At what point does your hobby cross the invisible line and become a bonafide business?

This is my dilemma.

The cost to obtain a business license and file the accompanying DBA is more than I made from my sewing pursuits in the preceding twelve months.

If the teaching partnership with the quilt shop moves forward, then I will definitely go ahead and get the business license in my name only.  Any cutesy business name that requires filing the expensive DBA paperwork can come later – if it is really needed.  (FYI – A “doing business as” form is required to be filed in the local superior court if you use a business name other than your own given name (or some derivation including your last name) and are a sole proprietor. It is a civil matter actually filed with the court, advertised in the local legal paper, etc.)

Adding an insurance rider to my homeowner’s policy is less than $15/year provided I keep my gross receipts under $5,000.00 annually. This covers me for private lessons, craft fairs and any sewing I do for hire.  Of course the insurance rider was added.

The business license application includes a line for NAICS/SIC codes.  My business pursuits fall under “handicrafts instruction” and “quilts from purchased materials.”  You can only list one code and the part of your business that generates the largest portion of your revenue determines your classification.  For me, that is “handicrafts instruction” (much like private music lessons).  This works out especially well for a home based business with HOA covenants like mine.

Stay tuned for more fun and games.

I drive an Acura RDX.  Love, love, love my little blue SUV.  We reached a milestone earlier this week in that I hit the 50,000 mile mark.  This means I am officially now out of warranty.  You can just guess what’s coming, right?

On Thursday, my beloved SUV refused to start after my doctor’s appointment.  Here I am sitting in the parking deck at Kennestone Hospital with a vehicle that wouldn’t start.  I called the local Honda dealer that works on my car.  They said it was the battery and to call AAA if I had the service.  Luckily, I do.  AAA technician arrived about an hour later to meet me and the SUV that was now running.  He checked the battery with his little machine and told me it was time for a new one.  Next stop was the auto parts store for a new battery.

All went well until this morning.  SUV wouldn’t start when I went out to make my customary Sunday run for a copy of the MDJ.  It was as if the battery was completely disconnected.  I popped the hood and guess what?  It was.  The terminal connectors had worked loose.  I mashed down and it started up just fine.  Came home, did my chores and waited for auto parts store location closest to me to open.  (Had to mash down on the connectors again to get it to start.)

Problem?  The battery was literally 2″ too short.  The clerk swapped out and installed my new battery (the correct height) without hassle.  Be forewarned.  If you replace your Acura RDX battery with a 26-3 instead of a 35-1, you will need terminal extenders or a height adapter.  It even says so on the computer screen when they sell you the battery.  (The first clerk neglected to mention this.) Oh well, I now have a 35-1 battery and everything fits just fine.  I had to fork over $3.00 for the different battery (a higher priced battery), plus I opted for the protector goop and felt washers.  Connections are all nice and secure.

All is well.  I’m about to go sit in front of my sewing machine.

Enjoy this beautiful Sunday.

Today, I met with Robin, the owner of Cottontail Quilt Shop (the new quilt shop that is about to open in downtown Kennesaw), to discuss the possibility of teaching kid sewing classes at her shop.  Although still in the build-out phase, she’s obviously put a lot of thought into the design of the shop and the merchandise she will carry.  I also like the fact that the shop is in a 125 year old house, complete with built ins, high ceilings and wonky floors.  The imperfections merely add to the charm of the house.  The classroom area is huge with loads of natural light. And for anyone else interested in teaching – she’s still looking for instructors to teach daytime adult sewing classes.

Okay, so how to get started?

I’m assuming you already actually know how to sew.  You don’t need to be an expert to teach, but should be comfortable enough with the process to guide others.  In the beginning, teach something with which you’re already familiar.  That’s why I am teaching beginning sewing and easy to intermediate project based classes.  Yes, I know how to put in a zipper, do bound buttonholes and finish seams on my serger, but as a quilter I don’t do that on a frequent basis.  I’d have to “practice” before teaching that portion of the class.

There’s a lot of information available out there on the web to assist you in deciding which curriculum to use, but I didn’t find as much information on where to  teach and discussions on what to charge.  I highly recommend the book, The Busine$$ of Teaching Sewing  by Palmer/Pletch.  It offers lots of valuable advice on the nuts and bolts of getting started teaching sewing – not just starting a new business.  I purchased a copy for my own personal library.

Curriculum (or what to teach)

• You can use a prepackaged sewing curriculum like Kids Can Sew or Winky Cherry.
• You can use a textbook like The Best of Sewing Machine Fun for Kids by C&T Publishing.*
• You can create your own using many of the wonderful tutorials and videos available on the web for inspiration.  If you teach in a shop, be prepared to use patterns/books sold in the shop as the basis for your projects – even if the general idea (e.g. potholders or aprons) is gleaned from the web.  Even though you might be an independent contractor, your job is still to help promote the shop’s products as much as possible.  Remember, the shop owner makes money when she sells something.

Where to Teach

• Your home
• Your subdivision’s clubhouse
• After school programs at a nearby elementary school
• Local community center
• Local fabric/quilt shop
• Local sewing machine retailer

Pricing

• Scout the competition — your prices need to be in line with them.
• Determine your rate for private instruction because you will be asked 🙂
• Partnering with a shop means you will split the class fee with the shop, so price accordingly