Many small business owners tend to think of their company as a hobby, or a passion project. While it may have started that way, if you want to take your business to the next level, you have to change this mindset. It doesn’t mean you have to become a callous, money-grubbing entrepreneur; rather, you should think of your business like a business by applying business principles.

Some small businesses are started because they want to make some extra money on the side or want to try their hand at entrepreneurship without too much risk. Other small businesses are started as a passion project because they want to offer a service that is needed – and some small businesses are run by people who see great potential in their business idea and want to make it the next big thing.

How to know if it’s a hobby – A hobby is something you do for fun, for example, you might knit, bake, or paint. You might even make a little money doing that hobby from selling your knitted goods, but at the end of the day, it’s still just a hobby, and you don’t make your living from it.

So, where does the line get drawn?

There are some pretty clear indicators that your pastime is turning into a business. For example, if you’re selling a product or service, or if you’re using a business model to operate, then you know you’ve crossed the line. If you’re planning on opening a store, hiring employees, or running an office, you’re going into business. The biggest difference between a business and a hobby is that a business has a plan and a plan that makes money. A business knows exactly what it wants to achieve, and how it is going to do it. A hobby has no specific goal.

A business is something that you do because you have a passion for it and you make a profit. You want to be in control of your business growth, as well as financial success, and it’s important that you understand that a business is a lot of work and will need your attention so you must make it a priority. 

Looking to start a business or still in the start-up stage? I’ve put together a must-have guide to help you access the information you need along with links to help you take the beginning steps on your small business journey. To learn more, click here.

I’ve been a creative entrepreneur from a young age, starting with buying, training, and selling horses. And I say to follow your passion no matter how impossible it may seem!

So depending on where you feel you are in the mix (hobby, passion project, or a business), make sure you love it!  That’s not to say that some days all three of these may feel overwhelming with a never-ending list of things to do… but anything that matters is always worth the work!