running a business vs pursuing a hobby

[Guest OldGlory]

I think the stories of how people build a business, manage a business, grow a business, change a business are fascinating and worth sharing. I would love to know how those of you who are in business (profit driven versus those who pursue their craft as a hobby) got your start. I hear and read so many stories about people who start as way to make products for themselves and then decide to expand. Is that how YOU got started?

 

I seem to do things backwards. I could count on both hands the number of scented candles I'd bought in 5 years before I decided to try it as a business. Lots of trial and error, but I always approached it as a business which has kept me accountable.

[Vicky_CO]

I was a bit different I was making candles for myself as a way to keep sane as a temporary stay at home mom. My husband and I made a choice with our second child that I would not work until he went to school. Little back ground there I have 2 children the age difference is large 13 years. With my oldest we where young and it took both of us working 60 to 80 hours a week just to survive. When my older son was a bit older I was able to cut back working so much. We where sitting much better financially me leaving work did put a huge dent in our income but felt we did not get enough with the oldest and we did not. The sacrifice we believed and still believed was worth it.

 

There came a time I need to go back to work I was not a good stay at home mom. As the time approached my husband could see me dreading going back to chasing pipelines. I did not want to do it again. Not to say I was not good at what I did I was a very good industrial xray tech. I did enjoy it but my husband had moved up to inspector and for me to do the same I would have to worked 3 year in the field then take the classes and test required. That would not have been a problem but dealing with men that I swear still live in the dark ages was not some thing I was looking forward to without my husband there to back me up. Proving yourself in that world is hard I had been gone long enough to reprove myself was going to be really hard. It was hard the first time. I could go on for hours about the crap I took and dealt out to prove myself and earn respect.

 

The time came and my husband asked me if there was anything I would rather do than go out and work. I thought about it while decided making candles was something I love and I wanted to try it as a business. That was my start. I will tell you all about my ending my business and going back to hobby at a later date.

[Guest OldGlory]

So it was a lifestyle fit for you and your family, Vicky, and taking a craft to a business level. I wonder how many other women followed a similar path?

[barncat]

I tried to save money by making things myself for my gift store..candles seemed easy...i made them in girl scouts LOL  Seriously though, it found me,  its my destiny not my passion nor interest.   It all came naturally to me and It had to make me money, it was a cost saving idea.  It has paid my income and expenses in all of the 12 years Ive been doin this.  I was never a candle person, I only bought them to cover up the smell of the dog.  Never had them in my home or anything, needless to say, I still dont have any candles in my home.   If I want to look at a candle I will go to my shop, if I want to smell them, I will sniff out my work clothes.   I am probably the opposite of the other 99% on here, sorry to say...everyone has their unique story.

[pcbrook]

For me it started as a hobby and I loved doing it so much that I kept making candles.  Pretty soon I had tons of candles around (you can only burn so many in one day) that I decided to try selling so I could keep making them.  Then I branched out into different things like incense and ornies.    

 

It is not enough to support my lifestyle but maybe someday!  

Edited April 10, 2014 by pcbrook

[Sue Ellen]

I am just in the process of moving from a hobby to a business. I have always loved anything “crafty”, I just love making stuff myself.  

 

For many years I have been a paralegal.  The attorneys I work for will be retiring soon (one is 64 and the other is 74).  There are 3 of us secretaries in the office and I was the last hired.  We are all just waiting for the announcement of when they will retire and shut down the office.  I don’t know how much of a “warning” there will be or if they will want me to go part-time for a while or really what to expect.  I do absolutely know that I don’t want to start over at another law firm and keep doing this for the rest of my life.  I am good at what I do, but I do mostly family court law and it is extremely depressing dealing with people going through divorces and fighting over kids every day.

 

So I thought about what else I might want to do, did a lot of research, and had many talks with my husband.  Prior to our marriage I had been single for 25 years and always supported myself, so working and making my own money is definitely something that I want to continue to do, but now that I am married and he has a good income, I have a little more flexibility.  So, I’ve decided to go into business for myself making and selling items that I make.  The first product that I am doing is beeswax candles.  I have a lot of products in my mind and in different development stages, but I intend to add them one at a time.  With the exception of a bit of tweaking I am ready to start going to markets to sell the candles and will begin doing that in May.  I want to have plenty of time to go through the trial and error phase and at least begin to break even before I lose my day job.

 

It is so much fun attempting to start up a business.  I am nervous and excited at the same time.  I get frustrated sometimes, but I still love it.

[Guest OldGlory]

Sue Ellen, I agree, there is an excitement and energy  that comes from starting a new business. An anticipation of success and overcoming obstacles. It sounds like you have a real PLAN -know what your next steps are.

I have to say, I thought I would have flipped my business by now, but the economy has hit our area hard. Around 2003-2005 my business was going gangbusters. Almost to the point of being too much for one person. In a matter of 2 months, from the recognition that my primary client was sinking fast to their filing bankruptcy, my business dropped by about 75%. What an eye opener. I learned that you better had a 'plan B' if you are single and have nobody to fall back on. Things can change in the blink of an eye!

