Tip Content Provided By: Babson
Are you thinking about turning your hobby into a viable business? Research from Babson's entreprenurship professor Phillip Kim shows that it's possible, under the right circumstances. Via Marketwatch:
Turning a hobby into a business can really pay off. It just may take a while.
That’s the finding of a recent study that looks at entrepreneurs who start a business based on a personal pastime. In the study, scheduled to be published in the Journal of Business Venturing, these entrepreneurs lagged behind other founders in the first few years when it came to hitting milestones in the development of their ventures.
But continuing at a slow and steady pace, they caught up after 45 months in terms of pace, though they may be a few milestones behind. It’s the old idea of the tortoise versus the hare. In the end, the study found, the leisure-based founders are more likely than others to generate revenue, achieve a profit and have a deep commitment to their business.
The study used data from a survey of 1,100 early-stage U.S. business founders who answered questions annually from 2005 to 2010. The founders were tracked in terms of how quickly they reached business-formation benchmarks such as talking with potential customers, finishing product development and securing an office space.
The Wall Street Journal spoke with two of the study’s authors, Phillip Kim, associate professor of entrepreneurship at Babson College, and Stephen Lippmann, associate professor of sociology at Miami University, about what the tortoises can teach others about overcoming failure and forming a business.
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Babson College is a Business/Entrepreneurship partner of The Trust.