3 Reasons Why Your Business is a Hobby

Here at The Start Up Group, we pride ourselves on offering guidance and support to aspiring entrepreneurs. That is the idea that we’ve built this organization on, that from inception of an idea through formation and operation, we wanted to be a One-Stop shop for your businesses. There is one overarching theme that we have run across—Business vs Hobby. We all know basic definitions of both of these entities, hobbies are more recreational, whereas businesses are set up for-profit. Below are three ways we’ve discovered that your “business” is actually a hobby.

1. You Have Taken No Formal Steps to being a Business. This one is pretty straightforward— you haven’t formed an actual business. Whether its registering your LLC, Corporation, or your Assume Name Certificate for a Sole Proprietorship; you have done nothing to say you are a professional organization. The problem with this is A.) Liability, B.) Taxes, and C.) Perception.
2. Perception. This one may hurt a little, but if your friends and family are comfortable asking for low and no-cost services or products, you may have a hobby. There are numerous reasons why someone would have that belief—how you carry yourself and do business, no website/social media, or a number of other ideas which make people not perceive your operation as a business.
3. You. All of these things have one person in common—YOU! You’re stifling your opportunity. Whether you crochet baby booties, are a photographer, producer of music, website designer, or a thousand other possibilities, you can run a profitable business.

Just to reiterate, there is nothing wrong with having a hobby. If you’re just looking for something to do on the side or for fun on the weekends, great! However, if you are interested in turning that hobby into a business, you are in control of it! Register a business, start a social media campaign, take ownership of your passion! As always, if you are struggling to figure out where or how to start, we’re here to help! Contact us at info@thestartupgroup.org.

​-RC

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