After years of effort and dedication, you are finally ready to embark on the journey of a lifetime. You have decided to become a consummate professional by starting a sole proprietorship.
Turning your passion into a viable business, however, is easier said than done. You need to implement a sound business strategy in order to bring your dream to fruition. While working hard is important, working smart maybe even more important.
Here, we will provide a comprehensive guide that will help you turn your passion into a real business.
Initial Steps to Starting a Business
Begin by creating an effective and realistic business plan. You will need to define your passion and create a mission statement that resonates with your values and goals. Your work must also be priced for profit, at least during the preliminary stages of your business.
Many artists will classify their business as a sole proprietorship because a sole proprietorship is easy to start and will usually meet all of their needs. You should also take the legal route by registering your business and by getting a business license.
An online presence is also a must, especially given that most people spend hours online each day. A business website should be built that is clean, concise, but also professional. Hire a professional team or hire freelancers with a proven track record of success in order to build your unique website from scratch.
Inventory details will also need to be tracked to avoid any clerical errors or other issues down the road. If you are an artist, you should keep accurate records of which locations are selling and showcase your artwork. Client contact information, exhibition dates, invoices, sales records, call for entry application dates, and your schedule should also be carefully tracked and assessed.
Your business will also need to be organized to maximize its chances for long-term success. Avoid bureaucratic red tape and other pitfalls by running a fast shift.
Learn How to Choose a Business Structure For Your Business
The business structure that you choose should suit your needs. Many people who start a new business will opt for a sole proprietorship, as it will usually meet all of their needs and is also easy to set up.
Compliance and startup requirements are kept to a minimum when a person starts a sole proprietorship. While you may require a local license to run your business, a sole proprietorship does not involve the completion and filing of any documents.
A sole proprietorship is a business type that is owned and run by one person. It is a business entity where no legal distinction is made between the proprietor and their business. Arguably the biggest reason why a sole proprietorship is a popular business structure is due to its simplicity.
You will also have direct control of your business, as far as its direction is concerned, and a sole proprietorship has a very flexible business structure. However, please note that you cannot bring in additional partners to your sole proprietorship, nor can you sell stocks in order to generate revenue. Still, for many people who start a sole proprietorship, the freedom to run and manage their business, as they deem fit, far outweigh the drawbacks.
Another benefit of sole proprietorships is that they are easy to start and easy to dissolve should things go wrong in the future. However, you will need to report your annual income on your individual Provincial and Federal tax returns with a different schedule. You will also need to pay self-employment taxes, including Medicare and social security, depending on where you live.
As for registration, while it is recommended, you may not be required to register your sole proprietorship. However, you will likely require a business license, although requirements may vary depending on your province, city, or country.
Your business liabilities will also extend to you unless you apply for Limited Liability status in order to protect yourself. Generally speaking. However, any business liabilities and debts will become the debts and liabilities of the business owner.
Management and succession issues may also develop should the owner pass away.
How to Make Your Business Successful
It would be best if you worked hard in order to make your product captivating. It is also important to identify your ideal buyer prospects while also working hard in order to connect to your top prospects.
Take the time to create an email list and send relevant emails to your target demos. However, your messages may need to change with the times, and the same can be said for the media platforms and marketing systems you use. We would also recommend that you add secondary sales channels and develop an effective referral program. Current buyers of your products should also be encouraged to become repeat customers.
It is also paramount that you build and expand on your network of professionals in the industry. You may need to focus on retail sales in order to build your brand and business, and you will need to be smart about selling your products. Who can use a functioning website and social media to build your brand, and you can teach online classes to educate key demos about your products. A blog, Youtube channel, and ebook can also serve as additional products/platforms in order to create brand awareness and create new revenue streams.
Once you have achieved a tangible level of success, you may be able to raise prices in order to maximize your profit margins. You may even be able to make money via speaking engagements or by running workshops. You may even be able to license or sell your products by working with stock agencies.
Once you have decided to transform your dreams into a full-fledged career, you will need to put in many hours to build your business. You will need to create a sound foundation for your business and then invest sweat equity in order to build on that foundation.
A sole proprietorship is often the recommended business structure for people who want to start their own business with minimal risk and maximum flexibility. Set reasonable goals, work towards achieving them, and never look back.