business idea

Happy Monday,

One of the top questions I get as a startup lawyer and advisor is: “SHOULD I start a business with my product/service?”.

Now, here’s the deal – I, (or anyone else for that matter) can’t tell you what you “SHOULD” be doing with your life – everything is truly within your decision-making control.

What you can glean for your own information, are the facts needed before you proceed.

After so MANY people asking me – I finally created an informal test for starting a business from an idea, or a hobby.

It really all comes down to LIABILITY, RISK and YOUR PLANS for GROWTH.

IDEA: You have an idea for a product/service that you think can go big (or really just help people). You’ve seen a gap in the market or you’ve been personally affected by that gap. You think others would benefit from your idea.

What you do with an idea, today:

Cold facts: Your idea doesn’t have real merit until someone actually spends $ or invests into it.

HOBBY: You have an idea that actually has fans (fans = PAYING CUSTOMERS). You make 1 or 2 sales a month and are happy with this pace. OR you may be getting increased sales every month, and may be getting concerned about increased liability. You may or may not be sure of the momentum or the end possibility but enjoying the side-hustle lifestyle. You definitely want to grow it but are not pressed about the future (at least for next 6 months).

What you do with a hobby, today:

No judgment if you don’t want a business. Some of the best services out there are actually run by hobby-ists that just enjoy the ACT of providing the service, without goals of expansion or profit.

BUSINESS (not Company): You’re banging out sales and increasing month by month. You definitely are concerned about liability and how to protect yourself. You’ve got plans to expand and take this big and affect more people than you are today.

What you do with a for-profit business, today:

Still unsure of where you’re at? Drop as a line at build@bizto.co.

Stop “Should-ing” – Start “DOING”.

Sankeetha