Ep. 102: Hobby v. Business
We grow up hearing, “If you love what you do, you never work a day in your life.” That’s only half true. While it’s fine to turn a hobby into a business, there should be a separation between your true hobbies - those things you do for fun that are just for you - and your true business - that thing that brings you an income.
If you’re used to running a business, it can be difficult to restrain yourself from turning hobbies into yet another business “thing”. Hobbies are things you do because you love them, but you don’t feel obligated to do it all the time, even when you don’t really feel like it.
A business, on the other hand, is something you do even on the days when it’s hard, because that’s your money maker.
Enjoying your hobbies while running a business sometimes takes a mindset shift. There may be a time when you feel like taking the time to enjoy your hobbies means taking time away from your business, but you are a better business owner if you allow yourself a creative outlet not tied to your business.
Some people make the mistake of turning a hobby into a business when they really don’t know enough to be able to carry on an intelligent conversation about the details of what you do.
Many hobbyists will start charging for their products or services, but won’t treat it like a business legally. For example, business owners must register their business, pay taxes, and have an actual business account (not just PayPal).