Home Business or Hobby?

It is Monday morning and the last week to get Thirty One’s Summer Essential Enrollment Kit to start your own business for just $50.  Are you wondering whether you want to be a true home business owner or just a hobbyist?

The truth is not everyone has the same goals. Some people treat their business as a business and others dabble basically running a fun hobby.  You can do either one which is why direct sales is perfect for everyone.  If you want to truly run a home business which leads to financial success, you need to know the difference between the two!

There are five questions which can help you determine which category you are in – true home business or hobbyist.

1. Do you have a plan of action?

Although having a successful home business can be flexible, you need to have a plan. The plan needs to include what needs to be done and when.  It can also include plans for marketing, knowing your competition, and follow-up.  Customer specials, hostess benefits and company incentives are usually set up by the company so you will just need to include these in your plan when they are announced.  Have a plan on what you are going to do to grow your business?  Contacts?  Parties? Fundraisers?

2. Do you have a schedule?

Remember I said, your business can be flexible?  It is BUT you need to work at your business on a consistent schedule.   Set aside time in your day – EVERY DAY- to work your business in a profit producing way.  Have you scheduled and SHARED your “office hours” with your loved ones and your customers?  Remember working your business doesn’t include reading emails, checking Facebook, blogging, etc – these are all time-consuming activities to help maintain your business.  Working your business ONLY includes actual person-to-person interactions, such as making sales calls, booking parties, setting up recruiting appointments, Hostess Coaching, pink bag calls, etc.

3. Do you have a budgets for your business and are you investing in your business properly?

I struggle with a budget in my business but I am learning to reinvest in my business and myself.  Remember – you must spend money to make money.  I know it is difficult when you want the extra money to pay off debt or for emergencies in the house but your business will not grow when you put zero dollars into building it.  No one “got rich” without some investment.  You invested in the initial Enrollment Kit but it doesn’t end there.  I always tell my team, you are in this to make money – not spend it.  You need decide what to spend, how much and where you are going to spend it so you can grow your business. It doesn’t mean you need every product in the catalog. Things like: business cards, thank you cards, giveaways, etc.  According to the Diva Success System, you should never invest or spend more than $50 per month into your business.

4. Do You know if you ARE making any money? 

The enormous difference between a hobby and a business: Hobbies COST money, Businesses MAKE money. So, do you  KNOW if you are making any money?  I don’t mean, do you have money in you bank account because it only shows what you took in and spent during a given month.  You can use a calculator or a spreadsheet to figure it out.  Let’s look at your last party and see if you made a profit. Look at your expenses  for the party – including gas/mileage, any giveaways or freebies you offered to guests or your hostess.   Once you see your “profit”, look at what you did with the money.  Be honest.

5. Are you investing in your education?

Continuing education is important for business owners as well as in Corporate America. Learn something new- every day. Invest in your education through seminars, courses, and magazines or books. You are investing in yourself, your business success and your future when you take the time to continuously learn. This is a great investment in your greatest business asset … YOU.

I have been working my business for six years, and I will admit, I have fluctuated between hobby and business at times.  My ultimate goal is for a business 24/7 so I have been making changes this year to achieve my goals. You don’t need to do it all at once, take baby steps… Trust me, I get it.  Having tried my own home based business before, it is tempting to play and enjoy your new-found freedom but in order to succeed, you need a solid foundation.

Have a ThirtyOne-derful day!

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