Is your business a hobby?
I recently read an article that looks at the clash between choosing a business idea as being a business and being a hobby. The author proposes that no successful idea can be both a business and a hobby, and that the originator of the idea has to choose between either of the two. Although I believe that there will be many who would disagree with such an opinion, I think it is important that people should go into implementing any business idea with a clear picture of what they want it to be. Some might say that it is impossible to truly succeed at something that isn’t enjoyed, and therefore any business should also be a hobby. On the other hand, I believe that once the business becomes too much of a hobby, it becomes harder and harder for business decisions to be made objectively. For example, you could be a manager with numerous employees under your watch. Just because you become good friends with your subordinate does not mean that you can turn a blind eye to his performance. Should there be a need to replace him with a better performing individual, emotions shouldn’t be allowed to cloud your judgment.
There might be individuals who take pleasure in making money, forming cordial non-personal relationships, and being completely objective in all their decisions. I believe that in such scenarios, there really isn’t much of a difference between their hobbies and business interests, and that only in such a scenario can a business also become a hobby.
What I find to be a far trickier situation is when a business turns into a hobby or vice-versa during the course of running it. Person X might initially enjoy his car-washing business, in which he leisurely mingles with his regular customers as he washes the car. Clearly this qualifies as a “hobby”. Over time, his customer base might get larger and larger, and he may realize that the opportunities he now faced were endless should he turn his “hobby” into a business. So what does he do now? Stick to keeping the washing service as a hobby and limit himself or take the leap and convert into a business? What about those relationships that he formed —- Is he willing to sacrifice them?
It is often extremely hard for someone to realign his or her goals midway through the implementation of the business idea. The business environment might also change during the process, requiring a reevaluation of whether the right choice had been made. I therefore propose that such a “biz vs. hobby” evaluation be conducted throughout the implementation process, and even during the running of the business.
