Hobby business - I spend more than I make!

[SilverBlueberry]

Lilac, I recognize that. I always buy more stones. I tell myself I have enough for a while and should use what I have but I'm always buying new ones that strike my fancy. And when there are things I can't really find (like amber beads in the shapes, colors and sizes I want - why does it have to be so hard to find good amber??) I get obsessed.

[lilacmonkey]

why does it have to be so hard to find good amber??)

right find yourself a good polish friend.and when they go home get them to send you some rough.its dead easy to shape and polish.
you can find it on the beaches of the baltic sea believe it or not.

stu g

[mochiandmocha]

Phew...it feels good to hear you guys! ^_^ So we're not alone!
Just an example of the latest frustrations:
local shop wants to sell our stuff only if we bring the display cabinet and have better-looking boxes!!
Anyway, before we can really pay our bills with what we make there'll always be the odd supply teaching day to help!^_^

[nickr]

I think nearly everyone starts out like that, for years I sold a few bits I had made that were surplus and then I decided it was going to be my future so I set up a company by informing the Inland Revenue (HMRC now) and opening a business bank account and put in some working capital. For the first 2 years I made a loss which was offset against my income tax from my job but that allowed me to keep account of where the money was going and made it possible build up a stock and to calculate my gross profit margin and net profits. I now pay HMRC online and it is running smoothly and for me without debt because I made those calculations when I made that big step. Next year I will have to make NI contributions as I have been exempt so far (too low an income from the business and paying via employer) and probably will have to register for VAT in a couple of years as well. That will be a more painful step as it means massivly reduced margins or higher prices.
Keep a spread sheet of your costs and income.
I find that repairs are the hardest thing to keep control of as they take time and produce very little money but make a lot of potential bigger spending customers happy. I would suggest a table of charges but dont use one myself as I know that my existing customers would have a heart attack to see the prices go up so much but one should be slightly harder nosed about it. Maybe soon.

NickR

[agent_44]

Would registering for VAT cause you that much of a problem? Yes, you'll have to charge it to your customers, but you wont have to pay for it on any of your costs.

[SilverBlueberry]

Hmm. I kept track of all my sales and expenses until my computer got stolen, including my back-up hard drive, and since then I have bought a lot of new things and not kept track of anything. Now I dread starting again..