How to Make Your Passion Profitable
Owning a business is a pipe dream for many. An article by Forbes reports that most entrepreneurs gather the courage to start their business after being fired. Resigning from your job may be a risky endeavor; however, the reward of pursuing your passion may be worth the risk. Profits may not be great for the first few years, and the intrinsic value is far more rewarding.
Several would-be entrepreneurs get stuck in their comfortable jobs for so long that they miss their golden opportunity to follow their passion. One of the Corona pandemic effects is massive job losses, which have prompted many of us to think of a plan B since your current job position may not be guaranteed. This article couldn’t be more timely.
Startling statistics indicate that only 20% of Americans are very passionate about their jobs. While pursuing your passion and starting up your business may seem feasible on paper, statistics from SBA (Small Business Administration) indicate it may not be for the faint at heart. While 80% of new businesses make it past their first year, only half of those survive the first five years, and only one-third make it past the ten-year mark. However, with the right strategy and carefully following the steps below, you’re bound to be on the right track.
Save and invest your money
Before you quit your 9-5 job to pursue your dreams, financial experts advise that you should save at least six times your monthly salary. This ensures that you are financially secure while your business is in its start-up phase. A great way to achieve this is by spending less than you earn and investing the rest. Modern-day investment apps like Webull, TD Ameritrade and other Robinhood alternatives are a good way to invest your money.
Identify your passion
Nelson Mandela had this to say about passion, “There is no passion for being found in playing small in settling for a life that is less than the one you are capable of living.” Passion is the force that drives you in the darkest of days and the worst circumstances. Simply put, it is what gets you through the tough days. It is the fire that burns inside you that cannot be dimmed. Passion enables us to achieve a happy and fulfilled life.
It is a good thing to have a business that brings in a good amount of income, but it is even better when you are passionate about it. A great way to find out is by asking yourself the following questions:
- What activity/activities do you love doing? This is usually in the form of a hobby/hobby. It could be something that when you’re engaged in, you completely lose track of time.
- What have you always loved doing since you were a child? It could range from singing to designing or creating. Most of the time, it’s something that you’re effortlessly good at.
- What’s the one thing that makes you stand out in a crowd? What is it that makes you unique?
- If you were financially secure, what would you like to pursue?
- What hasn’t worked for you so far? What leaves you feeling drained?
Master your product/service knowledge
Once you know which product you want to sell, educate yourself on all there is to know about the product. This entails product features, benefits, uses, and support. A good starting point is an industry itself; for example, if you want to start a clothing line, logically, you conduct research on the fashion industry and current fashion trends.
Before showcasing your product, it would be prudent to analyze your competition. By doing so, you may discover existing gaps or ways you can improve your product to make it more marketable and competitive.
Know your target market
A common question that entrepreneurs should answer is: ‘What is the target market for your product?’ It refers to a group of potential customers to whom a company intends to sell its products or services. They usually have similar characteristics, e.g., demographics or psychological and behavioral patterns.
A simple way of identifying your niche market is to know what you are selling and why you are selling it. If, for example, you sell sports shoes, your target market would-be athletes. Knowing your target market and their behavior enables you to develop a marketing strategy that is suitable for them.
How to make your passion profitable: develop your business plan
A business plan outlines your business goals and objectives, enabling you to track your business’s growth. It also acts as a guide for investors to decide whether your business is a worthwhile investment. You can consult expert financial advisors who will guide you in documenting your business ideas. The business plan should contain your goals, product description, the structure of your business, vision on how to sell your product, how much funding you need and, information on financial projections, among other details.
How to make your passion profitable: establish your niche
For your product to do well in the market, establishing what sets you apart from other products is key. You need to identify what makes your brand unique and why customers would go for your product rather than the competition. Once you pinpoint what makes your product unique, run with it. It is important not to copy and paste other people’s ideas. Try to be original and stay true to yourself.
Market your business
It is the process of making your product known to potential customers. It is meant to build brand awareness and turn leads into sales. Online marketing is a great way for start-up businesses to market themselves. In an era where everything has gone digital, having a great online presence could lead to the growth of your business which is every entrepreneur’s goal.
How to make your passion profitable: diversify
The primary goal of any business is to earn profit. Once this is achieved, what next? Diversification is a great way to promote business growth and avoid stagnation. It entails developing new products or services that will generate new sources of income.
While many entrepreneurs shy away from diversifying because of the risks as well capital it requires, business moguls state that it is essential for business survival and success. Robert Allen reaffirms this by stating that millionaires do not become wealthy by investing in savings accounts.
How to make your passion profitable: conclusion
There are enormous perks that come along with pursuing a business you are passionate about, from flexible working hours to being your boss and ultimately doing what you love. You also get a great sense of fulfillment in knowing that you are living your dream, and no matter how hard the circumstances, it is always worthwhile.