Hobby to small business(2 Posts)
Hedgehuggy Sun 29-Jul-18 12:49:48
delilahbucket Sun 29-Jul-18 22:58:01
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I currently make crafts - framed embroidery, cross stitch & calligraphy. I have a Facebook and an instagram page to display my creativeness, which started off with friends and family on there but now the pages have grown and I have people messaging me asking if I take orders for custom-made pieces. I would love to sell my creations so other people can enjoy them too, but I don't want to start until I know that what I am doing is legal... I wish to do it alongside my current full time job, where I get my wages every month and do not have to take care of any of the deductions as it's all done for me. So when it comes to starting my own craft business I don't know where to start. I have researched and researched but it's just not sinking in, I need a guide for dummies!!
I have all of the bits that I need to start up... supplies ie, laptop, material, needles, threads, paper, ruler, pens, frames, etc. I would want to sell online and perhaps do some craft fairs.
Does anyone have any advice?
Register as self employed with HMRC, you will need to fill in an annual tax return and pay tax on any earnings (if you already earn over the threshold in your other job). Keep all receipts for spending, and log every penny that comes in and goes out that is business related. This can just be written down in a notebook if there aren't many transactions.
Think about how you will accept payments. Via PayPal? You need a business account with them.
Read up on the sale of goods act and consumer contract regulations. You need to be compliant with these, even if you only sell on Facebook. It includes things like displaying your business address (yes, your home address if that is where you work), contact phone number and email address, returns policy amongst other things.
Price your work carefully. It is very difficult to raise prices later and you do not want to work for peanuts.
Insure yourself. You will need public liability insurance to do craft fairs as a bare minimum, but product liability insurance is a wise thing to buy.
Inform your landlord or mortgage provider as well as your home insurance company. Some don't like businesses being run from your home.
If you start to receive payments regularly you will probably need a business bank account. Using personal accounts for business use is usually against the terms and conditions of the account and some banks have been known to close accounts due to this.
Do not underestimate how hard running a business is. Best of luck!