The Business!

In the past couple of weeks I have been dedicated to getting the beginnings of my own business off the ground.  Yes, I mean Laura Wood Studios!  For a very long time I thought that what I do and how I do it was not “big” enough or profitable enough to create a personal business.  I have learned through mentors and observing the field that this is most certainly not true.  The next few blogs I plan to share are going to be a survey of my experience getting the ball rolling into a functioning business. 

Here are my topics-

1. Why/how did I decide to officially become a business.

2.Where to start?

3.What are the steps?

4.What did I learn…

Ok, first:

I am freshly out of graduate school and have begun the journey into professionalism.  Many are in the same place I am: mega educated, experienced but not quite enough, selling work, exhibiting work, spending lots of money to make the work!  How am I to make a living? I decided that I needed to track what I spend, what I make, and what I sell.  While in school I did not necessarily do this when making work.  Although I did roughly write down how long it took to make a piece and I did know approximately how much money in materials I used, I could not be exactly sure if I was even breaking even after a sale.  AND I have always had the motto- at-least people are wearing my work!  

And no, simply learning how to track your expenses does not mean you have to go out and start a business.  I researched SBA (Small Business Associations) within my area of San Antonio.  I found the organization SCORE (a branch of the SBA that counsels women in starting a new business).  The counselor I spoke with gave me LOTS of wonderful tips including a checklist, marketing tips, business plan check points, and a bunch of reading material.  This is all free of charge by the way. Also, he mentioned the public library had a special small business section, which I found to be very helpful.    We also had a discussion about the difference between a Sole Proprietorship and a Limited Liability Company business status.  (This basically has to do with taxes) This is another big decision I needed to make.  Here is the breakdown-

Sole Proprietorship:  The easiest way to get started. You file your personal taxes and your business taxes together, you may be liable for any issues a client may have (meaning your personal possessions are at stake should there be a legal issue).  You are completely held responsible for any and everything dealing with the business.  Also, if you take out any type of loan, you are personally responsible for paying it back. 

LLC (Limited Liability Co.): This can also be individually owned however it can protect you from any legal issues that could arise from dealing with the public.  Your personal possessions are protected and legal matters are dealing with your business and not you individually.  Taxes are different too, you file separately and will need to keep tidy records of incoming and outgoing money.  This will ensure that you do not owe the government tons of money.   BUT you can also write off many of your business expenses including health insurance! 

The very first step is deciding to be a Sole proprietor or an LLC.  You can always start out as am SP and switch but make sure you do it in time to make it count for tax reasons. 

I have decided on an LLC.  Luckily, I have been putting money aside to afford the start up expenses (which I will go into in the next blog)  But guess what-I can write off those expenses at the end of the year! 

There are many helpful books that have been my aid through making the first decisions in starting business here are a few I checked out:

How to Form a Limited Liability Company, 2nd Edition Mark Warda

LLC or Corporation? How to Choose the Right Form for Your Business, Anthony Mancuso

The Handmade Market Place: How to Sell Your Crafts Locally, Globally, and Online,
Kari Chapin

I hope these next few blogs will be of interest to those in the same boat as me!

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