Can You Use ChatGPT to Write a Business Plan? Yes, Here’s How

• HubSpot: How to Conduct Market Research 

• Canva: Branding Guides 

Parting Thoughts …

Pivoting from a hobby to a business is a marathon, not a sprint. It's okay to take it one step at a time but keep the momentum. Reflect on your motivations, evaluate your market, and start laying the groundwork. The journey may be challenging, but with persistence, it's doable, and you can pivot your passion project into a thriving business.