Talk to the group “Experienced Professionals”. They have a process by which they can give you some insight.
- Is it going to be a business or a hobby?
- Have you prepared yourself for business?
- The steps for setting up a business
- What type of business should I start?
- Do I need a business name, trading name or legal name?
- What about “Trade Marks” and “Business Names”
- How am I going to select a business name?
- Taxes, guess I have to register, eh?
- Do I need a licence to run a business?
- What about insurance?
- Records and accounting
- Starting a “Home – based” business versus buying an “Established” business
You have to understand the differences between a hobby and a business for tax, insurance and legal purposes. If you’re working from home or selling handmade goods online for example, you need to decide whether it’s for fun, or to make a few quid.
“Is it a hobby is a pastime or leisure activity, you do in your spare time for recreation or pleasure?” – If you develop your hobby into a business, it may affect your pension payments or some other benefits you get.
How do I know if it’s a business or a hobby? Some key questions to consider:
- Is the activity being undertaken for monetary reasons?
- Is it your intention, to make a profit?
- Are you going to do this repeatedly?
- Whatever business structure you’re thinking of, now is the time to evaluate yourself and your business idea. Owning a business involves a lifestyle change and financial commitment.
Lastly, analyse your business idea – Is there is a demand for my product or service, who are my competitors and is there enough market to keep me going?