In the current economic client, many people have realized that employment is not the safe option that it used to be. Redundancy threats, lack of job security and a scarcity of full-time employment opportunities are all good reasons to consider turning your hobby into a career.
The Internet offers an abundance of opportunities for potential start-ups and the possibility of working from home means that you can become self-employed with low start up costs.
So What to Do You Need to Consider If You Want to Set Up Alone?
The idea of turning your hobby into a career can be both exciting and daunting at the same time. Many people overestimate what it takes to become self employed, and get put off before they even get started. But you don’t need to invent something new and unusual, and you may not even need a lot of cash to get going at all.
Can Your Skills or Hobbies Satisfy a Need?
- You don’t need to invent something new
- Maybe you have a hobby or skill that is in demand
- Consider whether there is a need for a particular service in your area
While many budding Entrepreneurs would love to invent the next “Facebook” or “Google”, you don’t need to invent something new and exclusive to get started. In fact, when you first venture into business it is often best to focus on meeting a need. If you already have a hobby you enjoy, research the internet to see if there is an actual demand for what you have to offer.
If you don’t have a hobby in mind consider the skills you have. Maybe you are already great at writing, web designing, marketing, or developing apps for example. Search online to see if your skills are in demand. There are several websites that connect freelancers with clients, and it is worth checking out those sites to see if there is a great need for your skills, and if you will be earn enough to make a living.
Perhaps you have noticed a need for a particular service in your local area. If so do some research and talk to people who may be in the target market for that service. That will help you to establish whether there is a genuine need for it.
Where Will You Get The Cash?
Raising cash via Angel Investors and bank loans are rarely an option for small business start-ups. Having a few months savings put aside is useful but it is not always essential, and you shouldn’t allow lack of savings to put you off getting started.
To raise some start-up cash consider:
- Selling things you no longer need on Ebay or Amazon
- Borrowing from friends or relatives
- Using a 0% interest credit card
- Searching online for start-up grants for small businesses
One of the simplest ways to minimize the amount of cash you need to get off the ground is to start a business that brings you cash up front, or at least on completion of a job, and requires zero to minimal outlay.
In addition to minimizing the start-up cash you may need, this will also make it easier to run your business without cash flow problems, as you won’t have to wait for weeks or even months to get paid.
Do You Already Have Resources You Can Use?
To keep your expenses down, consider whether you already have all the equipment you need to get started. Many home businesses can be set up on a home computer or laptop, with no need for additional equipment.
Other Things to Consider
Once you are ready to get started make sure you register your business with the relevant authorities. Most small businesses set up as a sole trader for tax purposes initially. Also make sure you are aware of items you can set against tax, and ensure that you aware of the current VAT registration threshold, in case your annual turnover is likely to exceed that limit.