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Turn Your Hobby Into A Home Business

by Karen Barnes

Each year many people earn a living from their hobbies. Hobbies are one of the most under used income opportunities around. Many people have realized that their passion about their hobbies are invaluable to those that are seeking these skilled, imaginative people. Hobbies range from woodworking to crocheting to fishing to writing. Your hobby can not only be relaxing to you, but another person's purchase of an item they are unable to make or find themselves.

With time constraints with many people these days, finding the time and energy to make these projects themselves, many will pay for such items from individuals who have the skill and know-how to make the items they are wanting.

The biggest example of hobbies that earn individuals a nice income each year is woodworking projects. Woodworking projects range from something as simple as planter boxes to items that are as complicated as furniture pieces. I have known individuals throughout my life time that have made a part-time income from building small wooden lawn ornaments and lawn furniture. With their part time income from their hobbies they have taken trips and cruises that they would normally wouldn't have been able to with their regular paychecks from their jobs.

Other hobbyists that I have know over the years also have not only done the same as the woodworker that I mentioned but also have been asked to work on consignment for their pieces. I know of a few ladies who crochet doilies for their pastime who have been asked to crochet doilies and table cloths for other crafter's for their display tables and cases with payment for their services.

Bead work is also another craft that can be very lucrative. Many beader's find it more lucrative to have their crafts in consignment shops that will take care of the selling part of the hobby as well as displaying their work in areas of the owners consignment shop.

Not only selling your hobby pieces to those that visit arts and craft shows in your area, consignment shops, and to other crafter's, creating a network of friends and family that have your projects around their homes is also another great way to gain more customers for you. With this type of word of mouth advertising, your income earnings are unlimited.

With this in mind for those that haven't yet ventured into the sales world with your hobby, you more than likely have tons of questions of what do you need to know to make this happen. Let me get into this a little bit deeper for you with some typical, yet simple, questions and answers.

1. Where would you find places to sell your crafts?

I have mentioned a couple of places already like arts and craft shows and consignment shops.

Arts and Craft Shows-

Many communities have Arts and Crafts shows in both seasons, by setting up Arts and Craft Fairs at community buildings such as: armories, 4-H buildings, county fair grounds, and any other civic buildings. Check with any local city office for days and times that they are having these shows. The city clerks office usually will have a list of these as the sponsors of these shows will have to go to their office of permits for holding their events. Also check with the sponsors for any fees that they may charge such as booth rent, sign up fees, deposits, etc as these charges may be tax deductible.

Consignment Shops-

Consignment Shops can be found in any of your local telephone books or newspapers. Call or go by these shops, talk to the owners about wanting to use their shops to sell your items for you. You will also need to ask the owner about how much of a percent they charge you for selling your crafts, booth rent, etc. Any items that they mention that they charge you for can be tax deductible.

2. When is the best time of year to sell your crafts?

Arts and Crafts shows are held mainly in two seasons. The first season is in the spring, as this is when the general public is looking for new home decorating and lawn and garden ideas to revitalize their homes or even for the summer holidays decorations. The second season is in the fall. In the fall, many are looking for Halloween, Thanksgiving and Christmas decorations for their homes. Not only with the decorations, arts and crafts will also be bought for gifts for family, friends and co-workers.

3. Where can I find materials?

There are many places to find and purchase your materials that cater to hobbyists. For example Hobby Lobby carries a wide variety of materials for every hobby under the sun. Micheals is another large chain that also caters to hobbyists. Think about what craft you are making and search your phone books, newspapers and the Internet for stores that cater to your specific hobby.

4. When does my hobby qualify as a business and not just a hobby?

Anytime that you make money from your hobby it is considered a business.

Don't let Uncle Sam scare you away from your dream job. When it comes to filing your taxes each year with the IRS, any accountant can help you with what records you need to keep for your tax purposes. As scary as this may sound, this can be the easiest part of turning your hobby into your dream job. There are publications, articles, forms and much more that can aide you in dealing with your taxes.

With the ever unstable economy and loss of jobs, using your hobby as an extra income can help you in many other ways other than what has been mentioned here. Use your earnings for your retirement account or even to help pay for college tuition.

Sources:

Stern, Linda. "Turning Your Hobby Into A Business" Boston.com http://www.boston.com/business/personalfinance/articles/2003/09/24/turning_a_hobby_into_a_business/

Anthony, Joseph. "Your Hobby Should Be A Business: Here's Why" Money Matters bcentral.com http://www.bcentral.com/articles/anthony/225.asp

Godwin, MCC, Leslie. "Should I Turn My Hobby Into A Career?" BusinessKnowHow.com http://www.businessknowhow.com/homeoffice/hobbycareer.htm

SBInfoCanada, About.com. "I Make A Few Bucks From My Hobby. Do I Have To Declare This Income?". http://sbinfocanada.about.com/cs/taxinfo/f/hobbybiz.htm

IRS Publication 535: "Deducting Business Expenses" http://www.irs.gov/publications/p535/ch01.html

IRS Article: "Is It A Business Or A Hobby?" http://www.irs.gov/businesses/small/article/0,,id=99239,00.html

Karen Barnes is a home based business entrepreneur who is working for a better tomorrow. http://hbb.vze.com . Writer for the International Association of Home Business Entrepreneurs http://pas.vze.com