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Work At Home

Today, accountants, architects, public relations consultants, chimney sweeps, answering services, and many other types of profesionals have swelled the ranks of home-based businesses. If you're like most people, you've probably already thought about working from home. It's not just the commute - advantages include more time with your family, flexible working hours, and independence.

A home-based business is like any other small business in many ways. It takes time, hard work, and planning. Just because you will be operating out of your home doesn't make the endeavor any less serious. You'll be in good company: Apple Computer, Hershey Foods, Mary Kay Cosmetics, Ford Motor Company and Hewlett-Packard all started out as home-based businesses.

Do You Have What It Takes?

Not everyone is equipped to work at home. For some, isolation is a problem, while others lack the necessary self-discipline. Starting a home-based business is similar to starting any other small business; you must ask yourself if you have what it takes to be an entrepreneur. To see if you're ready, study successful business owners and decide whether your personality traits, experiences, and values are similar to theirs. Do you want to invest the energy, time, and financial resources required for successful entrepreneurship?

You should also survey your reasons for wanting to work at home. Are you unhappy with your current job? Could your skills be put to better use? What experience do you have in the business you want to start? What resources do you have available?

Other questions to ask yourself include:

• How does your family feel about a home business?
• How will it affect their daily lives?
• Will you expect them to help out?
• Will you have to remodel your home to create a usable business space?
• Will you keep your job and moonlight until you get your business off the ground? Or do you have savings, inheritance or retirement income to live on?
• Do you already own tools or machines that will help?
• Are you able to go back to school for training, if necessary?
• Have you built up a network of contacts and possible customers, or will you start from scratch?

Family Matters

The advantages of working from home are numerous: independence, convenience, financial gain, comparatively low risk, decreased commute time, low business expenses, and more time with family are often cited. Quality of life also comes into play as both men and women look for a way to balance the demands of a career with those of a family. Further, home-based businesses help save money on taxes because deductions for automobile expenses, telephone, home improvements, business cards and major purchases (such as computer equipment) may be available.

The disadvantages can be subtler. If you work in an office downtown you don't have to worry about a neighbor stopping by for a chat or your kids bursting in the door after a day at school. You must be self-disciplined and goal-oriented to create a good working atmosphere despite kids, spouses, neighbors, and the telephone. Without the deadlines imposed by supervisors or peers, it can be hard to complete the least appealing (but often essential) tasks. It is your responsibility to set limits and plan time. There is no supply department when you need a bigger file cabinet, a new copy machine or basic office supplies. Some people find that possessing ultimate decision-making authority is unsettling. Your family's lifestyle may be disturbed, and it may be difficult to work out a compromise that's acceptable to everyone.

You're Still A Professional

Don't let the relaxed environment of working at home make you any less disciplined. A professional image is an important part of building credibility with customers and also boosts to your self-esteem.

Create a specific and proper professional mood. Have a business-like office or showroom if you meet customers face to face. A clean and organized environment enhances both your image and customer perception of your product or service.

Pay attention to what you wear. The psychological power of your work clothes will convince customers and clients that you are serious about your business and tell your subconscious that it's time to get down to business. No matter what you have scheduled for your day, always dress for work.

The identity your business presents to the professional world is also important. Design a logo or have one created, and print business cards and stationery. Set regular business hours and use an answering machine or service. Consider referring to your apartment number as your suite number or rent a post office box rather than using your street address.

What's My Line?

As with any other new entrepreneur, you must decide what product or service you will offer. You've listed your skills and your interests, and you know your family's preferred lifestyle. The next step is to choose a business that accommodates all of them.

You need to ask who will buy your product or service. Make a list of potential customers, and ask friends and family to help brainstorm all possible markets for your product or service.

You should also analyze your competition to plan how you will fit into the marketplace. Look for a unique niche that sets you apart. The more you learn about the competition, the better you'll be able to decide how to position yourself in the market.

Whatever type of home business you want to open, you will need to do market research. Visit your local library and talk to any pertinent local business associations. This will help you identify potential customers, learn about their needs and buying cycles, and reach them to generate sales.

The Nitty-Gritty Details

Choose an appropriate legal structure for your business: sole proprietor, partnership, or corporation. Most home-based businesses are sole proprietorships, but talk to an attorney to make sure that is right for you.

Next, set up an effective recordkeeping system. This is essential, so learn how to do it yourself or get help. Take a course at a local community college, talk to a volunteer SCORE (Service Corps of Retired Executives) or SBDC (Small Business Development Center) representative, or hire an accountant to help you set up and maintain a recordkeeping system.

Every purchase and transaction you make has tax implications. However, you must maintain good records and keep current on tax law changes to ensure that you operate within the law. Talk to your attorney and your accountant to find out your obligations and benefits.

Insurance is also an important consideration. Make sure business use of your home is compatible with your homeowner's policy. In addition to a personal plan, you will need a commercial policy for full protection of business assets.

Business Zoning

Before investing too deeply, contact your local government for a copy of your zoning ordinance. If home-based businesses are allowed in your municipality, keep reading. If some or all are restricted, find out if a pre-existing clause might apply or if you have to ask your zoning board for a variance.

Once you learn that your business conforms to zoning regulations, it's important to keep up with any new proposals that may affect your situation. It's also a good idea to join business organizations and neighborhood groups in case you ever need to rally together to propose or oppose new regulations. Always maintain good relations with your neighbors - they could be vital should adverse regulations affecting your business ever be proposed.

An attorney can be very helpful with zoning issues. If in the unfortunate and unlikely event your business does not conform and you are given a cease and desist order, consult with an attorney who is familiar with the regulations and workings of the zoning and appeals boards.

Tips for Working Out of the Home

When you work at home, it's often difficult to prevent your personal life from encroaching on your business. Here are a few tips for keeping both under control.

1. Start your day as if heading for the office. Dress appropriately, but comfortably.
2. Commit to routine work hours. Establish a schedule that works for you.
3. Make personal phone calls on your own time. Get an answering machine so you can screen any after-hours business calls.
4. Keep a log of all the hours you devote to work. It will help you manage your day more efficiently.
5. Try to plan your work schedule at least a week in advance. You'll be better able to gauge your progress and maximize your productivity.
6. Never combine household and business errands. Always leave and return to your business at designated times.
7. Avoid doing household tasks during work hours. Learn to discipline yourself to stay within your time schedule.