Tip #5: Business vs. Hobby

Richelle, What is the rule of thumb to determine if the service I want to offer is meeting a need that will make money, i.e business vs. hobby?

Richelle’s Answer:
Well I think the only question to ask is if is the hobby making money? If it makes money then, it is a business. There is no other test. BUT- I think the question you are asking is do I have a viable business?

First, I would focus on the first part of the Million Dollar Equation – which is what problem is your business solving?

Every successful business provides a solution for its customers. FedEx provides a way to get packages overnight. Dominoes Pizza provides a way to get fresh hot pizza within 30 minutes or less. My company, FreshStart Telephone provided a way for credit challenged customers to get phone service guaranteed without a deposit. My private client – Henderson OB/GYN provides women with a doctor who listens to their challenges and guarantees to spend at least 30 minutes per appointment.

As you can see – the solution is almost as important as whether there is a niche. I like to figure out who has the problem, first and then create the solution! Once you determine who has the problem, then, the next step is to run them through the Ideal Niche Market test

1. Small enough to make the big competitors say “never mind”
2. Big enough to make some money
3. Is there available media
4. Do they spend money?
5. Are they spending money right now?

Good luck to you! I wish you nothing but success!
Let me know what you think!