Is your hobby a business? Is your business a hobby? Let’s look at a few key indicators to see if you are on to something.

Does it make money?

The IRS asks this question and it’s a big one for you. Are you making any money? The IRS requires businesses make a certain amount before they can be claimed as a business. Your goal should be growing your business to support your lifestyle. If not, you have a hobby or at the most, a side hustle.

Do you have a plan?

Every business should have a plan. Types of clients, where the business is projected to be in 5 years, plans for cash flow, etc. If you consider your business viable and do not have a plan for growth, you may have a hobby state of mind.

Do you have a passion?

Owning a business takes dedication. It’s not for the faint of heart or the casual dabbler. Are you ready to make your passion a priority? Are you ready to eat, sleep, breathe and marry it? Your level of commitment is directly related to your level of success.

Are you good at it?

I’m no chef. In fact, my own questionable skill in the kitchen would make it unwise for me to venture into any food-related business. However, for baking phenom Carla Saunders of 3 Babes and a Baker, a baking business follows her passion and skill. Saunders has been featured in local print and television news for her unique cupcake truck. Side-stepping skepticism and believing in her gift and passion, she has built up a thriving business.

What skills do you have that you can turn into a viable business? What plans do you have for your business?