Passion is not enough to make a profit

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We hear it all too often, follow your passion, but what if I told you passion alone is not enough? Undoubtedly passion is an essential ingredient to have in any successful  venture you take, if it is starting a business or starting a new career. But simply being passionate about something is not enough, you have to be able to harness that energy into something of value. Here are five tips on how to turn your passion into a profit.

 1. Identify the specific field or industry your passion fits into, and become and expert in that field.

Every passion can be linked with some industry(s), it may overlap with more than one, and that is fine. It is important to understand which industry(s) your passion aligns with so that you can familiarize yourself with the necessary skills to become successful in that business sector. So let’s say for example you are very passionate about legal technology , you would familiarize yourself with the legal industry as well as the technology industry. Perhaps your passion is much broader and your interested in innovation, but not particularly sure on which aspects of innovation. You can read up about the technology industry and as you become more familiar with it you will find certain fields more interesting, and those fields you can focus on and build a business upon.

2. Familiarize yourself with the fundamentals of doing business.

This is key. It is important that you start to familiarize yourself with business fundamentals, in order to build a successful business. Some business fundamentals are :

  • Understanding the finance and accounting of your business. You need to know how much your service or goods cost and what margins you are making on each. You also need to understand the profits and losses of the business as well as the cashflow of the business.

  • You need to know your target market and customer base.

  • You need to have an understanding of the market you are in and how it operates, for example is it seasonal, are customer acquisition costs high?

  • You need to understand the operational aspects of your business, such as manufacturing, distribution, supply and demand.

  • You need to have a good grasp of marketing and how you wish to market your product or service and reach potential clients as well as retain existing clients.

 3. Identify problems in that respective field and see how you can use your knowledge and passion to solve the problem(s) you have identified.

For you to have a successful business you need to be solving a problem, and also create a solution to the problem that people are willing to buy.  Creating solution does not necessarily mean inventing a new problem from scratch. Sometimes it can be as simple as offering a better service or product than your competitors.

4. Network with people who are experts  in that field.

Networking is great because it gives you the opportunity to learn from people who are more experienced  and knowledgeable than yourself in a certain area. Through networking you learn from other peoples experiences both their business successes and failures. It will allow you to get a more holistic perspective of the realities of the industry you wish to conquer.

5. Draw up a plan of action

The last step is to draw up a plan of action of how you wish to start your business (or new career). You can do this by drawing up a business plan, or a business model. Which ever format you decide on, it is important to do a SWOT (Strength, weakness, opportunities and threats) analysis on your business idea so you can evaluate the pros and cons of your business ideas so that you make an informed decision on whether to pursue your business idea further.

“The true entrepreneur is a doer and not a dreamer”

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