Is it really a business or just a good idea? How do you know…
It’s not such a complicated question! One of the easy ways to find out if you are running a business or a hobby is not to ask everyone what they think but rather ask yourself a few simple questions. Such as:
Are you doing your product/service for commercial reasons?
Is your product/service for the purpose and prospect of making a profit?
Do you find yourself repeatedly or regularly undertaking or making the products and/or activities?
Is your service/product planned, organised, distributed and carried on in a business-like manner?
Do you find there is a natural (organic) demand for your activity
If you answer yes to more than two of these questions, it would be reasonable to assume that you are operating a business. The next very question is:
Are you being paid for what you do or are you giving your time effort and energy just because you love what you do? Even if you charge, you need to calculate how much time is spent on a project or product so you don’t end up working for £1.00 and hour or less!
As a working example: a dear friend of mine who is incredibly gifted charges for her creative work however by the time she has spent hours (which is why a day rate is good) on the phone to the client as they continually “tweak” (I can’t that word!) the product, means that in real terms she is making nothing! In fact she is really in the red!
Think about it: if someone asks you to design a logo for them and they continually want to discuss, change etc. If you have spent a total of 25 hours talking to them you will be out of pocket unless you factor this possibility in.
Enough of my rantings for now! In the meantime try and make up your mind as to whether you are serious about making some money! Why? Because….
“Life’s too short!”
Need further help or advice? call me or visit my website: http://angelarmorris.com