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HOME-BASED BUSINESSES

There's no place like home to set-up and run your own business. The overhead is low and can't beat the commute!

Each week, thousands of people make the decision to start their own business. By choosing to launch your empire from home, you eliminate costly overhead for the outside space and you can test the waters of having a business on a part-time basis, before taking the full-time plunge.

The first thing you must decide is the type of business you will start. Most homerun businesses fall into the service category. There are hundreds of small service businesses one can start from home.

Choose What You'll Love To Do

When choosing a business make sure you choose something you'll love to do. You will be spending a lot of hours working to make your business a success. If you pick a business you'll enjoy, you will enjoy succeeding at it. If you set-up shop just based on money-making potential, you might not enjoy it. This element is the key ingredient to success. Choose something you'll love, and the money will surely follow.

After you decide exactly what to do, you'll need to focus your goals. We recommend jotting down your ideas in a business plan. The plan doesn't have to be a formal 200-page document complete with computer generated graphs and charts.

Focus Your Thoughts With A Plan

The business plan should answer all of the questions you have about your business. By the time you've finished writing the plan, you should have answers to the following questions. How big is the market for my product or service? Who will my customers be? How much will they pay for this item or service? How will I reach these customers? How much money will I need to start and maintain this business?

Should You Incorporate?

You don't have to run out and immediately establish corporation status. You can run your business as a "sole proprietorship." There are also "general partnerships" for those of you who choose to run this business with another person or family member.

Call the local U.S. Small Business Administration office and ask for a start-up package. They will send you a hefty package at no charge that includes details on choosing a legal form for your business. You could also check out the book "Choosing a Legal Structure for Your Business" by Stuart A. Handmaker. The form you choose will affect your tax status.

A Complete Guide To Your Biz

We've collected a number of tips and helpful information you will need to start your own business along with specific ideas for businesses you can start and run from home.

If you do start your own business from home, please email us and let us know. We're always looking for a good story.

Here are 10 tips for working smarter from home:

1. Pick a business you enjoy and do well. Ask yourself: "What do I like doing so well that I would do it even if I weren't making money?" Turn your existing job skills into a business, such as accounting, or uncover a hidden talent, such as party planning. You might consider turning your favorite hobby or interest into a business or putting something you know well to work.
2. Choose a business that people need and will buy. In selecting a successful business, determine what products or services people need and what they are willing to buy. You can research your market through your local library or the Internet.
3. Prepare an entry plan. Develop a plan to cover your expenses until your business is turning a profit. Some alternatives include moonlighting while keeping a full-time job, or working part-time to provide a base income while building your business. Other entry plans include turning your employer into your first major customer, finding a financial resource to cover base expenses, or using your spouse or partner's salary to pay for minimum living and business expenses.
4. Set up a separate office. Keep you home and office separate by clearly delineating your workspace, setting definite work hours, using a business telephone line, and having an outside office entrance, if possible. Learn to say, "No, I'm working now," and "dress" for work to ensure your productivity.
5. Use technology to run your business. There is a wealth of small, cost-effective office equipment available that can make your office sophisticated and productive. Today's well-equipment home office has at least one personal computer, a printer and answering machine. Many home offices also have a facsimile machine, a copier and modem.
6. Develop a marketing mindset. Determine why your product or service is unique, how it benefits those you serve, and how you will spread the work about these benefits to those who need them. This process involves three steps: 1) finding your market niche, 2) positioning your product or service, and 3) finding the best way to let your customers know about your business.
7. Spend money to make money. Starting a business is like raising a child: you have to support it until it can support itself. There are a variety of ways to get the money you need -from changing the allowances on your Form W-4 (check with your tax advisor) to getting suppliers to finance your business. Make sure the money is spent on activities that will actually produce more money in return.
8. Give up your MBA. Give up your MBA, or Marginal Business Attitude, and get a SBA, or Serious Business Attitude. You can do this by: 1) giving your business 100 percent of your effort, 2) setting specific business hours, 3) setting your prices to convey value, cover costs and earn a profit, and 4) going the extra mile to provide a top quality image, product or service.
9. Learn to be the boss you always wanted to have. Consistently offer yourself the direction, consolation, guidance, respect and recognition you need. Learn the subtleties of what it takes to motivate yourself. Make sure you work productively, but not to the point where you lose your zest and creativity.
10. Do the little things that make the big difference. The small things make the biggest difference in your productivity. Consider using a telephone headset if you spend considerable time on the phone or a copy holder if you type a lot of text. Use spell-checking and grammar-checking software to be sure your correspondence conveys a professional image. To prevent eye strain and back pain, consider using a glare screen for your computer and an ergonomic chair.

Licenses and Permits

It's worth the time and effort to get the necessary licenses, permits and registrations for your home business. Costs and requirements vary from state to state. Call your local town hall or country clerk for information. The local office of the U.S. Small Business Administration will also help point you in the right direction. Check out the following:

Zoning--check the zoning laws. Land is divided into 4 zones: residential, commercial, industrial and agricultural. Certain zones prohibit business activity.

Licensing--local, state and federal governments issue registration and licensing requirements. Your business activity will determine what type of license you need (if any).

Insurance--some types you might consider include: liability coverage for customers coming into your home; general liability for off-site events; damage or loss to your business property; health and disability; product and commercial liability; business interruption resulting from fire or another disaster; auto insurance.

You should check with your current insurance companies to see if you are covered for any of the above items under your current policies.

Tax Tips For Your Biz

The Internal Revenue Service publishes a tax kit for your business. To get a copy, call 800-424-3276. You might also try your local IRS office.

As home-based entrepreneurs, you will be entitled to a number of home office deductions such as rent, home repairs, plumbing and even air conditioning. You are also entitled to many standard business deductions including: Advertising costs; office supplies; legal and professional services; car expenses; shipping, postage and delivery costs; furniture for your home office; uniforms; how-to books and publications; protective gear; security or alarm system; business insurance premiums, telephone bills.

One important tip is to keep careful records. Keep a notebook that will serve as a "daily activity record" of all business conducted on behalf of your enterprise.

List telephone call made, letters sent out, bills paid, expenses generated, etc. This will help you and your accountant at tax time. You can also staple receipts right to the page of your daily log for easy recall, reference and proof, should you ever need it.

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