When starting a business, some entrepreneurs may be tempted to run it as a hobby. They may put in inconsistent hours, have an unstructured workplace and be satisfied with making money — any money. If they're still working a day job, the "hobby" route can be useful.
However, the hobby mentality can stagnate the business once it becomes the primary focus. Success in business comes from treating it like a business. Treating it as a hobby will most likely keep it in the supplemental income range and prevent growth. Avoiding a hobby mentality requires devoting more time and energy to the business, but it can greatly reward the owner (and its employees) for the effort put in. Brandon Frere, an entrepreneur and business owner, discusses the importance of avoiding a hobby mentality for the success and growth of a primary business venture.
"If you're going to start a business, it's important to commit," said Frere. "Even if you have a day job and are working evenings and weekends to get your business off the ground, you should be committed to your goal of it becoming a full-time endeavor."
One way a business differs from a hobby is the intention behind it. Is this going to become a career and primary source of income? Or is it a way to make a little money on the side? It's most likely a hobby if it's merely a fun venture and a way to make supplemental income. A business has goals for growth and income. It involves developing a strategy for the ins-and-outs of how the business will run and creating expectations for what it will become. A hobby mentality may be more unstructured, may not have long-term goals or a long-term strategy, may not have set business hours and may have a propensity to work only when it's easy or enjoyable. This isn't to say that one is better than the other, but deciding on the purpose of the venture, whether business or hobby, will help define the structure.
"Building a business is a lot of work, but it's very rewarding," said Frere. "Hobbies are rewarding too, but it's a different kind of venture. It's important to understand the distinction between the two. Focusing on intention, vision and growth will enable any business to succeed."
About Brandon Frere
Brandon Frere is an entrepreneur and businessman who lives in Sonoma County, California. He has designed and created multiple companies to meet the ever-demanding needs of businesses and consumers alike. His website, www.BrandonFrere.com, is used as a means of communicating many of the lessons, fundamentals and information that he has learned throughout his extensive business and personal endeavors, most recently in advocating on behalf of student loan borrowers nationwide.
As experienced during his own student loan repayment, Mr. Frere found out how difficult it can be to work with federally contracted student loan servicers and the repayment programs designed to help borrowers. Through those efforts, he gained an insider's look into the repayment process and the motivations behind the inflating student loan debt bubble. His knowledge of the often confusing landscape of student loan repayment became a vital theme in his future endeavors, and he now uses those experiences to help guide others through the daunting process of applying for available federal repayment and loan forgiveness programs.