Hobby turned occupation / business
December 8th, 2007
Many of today’s top coders began just as I did. Toying with code and building small personal pages. Mostly just trying to learn a little HTML.
Others are usually bricks and mortar business owners trying to save a few bucks by building their own online prescence rather than contracting a web design company. Studying just enough to build a basic page or store and leaving it online, most times forgotten and neglected for all time to come.
But some do learn rapidly. Some people just have a knack for code and find that they really enjoy building pages. So they continue. Building pages for their friends, neighbors, children, etc. Getting stronger in their abilities and overall code knowledge all along the way.
Then, before you know it, you find yourself building a site for someone you don’t know. Possibly someone referred to you by one of your friends or colleagues, because they simply like the work you do.
Now what?
Should you keep your hobby in the ‘hobby’ category, or should you take it forward and consider a career in website design and online development?
This is a decision only you can make. My only comment is this. Life is short. If you find something you love, then by golly, do what you love and love what you do.
But take the steps required to protect yourself if you do intend to CHARGE anyone for your services, even if it’s still only part time and you still consider it a ‘hobby’. Take the time to CYA and actually start a small business for your paid ‘hobby’.
1. First things first. Get a business license. Every city, county, state, etc, requires some sort of license to do business. If you charge ANYONE for your services, you are doing business. So do take this important step.
2. Open a business bank account. You’ll likely need to take your business license down to the bank with you to open this account, but keep your web design and development money separate from your personal accounts. This way you can track your income from your ‘hobby’ or new business, depending on how you prefer to look at it, and actually see if it is a viable business option for you based on it’s income.
3. Open your Paypal account and other Credit Card processing accounts using your new business bank account. Do not use your own personal Paypal account to accept payment for services. Keep everything separate. You never know how big things might get. Sometimes quite quickly. So having everything setup correctly from the beginning is always smart.
4. Keep records. Of everything. Money you spend on hosting, software, and any other expenses you incur to build your sites or others. Make backups or physical copies of everything and put them in a safe place. If your ‘hobby’ becomes a business, especially in the eyes of the IRS, you’re going to need these records when tax day comes.
5. Write down the url (web address, e.g. www.ibuiltthiswebsite.com) of every page you build. Take a screenshot of the main page the day you deliver it to your client/friend/neighbor. Burn these images to disk, as a record. This is for several different reasons. It may be to show off your portfolio in the years to come. It may be to prove delivery if one of your new ‘clients’ decides to charge back the payment to their credit card companies. It may be for some unforseen reason five years in the future. No matter the reason, keep records. Of everything.
6. Consider insurance. If you are going to build more than a couple of personal pages for your buddies, consider errors and omissions insurance. If you are sued and lose, this insurance can cover judgments and losses incurred by some small over site you might have made during construction.
7. Consider incorporation. You can setup your new company as an LLC in many states for a very small fee. I believe Delaware is the cheapest and the fastest. It’s also where more fortune 500 companies are incorporated than any other state in the U.S.A. America Online is a Delaware LLC, so you are joining good company if you decide to take this route.
This is brief, and there are many other things you must consider before starting a new web design company. It’s fiercely competitive and a tough field to break into. But if it’s your passion, I say go for it.
Life is short. Live it. Love it. Follow your passions.
Until next time,
Chuck Crawford
www.webdesign.pn
877-752-4825
chuck@chuckcrawford.com
December 9th, 2007 at 10:15 am
Code is poetry.