Archive for May 12, 2011

Users, Businesses, and Hobbies

Written by Sean Murphy. Posted in 3 Early Customer Stage

I will often hear folks say “I think I can get a lot of users, I know that there is a market for this.”

I worry because a market requires customers not just users: you can tell who your customer is because they pay for your product or service.

When you say to yourself that  “there is a market there” you need to identify who the customer is.

The IRS defines businesses without profits as a hobbies.
If you have no revenue it’s very difficult to make a profit.

There is nothing wrong with a hobby but you should consider if that is what you want to spend time on.

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