Do you love what you do? It can be easy to think that because we enjoy our business that we can’t make money or charge what the service we are offering is worth!
Here are 5 things to think about if you are unsure if your business is a real business, or just a fun hobby.
1. Do you use a business checking account?
If you are running everything out of your personal checking account, you might not be taking your business seriously. Not only does this create a headache when taxes come around, you never really know if you are making a profit or funding an expensive hobby. Open a business checking account today if you aren’t already using one!
2. Do you have office hours?
Do you set time aside to work on your business? Even if it is only a few hours a week, is there a consistency to your work? I have found this especially helpful since I work from home. Set office hours if you don’t already have them!
3. Do you charge for what you are selling? This may seem silly, but if you are running a business, then you need to make money to keep it going! Look at your prices and decide if you are charging enough for what you are providing.
4. Do you keep track of your income and expenses? As a bookkeeper, there’s nothing more encouraging than a client seeing their numbers and being able to make informed decisions because they know exactly what is going on in their business. If you don’t already have a system set up, check out QuickBooks Online and if you have a system set up, make sure you are keeping it up and understand what is happening! (Check out my webinar Bookkeeping Basics if you are lost on this and want details on what it looks like to have your books caught up!)
5. Have you created an LLC for your business? In Florida, this isn’t too expensive or difficult to do on your own. This was a game changer for me when I created my LLC for DAC Balance. It made it real and it was a moment for me to decide if this is really what I wanted to invest in and create. I am so glad I did! If you don’t have an LLC already, check with your state and find out how you can do this. If you don’t feel comfortable doing this, you can contact an attorney or professional who does this for a living.