Articles

Business Tips from the Editor - February 2026

BUSINESS TIPS FROM THE EDITOR

February 2026

Richard T. Hendee, Editor
The Silver Fox Advisor

         “Hobby or a Business"

Over my career advising businesses, I have seen many businesses that started out as the owner’s hobby and grew to become very successful. I have also seen many businesses that started out as the owner’s hobby and never grew to become more than a one-person entity that barely provides the owner a wage. Why the difference?

The owners that turned a hobby business into a successful business treated the business like a business and not just a hobby. They identified their business’s weaknesses and hired individuals who had capabilities the owners lacked, like accounting, operational skills, quality control proficiencies, marketing abilities, leadership competencies, etc., and they empowered these individuals to run their departments or business units like a business within the business and thus created a true win-win situation for everyone.

In the hobby business that never really grows, the owners try to do everything themselves because they feel no one can do any particular job the way they would do it, or, they have difficulty giving up control. One person simply can’t do it all, and thus, nothing gets done well enough for the business to break out of its shell and grow. Further, overall costs are rarely identified, and thus, product pricing simply does not cover all the expenses, with an end result being very narrow profitability margins.

I am not saying one approach is better than the other. It really depends on what the hobby business owner personally wants to make the business be and what that owner’s personal goals are. I do recommend figuring that out up front. It takes capital to start any business, and using retirement funds, home equity, credit card debt and or family and friends’ savings to get started can be dicey. If the business is not successful, then the original purpose for those funds are in jeopardy, and relationships can end or become very strained. 

If you are considering turning your hobby into a business, but you have not figured out the actions needed to be taken and you need help, assistance, guidance, direction, or a path forward for your hobby business, we encourage you to visit our Website at www.silverfox.org  There you can learn more about the great programs and community outreach endeavors, selecting a Silver Fox Advisor whom you can engage, or perhaps becoming a member yourself.