Just imagine how will you get satisfied if you would turn your hobby into a revenue generating business venture where your passion and expertise will be involved. Today we see numerous people who are now turning to what they love and passionate about, to earn money – mostly the retired personnel and housewives. Isn’t it interesting about?
If you are passionate about a painting, sewing or other activity, your money-making opportunities are virtually endless these days. Here are some things to consider as you turn your hobby into revenue generating business.
The Actual Scenario
Expert often a person’s hobby or side business is a labor of love rather than a regular and a reliable source of income. This is most often the case when the business owner or freelancer has other means of financial support — such as a regular full time job or a working spouse.
Hobby vs. Business
To turn your hobby into a business, you don’t need to reach a certain level of sales or income. To have a business, all you really need is a reasonable expectation that you’ll make a profit from the activity. You will also find people those may buy your hobby skill.
So the hobby versus business question boils down to how you handle your expenses and what to do if your activity loses money. For example, let’s say you sell hand-knitted goods in your spare time. In the United States, there is a policy that if you actually lose money from this activity, when you factor in all the related expenses like yarn and marketing, the IRS will let you deduct this loss to offset your other income (i.e. your day time job), if your knitting is considered a business. You cannot deduct a loss, if it’s a hobby and you wont ever mind it.