Are you running your virtual assistant services like a business or a hobby?

Are you running your virtual assistant services like a business or a hobby?

Are you running your virtual assistant services like a business or a hobby?

You can look up the law within your state/country on what the government considers a hobby or a business…

But here in the United States with the laws of the IRS, you do not want your business to be a hobby. Because you cannot take advantage of the “tax deductions” if it is a hobby

Of course, you want tax deductions for a business

BUT let’s face the facts what you really want …

Is to be able to always operate in profit mode, right?

If you’re running your virtual assistant business in profit…you’re definitely not a hobby and you do not have to worry about the IRS

Here are a few questions to ask yourself right now, no matter where you are at in your business, or what your business is:

  1. Are you totally invested in making your virtual assistant/ virtual service business a success?
    Or are you just going through the motions? Sleeping late, no business schedule, working too few of hours, and when you’re working focusing on the non-essentials…and wasting to much time on things like social media?
  2. Are you partially committed?
    What I mean by that is do you want a virtual assistant business to be a success, but yet you’re not willing to try new things outside your comfort zone. Including things like investing in products, or services that are essential to growing your business?
  3. Do you depend on the income from your virtual assistant business? 
    Most Virtual Assistants and entrepreneurs I see fail always have a cushion….meaning they have someone/ or something to fall back on if their business does not take off. Those who succeed usually have to! So set yourself a goal right now. Maybe that goal is $500 per month to pay a car payment. Make that car payment dependent on you making money. I promise you; you will work harder to achieve that goal. As you reach each goal, make a new goal and strive for that.
  4. Do you know your bottom line?
    You might know the purpose of your virtual assistant business is profit, but have you taken a serious look at your prices and finances?. Do you know what your true cost of doing business is? (IE Hourly Rate should include your expenses like insurance, tools, etc.) Do you know your value? Are you charging what you’re worth?
  5. Do you run it like a business in all legal aspects? Have you registered your business name?
    Have you checked into all the legalities of the area you live? Have you fulfilled that list of requirements? Have you set up a business checking account, business credit card, and merchant accounts? DO not mix the accounts, pay business expenses out of your business account and then pay yourself! Setup a method of accounting that works for you.
  6. Have you set realistic financial goals? Or any goals at all?
    Obviously, if you’re just starting out your business, it is probably not the size you want, or be bringing in the money that gives you the freedom you want. But have you set your goals? Do you know what is achievable at the rates you have set? Have you researched others in the field you are working? Do you know what the going rates are, or are you undercutting, just get clients? Can you do the work that is required in the time you have available, at the prices you have set to reach your personal financial goals? Have you set long-term financial goals?
  7. Are you continuing to improve your service, and skills to be more profitable?
    Are you continuing to grow your client base? Do you look for ways to add to the bottom line?It’s ok if you’re not starting out with a lot of skills, there are A LOT of great resources out there to help you. But spend the time and knowledge to get those skills. Do not think you can become a virtual assistant with no skills at all. Invest in yourself, and invest in your knowledge, GROW your skills.
  8. Do you have a professional brand/appearance in your business?
    Does your logo look amateur? Have you printed your business cards yourself? Does your business scream “homemade”, or “inconsistent”? Do you have an email address that is dedicated to your business? Do you have a domain name that you have registered or purchased?
  9. Do you have a dedicated place to do business?
    Online you should have a website where you can send people to learn more about you, your services and purchase from you. Offline, you should have a dedicated spot within your home to do business. Even if it is corner in your kitchen, set-up a dedicated place where you can keep all your business tools and go to during “business hours.
  10. Are you marketing, and promoting your virtual assistant business on a regular basis?
    Does your business exist only because of word of mouth advertising from your friends, or do you have a marketing plan to promote and advertising your business?  Or do you promote your business on a consistent basis online and offline, in networking groups

If you have answered “yes” to any of these questions, take a hard look at your virtual assistant business. There’s nothing wrong with a hobby unless you’re expecting it to pay your car payment each month.

But if you need to be able to pay the bills and have a business you love, and it is not happening for you, then start to look for outside help. If you already had what you needed you would be already getting the results you want!

Be honest with yourself, and find a way to fill in the holes, rather that be a mentor, a training course, a consultant, whatever you need, even if it is out of your comfort zone. And if you’re not ready to do this..then maybe it is time to reevaluate your “business.”

Are you struggling with running your virtual assistant services like a business?

I would love to hear from you!

Virtually Yours,

laura-beth-bastion

 

 

 

Disclaimer: I am not a tax expert, nor do I claim to be, check with your own government /CPA for the rules governing where you live.