Advisory

Q Passion To Cash Advise

"There is no passion to be found playing small - in settling for a life that is less than the one you are capable of living."  - Nelson Mandela

It is however, wise to hold on to your day job while you find your feet. Don’t leave yourself out in the cold until you get a grip of the business.

Before you start -

Be prepared to lose some love once you turn that passion into a business:

You may never see it the same way again’! ‘Cause it is no longer “just a passion or hobby”, it is now business!!

Numbers matter:

You must balance your love for doing what you love with being profitable. Take it all down to numbers - creativity vs commercialism.

Ask yourself these pertinent questions:

1. What’s the time taken to produce each/lot of an item?


2. What’s my cost of production?


3. What’s my best selling price?

Test your market:

Identify your target market and find those things they regard as value. Is this hobby capable of meeting a need that customers will demand? If yes, test your market to find out what works and what doesn’t.

Your enthusiasm and zeal for your hobby and the business idea that flows from it may not be matched by your audience. So, it is safe not to assume your market will be as excited by your product or service but check to get a feel.

Leave personal out of business:

Business thrives when family and friends pay. Don’t mix your personal expenses with that of business.

Pay yourself a salary if you have no other source of income. If you do have other source(s), allow the business to reach its potential before ear-marking some amounts as your salary.Whatever you do, keep business as business, and personal stuff separate!

Not every opportunity is “real” opportunity:

Don’t feel obliged to pursue every opportunity – let some down. Weigh your options and decide the best and most profitable opportunity to pursue.

Financial Advice

Before you consider taking a loan to make a business out of that passion, try starting with own funds or grants from family and friends, as stage 1. During your Stage 1, run the business as though your start-up capital is a loan that must be paid back with interest.

Keep records of every activity - from time, money and resources spent on the business, to every kobo made in revenue.

Take feedback seriously as this will help you improve your product or service for your target customers and grow your demand.

As your demand rises, keep the records to help provide projections for your stage 2.

Click here for stage 2 

If you must borrow to commercialize your hobby i.e. your kind of business requires a minimum capital outlay that cannot be sourced from family and friends, please ensure the following:

1. Study your hobby well and be sure you have learnt all the tricks of the trade enough to commercialize it.


2. Pencil down your first set of target customers – make an extensive list ensuring enough buffer, should some of your target not buy into your product or service with the first try


3. Create an action plan on how to achieve your sales – clothing yourself with the raiment of perseverance, resilience and the will to succeed


4. Make your plan definite by writing it down – if you can make yourself a business plan,articulating your goals and objectives, all the better. Ensure SMART (Specific, Measurable, Achievable, Realistic and Time-bound) goals are set.