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get in shape now fitness guide online fitness club- join and get healthy How to Build a Successful Home-based Business
Copyright © 2004 James Martell Net Guides Publishing, Inc. http://www.work-at-home-net-guides.com Setting up shop at home is not as difficult as you may think. Here are three are at business start-ups for the new American workplace. When Jeannie Bowers started Atlantic Optical four years ago, finding a location was the least of her worries. "I always wanted to do something home-based because you have the advantage of being able to work any hours that you want and your office is always at your disposal." Bowers operates her business out of a spare bedroom of her Orlando, Florida, home. It turns out that Bowers is not alone. When it comes to starting a business, millions of would-be entrepreneurs are finding that there's no place like home, and are converting dens, bedrooms, basements and attics into offices. According to a recent study by Fidelity Investments, the nation's largest mutual fund company and one of the leading providers of financial services, 37% of all home-based businesses are operated by women. As for income, in 2002, 56% of all home-based businesses earned net revenues of less than $50,000, 24% earned $50,000-$99,000, and 20% made more than $100,000. There are many reasons for choosing to work at home. A certain proportion, particularly men, work at home because there are tremendous cost savings. For another large segment, it's the idea of having more control over your life and being able to spend more time with your family. For the person looking to balance career and family, a work-at-home environment can create the best of both worlds. Start-up costs for a home business vary according to the type of operation, but some can be launched for as little as $500. Bowers started her company with about $3,000, which included expenses for office equipment, supplies and 12 weeks of training. The first step to starting a home-based business is deciding what type of operation to run. But before you print your business cards, check your local zoning laws to see which types of businesses are permitted in your neighborhood. Some zoning ordinances exclude home businesses entirely. But the majority place restrictions on these operations, limiting on-street parking, the number of employees, signage and the amount of vehicular traffic. Also check homeowner associations, co-op boards and condominium complexes, which may enforce their own work-at-home restrictions. Businesses that may be red-flagged include commercial ventures or businesses that require outside storage of supplies, create extreme noise and produce flagrant odors. Those operating without a required license or permit also can be zapped. Many home enterprises such as day care and catering services require certificates of operation. Check with your municipal, county or state office to see if you will need this document. Fees vary according to state and type of operation. While there are many advantages to setting up shop at home, there are some drawbacks, particularly if the lines of separation between your work environment and home life are not clearly drawn. Setting up a completely separate area for your home office is important because it will qualify you for a home office deduction around tax time. When selecting an area, consider using a spare bedroom (the basement or an enclosed porch or sunroom also is ideal). Forgo working from the kitchen table or family room. As your business becomes more successful, you may need to add personnel or expand your office, so project your space needs for at least five years. Also, determine if your business requires you to bring clients to your home. If so, plan a distraction-free area in your office to meet and talk with customers. You may also want to consider renting office space for your meetings. The home is a relaxed environment, so work-at-home entrepreneurs must be very self-disciplined. It can be very easy to get distracted by Oprah or Judge Judy, so be sure to exercise your "self-management muscle." And if you have children, hire a baby-sitter during office hours or schedule outings for the kids so they do not interfere with the business. Featured below are two businesses that industry experts consider to be among the top home enterprises for the 21st century. Although there are hundreds you can launch from home, these have a low start-up cost, long-term profit potential and high marketability. They are also expected to experience tremendous growth within a few short years. Event Planning Event planners work with corporations, organizations and nonprofit groups to plan annual conferences, fund-raising events, trade shows, shareholder meetings, banquets and other special occasions. Starting this type of home business is easier if you have a public relations background or prior experience as a meeting planner, but it is not a prerequisite. To get started, you will need a computer, fax machine, word processing software and a two-line telephone system. Depending on the types of equipment and resources used, startup cost ranges from $2,750-$8,500. To secure clients, network among caterers and travel agents. Visit your city's convention and visitors' bureau for a list of upcoming events or volunteer to plan a community event as a way to demonstrate your skills and drum up business. Meeting planning is a high-pressure business. To be successful, you must be able to work under tight deadlines. You must also be creative, have an eye for detail, have excellent presentation and communication skills and be very organized. For more information about a home-based meeting planning business, contact: Meeting Professionals International, 4455 LBJ Freeway, Suite 1200, Dallas, TX 75244. Home Cleaning Service Who has time to clean? Between work, the gym, dinner with friends and your usual five hours of sleep, there seems to be little time to wash windows and vacuum the carpet. But this lifestyle is making cleaning services very profitable ventures. In fact, home cleaning alone is a $92-million-a-year business. There are also many commercial cleaning franchises that can be purchased for as little as $5,000 and operated from the home. Cleaning services are perhaps the easiest and cheapest businesses to start in the home. With less than $1,000, a few cleaning supplies (many of which you can get from your own cabinet) and just the knowledge of how to use a mop, some Mr. Clean and a bucket, you can open for business. To drum up business for your home cleaning service, list your company name in the Yellow Pages or distribute flyers in your neighborhood or business district. Fees for house cleaning range from $10-$20 per hour and $50-$75 per day. Most cleaning businesses are perceived as low-status operations, so image and professionalism are everything. You must be willing to roll up your sleeves and work hard. For additional information about cleaning services, contact: Cleaning Consultants, Inc., P.O. Box 1273, Seattle, WA 98111. Don't Forget to Protect Your Investment While operating a home-based business is low-risk, it is still a valuable investment that should be protected through business insurance. Although your residence may already be insured for fire and other damage, never rely totally on your homeowner's policy to cover your home business. Most homeowner's and rental policies will exclude business activity, so you would have to look for what is called an "in-home business policy." Most companies writing this type of policy will include personal business property, general liability and loss of income. However, some home-based businesses need special coverage. For example, a food manufacturer should have product liability insurance to cover if someone gets hurt using a product. For more information on how to insure your home-based business, contact: The Insurance Information Institute, 110 Williams St., 24th Floor, New York, NY 10038. Don't Forget to Keep Accurate Financial Records When Uncle Sam comes calling for his piece of your home business, you want to be ready. Set up a detailed record-keeping system and keep track of all business-related expenses. Such computer software programs as Quicken offer easy-to-follow formats for separating business and personal expenses. Never mix the two. Also set up a separate business bank account. When filing your tax return, keep in mind there are several home expenses that are tax deductible: office supplies, professional and trade memberships/dues, travel, insurance premiums, local and long-distance telephone calls, maintenance and repair of office computers, and employee wages and benefits. Home-based business owners can also claim a "home office" deduction in which they deduct part of their rent or take a depreciation deduction based on how the business is used in the home. About 1.6 million home-based business owners claim a home office deduction each year. According to the IRS, a house, apartment, mobile home, boat or condominium can qualify. However, to claim this deduction, your home office must be: (1) your principal place of business; (2) a separate and distinguishable space in your home; and (3) regularly and exclusively used for business. The language regarding this deduction is not simple, so contact your local IRS office or your accountant for complete definitions. James Martell is a successful writer http://www.freelancers-wanted.com , stay-at-home dad of two boys and two girls, husband and a work at home professional providing valuable insight to those dreaming about making money on the Net, using a computer in a home office of their own http://www.work-at-home-net-guides.com . His numerous articles offer real-life tips and techniques for getting the most out of a homebased business.
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