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If you’re like most people, you have at least one hobby that keeps you busy and helps you stay entertained outside of working hours. You might practice woodworking, paint abstract art, improve your flexibility with yoga or chart the patterns of stars in the night sky.
With your entrepreneurial mindset, it’s tempting to think that there’s some way to make money from this hobby, in addition to bringing you personal enjoyment. But does your hobby really have business potential?
You might be surprised to learn the answer.
For a business to be successful, it needs to have a way to make money. Even if you’re pursuing this mostly because of your passion, you’ll still need a stream of income to offset your costs and keep the business running.
Accordingly, you’ll need some way to “monetize” your hobby. There are a few possible options here:
- Production. One of the most straightforward options for hobbies that involve physical production is selling the physical goods you create. You can sell your art, your crafts and your structures for a price that exceeds your costs. Thanks to
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Recession? What recession?
The S&P 500 registered a 5.5% gain in July, as America’s largest corporations shrugged off one of the worst economic downturns on record. The benchmark index is now up 1.25% on the year, having rebounded from March’s historic correction to claw back all the value it lost amid the ongoing coronavirus pandemic.
Retail group L Brands led the way among the S&P’s constituent companies with its stock gaining 63% in value in July thanks to a positive earnings report. Walmart, the largest company on the index by revenue, climbed 8% on the month, while tech giants Apple (+16.5%), Amazon (+14.7%), and Alphabet (+5%)—all of them with market capitalizations of $1 trillion-plus—helped drive the market upward.
A second-quarter earnings season that, by most metrics, has exceeded expectations undoubtedly contributed to the S&P’s exceptional month. Of the 312 companies on the index that had reported their earnings as of Friday morning, 82% delivered results that beat analysts’ targets—and did so with earnings that, on aggregate, were nearly 22% above expectations, according to Refinitiv data. …