Anybody monetize their hobby ?
 

Anybody monetize their hobby ?

By this, I mean registering as a licensed small business --- I know several of you keep spreadsheets on how much profit you make on a flip or a re-sell,

Maybe it would make things more complicated , --- but since I have started buying, re-furbishing and occasionally re-selling , I've spent thousands (over and above my "Daily drivers " )

I'm not sure if I have re-couped all of it with my sales (likely not even close) , ---- but do any of you have a little garage business set up to offset some of the tax burden or anything?

I'm self employed in my primary profession and I write off everything.

I was advised years ago to never turn your hobby into a job. It takes all of the fun out of it!

I think most of us probably try NOT to keep track of the money spent. It will likely never pencil out in the positive.

There are a few folks on these boards who do.

But as Oldairhead indicated, making something you like a job makes it, a job. Not for me. But if it floats your boat, more power to you.

As for the money part, I don't wring my hands if I wear out a tire, I'm not going to do so if I wear out a bike.

I sell some stuff to justify buying more stuff. I've done a few side braze jobs, mostly for forum members. I only do it because I enjoy it.

If I did it would be decidedly non-profit.

I have, but not cycling.

Turn it into a company and legal/insurance changes.
Cant even imagine going down that rabbit hole. My hobby would turn lame quickly.

I started going down that route last year. Got the business license and all.

Then I discovered that major vendors refused to sell to me because I was too small :(

It turns out that Chinese and Taiwanese companies are much less concerned about who they sell to than the big name brands. I'll probably do some more work on getting things rolling this spring/summer. But, price competition could be fierce unless I build my own niche.

I think it is important to try out everything that I sell/review/make/buy. I'm not sure what the IRS thinks about that, but the more unique experiences and time on the bike, the better.

I have tried (not bicycles, but model airplanes) and hated it.

Each year I become a bit more involved in the hobby. Things are simple by choice and that's the secret of my enjoyment.

I've built up bicycles then sold them later to make room for new additions to my stable. I've broken even on a few and lost a bit on others; never made a profit. But then, I wasn't doing this to make money, only to have fun.

Mostly I've been tasked with finding a certain type of bicycle for a friend and because they are my friend I'll tune it up and replace a few necessary parts gratis just because I'd rather they ride a nice old bicycle than some piece of junk from an x-mart store.

I entertained the idea years ago of yard-sailing and cherry-picking CL for gem bicycles to flip but my region is like the Sahara Desert for suitable old bicycles. I'd need to spend way too much time searching to earn too little money to make it an enjoyable pursuit.

I still slow down at yard sales; never know when some Colnago garage queen is on the block. :)

Debated doing it, but as said in several replies, it would take all the fun out of the one thing I can truly enjoy, and that made such a positive difference in my life. Started keeping a spread sheet on my first C&V build, and after a few days it was showing me just how much I got into the cash supply. Ended that one really fast. I still keep track but no spread sheets, and not planning to make it into a business. then I would have to be serious about it.

Bill

Organized as a DBA 'The Plastic Pig'

http://i53.photobucket.com/albums/g6...psr3j2ttjt.jpg

Maybe I'll figure out how to make money out of it! :D

Never. Receipts are thrown out as soon as I get them. Have to destroy the evidence.

In my job I monetize everything. In my hobbies I try not to.

So very true! If your hobby becomes a part-time job you then need a new hobby.

Cheers

My hobby literally turned into a full-time job: I quit something that paid better and found employment as a bike mechanic. My interest in the fixing-and-flip-hobby has certainly fallen off as a result, but that's freed my attention to focus more on my bike-riding hobby, and I'm totally okay with this change.

I did it 25 years ago (in 1991) to legitimize my road trip expenses of racing motorcycles on the Regional and National Championship circuit. I've never looked back. (True that hobby to business tends to ruin the hobby aspect, as I retired from racing in 1997 to concentrate on the business side.)

For many years now, I spend three weeks to one month each year in Catalonia (Spain) doing business, and all of the traveling expenses are legitimately tax deductible as the cost of doing my business.

It is true that it may take some time for a person to actually turn a profit as the legitimate costs of the start-up often exceed the profits until you establish clientele and get sales off the ground. In my case, it was a couple of years before we saw "the black"...

My business started at the very beginning of the Internet, and I saw no real Internet-based sales until about 2005 or thereabouts. In about 1992 I bought my first computer and started doing some email. In 2009 it began to rapidly shift to a primarily Internet-based (Website and email) type of business. In the past several years, we had only one customer left who used the FAX machine, and we have him now using email. Our FAX machine is still operating, but our clients know that when this one breaks-down the '24/7 FAX line' will close forever.

Today, we are about 75% wholesale to our dealer network. About 80% of our sales invoices are email generated. The rest are telephone.
We do not sell directly off of our website as there are a lot of variables and we prefer to communicate details before finalizing a sale. This policy reduces merchandise returns to almost zero, and in the end, as the racing motorcycle business is almost always time sensitive, our clients prefer that they receive the correct materials the first time.

Thanks Hoss, this is exactly the input I was looking for --- I am self employed in my primary occupation and I write off everything related (and I still pay tons in taxes ) --- a small side business - maybe even have somebody set up a table at the races , could legitimize some of my travel expenses. It shouldn't be enough to raise any alarm bells at the .Gov, -- and like your moto business, - may take off, who knows

Nah just My Labor & experience .. for wages and parts at 10% over cost.