[Sue Ellen]

Yes, I do have the steps planned out.  I am a major planner.  (My husband will agree with that.  LOL).  He realized I was serious about doing this when I told him I was going to turn our living room (which was never used because the "live" in the florida room) into my studio.  I sold the furniture in the room last fall.  It is a big room, and now it is completely taken over with my candle stuff. 

 

I am so sorry to hear about your business dropping so drastically!  You are so right about things changing!  Drastic change, that I didn't necessarily want to happen, has happened to me a few times.  Do you still have your business and is that your only source of income?

[Guest OldGlory]

It was my only source of income at the time, but it has not been since. I was very hesitant to pick up new clients and try to balance working outside the home and working from my home. I've just stuck with the clients I already have and worked a 'job' also. Sometimes I have to hire help. One day, I would like to be 100% self employed again, but the economy has a long way to go for that to happen.

The truth is, business always has ebbs and flows. How you handle the lean times really deifnes your character!

My business is still going strong with my few clients. Very steady. And I hope to add one more client this year, soon in fact.

[Sue Ellen]

Hire help - oy! - that is one thing I do not want to even think about having to do.  But I am very far away from that, so not going to worry about it just yet.

 

You are right that things ebb and flow.  Gotta save during the good times to live through the bad. When I was young I was self employed and hadn't learned that lesson yet.  I remember a time when bologna was a major treat.  I was so sick and tired of peanut butter sandwiches back then. 

[moonshine]

I started this when the economy when to crap in 2007- I was so depressed and scared for our business' , our main branch is grading and excavating and when everyone started walking away from their homes, builders were going bankrupt and commercial work was non-existent as they too were just trying to hold on

My husband sold a ton of heavy equipment at an auction outright of which we got extremely lucky as the company did not get enough out of the equipment that they paid us. He decided to diversify and bought a septic cleaning truck to start a septic service seeing that we have always installed them, why not offer the cleaning and maintenance of them. Then he decided with all the room at our commercial yard and the only property zoned heavy industrial in our area to start making and selling our own mulch - had a battle with the township over it as heavy industrial is not retail and selling mulch brought in retail customers- but long story we won

During all this I was so afraid and needed to find a way to make money from home since I had to be at the offices during the day, and what gave me the idea was the fact I was burning thru Yankee melts like crazy at 2.00 a pop and I was frustrated they didn't even last a full day

So I researched, found this board and started making them myself - after a ton of money and waxes I was not making money but the craft got me and I couldn't stop- I had so many ideas and plans

I started a partnership with a friend who was also working for us and after handing all my formulas over and a business plan developed and a company set in place- she quit and backed out of the candles

Once I got over that I was more determined to make it work- got everything in my name, insurance, website and then our business's started to pick up-- and the last 2 years it's been out of control- a "good" out of control but left me hardly any time to put into candles

So I still do this and still sell but I do not make a profit- I do have a wholesale account now and this past Christmas I had great sales but I buy to many new FOs and different jars and now playing with parasoy- so I have a loss every year but I am okay with that- I am having fun doing it when I have time

My main focus is getting our main companies out of the debt we incurred when the economy fell and if all goes well I will be able to hire office girls to free me up more time to pursue candles more seriously- I want a successful business with this but time is just not what I have right now to get new clientele - everything is word of mouth as of right now

And I am almost there...I hope, on top of my mom helping out at the office part time I am hiring another girl to help get thru spring busy time- I am hoping next year to get a experienced office manager to run the show so I just pop in here and there and really push selling candles!

[Sue Ellen]

Oh, and good luck on the potential new client!!!!

[justajesuschick]

I consider that I have a hobby that funds itself but my Insurance Agent and Accountant (and the bills that come from them) assure me that I have a small (VERY small) business.

 

Like many others, I first started by making melts just for myself. Then friends and family asked for them. So, I was giving away pounds of wax at a time. Fine for friends and family, but then friends and family OF friends and family were asking to buy them. So I sold some that way.

My corporation offers an event every year for employees (we have about 4,000 in my buildings) who have side businesses (it is a VERY creative company so many people do) to sell one Saturday on September. They pay for advertising, tents, booths, insurance and even give each exhibitor a boxed lunch so when I was asked to participate I could not say no. I have participated for 2 years now.

 

My career has been for 28 years with that major corporation. That (and my husband's career) pays the bills and provides benefits, my tiny business does not. I only pour on weekends and I ship orders out as they come in. Just a few each week. Those who know me know that I would actually make money if I changed my thoughts on supplies and materials but maintaining the integrity of my brand is very important to me (the years of corporate life have scarred me!) so I pay for the extras. Those who know me also know that I am Type A, a touch OCD and my wax room is always organized and clean. I could not imagine having anyone else help me because I know that I would/might end up redoing what someone else had done because I am a bit of a perfectionist. See why I am not more profitable? haha!

Edited April 11, 2014 by justajesuschick

[Sue Ellen]

Moonshine - hope the other businesses get more profitable so you can hire someone for the office and get busy with the candles.  Making candles is so much more fun than typing!

 

justajesuschick - I am with you on the OCD thing.  My studio is the one room that I do allow myself to have a mess though.  It is very organized, but I am accumulating a layer of beeswax droppings on most everything.  I think of the droppings as my personal artwork just for me and I enjoy remembering each spill/drip and what I should do differently in the future to not do that again.