Stop treating your t-shirt quilt business as a hobby if you want to grow. If you have the desire to own a t-shirt quilt business you have to get out of the hobby mindset.
Here are several steps to take:
1.Set up a business checking account. When it is time to pay taxes you will be happy! Don’t use money from your business to buy personal items.
2.Get an accountant. You don’t know what you don’t know! Find an accountant that will guide you on what deductions you can take and what will red flag your business. I had done my taxes for years before I made the leap to an accountant. The accountant pointed out deductions I could take that I had no idea about! Hiring him to do my taxes actually made me money!
3. Pay yourself a salary. This is hard to do when you are just stating out. It is a mental thing! We work so hard making t-shirt quilts and then not to have a salary is really discouraging. Even if it is $10 a week it is a start.
4. Set up your business legally. The easiest is DBA . It depends on your state but in my state I only needed a social security number to make my business a DBA. After a few years my accountant advised me to set up an LLC.
5.Set boundaries with your friends and family. If you want to make a t-shirt quilt for a friend or family member for no charge or at a reduced rate that is fine. But do not feel obligated to work for free. It is easy to feel resentment if they don’t seem to appreciate your hard work!
Quilting in general sorta gets a bad rap. A lot of people think we are middle aged women who don’t have a lot to do and want to make a little spending money. They don’t realize how much quality fabric costs or the price of equipment. It is important to present yourself as a business from the start.
To learn more about setting up your business head over to this Learning Module.