Home Business

Work At Home Business Form

You also must state whether your business will be a sole proprietorship, partnership, or corporation. A sole proprietorship is you, by yourself, owning and running the business. This is the simplest and most common form of business organization. Your income and

expenses from the business are reported as part of your federal tax return on Schedule C, and you don’t need to file incorporation papers to “form” your business. The simplicity of this form of business is a distinct advantage, but it offers some disadvantages, as well. The chief disadvantage is that liability flows directly to you. This means that a customer can sue you directly for failing to perform the services you agreed to provide. Your home and other assets could be at risk. You can mitigate this risk by purchasing liability insurance (or errors and omissions insurance). If you own few assets (and rent, rather than own, your home), the liability issues might not be as important.

The more assets you have, and the more people who know you have liability insurance, the more likely you are to be sued. The nature of your business is also a key factor. Are you offering services in which safety could be a factor, such as a building contractor who has to be sure that a staircase doesn’t fail? Are you offering services that could greatly impact someone’s life if done incorrectly, such as accounting or legal advice? What happens if you don’t perform as promised? The greater the potential fallout to the client, the more likely someone could be injured or killed, and the more likely someone could be financially ruined, the more likely you are to be sued. A partnership is a formal partnering of you with at least one other person. Forming a partnership generally requires an attorney. As a home business, you might not be allowed to form a partnership unless it is with your spouse or domestic partner (depending on regulations of home businesses in your area). But this could make a partnership the ideal business structure. If you and your significant other are going to share in the work and expenses anyway, this might be a way to formalize that agreement.

Forming a partnership with someone not living with you is a bit trickier. But this is the twenty-first century—the era of the virtual company. If this is someone you know you can trust, and zoning regulations allow it, there’s no reason why two people in different cities – or even different states or countries—can’t use this business form. (With more than one state or country, however, bear in mind that you might have to report income or file forms twice – once in each jurisdiction.) Whether your partner is in the next room or the next country, however, always consider such an arrangement carefully. Ask yourself whether you really know the person you are partnering with for this business. And no matter how well you think you know him or her, treat it as any other professional transaction.

We will tell you what this home based business form means in the next post!

Introduction/Overview and Goals

Though it appears first in your business plan, the introduction and overview are written last; these elements offer a summary of the rest of the business plan. Return to the introduction and write it only after you have completed the rest of the business plan. A written listing of your goals should be included in the introduction to your plan. Naturally, one of your goals is to make money. But how much per year? $100,000? $500,000? More? Less? Be specific. What other goals do you have? Most people considering a home business want to make money, but they also might want to

• Have more control over scheduling, particularly family or child commitments (for example, attending a child’s soccer game)

• Do something they enjoy

• Minimize commuting

• Build a business to eventually sell at a profit or pass on to their children Be sure that you are specific about your financial goals, but include your non monetary goals as well.

Outlining the Work From Home Basics

In this section, you will outline the basic information regarding your business. The information you add here will answer these questions:

• What is the business name? Is it a sole proprietorship, partnership, or corporation?

• Where will the business be located? (Presumably, you have answered this, and the answer is in your home.) Is there a post office box?

• Will the business have a web presence? What is the domain name(s)?

• Who is the proprietor(s)? What is it about the proprietor(s) that makes him/her/them the right person(s) to run this business?

• What needs or wants of customers are being met? (Give a brief overview of who you are serving and why.) Read on to learn about answering these questions within your business plan.

Making Sure That Your Family Is On Board

Unless you are single and childless, you will need to convene one or more family meetings to be sure that everyone is comfortable with your home business. After all, one of the key words in home business is “home” – and you are going to be changing the way that your family’s home operates somewhat. Although you could, technically, start a home business with no input from your household, it is not recommended. Other members of the household will need to honor your requests to work undisturbed, your need to work weekends or evenings, and perhaps give up some space currently used for other things.

Don’t forget that there is a huge difference between telling your spouse or partner, “I’d like to start a business some day,” and saying, “I am starting my own home business. Please look over my business plan.” You are serious now, and setting aside a separate time to discuss the matter is a clear indication that you are no longer merely dreaming. Here is how to talk about your ideas with the most important people in your life:

• First, sit down alone with your spouse or partner and discuss your desire to have a home business. You don’t have specifics right now, but you do have dreams—share those with him or her!

• Be willing to address reasonable concerns. For example, if your partner objects because you have no savings (a very legitimate reason), discuss what an acceptable level of risk might be. If he or she simply says, “It’s too risky,” and clams up, try to discuss the perceived risks. Ask for the specifics.

• Although you will be in charge of how the business is run, your family should have a say in how the business affects home life. Will you need to alter the quantity or quality of your time together? Your partner might be fine with that, but will insist that Sundays are “family day,” and no work will be done on that day of the week. One or two of these commitments should be okay, but if you are presented with a long list, explain that much of the business is unknown; then, ask for the one or two commitments that are most important.

