Passion for a Product does not make a Business

A friend told me that they want to start a business, but had no idea what do to do. If I suggest a business where I saw a need and offered to help get them started in the business and got the response "But I have no passion for that product." I find it interesting that people define a business is working on something they are passionate about. I fact I use to think the same thing. The reality is if you open a business most likely you will not be able to work where you are passionate, unless it is a passion for working on a business.

For example, many years ago I worked at an automotive shop to support my college habit. The guy running the shop was a really good mechanic. As the shop grew he started spending all his days talking to customers and running the shop. It was rare that he got to get his hands dirty. He had a passion for working on cars and started the shop as a result, but as the business grew he no longer worked on cars. He would go home worn out each day, as it took all his energy to deal with people. This went on for about a 4 years until he sold business and quit. That is he got where he was working full time on the business, not in the business where his passion was. The business was very successful and made money but he was no longer happy.

Many people go into a business because they have a passion for the goods or services the business provides. Most of these people can only manage the business for a few years, they usually make good money and have a "successful business", but one day they realize they are working on the business and no longer in the business where the passion was.

The cold hard truth of business is that you need to have or develop a passion for owning and running a business such that you work on the business, not in the business. This means need to have a passion for the marketing, sales, and customer support, else most likely you will 'burn out'. If you do not have this, consider partnering with someone who does.

You are a Business

Often people tell me they want to own their own business, they do not realize that they already do. That is if you work for someone you own a business. That is right you are a business, your product is your time, knowledge and skills, which you provide to your 'boss' or company in exchange for some compensation. Often you improve your product (gaining more skills and knowledge) such that you can demand a higher compensation (a raise).

In this business your product is your time, knowledge and skills. Going daily to work, you work in the business, gaining new skills and knowledge is working on the business. Which one increases your profit more? Now consider along with gaining new skills and knowledge you start marketing yourself. This could be looking for a new job or talking with coworkers and boss to position yourself for a promotion. The potential for profit increase is often much higher by doing this sales work, than by gaining new knowledge and skills.

You might also notice that more promotions you get, you will find that you spend more time on marketing and selling yourself to others than you do on actually making products. That is you spend more time working on the business than actually in the business. This is why management, marketing and sales jobs usually pay more than engineering jobs, as they are jobs working on improving the business.

The Business Reality

The reality in owning a business, and you are a business, is that you have to work on the business. That is you have to work on the marketing, sales, accounting, etc. The product/service you provide to customer does make a difference in the profit of the business, but it is not the major part of the business. The success or failure of the business, lies more with the person working on the business. For example you might find that the product you had strong passion for and dreamed about making is not what customers want. You might find that some simple easy to design and build product makes you more money than the one you worked years developing. This is the reality, and if you are in business to be in business you will be constantly adapting to changes in market and working on the business and working less in the business.

Conclusion

1. The most profit in a business usually comes from marketing and sales.
2. Products are not as important as most people initial think for success of business
3. You already are in business when working for someone else
4. A passion for a product, usually makes a bad business
5. Develop a passion for working on the business
6. Get to working on your business, and less in it.