In our current financial climate, a one- income family has once again become the norm. For larger families, it can be a frightening proposition when one spouse is the sole financial resource of even larger families. But even in this dismal economic environment, the strains of limited income have enabled families to find creative ways to supplement their paycheck.
As families consider their burgeoning prospects, their thoughts and dreams turn to the possibility of having this second income opportunity become the primary. At some point in the decision making process, they have to ask the question, are these extra income opportunities truly entrepreneurial pursuits or simply a hobby that brings in a little extra money from home until the recession is over?
First, we need to understand the difference between a hobby and a business venture. A hobby is a leisure activity that you enjoy doing outside of your 9-5 occupation. A hobby is the time spent with no consideration to the financial gain or loss. Yes, a hobby can generate extra income from home. But if you spend more or slightly less than what you bring in, and you really aren?t concerned with either the expense or the revenue, then what you have my friends, is a hobby.
Unless you are a charitable organization, the whole purpose to start a business is to generate a profit. The compensation for all the time and effort spent on behalf of the business should be an income opportunity. In the beginning stages a business will not provide as much of a second income opportunity as you might hope, but over time and with determination and consistent effort, the income generated should produce enough profit to pay for the time invested.
This may seem countervailing to those who are inclined to keep their ?day job? while at the same time pursuing entrepreneurial aspirations, something that I counsel clients to do all the time. That arrangement will work for a period of time during the start-up phase of the business. However, there must be a transition plan to eventually phase out the day job run your business full time. You can hardly expect to make a business profitable if you spend more time on your day job than the actual business. In that case, you might as well label it as a hobby rather than an entrepreneurial pursuit.
Hobbies are fantastic outlets to dedicate time to something we are passionate about. They are not less important than an actual business, but understanding exactly what you want out of a second income opportunity will save lots of frustration and provide a clearer purpose.
If financial freedom is something you desire, it may be a good idea to re-evaluate and prioritize how you spend your time. If you find that the activities you thought would provide extra income from home turn out falling into the hobby category, don?t stress. Just about any hobby can be converted into a viable home based business. Take a step back, get serious about the second income you want to achieve, and take the necessary steps to think and act like an entrepreneur.
Danielle Riely is a valued member of the Logo Studio staff, working closely with Logo Studio business coaches as well as helping individuals discover that the difference between TRY and TRIUMPH is just a little UMPH. Get your FREE ?TRIUMPH? T-Shirt at http://www.facebook.com/LogoStudioBiz?sk=app_214297588593398.
Source: http://balkanw.org/2011/09/13/your-second-income-home-based-business-hobby-or-entrepreneurialism/
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