• Starting and running a business is a 40-hour–plus endeavor for most people. Your spouse or partner needs to understand the time involved and respect your decision enough to work with you on issues such as who does the housework, who chauffeurs the kids, and so on. If you are currently a stay-at-home mom or dad, be sure that your spouse or partner clearly understands that housework and children are no longer your sole priorities and that you expect them to pitch in regularly, without being asked.

• Work through the rest of the information in this website with your spouse or partner. Most people who are starting a home business find that their spouse or partner can be a valuable built-in sounding board. Your partner is usually close enough to be concerned with your business success, yet far enough removed from daily business activities to offer an objective opinion.

• If the discussion becomes heated, don’t be afraid to seek couples counseling. As difficult as starting a business can be, it will be almost impossible if you are going through a breakup at the same time. Your children need to be prepared for changes resulting from your home business, too. If you are a single parent, sit down and talk with your child(ren) about what you are planning to do, and what it means to them. (If you have a spouse or partner, do this together.)

Just be as honest as you can, and don’t be afraid to say, “I don’t know.” If you approach the upcoming changes as a wonderful adventure, chances are your children will be more at ease than if you talk about how scary it is going to be. At the same time, be realistic in your discussion. Although you will want to let your children know about the positive aspects (such as a more flexible schedule), be sure that they know not to volunteer you for a class field trip right away! Provide them with examples of what this venture will mean in terms of your time, your availability, and any additional chores they might need to do.

Will the Business Fit Your Physical Home?

Perform a thorough, visual walk-through of your home. No matter how crazy, briefly consider the possibility of each room in your home being used as your home office or workshop. List your top three possibilities. Of the top three options, which room is best suited for this purpose? Will you need to repaint or switch bedrooms or other uses? Is the wiring “iffy”? Is your home prone to leaks? They can damage costly equipment, so address the problem before you move in costly furniture and computers. Is the area out of the traffic flow of your home? Will it be sufficiently quiet, so you can work? Is it separate enough, so you can avoid entering the work area when you are on personal time, such as evenings and weekends?

If you don’t have a separate room, don’t worry. Can you divide a larger room with panels or room dividers? Or mark an area by the use of a different carpet and/or creation of “walls” using bookcases? Not only does this break up the space and encourage a better work-life balance, but it also helps meet the IRS provisions of having a separate space dedicated to business activity. Unless you provide day care, you will have to be sure that the space is set aside solely for business purposes, and not used for any other reason, if you want to deduct related expenses. For more information, see the IRS website: irs.gov/taxtopics/tc509.html.

Stay tuned as we will continue to talk about making sure your family is behind you and supports your work at home business ideas!

Whether you rent or own your home, you must comply with your city or county’s zoning laws. Finding out the laws in your area should be fairly simple. If you have a computer, look up your city’s web page on the Internet. Go to the section of the planning department, and look for information on running a home business. If you cannot find the information that way, stop by your city’s planning department and ask for regulations governing home businesses. As with landlords and homeowner associations, most planning departments will be concerned about noise, traffic, and eyesores.

They don’t want a big sign reading, “Al’s Junkyard” in a quiet, residential neighborhood, and they don’t want traffic rivaling Macy’s on a busy Saturday. If your planning department hits you with regulations that might be problematic, ask if there is a workaround or if you can receive a variance. Don’t hesitate to ask the planning department how many home businesses it has licensed. Chances are, the more it has allowed, the more routine your visit will be, and the less hassle involved. If your planning department has not experienced very many home businesses, set up a second meeting.

Bring as much research as you can find about your type of home business, and educate your planning department. Don’t let all those scary stories about the planning department put you off – yes, planning departments can give big developers a hard time, and often for very good reasons. But you’re a very, very small and very quiet fish. Many planning departments will be relieved that someone like you is waiting to see them. With a check and a completed form in my hand, I was in the Planning Department offices for 30 seconds! The planner on duty said something along the lines of, “Writer—can’t get less controversial than that,” signed off on my home permit, and shooed me out of the planning office.

Determine That Your Business “Fits” As a Home Business

Is your business suitable as a home business? To make that determination, ask yourself how well your situation matches these descriptions:

• Almost no clients will visit your office. When they do, it will be rare and will be one car/one person at a time. Someone viewing your home from the outside would not know that a business is being run inside.

• You will rely heavily on phone, fax, email, and regular or “snail mail,” and you will frequently visit clients at their offices or meet them at a coffee house or restaurant – if you have to visit them at all.

• You are probably offering a service. If you are offering a product, it is either solely offered over the Internet or through mail order; or it is in conjunction with, or resulting from, your service business.(For example, as a writer, I offer both a service and products (books), but people don’t come to my house to buy them.

• You regularly employ only yourself and can run the business without permanent, full-time employees. (Occasional or temporary help is fine. More on this later in the article.)

• Your business does not require exterior signage or equipment that’s too large or otherwise incompatible with in-home use.

• It would be virtually impossible for someone passing by your home on foot to know that you are conducting business.

