Author: George Wanhainen
Everyone knows the phrase “do what you love and you will never work a day in your life.” Since everyone is aware of the phrase, why do so few people actually live by it? Many people have hobbies that use an acquired skill through years of practice that can be easily translated into an income earning small business. Why do those individuals not take that leap of faith and pursue self employment? I would imagine that most shy away from this opportunity mainly because of a fear of failure or are unsure of where to even start. Well, fortunately there are many resources available in most communities that help with business planning, many of which are free. For instance, at the Community Economic Development Center located in the James F. Dicke College of Business Administration at Ohio Northern anyone can make an appointment with a business advisor to help with a myriad of issues relating to business operation. The fear of failure is a personal hurdle to scale, however the chance of obtaining success and the level of self-accomplishment far outweigh the downside of an unsuccessful venture.
Beyond the intangible benefits of business, are some tangible benefits from taking your hobby and creating a small business out of it. The first and main benefit is another source of income, through this additional income your standard of living can increase. Other monetary benefits are tax savings. Your small business can save you money on your annual tax liability. If you plan on starting a business out of your place of residence, a percentage of your household expenses can be deducted from your adjusted gross income. For instance if you have a 1000 square foot residence and your home office is 200 square feet, you can deduct 20% of your rent, electric, internet, and phone bill from your taxable income. Translating a hobby of yours to a business which you operate can be a very rewarding venture both personally and financially.