Is Your Business For Profit or Hobby?

Everyone these days wants to have their own business and with today’s technology just about anyone can do so.  But are you actually running a healthy and professional business or is it just a side hustle?

Here are 4 signs that your business is really a business:

1.)  Is your business registered and trademarked?  Why does it need to be, you ask?  If you are in business for the long haul and plan on making huge earnings, you need to register your business.

Now whether you are required to register that’s a different story.  You should check with your state’s business and tax laws as each state varies.  Regardless of the size or profit, there are many advantages to registering your business such as liability protection, tax deductions, and financial assistance.  Besides, registering your business makes your business legit to potential clients and customers.  They will take you more serious!

2.)  Are you able to operate your business debt-free?  Professional businesses are able to operate debt free.  Clearly there is nothing wrong with financing your business, but you will rest a lot easier if you can operate a debt-free business.  Especially when you are picking up all the business left-over from companies that have failed due to their high debt and overhead.

It’s definitely not easy, but here are 3 ways to help you start:

• Focus on Getting Sales
• Reduce Expenses
• Pay with Cash

3.)  Are you solving a real problem?  Just because you started with a clever business idea that doesn’t mean that there is a need for it.  You must be fulfilling a need to a specific target market.  Too often entrepreneurs get caught up into the excitement of offering a new product or service and forget to test whether people actually want it.  I encourage you to get out there and see if it’s something your customers truly want.

**Warning!

The next one is a hard pill to swallow.  Oh, but it’s true…when I had this debate with someone it took me a little while to understand and more time to accept it.

4.)   Is this business idea or product scalable?  In scalable, I mean can your product be easily reproduced and easily taught to others.  Let’s say you have a golden product, as time goes on you’re going to need more of this product and if it can’t be easily reproduced by others, well that is a BIG problem.  So think about it really hard?  Ask yourself this question; Are you the Founder the only person that can produce this product or service?  Do you have to be involved for it to work?  If the answer is yes, then you really haven’t started a business.  To be honest, you’ve only created a job for yourself and on a larger scale it’s not really a real business.  Tough one, even for me.

I know you might give me the side eye for some of these things, but you will thank me later.  Trust that I have your best interest at heart.  At least you can reevaluate your plan and make the necessary changes now.

Need some help?  Let’s talk about it!  Schedule a consult with me.  That’s what I’m here for.