Hobbies and Talents can make Small Businesses
Updated: Sep 25, 2019
Have you ever had a knack for beats and sounds? Do all your recipes have a twist that only you can create? Chances are you may be sitting on a profitable idea, but you should know what steps to take to form those ideas into a business.
Don't Re-Invent the Wheel
Everyday people often posses natural talents or have hobbies that are far from the ordinary. These talents and hobbies can be deemed profitable, if you know some of the basic steps to turn them into a profitable home based business or small business. Starting a business does not require a new invention or some elaborate plan to become a millionaire. You already have what it takes, just check out a few steps below to help get you started with making your natural talents a business.
5 Beginner Steps to Start your Business
1. Market Research - First see if there is a demand or need for your particular talent. Performing a market research will help you identify your customer base. By identifying locations, gender , age group with online tools such as survey monkey , market research can give you the background of how to tailor your skills for profit.
2. Write a Business Plan- A business plan is very important to the start to your organization. This is a detailed outline of your who , what, when, where and why for building a business in your particular field. For example, A DJ, would have plan to explain his or her passion for music. How they plan to execute their passion to benefit their customers, how they plan to benefit their audience in a matter that will accumulate profit. Performing and documenting a marketing analysis , competitive analysis, sales and ownership plans are also part of building a official business plan, and is important for finding investors and funding for your business.
3. Fund your business- Attaining funding for your business can seem challenging in the beginning, but there are multiple ways to accomplish this goal. To name a few ideas , you can attempt to get a bank loan through you personal bank or other traditional banking. Often you will need to have strong credit history to take this route. Using a micro-lending firm designed specifically to lend to small businesses is another option to fund your business. Access to Capital for Entrepreneurs, Inc aka ACE is a nonprofit organization that provides loans and business resources for community and economic development. ACE is considered to be a micro-lending firm. According to INC.COM , other ways to fund your business are opening a business credit card, using your existing 401k, and more. You can checkout their blog for more options and details about how to fund your business.
4. Picking your Location- Apart from home based businesses, picking your location is a very important step to owning your business. Your location can affect your taxes, and overall legal structure of the organization. Location, Location , Location is a popular mantra for business owners for a reason. According to business.gov.au conducting research about the demographic and economic status within an area that interest you, are important steps to confirming your idea location for your business.
5. Choose a Business Structure- When you register your business name with the state in which your business will reside, you must know the business structure. Sole Proprietorship is one of the easier structures and is often used for low risk or home based businesses. An individual can operate using their personal social security without requiring a tax id in this business structure. However, personal liability are also held accountable, since your personal assets and liabilities are not separate from that of the business within the Sole Proprietorship structure. Other structures include, Partnership also another easy structure, for 2 or more owners of the business. Limited Liability Company LLC is a popular choice for a business structure as well. It allows access to corporation and partnerships structures, but also protects the owner from personal liability unlike the Sole Proprietorship.
Visit the sba.gov website for more information and steps about choosing your structures and how to own your very own business. Remember , you don't have to do it all on your own. Although it may seem like a lot of information and steps to achieve this goal, the reward of being your own boss is worth it.
Check out Front and Center Activities for more business tips and information, such as classes and links to some of the best business resources to help get your on your way.