Many people have hobbies they can legitimately turn into a business but don’t know how or where to start. First off, you’ve got to look at your hobby. What is it? Is it marketable? Is it desirable to others? When we talk about others, we are talking about the general public. You need to find out how other people feel about your product or service. Get genuine, honest feedback. Too often people think they’ve got something great and they think, “Why wouldn’t people want this?” To an extent, it’s great to think positively and be excited about your product but the reality is everyone’s not going to feel the same way.
Second, can you sell enough of your product or service to turn a real profit? If all you’re doing is breaking even, keep your hobby as a hobby. Either you’re not serious enough about turning it into a business or you don’t have the business savvy to make it as a business owner. Too many people start a business and don’t understand the fundamentals or realize how much effort it takes to start, run, and grow a business.
While you’re thinking about your business, you’ve got to think about your marketing strategy. How much money are you going to invest into your marketing strategy? What will be your strategy? Are you relying 100% on social media? Is this an e-business where you’re only selling online? Who are your competitors? What are they doing? How successful are they? How can you be better than them? What are their gaps? What are the opportunities in the market? There are a lot of questions you must consider.
If you have a viable product or service and know you can turn a real profit, go to your state’s revenue page and find out what you need to do to start a business in your state. At the top of almost every list is going to be calling IRS to apply for an EIN (employer identification number). Follow the checklist. You need to be a legitimate business! People get out there and sell under the table, don’t pay taxes, don’t have a business license, not approved to do business, get caught, and find themselves in a mess of trouble. Don’t be one of those people. If you’re going to be in business, do it the right way!
Wisdom moments with The Authority in Global Business Dynamics.