Home – New Forums Starting your journey Who started their business in their garage?

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  • #991806
    Mama bear
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    my partner is very creative and his latest project has had a lot of local interest so we are thinking of starting to sell his products made to order. It will be a joint venture and he will be doing the making il be doing the management business side of things.
    Wanting to know how many of you have started in their garage and worked their way up?
    Also what is the $ point where it turns from hobby to business?

    #1183403
    Hatching_It
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    Hobby > Business is basically whether you’re seeking to earn money from it so it sounds like possibly you could claim it’s a hobby.. Unless he needs to buy lots of expensive equipment etc I don’t see any reason to start as a business.

    I started in my garage and am still there 1.5 years later with floating on hand stock value of about $15,000 – $40,000…

    #1183404
    MissSassy
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    If you want to make money and earn an income it is a business and that is how you should run it even if you are in your garage. Many large businesses started at home in peoples garages and grew to much more. Ultimately you need to decide how things are going to move forward with this idea, seems to me it is a business :)

    This is how the ATO views it:

    Hobby or business
    It is important to determine whether the trust is carrying on a business, as distinct from pursuing a hobby, sport or recreational activity that does not produce assessable income.

    The factors or ‘business indicators’ various courts and tribunals have taken into account in determining if a business exists for tax purposes include whether the activity:

    • has actually started
    • has a significant commercial purpose or character
    • is undertaken with a purpose of profit as well as a prospect of profit
    • is carried out in a manner that is characteristic of the industry
    • has repetition, regularity or continuity
    • is planned, organised and carried on in a business-like manner
    • is of a sufficient size, scale and permanency to generate a profit
    • is not more properly described as a hobby, recreation or sporting activity.
    #1183405
    MikeDav
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    Starting a business in your garage is a great way to save money. Renting an office or warehouse can be quite expensive and can consume a lot of your cashflow in the early days.

    If your garage gets too small you can also get quite cheap storage units these days.

    #1183406
    bluepenguin
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    I started my business in a spare bedroom, built it up and moved into a nice office with employees… and now, almost 10 years since I began I’ve downscaled and moved it into my garage and I love it.

    The costs of renting spaces and all the associated bills that come with that can be massive – and even if you can afford to pay them all, there’s so many pieces of paper to file and hoops to jump through to make it all work. If you can make it work from your garage, I’d highly recommend it.

    If I’d never gone looking for greener grass, I’d still be aspiring to get it, but now that I’ve been there and done that, I couldn’t be happier with my garage – even though it was only 6 degrees when I started work this morning and there may or may not be cockroach under the filing cabinet.

    #1183407
    Divert To Mobile
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    FYI Microsoft started in a garage

    Steve

    #1183408
    SuzsSpace
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    I was going to mention Apple. Many very successful businesses got their start in their garage. The location is irrelevant, it’s what you do that counts.

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