Mythbusters Monday: I’ll start my business small…

Myth: I’m just going to start my business small and if people like it, I’ll (buy a better website/setup a mailing list/hire a writer)…

Truth: If you’re going to run a business, call yourself a business, make a profit like a business and do business, as a business, with other businesses, then you need to act like a business.

There, I said it.

Before we continue this discussion, I’d like to say that if you’re just wanting to sell a few pieces of jewely or a few baby slings as a hobby, more power to you. I have no problem with that.

But if you’re starting a business, it’s in your best interests to behave like a business.

Here are some tips for those of you who are wanting to start a business — or already running one:

1. Behave like a business and you can write off your expenses on your taxes. Can’t do that if you’re just a hobbyist.
2. Acting like a business means trying to earn a profit, which means you’re going to have to mark up your prices above what a hobbyist might charge. After all, if you hadn’t planned on earning a profit, you’d have stayed a hobbyist or started a non-profit organization, right?
3. Set boundaries like a business. Make your terms of service clear and stick with them. As a business, you can’t make exceptions for everyone. You’ll run yourself — and your business — into the ground.
4. Don’t allow people to run over you. You might be a nice person, but that doesn’t mean you have to let people mop the floor with you. Follow the advice in #3 and politely tell the freebie-seeker that she needs to pay for your products or services.
5. Plan to be big. Starting a business that dies because no one bought its products or services is sad. Starting a business that does because the owner didn’t plan for success is a shame. Ask yourself where you want to be in five years and start planning for that now.

And finally, hold on tight, because running a business is a bit like riding a roller coaster — lots of ups and downs.