Hobby Jobs

By Jerry Stewart

In our quest to find more happiness in our lives, more and more of us are working to try and make some hobby we enjoy also our occupation. Think about it, if we can find something to do for a living and we also enjoyed doing, that's a real dream come true. Well, in our quest to find that perfect, happy job more and more people are failing in business because they failed to really see this hobby job as a real job.

So, in light of all the talk about these hobby jobs and making money, I thought I'd pass on the today with the IRS uses as their criteria to determine a real job versus a hobby job. Actually, these IRS guidelines are good profit guidelines to follow if you want your new business to be successful. The IRS says that before you start your business you should do the following things.

They say that you should prepare a business plan including a breakeven analysis to determine the amount of money necessary for the activity to be profitable.

They also say that you should look very carefully at your startup cost. You should keep detailed and accurate books and records you should keep separate checking accounts for each activity so that you can track the actual cost in the business.

You should also advertise and promote the activity in a businesslike fashion, and make major decisions relating to the activity and a businesslike manner based on the records.

They go on to say that the activity is initially unsuccessful, be quick to make the proper changes to the operation to avoid further losses. Don't co-mingle proceeds of the activities with personal funds, and don't allow losses to grow without making efforts to change operations or consult experts on how to cut costs and increase profits.

Speaking of expertise they say that you should definitely consult with experts before entering any new business. And that you should spend ample time in research and study to increase your expertise regarding this business. And finally that she should conduct the business in accordance with this study and advice. And last of all they say don't make major decisions about this business based on your personal enjoyment, rather you should make your decision based on business prospects.

Now I know all these do's and don'ts for operating a successful business seem pretty simple but most sound financial ideas are pretty straightforward we're usually the ones that mess things up. But the key is this, it’s great to think that you can have a business you really enjoy doing. Just don't lose sight of the real purpose for the business to make money. And you know why, the money you make, "Its your money."