From hobby to business!?!

[chauntelle]

Hi

So for the last year and a bit my candles have been a full time hobby and after having loads of fun and doing a couple of craft fairs im thinking seriously of giving up one of my jobs so that i have time to do my candles more and really push it as a business this year! But it is so hard to change it from a hobby to a business! And i was hoping some of you might have already made the change and might have one regret of how you would do it slightly different or maybe one 'word of warning'?

I already have one wholesale account that i am currently setting up and another customer who would be interested in taking some products for her winter stock. so i already have some work in the pipeline.I am still working out of the kitchen at the mo so that can be intresting! LOL

I know that structuring my time is a key thing but one thing im lacking is making my money go further! Any hint and tips of where to start would be sooooo appreciated!!

TIA X

:embarasse

[Penny]

There are a lot of posts about starting a business or things that folks would have done differently, etc.

Have you legally registered your business? Gotten insurance?

[chauntelle]

Spoken to the accountant and i have three months to legally register biz here in the uk, got bank account in the process and am looking into different insurances-want to get the one thats right for me!

[NattyCat]

Having spent £25,000 last year trying to make my business successful - even with more than 10 wholesale accounts, I am seriously struggling. I gave up my job to do this and now we are finding it hard to make ends meet each month. This business sucks money up like a hoover, and so much money is wasted on testing, free samples and perished oils and stock - that our house is over-run with stuff.

Think seriously whether you can make it. I have tons of customers, I am busy every single day fulfilling orders but to compete with the hundreds of amateur hobby-makers who sell their stuff dirt cheap on ebay, I have to keep my prices low - and this is a killer. Then there is craft insurance, national insurance, book-keeping, tax and accountants to pay for.

my debts are approximately £25,000 in one year and my monthly running costs are minus £500. I have also NEVER earned a salary and just live off the small amount of proceeds that don't have to get shoved back into stock.

It's hard. VERY hard indeed. If you want to make a proper living from this - don't expect that living to be easy to come by within the first 3 years.

[Blest2BAmerican]

Yep, they say the business won't generate revenue until 3-5 years.

[chauntelle]

Oh i know all about that trust me! me and my b'friend sold our house and put the money into a retail shop.Now 20 mths in and still havent taken a wage we have a company vehicle and live above our shop but its really hard. I took a part time job on top which is killing me physically and anfinding doing all this and trying to have a couple of night for candles impossible! Im kinda having to give up my p/t job coz financialy im loosing too much tax credit!! That SUCKS, but whilst my kids are happy at nursery and school and i feel that replacing my job with flexable candle time will be less stressful and give me more quality time with my family!!

I know it will be stressful and very hard work but as a team me and my b'friend have a good business head and as i do all the accounts, insurance, payroll,invoicing, and organising events as well as general admin i have all of that as an advantage. i also have contacts with helpful people.

I hope im not trying to convience myself!!! i know if i do this i will do it fully and it will take alot,i already go to trade shows to see what big companies are puting out there in the next season, colours, fragrances ect...

I guess what it all falls down to is MONEY! im begining to hate that word, wish i could win the lottery.... does help to play it though LOL

Thanks for your in put id be greatful for any more you can offer!!

[NattyCat]

Oh i know all about that trust me! me and my b'friend sold our house and put the money into a retail shop.Now 20 mths in and still havent taken a wage we have a company vehicle and live above our shop but its really hard. I took a part time job on top which is killing me physically and anfinding doing all this and trying to have a couple of night for candles impossible! Im kinda having to give up my p/t job coz financialy im loosing too much tax credit!! That SUCKS, but whilst my kids are happy at nursery and school and i feel that replacing my job with flexable candle time will be less stressful and give me more quality time with my family!!

I know it will be stressful and very hard work but as a team me and my b'friend have a good business head and as i do all the accounts, insurance, payroll,invoicing, and organising events as well as general admin i have all of that as an advantage. i also have contacts with helpful people.

I hope im not trying to convience myself!!! i know if i do this i will do it fully and it will take alot,i already go to trade shows to see what big companies are puting out there in the next season, colours, fragrances ect...

I guess what it all falls down to is MONEY! im begining to hate that word, wish i could win the lottery.... does help to play it though LOL

Thanks for your in put id be greatful for any more you can offer!!

If I could have done one thing differently it would have been to work at my "proper" job for another year or more and save as much money as possible BEFORE i jacked it in for the candlemaking. I didn't have enough money at the start, and I don't have enough money now to give my business the investment it needs. I need advertising, magazines etc, marketing, brochures printed, posters, flyers and professional labels but I just don't have the money. I wish oh wish I'd have been more patient and saved saved saved before I launched.

