Under Armour, a business that reported revenue of $5.3 billion in 2019, started from someone’s passion to find an alternative to cotton shirts when working out. If you’ve got a passion, you just might be able to turn it into a goal - one that doesn't only bring satisfaction, but that could become a stable source of income, too. The trick is figuring out how to turn your passion into a proper business. Here are a few pointers that may help guide your path.
Narrow Down Your Business Field
In the bestselling book The 7 Habits of Highly Successful People by Stephen Covey, the phrase “begin with the end in mind” is one of the key habits to build. What this essentially means is that you start with your end goal clearly defined. If you’re passionate about photography, it’s crucial that you narrow down your field in order to turn your work into a business, whether that be wedding photography, photo editing, or real estate photography. Narrowing down your business field helps you identify which things to focus on, including skill sets, the necessary equipment, business plans, and certification.
Go Through Your Finances
A startling 82% of startups fail because of cash flow issues, according to US Bank. To avoid adding your business to that statistic, you need to make sure that you have no problems with your capital and operational funds. It is recommended that you strictly comb through your finances to determine if there are any outstanding debts or excessive spending that may put your future business in peril. Check the present standing of your credit score to determine if you will be able to take out any business loans in the future that do not incur high interest rates. If the present state of your finances is not ideal, going through your finances now should give you an opportunity to correct them before you start your business.
Start Small And Grow Slowly
Budding entrepreneurs usually want to have a large and expansive business. However, expanding a business too fast is one of the top reasons why it may fail, according to Investopedia. Expanding your business adds more than just additional responsibility onto your shoulders. You’ll also be looking at additional equipment, locations, employees, taxes, and certifications. These can completely overwhelm the underprepared, so it is advisable to start small and to grow slowly. If you experience a sudden wave of success, don’t lose yourself in it. Instead, remind yourself of what’s at stake, and nurture your business slowly. Keep a fixed eye on the feasibility of expansion, but only pull the trigger when the conditions are right, and not because you want to make it big right away.
Harnessing your passion and turning it into a profitable business can be challenging. The key is to keep your eye firmly on the prize and to be flexible about your plans. That way, you can observe the market you’re penetrating and tailor your approach so you can remain competitive and build a business that lasts.