Tax time isn’t that far behind us and, well, you just know it’s going to be sneaking up again. Via the IRS website, I found a guide to telling whether your business is a hobby or not.
But, let’s look at things another way. What are five things you can do so that you run your business like a business and not like a hobby?
- Focus on profit — make decisions designed to help you make more money from your business. As always, set your consulting fees so that you make money.
- Pursue lifelong learning to help you run your business better (if you’re reading this, you’re already doing that)
- Plan to make a profit and generate a livable income — write a business plan and use it as a guide in building your business
- Build your business on your expert knowledge — you’ll be more likely to succeed if you have knowledge of the market you’re in
- Use contracts — you’ll be taken more seriously, even by the IRS.
Oh, and one bonus tip: separate your personal finances from your business finances.
What do you think distinguishes your business from a hobby?