Let me get personal. Someone close to me recently got a big career opportunity.
The problem: it requires her to be away from the people she cares about the most.
This career bump led to attractive things on paper: greater prestige, a much better paycheck, and a more luxurious car.
But is that what she ultimately wants?
Now, let’s talk about the other side of the spectrum, the passionate people.
Are you a developer, designer, or another type of creative professional? If you want to build a business around your favorite things, you have to do things you haven’t done before.
You now have to balance your desires and what works in business.
Passion vs. Profit
Imagine climbing a tall mountain. One day, you arrive at the top. That proves that it was possible. That proves that it’s a viable idea in hindsight. Climbing the top of the mountain and realizing that it can be done. Like a profitable business opportunity.
However, the fact that you can reach the top doesn’t automatically mean that it was a great idea.
Can and should are two different things.
Want to build a product against your odds with the market? It’s like climbing a mountain when there’s no way you’ll survive the journey.
Balancing Passion and Profit
Experts say that passion is important not only for your happiness but for the longevity of your business. This is because you need to stick around when the going gets tough. Nobody said that business is easy. You need to make money, that’s your oxygen. But you can’t succumb to failure when you get a glimpse of it coming your way.
How do you select a business direction or niche, taking into account both passion and profit?
Get your free 5-step video guide to balancing profits and passion. These are the 5 questions you should use to validate a business or product idea.
Don’t forget the margins
Is it supposed to be a business instead of a hobby? You’re driven and confident if you know you’re onto something that can be profitable. Begin by researching which niche market is in demand. List down these markets. The more profitable niche you find the better.
Narrow down this list of business opportunities based on your passions and capabilities. As long as it’s closely related to the value you want to create in the world, then you are good to go.
Eliminate those that might not be profitable. Explore the niche extensively before deciding. You can visit online discussion sites to check out what customers are saying. These sites are a good way to research your market and get feedback from people.
Remember that making money keeps your venture going and you need passion to get to that goal. Based your niche on those two so you won’t end up with a business that might be doomed from the very start.
Even if you feel that the niche is not your first option, think of how it’s going to get in the long run.
Are you sure your passion will stand the obstacles that most business encounters?
Remember the mountain. There are rocks and craters along the way that will most likely hinder your easy climb going to the top. Consider that the obstacles that many startup businesses can face. It might be in the form of limited cash. Maybe, there’s not much time to experiment. Maybe, you have a family to feed.
Discipline yourself to balance profit and passion. You’re lucky if you choose something that’s 50% based on profitability and 50% about your capabilities. That’s a good number. Things will balance out. When the going gets rough, it won’t matter to you. Because you know what needs to be done.
Always do your research
You need actual facts and data. It can’t always be about what you want and what you think is cute or shiny.
Steve Blank’s lessons on Customer Development will work wonders for this part of the process. You need to go out and find those customers. Instead of obsessing trying to build a perfect product, your first step has to be researching demand, in a way that aligns to your capabilities.
Keep in mind the formula: Balance of profit and passion. No customers equal no profit. Passion without profit is certainly not a balanced formula. Start with the easiest product and build that based on your passion and capability.
How some people turned their passion into profits
Some lucky people found that skills and passion can turn into something profitable. Making money, delighting people but still have time to be with family. Now that’s the kind of business everyone wants!
Take a look at how these people turn their passion into profits:
Alicia Shaffer, an artist, makes $80,000 a month selling what she loves: handmade leg warmers, scarves, and headbands on Etsy.
Michelle Phan makes a living applying make up for Youtube tutorial videos.
Two young foodies, Brian Rudolph and Daniel Katz, turned their passion for good food into their mission for success.
Over to You
We create a business and earn money to provide for people we care about by serving worthy causes. Imagine living a life you don’t enjoy only to save up money in hopes of a happy retirement.
Today, creating a business is a lot easier than it used to be. Thanks to the Internet, social media and generous guides sharing insights on how to be successful. You don’t have to be away from the people you love to earn money. You can buy fancy things once you start making profits. All these while working on something you’re passionate about.
So how about balancing passions and profits? How about making enough profit while already living the life that you love so you don’t have to postpone fulfillment?