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Hobby vs. Business – What You Need to Know

Hobby vs. Business Get the Facts

Hobby vs. Business Tax RulesKnowing how to market your business may be the defining factor between classifying your products or services as a hobby vs. business. If you know the right way to successfully plan your marketing efforts in this fluctuating economy, you can ensure that your brand is the first thing on your customer’s mind when they’re looking to spend money. Add your daily marketing efforts to that equation and you will be able to turn your hobby into a business in no time. To successfully market your products or services, you must first:

 

  • Establish who your target market is.
  • Understand your target consumer’s need for your goods and / or services.
  • Clearly define the services you provide or the products you sell.
  • Understand the power in advertising your business.

 

Once you have your products or services defined along with who your target consumer is and how your products or services can benefit them, you can begin marketing your business.

 

3 Vital Marketing Tips for your Business

 

  1. Set out time each day to engage in marketing activities that will help get your name out there, or that will keep your company on your existing customer’s minds. With social media channels being an easy and free way to connect with your target consumers and existing clients each day, you can post offers or engaging contact daily. An efficient marketing habit to have is using an editorial calendar that will lay out your posts for the month. Once your editorial calendar is created, you can use online services that allow you to schedule your posts in bulk ahead of time.

 

  1. The most important order you will receive from a customer is their second order. This means you did something right, and they trust your product or service enough to try it again. Make sure that you establish a healthy relationship with your consumers from the very beginning. Keep your forms of communication and availability evident so that they feel connected at all times. To maintain their interest, reach out to them by email or phone to let them know about other products or services you may offer that will benefit them in some way. This will increase their spending power with your brand and significantly increase your revenue over time.

 

  1. Track your results so that you understand which marketing techniques are working and which tactics could be canned. One of the biggest mistakes business owners make is underestimating the benefits of tracking marketing results. You should keep a workbook that details:

 

  • Your customer’s name and all of their different forms of contact (phone number, email, social media profiles, etc.).
  • The preferred method of contact.
  • What type of offer you provided last, the date, and the result.
  • Your cost for any marketing material vs. the income that came from it in order to calculate your return on investment (ROI).

 

Knowing the basics of marketing your products or services will help establish whether or not what you have is a hobby business or an actual full-time business on your hands. You must set your marketing budget first and know how your marketing expenses are working by calculating the sales conversions. If you need assistance with financially planning your marketing, contact us today to get you on the right track.