If you are a creative hobbyist and your creations have been selling well with your friends and community, then why not turn your products into a business-making venture? You can receive larger gains from selling your products under the banner of a business. Also, you can work from home and be your own boss. 1
Begin to network
To begin the journey of becoming a small business owner, you must know if your hobby products will sell. You must have enough selling experience to know if you have a consistent business product.
Your family and friends may support your endeavors by buying your products, but this is not enough. Yes, you are wholly invested and fully believe in your product, but remember that other people may not.
Increase your vision of going from a hobbyist to a small business owner by following some simple procedures:
- Many successful entrepreneurial businesses grow by word of mouth and networking. Be prepared to be active in self-promotion.
- Using a word processing software, you can create your own business cards to hand out wherever you go. Also, place a business card in each package you sell.
- To help brand yourself as a business owner, create a website and a social media profile. An online presence will help generate activity.
Employer ID Number (EIN)
As a small business owner, you need to apply for a Federal Tax ID number or an EIN. An EIN is issued by the IRS and can be secured online at IRS.gov. An EIN does not have an expiration date. Did you know that having an EIN allows you to purchase supplies at low wholesale prices?
Seek help from professionals
Beginning a small business from a hobby standpoint requires some guidance. Seek out a local accountant or a lawyer. They can inform you about pitfalls that you may not be aware of when creating and selling your products.
Their expertise can also help you learn how to properly handle your money transactions. Also, if you are running a home-based business, then they can inform you of what it will take to operate out of your residence.
Keeping up with demand
Sale growth is always a good thing for a small business. However, you have to make sure that you are able to keep up with increased demand. You can do that by hiring family members and friends as needed.
Price competition
Seek out the business competitors in your community. Remember, people will buy anything once, but you keep them coming back by keeping your prices competitive. For example, if your competitors sell their products for $35.00, sell yours for $25.00. Another advantage you have over your competitors is that you do not charge a sales tax.
Okay, why not go for it and turn your hobby into a business? As small business owner, you will have to work hard, but it is well worth it. You will make mistakes, but don’t beat yourself up. Don’t look back. Learn from your mistakes, make the necessary adjustments and keep moving toward success.