So, you’ve got a hobby that’s making you some money, and now you’re wondering, “Is this just a hobby, or have I stumbled upon a real business opportunity?”

Well, fear not! In this blog post, we’ll chat about the differences between making money with a hobby and running a full-blown business. Let’s dive in and figure out where you stand!

1. Purpose and Focus: Okay, let’s talk about your hobby. When you engage in your hobby, what’s your main focus? I bet it’s all about personal enjoyment, relaxation, or personal growth, right? Making money is probably not the driving force behind it. But when it comes to running a business, it’s a whole different ball game. The main purpose is to make a profit by meeting market demands and satisfying customers.

2. Intention: Here’s the scoop: hobbies are all about doing what you love, driven by your personal interest and passion. Making money is just a happy side effect. But running a business is like a deliberate game plan. You’re aiming to earn money and achieve financial success. It involves careful planning, smart decision-making, and meeting customer needs like a pro.

3. Financial Considerations: Let’s be real, making money from your hobby is awesome! But here’s the thing: it’s usually not the primary motivation. You’re just stoked that your hobby can cover some expenses or bring in a little extra cash. However, running a business is a whole different beast. You need a steady and significant income to sustain your operations, grow your business, and, of course, make a living.

4. Scale and Structure: Alright, let’s talk size. Hobbies are often small-scale endeavors. You can pursue them individually or in a cozy little group. No need for fancy infrastructure or complex organization. But when it comes to running a business, things get more serious. You might need to expand operations, set up a formal structure, and streamline processes. It’s like taking your hobby to the next level!

5. Legal and Regulatory Obligations: Ah, the legal stuff. When you’re indulging in a hobby, you don’t usually have to worry about legalities, unless your hobby requires specific licenses or permits. But hey, running a business means facing legal and regulatory obligations. You gotta dot your i’s and cross your t’s—licenses, registrations, tax laws, employment regulations—the works!

6. Time and Commitment: Time is a precious resource, my friend. With hobbies, you can go at your own pace, enjoy it whenever you want, and adjust your commitment level based on your mood. It’s flexible and free-flowing. But running a business? Whew! Buckle up! It’s a commitment. You’ll be dedicating loads of time, effort, and energy. Sometimes, you’ll work extra hours, go beyond the regular nine-to-five grind, all to make that business flourish.

Alright, my friend, here’s the deal: figuring out whether you have a hobby that makes money or a bona fide business is a big decision. It’s all about understanding your intentions, considering the financial aspects, pondering the scale and structure, dealing with legal obligations, and evaluating your time and commitment. There’s no right or wrong path—it’s about what aligns with your passions and goals.

So, as you weigh your options, keep in mind that both routes have their own merits. Whether you choose to continue enjoying your hobby with occasional financial gains or embark on the exciting journey of entrepreneurship, make sure it aligns with your passions and long-term objectives.

And if you realize your side-hustle hobby is turning into more, it’s the perfect time to join She Owns™!

Spend more time living your life and less time running your business.

She Owns™ is an all-in-one business software suite solution that will help you manage your list, sales, marketing, funnels and a customer relationship manager (CRM) all in one. We also have a robust community, a video training vault and courses for every aspect of business.