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Hobby vs Business – Is It Your Time To Decide?

Lots of people are turning their passions into side hustles, am I right?


Monetising their hobbies–largely thanks to the marketing opportunities the internet and social media has provided.


But there’s a thin, grey line that’s drawn between having a hobby that earns you money and running a business. Whether you’re looking to transition from hobby to business, or just wanting to understand where that work lies, the key differences are fairly simple to understand.

Firstly, you need to understand the base characteristics of a business:

  • You intend to make a profit

  • You've made a decision to start a business and have done something about it such as: o registered a business name o obtained an ABN.

  • You repeat similar types of activities

  • The size or scale of your activity is consistent with other businesses in your industry

  • Your activity is planned, organised and carried out in a businesslike manner. This may include: o keeping business records and account books o having a separate business bank account o operating from business premises o having licenses or qualifications o having a registered business name.

What it really boils down to how you operate.


Any hobby can, technically, be turned into a business. It may not be successful in turning over profit, which is why many people choose to leave it as a hobby.


But, if your hobby business is starting to demand more time, continuing to increase in sales and profit, then perhaps it’s time to consider whether you want to take on the additional responsibilities of transitioning into a small business.


Review this table below. Thank to www.business.gov.au, that clearly outlines the differences between a business and a hobby, as well as those additional responsibilities of running a business:


Are you considering transitioning from hobby to business, but not sure if that’s the right thing for you?

Click here to book a clarity call with Julie to figure out just that!

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