Image via SCORE Chester and Delaware Counties.
Do you or someone you know enjoy a hobby such as working with textiles (weaving, spinning, weaving, bleaching fabrics) or crafts/arts made of wood, bamboo, glass, jute, earth, etc.?
Many talented artisans have been creating crafts as a hobby for centuries, locally and nationally. You don’t need “technical training” to start a business selling your works. And the good news is that there is a national demand for artisan products.
Now is a great time to start if you’ve ever dreamed of turning your craft hobby into a business.
But there are a few things to keep in mind.
It is essential to understand the critical differences between doing something for fun and doing it as a for-profit enterprise. Let’s say you create ceramics as a hobby; you can spend hours designing and making pottery. But once you turn this hobby into a business, not only do you have to spend time on the creative aspects of the business, you have to spend hours on things like marketing, management, selling, pricing, hiring, and financial juggling.
What to consider when turning a hobby into a business?
Do it! This doesn’t mean just walking in blindly and opening doors. You must do your homework (see below). But if you spend too much time thinking about it, it’s easy to get overwhelmed. And you end up doing nothing.
So do something every day to boost your startup.
do your homework. You’ll need to learn how to price your goods, manage your time, and discover all the things you don’t know, so you can ask the right questions and find the right solutions.
Talk to people who have successfully launched a business from a hobby or chat with a SCORE mentor.
do understand your strengths and weaknesses.
Do not do it Spend your precious time on tasks you can quickly and affordably outsource to a freelancer or independent contractor. For example, let’s say you are launching a new website to promote your new business or sell your products online. In this case, you’ll likely save time (and time is money) by outsourcing your site design. You will need to learn the basics of Search Engine Optimization (SEO). Still, it may be better to outsource your ongoing SEO as well. The same goes for marketing and other essential business tasks.
do Think about where you plan to sell your crafts. You can start small by selling at local fairs.
Expand with the launch of an e-commerce website. Or instead, Shopifya multinational platform that helps companies manage e-commerce stores, invites you to explore online markets.
etsy is the most well-known of these options and is an excellent site start your craft business.
do embrace technology. Your craft business may be based on techniques that are centuries old, but modern technology can save your life. There’s an app for almost everything you need, whether it’s social media management, accounting, or more.
do seek advice You don’t have to do this on your own. There are others in your community who have she started businesses selling her handicrafts? Are there social media communities or other groups focused on doing what you want to do? And of course you can find a SCORE mentor who can guide you.
SCORE face-to-face workshop: How to start and operate a small business
Warning: A big no:
Do not do it treat your business like a hobby. To be successful, you need to develop an entrepreneurial mindset. Treating it like this is critical because the Internal Revenue Service (IRS) cares about the difference. He says that a hobby is usually not something you do for profit. Generally there is nine factors The IRS considers whether your business is a for-profit business:
Are tasks or transactions handled in a business-like manner? Do you keep complete and accurate books and records? Are there personal reasons for working on a hobby? This aspect is very subjective, as many people engage in tasks that derive personal pleasure from making a profit or not. Does the time and effort you put into your hobby indicate that you intend to make it profitable? hobby for your livelihood? Are there losses while working in your trade due to circumstances beyond your control? Or are losses typical in the start-up phase of your type of business? Do you have the knowledge to develop this hobby into a successful business? Were you successful in making a profit in similar activities in the past? Has the activity made a profit in recent years? How much profit do you make today? Do you expect to gain future profits from the appreciation of the assets used for your trade?
With help, make sure you choose the right business structure for your company protect your personal assets by incorporating your business.
About SCORE
SCORE, the nation’s largest volunteer network of business experts, is dedicated to helping small businesses start, grow and achieve their goals.
Since 1964, SCORE has provided education and mentorship to more than 11 million entrepreneurs nationwide.
SCORE Chester and Delaware Counties has been operating since 1985, with 100 dedicated volunteers today providing confidential counseling at no cost and offering business seminars, workshops and webinars to benefit the local community.
SCORE is a 501(c)(3) nonprofit organization and a resource partner of the US Small Business Administration (SBA).
Learn more about SCORE Chester and Delaware counties.