[Wick'n'Wax]

well............ my 2pennies worth

In a couple of weeks, I'm hoping to have a website go live. I will list items that I'm happy are tested well enough. Before all this happens, I will have taken out my insurance.

I've also booked to do a craft fair in October.

However, our finances are so tight, I'm not in a position to buy loads. I'm lucky enough to have a great wax supplier, thanks, she knows who she is and get my fragrances from Jo.

Other things I'm buying off ebay in dribs and drabs as and when I can afford them.

I've rang Business Link and within the next couple of days a Business Advisor will ring me back to make an appointment for me to go see him. He will discuss with me lots of things and help me to try and get the business started.

Within 3 months I will register with HMRC.

I am on Tax Credits also, as hubby doesn't earn a lot and we have 4 kids. This did worry me, but someones told me that as I won't be making a profit for quite some time they won't be interested. It will just be a case of next April, completing the self assessment, they will see from receipts etc, that I've not made any money and everything will all be honky dory.

Fingers crossed

So.... depends how much of a business you want to achieve. To give up a job and try to make money to live on from this, I don't think I would, but then I'm not working.

Good luck with your decision though xx

[NattyCat]

well............ my 2pennies worth

In a couple of weeks' date=' I'm hoping to have a website go live. I will list items that I'm happy are tested well enough. Before all this happens, I will have taken out my insurance.

I've also booked to do a craft fair in October.

However, our finances are so tight, I'm not in a position to buy loads. I'm lucky enough to have a great wax supplier, thanks, she knows who she is and get my fragrances from Jo.

Other things I'm buying off ebay in dribs and drabs as and when I can afford them.

I've rang Business Link and within the next couple of days a Business Advisor will ring me back to make an appointment for me to go see him. He will discuss with me lots of things and help me to try and get the business started.

Within 3 months I will register with HMRC.

I am on Tax Credits also, as hubby doesn't earn a lot and we have 4 kids. This did worry me, but someones told me that as I won't be making a profit for quite some time they won't be interested. It will just be a case of next April, completing the self assessment, they will see from receipts etc, that I've not made any money and everything will all be honky dory.

Fingers crossed

So.... depends how much of a business you want to achieve. To give up a job and try to make money to live on from this, I don't think I would, but then I'm not working.

Good luck with your decision though xx[/quote']

Have you seen a self assessment form? I thought I could fill mine in as I'm an intelligent girl. I got mine in the post and it is SO convoluted and tricky i've had to hire an account at £250 just to help me fill it in and do my returns. I seriously could not believe the book-sized document I had to fill in.

[chauntelle]

Oh my god thats expensive Nat i pay my accountany less than that to do my end of year accounts and my tax return it all gets sent to him and i just phone inland rev to check they recieve it - for my peace of mind really!!

Did you know that when you register as a new employee you get someone visit you to tell you how to fill all the p45s payslips p11's ect!!

Wick n wax i recon you have a safe head and will do good -GOOD luck!! Biz link are brill lots of advise on marketing ect.

I suppose im hoping that this time next year my shop will be in its 3rd year and be able to pay us a wage as we can already afford staff ect! I thought that this gives me a year or so before i have to take a SMALL dividened for my candle business(tax is better ask biz link when you go) just to boost our regular earnings!!!

[HeavenScentU]

The only thing I would have done differently is kept all my receipts for everything for tax purposes. For the past two years I am getting better at keeping everything. I also would buy larger quantities of my supplies and have a stock room, which I don't have yet. I still run out of supplies and order more often than I would like to. I think it all comes down to organization skills.

[Ramaroa]

I know it's not easy Chauntelle, but is there any way you could carry on working until you have something built enough to warrant giving up the day job and make it a longer term process? At least if you can start to get things underway whilst you still have regular income, doing whatever preparation you can to set yourself up ready for when orders start coming in. Perhaps you could aim for a target a launch date a few months down the line, because the first few months you will be spending money like water and your candle work won't start to come in overnight.

You can take your hobby through to a business, if you can do a few business orientated tasks each day and work upto it slowly and steadily, it can be quite painless. You will be restricted by how much business 'work' you can do depending on the available funds and orders won't come flying in the door in immediately, so really it is just a transitional process and you may as well carry on working if you can. Unless you have loads of spare cash to give you a kickstart, you will be reliant on a few dribs and drabs of sales in the early days.

My one piece of advice is to really work out, what products you are going to sell and how much this will cost you and stick to your plan and budget. Only spend hard cash on the things you need for 'your' business - it is so easy to get sidetracked by new ideas and spend lots of money on the nice to have things.