I’ve learned the hard way that it’s possible to think you’re running a real business when you’re actually running a hobby. Here are some differences so that you can tell them apart:
| Activity | Hobby |
Business |
| I make … | whatever I want | whatever customers want |
| I do .. | whatever I want | whatever it takes to learn what customers will pay for and then deliver it to them |
| I buy … | whatever equipment, tools and software (a.k.a. ‘toys’) that I want | only what will enable me to deliver what customers will pay for (otherwise I save my money) |
| I focus on … | my business (i.e. my hobby) | whatever it takes to make the business work (including getting a job if necessary) |
| I know … | what customers want (they want whatever I decide to make!) | that I don’t know what customers want – I must visit potential customers and learn from them. |
| I want … | positive feedback (what if people don’t like what I make?!?) | real feedback (because I’m committed to making whatever customers want) |
| I celebrate … | low value sales (this is working! all of my dreams are validated! I should go all in!) | every sale but recognise that there’s a long, long way to go before this business will generate real income |
| I spend my time … | making things (whatever I want to make) | learning from customers until I understand their problem (and then I sell and build them a solution). |
That doesn’t mean, of course, that you can’t turn your hobby into a real business in the future. What it means is that:
- you must know whether you’ve got a hobby or a business,
- your hobby must not be run like a business (or it will lose its joy), and
- your business must not be run like a hobby (or it will fail).