If you’re looking to leave your job, you might turn your hobby into a side business. This is one way to achieve your goal. However, before you take steps to build a new business, there are seven reasons why you shouldn't turn your hobby into a side business.
1. It Might Lose Its Appeal
If you turn your hobby into a side business, you can potentially generate enough income to leave your full-time employer. But at the same time, this means that your hobby will become a job. Presently, your hobby may be a relaxing activity — your way to unwind after a hard day. Unfortunately, if your hobby becomes a job, it might lose its appeal.
2. You’re Not Self-motivated
With a job, your employer tells you when to arrive, when to leave and what to do. If you turn your hobby into a side business, you’re solely responsible for the success of this business. And unfortunately, if you're not self-motivated, your business might not generate enough revenue.
3. You Don't Have Time
It takes time to grow a hobby into a business. Therefore, you must be willing to devote sufficient time to the task. The truth is, if you work full time, have a family, go to school and have other personal obligations, there's probably little time in your schedule to grow a business. Take a look at your situation and consider whether now’s the right time to turn a hobby into a business.
4. You’ll Have to Pay Estimated Taxes
Once your hobby earns real income, you’re responsible for your own taxes each year. Right now, your employer may deduct taxes from your paycheck. Therefore, you don't have to worry about this headache. It's a different story when you own the business. If you don't want to be responsible for your own taxes or make estimated tax payments quarterly, you’re not the right person to start a business.
5. You Don't Have Startup Capital
Just about every business requires some type of startup capital. You have to buy supplies and equipment, plus advertise your services. To accomplish this, you need enough in your cash reserves. If you don’t have funds on hand, you might rely on credit cards to get your business off the ground.
6. You’re Not Organized
It's important that you track business expenses and keep a record of other documents. This is important for tax purposes. And if you plan to buy a house or a car, you'll need an accurate paper trail. Be honest about your organization skills. If you can't keep up with your financial documents today, you’re likely to be disorganized as a business owner.
7. You Need Guaranteed Money
Whether you have a job or run a business, there are no guarantees. An employee can lose her job and a business owner can lose her business. However, employees typically enjoy consistent income. Turning a hobby into a side business provides income, but if you’re the head of a household or living on your own, consider whether you're able to deal with potential income fluctuations.
As a freelance writer, I feel that turning a hobby into a side business is a great idea. It can definitely work, but you need to plan well and be realistic about your abilities The truth is, it’s not the right move for everyone. Do you think it’s a good idea to turn a hobby into a business?