Monday, September 11, 2006

Do you have a business or hobby

Working from home is a great way to gain personal time freedom. It also presents lucrative tax savings, earning potential and if you build it right, passive income for life.

Here's today's question: Are you really running a business or do you play at it (more like a hobby.)

To decide which is which, ask yourself a few questions

1. Do I have a plan? (this includes marketing, promotion, sales, competition, business goals, financial projections etc). In a future blog I'll post a simplified business plan that outlines categories.
2. Do I have a schedule (do I work at this business consistently to implement the plan)
3. Have I set budgets for my business and am I spending within those budgets effectively (this may include sampling, promotion, advertising etc., whatever is appropriate in your business)
4. Do I have a contigency plan if my sales objectives aren't being met. How will I address it, what will I do, who will I call for advice
5. Am I investing in my education (all business people need to stay current. It's the best money you can spend.)

I hate to say it but if you aren't doing all of the above, you are playing at running a business and are not seriously running a business.

Take some time and answer each of these questions. Where there are gaps, start filling them in. This is another great step in your business development.

When you are starting a home business, it is tempting to play and enjoy your newfound freedom but you need to set the solid foundation first. Build the business on a solid footing and retiring free and early is possible.

Make your business real ... not a hobby and you are on your way.