Saturday, February 5, 2011

Saturday Strategy Session, Week 5 - meeting long-term goals


Last week, we looked at monthly and yearly goals.  Before we start thinking about meeting those goals, remember (if you claim your business on your income taxes) that you ARE running a business.  The simple, general rule of small business ownership (in the United States) is: you have to make a profit in 3 out of 5 years, to show "the presumption of profit motive."  Here's a short informative article entitled  "Business or Hobby" put out by the IRS.

Ok, now let's go ahead and complete Worksheet #2 with three final questions:
5. Where would you love to see your business in three years?
I would love to see Storybeader making a profit in the next three years {:-D.  And start traveling to reputable shows outside of Oklahoma.  My hometown just doesn’t have the clientele I need to grow as a business.  So many people say they want their business to become their full-time job.  Not me - I don't want that worry right now.  I would like my business to have it's own studio and office in our house, though.

 
I’m not sure how long DH and I will continue living in Lawton, but for now I'm happy working at my museum.  Maybe in ten years, I'll retired and we'll move to Norman (go Sooners!) to be closer to my family and to be in a college community.  


6.  What would you have to do to get your business to where you want it to be in three years?
I have to be more careful and think of Storybeader as a business and not a hobby!  Sell some supplies that I’m not using, and use up the things that I have.  Be careful about the art shows I get myself into and sell more artwork on consignment.  April (from Blackburg Belle) says “It’s okay if you don’t have all the answers.”  She suggests that you ask others for help.  Don’t forget about family members and good friends, who might be of assistance.  Is there a business consultant in your family, or a good friend who’s successful in your niche?  I don’t know if we could actually add onto our house, but my big brother is an architect and he could give us some advice. 

7.  What would you sacrifice to reach the goals above?
April had some good suggestions: “You may need to spend more time working on your business, save money to have a safety net to make your business full-time, or break out of your comfort zone to reach your goals.”   Saving money would be a sacrifice but not too difficult.  And it would help me show a profit at the end of the year (as you can see, I've been thinking about taxes this week - I brought mine to our CPA.)  Approaching stores with my artwork would definitely be stepping outside my comfort zone.  And I was just thinking of starting a new series of Facebook tips for small businesses, but I need to do some research before I start counseling others.  I did add a new welcome tab to storybeader's facebook page, and I need to blog about it! 


That's the end of Worksheet 2!  Some things to remember: continue to look and find more goals for the future.  One thing that works for me, at the museum and with Storybeader, is breaking down large goals into smaller components.  Don't forget to put in writing three more short-term goals at the end of this month.  Next week, we'll begin Worksheet 3, "Reviewing your current marketing plan."   It looks fun!

10 comments:

memoriesforlifescrapbooks said...

Love the FB Welcome Tab! Very professional!
And I agree that it's helpful to break large goals into smaller ones :)

Anitra Cameron said...

I like your goals!

Consignment is something I've been looking at, too. I avoided it for a long time, because of the chunk the stores take, but not having to actually be there is pulling me....

Now that I'm actually retiring (lol!), I'm thinking about other products, too, things that sell better in stores than in shows. Up to now, it's been all about the shows. Is there a difference in what you make for each, too?

storybeader said...

thanks, edi!
ani - I don't know - people at shows seem to be more willing to put down a couple of dollars, just to get something from you. In a store, if they want it, they'll buy it, even if an extra percentage is added on... if it's not too much!

Linda Pruitt said...

I've been thinking, all along, that I am a business, but maybe, by the IRS defination, I am a hobby! My goal is to make a profit, not just returning the capital into more suppplies, but to take a salary!

Erika said...

I like the welcome tab, too!

I am with you in wanting to show a profit and have cash flow at the end of the year. I hope things get worked out and you can do what you want.

TiLT said...

I noticed your welcome tab the other day - it looks great!

BeadedTail said...

The welcome tab looks great! The hobby loss rules are something to be aware of but most people have the intention of making money although it doesn't always happen. We have many corporate or partnership clients who don't make a profit after many years in business so as long as a business is run like a business, the IRS usually agrees it is too.

storybeader said...

I most certainly have the intention of making money, though it doesn't always happen. Nice to know. thanks, {:-D

roseworksjewelry said...

By those standards my bizz is still a hobby :( Good luck with yours!

Judy Nolan said...

There is a lot to think about in this post. Looking forward to the next one in your series!

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