Business, Hobby, or Required Responsibility?

Business, Hobby, or Required Responsibility? (Video)

hWe do many things.  Most, perhaps all, can be divided into three areas:  business, hobby, or required responsibility.

The business area includes everything that we do for others that they are willing to pay us to do.  If we have a job, we get a paycheck in return for what we do.  The work we do has value to our supervisor or the company where we are employed.  If we are self-employed, our customers pay us to provide goods or services because these goods and services are valuable to them.  In my case, people pay me to speak at their conferences and they pay me for my book.

The hobby area includes those items that we do because we enjoy them, but no one is going to pay us to do it.  Or, they will not pay us very much.  Something to keep in mind is:  “Businesses are in business to make money.  If it does not make money, it is a hobby, not a business.”  (This is the best piece of information I learned at the University of Louisville when I got an MBA.)  I love to hike, but no one is going to pay me to go hiking.

Required responsibilities are those things that we are responsible to do for ourselves.  This includes everything from feeding ourselves to cleaning our homes to taking care of our pets and/or children.  No one will ever pay me to clean my own house; it is my responsibility.  And I will never pay someone to clean their own house; that is their responsibility.

With required responsibilities, it is our responsibility to see that they are done.  We can do them ourselves, or we can hire someone to do it for us.  We can clean our house, or hire a housekeeper.  We can mow our lawn, or hire a lawn service.  It does not matter which, so long as it is done.

How would you divide what you do?  What tasks are business, what are hobbies, and what are required responsibilities?

Business or Hobby?

Business or Hobby? (Video)

“Businesses are in business to make money.  If it does not make money, it is not a business.  It is a hobby.”

This was the most valuable piece of information I learned when I went to the University of Louisville for an MBA.  (If I could remember the professor’s name, I would give him the credit.  Unfortunately, I do not even remember the name of the class.)  This forced me to take a very critical look at my business at the time.  I have used it to assess my business many times since.

If you are self-employed, do you treat your business as a business?  Or do you treat it as a hobby?  Do you invest as much time into your business as you would if you were punching a time clock?  Or do you fit in time where you can between personal pursuits?

I know people who run their businesses as a business.  They put in the time and effort needed to achieve the success they want.  I know others who consistently let everything else come first.  It can be easy to do, especially if you work from home.  There are many potential distractions.

This may be hard to believe, but the ones who are most successful are those who treat it as a business!  They work extremely long, hard hours.  If you want a business, that is the price to pay.

If what you really want is a hobby, that is fine as long as you have another way to support yourself.  But at least be honest with yourself.  A simple question to ask yourself is whether or not you would pay someone else to do what you do throughout the day.

Do you have a business or a hobby?  Which do you want?  Do you need to make changes?