7 pitfalls to making your hobby a business

Businesses require space

You might start out making necklaces at the kitchen table or knitting scarves in front of the TV, but as sales increase, so will the need for a dedicated space to create products, organize supplies and fill orders — not to mention hiding the mess.

Having a dedicated space to run a small business not only will reduce clutter in your home but might be essential to its long-term success.

Erin Francis, who owns the baking business Cake Pop It Like It's Hot, is content limiting sales of her cookies and cake pops to co-workers and accepting smaller orders that can be prepared in her kitchen. But she knows that if she wants to grow her business and start selling to the masses, she’ll need get to rent space in a commercial kitchen.

"If I have to rent a space, I’ll need to charge more," she says.