Business Growth Series: Treat Your Handmade Business Like a Business
Whether you are in the beginning stages of launching a business or you have been growing your business for a while, it’s important to treat your business like a business - right from the start. It is not a hobby and not a side hustle. If you are receiving money from customers for goods - it is a business, and you should be treating it like it is.
What are some of the best ways to do this? What are some things you need in place?
Here are some of my top tips, and the sooner you implement these ideas, the quicker you will be able to focus on your business like the incredible empire it is and deserves to be!
1) Have a CEO Mindset
The first step in treating your business like a business is also working on your CEO mindset. Whether you are coming from a 9 to 5 job or are pivoting to a new business venture, you need to treat yourself like the CEO you are.
Don’t let your business run you.
Make impactful business decisions, plan your strategy, focus. These are all methods you can use to create a more mindful impact as the leader and CEO that you are.
2) Business Banking Accounts
Having a separate business banking account is essential for running your business like a business. Don’t let your business revenue and profit mix with your personal accounts too long, as it might seem easier to do now. However, it’s not the best idea for scaling and growing to the point that you want to grow to in the long run.
Keeping things separate allows you to make better business decisions regarding investments, expenses, profit, hiring, outsourcing, and paying yourself as CEO.
Another added benefit to keeping things separate is how much better it is for managing your finances when tax season comes around.
3) Getting Your Handmade Business Legal
Making sure you have everything in place to have your business legal is essential. Even before you make even a dollar of business income, you should research and make sure you are covered on all legal fronts.
I am not an attorney, but I strongly encourage every business owner to invest in one as needed while scaling their business.
At the start, you want to research your federal, state, and local responsibilities regarding registering your business, the structure of your business (incorporation, sole proprietorship, etc.), tax responsibilities, and insurance requirements.
Insurance is especially important if you are making health, beauty, or children’s products. Liability insurance covers you as an individual, and it’s not just nice to have - it’s a necessity.
4) Business Accounting
Like keeping your business banking separate, it’s also important to stay up to date on your business accounting. Whether you do it yourself using a system like Quickbooks or Freshbooks or hire a CPA, this is an essential step in running your business like a profitable, successful, and sustainable business.
Are you treating your business like a business? Or are you still stuck in the hobby or side hustle mindset? If you are truly ready to scale, I would love to work with you to help you figure out how to make that happen. Book a mentor call, and let’s dive deep into what your business needs to move forward!