Etsy and Ebay and Work From Home Businesses

Etsy and Ebay and Work From Home Businesses

Most of us know someone who has dabbled on Ebay, Etsy or other websites where “business” is conducted. Making aromatic candles, natural soaps and knitting, crocheting and sewing from home lend themselves to such websites. When does such activity shift from a hobby or “dabbling” to a work from home business? Here are some factors to consider.

Are You Doing it for Fun or for Money?

If you are creating and selling items because you enjoy it, it probably is a healthy hobby. If selling the items for a profit is your motivation, you are likely more in a home business frame of mind.

How Much Inventory to You Have?

Do you have shelves and shelves or boxes upon boxes of inventory? Is this inventory completed or raw materials? The more inventory you have and the more money you have invested in that inventory, the more likely it is you are building a home business.

How are You Marketing Your Products?

If your marketing is limited to social media and perhaps an email list, you probably have a hobby. Now, if you have created a logo, labeling and have created a flyer, it would appear you are building a business.

How Well are You Tracking Sales?

Your attitude for tracking sales and inventory will say a lot about the direction your hobby/business is heading. It may also just be a reflection on your personality.

Have You Set Up a Business Structure?

Have you pursued setting up a sole proprietorship, partnership or LLC? Have you set up a separate account for transaction or secured a tax ID number? This would all indicate you have a home-based business.

How Much Space Does Your Activity Take?

Do you have a separate room in your home you use as an “office”? Do you take a percentage of this home space as a deduction on your income taxes as business expenses? Have you invested in a computer or other equipment to build your business?

Are Your Customers Mainly Family & Friends?

If more of your customers are “strangers” the more likely it is you have a home-based business.

If you are developing a home-based business that is bringing in increasingly significant amounts of income, or if you have invested heavily in equipment or inventory, you should be aware that your personal homeowners’ insurance policy will not provide coverage should a loss occur due to fire or theft. You should reach out to one of our independent insurance agents to get a quote on protecting your home-based business.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

U.S. Cities Eternally Linked Together

The Sugar and Spice and Salt and Pepper of American Towns

How To, and How NOT To Raise Prices (While Minimizing Customer Loss)

The Best Ways to Increase Prices While Not Losing Customers

About That Bucket List

Where Do the Items on Our List Originate?

Three of the Biggest Factors Impacting Your Car Insurance Premiums

While the Entire List is Long, These are the Top Three

Let’s Focus On Outside Living

Are You Taking Full Advantage of Your Outdoor Space?

Tread On Me: Five Duties of the Often-Overlooked Welcome Mat

The Surprising Life of a Welcome Mat

Doing Business In The Future

Wait…the Future Is Here

Classic Games for Grandparents to Teach Young Grandchildren

Want To Play a Game?

Little Known Facts Even Jeep Fans May Not Be Aware Of

Learn More About the Jeep Lifestyle

Why Your Neighbor May Be Paying More (Or Less) Than You Are for Home Insurance

Why don’t neighbors talk much about homeowners insurance ? Would it matter? We explore this in our latest blog.