Business or really expensive hobby!

As I sat in class this week that was the question my teacher asked. So when I got home and did the math (which maybe if I was doing it from the beginning ) I came to realize that I won't even break even this year! All the jobs I've done....... But its a lesson learned! So as I tuck my tail between my legs, I've begun to work on my budget for 2011, I'm actually planning for profit! One last thing, I'm not allowed to buy anything unless I'm out of black or white paint!!!!!

So with that said, how many of us also have really expensive hobbies?

Like oh, eating?

I have been operating my make-up as a business for over 13 years... the first few years I spent about 10 times more than I made... now I make more than I spend but only because I took a real hard look at my purchasing and cut back to only buy what I absolutely needed (reimbursable expenses, no alternatives available in stock, etc.)

Every year has a better bottom line and this year should be the best yet due to several very large jobs.

It started as a hobby (before I went to make-up school) and is now a substantial part-time career which is a major part of our total family income.

I used to have hobbies... now I have multiple jobs, care for mom, take care of the house, etc.

I have actually been quite frugal with my expenses and I budget for the larger items. Im a hell of a shopper and I search for great deals, (my easy up tent, 10x10 came with 4 chairs = $40.00.) I made out like a bandit at a convention, buying supplies from the vendors. Most of what I spent at the convention was free, because I won a cash prize and I used that, so I was still within my budget. I only carry a few duplicates of my colours, the rest I only have one of and will order another when half way thru. I do however have alot of glitter......lol

Mine is a business, but I'm afraid that means I don't get to attend conventions. I don't think I could do that and still make a profit. LOL.

AngieAnders wrote:Mine is a business, but I'm afraid that means I don't get to attend conventions. I don't think I could do that and still make a profit. LOL.

Why not
If its for business development and training, which it is, then you should be able to write off a fair portion on your business income tax. Look into it, it might surprise you

My first year, I turned a profit, but it was more of a glorified hobby as I wasn't actively seeking work. I manintain a small, but adequate kit (I'm just not an on-line shopper). But, I figure I'll be taking a loss this year... I needed a computer, trip to FABAIC, yadda, yadda. Good news is I'm doing more body business now, so it will be part of my plan for next year.

AngieAnders wrote:Mine is a business, but I'm afraid that means I don't get to attend conventions. I don't think I could do that and still make a profit. LOL.

I'm the same as you. Mine is also a business (full time for over 5 years) and I too don't attend conventions (I would love to but fortunately I've been busy enough that making money comes before spending money)

@ CabbyJ: I do have bills and family expenses so what I do is put 1/3 of any money I make from gigs into the bank (I pay the business first)...bank money is what pays for supplies, website, advertising, phone, gas...etc. (which most if not all gets written off during tax time) woo-hoo! And with the 2/3 left I pay myself & whoever I have working with me. So far so good Hope this helps!

When I started 5 yrs ago it was really more of a hobby with potential. Last year around October I really started to push face painting as a business. The 1st few months of that involved bigger items like tent, directors chair, fatmax & upping the quality of my kit(better paints & brushes). I also for the 1st time invested in training(FABAIC). Even with all that I've managed to turn a profit every month except May(did I mention FABAIC ). I've committed to setting aside 1/3 of all income to replenishing supplies, business cards, etc & only buy new stuff if I'm placing a necessary order. I'm a little blessed that I can get some items locally at our costume shop(white... I always need white).

I also always ended up with a profit so far and I too attended Fabaic and have a fairly extensive kit. I haven't bought a tent though because I would never use it. I very rarely do outdoors events.

I plead the 5th!!!

~Heff
(who would rather spend her $$ on conventions, class, workshops, books, DVD's, glitter and hookers than keep it cooped up in a smelly old bank account!)

Ok, best reply goes to Heff!

Yup, Heff wins.

Agree about Heff! Also, checked out your Blog Heff...you got some good stuff in there! I will continue to read

I have a button that says "I'm too pretty to do math". That about sums it up....

I have a feeling that in two months when I sit down with my step mom the accountant I'm going to be kicking myself! 6 months ago my philosophy was "the government doesn't need to know about this gig or that gig". Now the reality is that I've had ALOT of gigs this summer and if I want to write off everything I've spent (which means finding all those receipts that I kept saying I'd organize!) I'm gonna have alot of work to do. At least the reality of the situation is slowly sinking in now and won't be a complete blow. So I guess I'll find out in a few months if this year was more hobby than business.

Can I say both. I spend the mileage and a small percentage on expenses and I love practicing so I'm not spending money on other hobbies.(As for hobbies, this would be cheap compared to, for example, a movie every week, tap dancing lessons, hunting(my husband has all kinds of gadgets, special clothes, licenses and then the gasoline) The rest goes into the budget and I'm squirreling away some for future dreams(1000 birthday parties could be enough for a down payment for a new house)...shhh don't tell my hubby.

Heff, You win for the best laugh of the day!