• Your home can accommodate any special needs the business will require – such as adequate space for activities and necessary equipment (copiers or printers for a small printing business, room for temporarily holding dogs for a dog-walking business, space for producing soap and bath salts for a small toiletries business, and so on). The less your business fits the preceding profile, the more difficult (but not necessarily impossible) it might be to actually operate your business from home.

Two important factors might give you the setting you need even if your business differs radically from what is detailed previously: the specifications of your own home and your local area’s planning guidelines. If your home is a studio apartment, you will be much more limited than if your home is a 10-room house with one or two acres of land. Setting aside a storage room, or setting up a shed, for your business is much easier if you have the space for it. The long-term development goals of your community – as expressed by your city or county’s planning department in the form of building codes, use regulations, and other rules – will also greatly determine how close your business must fit the previous description. Which leads us to our next “make or break” consideration.

Summary

Marketing isn’t sleazy, yucky, expensive, or phony – unless you make it that way. (And of course, you won’t.) How you market your business will largely depend on the type of business you run and your own personality. But don’t be fooled into thinking that you are marketing because you’ve responded to Internet ads all day— getting out in front of other people is vital. In fact, marketing isn’t really a separate activity at all, but an integral part of how you operate your business.

Here is a list of the posts that summarize what we talked about.

Work At Home Business Marketing

Marketing Your Home Business

Understanding Home Based Business Marketing

Marketing You and Your Home Business

Announcing Your Home Business

Writing Letters For Your Home Business

Tried and True Home Business Marketing Techniques

More Work At Home Business Marketing Techniques

Few More Work From Home Business Strategies

How Much Home Business Marketing Is Enough

Using Professionals to Help You Market Your Home Business

Finding Professionals to Hone Written Marketing Materials

Using Pros to Craft Your Web Presence

Take care and stay tuned for more information on home based businesses and our work from home opportunities!

Press Release

This is an announcement to all relevant media outlets (radio, television, magazines, newspapers), letting them know that you have news. A lot of these are recycled, particularly if they’re little more than, “Yay! I started my business.” Send one out if you really have something newsworthy to announce – but be sure that it is truly newsworthy. What type of story is the media outlet expected to write or air? Why is the beginning of your business newsworthy? Unless you are doing something no one else has thought of, or you are holding a big event, it probably isn’t. And, after you come up with a newsworthy press release, your work isn’t done.

Plan to spend time calling to follow up on each release sent to each contact. The combination of an extremely newsworthy idea and persistence will work. Anything else will fail. (See Appendix A, “References and Resources,” for press release particulars.) Keep this type of marketing in mind. It isn’t likely to be a good fit when you start your business, but you can certainly build your business to a point when you’re ready to do this—perhaps one to three years down the road.

Marketing on a Budget

I hear you scoffing. ”Radio and TV ads? What, when I win the lottery?” It sounds like the marketing plan for some large, multinational business. And here you are – small, new, feeling poor (or actually poor, or both). There are many ways to market your business without spending five or six figures— or even four. Because the touchstone of good marketing is getting out, meeting people, and telling them about your business, many effective marketing techniques take time, but not much of a direct outlay of cash. You will still spend money, but we’re talking tens or hundreds of dollars, not thousands. So it’s now up to you to get out and meet people – or prepare to do so. Remember that list of ways to market my business I’m asked about? Here are the ones that work for me. (Most don’t cost very much.) Choose one, and do it tomorrow. No clients yet? Phone still quiet? Choose another one, and do it the next day. Still no response? Keep going.

Next we will talk about how much marketing is enough.

Writing Your Letter Your letter should include four short paragraphs:

• A brief opening paragraph announcing that you are now in business. Specify what kind of business you are in, and whether you will be limited by geographic boundaries.

• In the second paragraph, let them know what you hope to provide that your competitors do not. Keep this brief—no more than three sentences.

• In the third paragraph, ask for their help in soliciting business. Ask them to let you know if they are interested in your services and to refer you to anyone who might be interested in your services. Give them one or more examples of people who might use your services.

• Close the letter. Thank them for their attention/support. Let them know that you appreciate the warm relationship you have with them. Let them know how to reach you at your business (sometimes as simple as “I can be reached at the phone number below if you have any questions.”)

• Don’t do a simple “mail merge.” Personalize the letter, so the recipient knows you took the time to think of him directly. That means addressing him as you normally would (for example, as “Sam,” not “Mr. Jones” if that is how you address him) and perhaps including a sentence or two unique to his letter. (“If you have questions, I’d be happy to answer them when we work out Monday morning.”) Be sure to sign each letter in blue ink (which is friendlier, and makes sure that the reader knows you really did sign it, as opposed to having your scanner and printer do it for you).

Here’s an example of an introductory letter used to announce the opening of a writing business:

January 12, 2005 Ms. Jane Smith 123 Profit Lane Friendly, CA 94702 Dear Jane,

I just want to let you know that I have opened my own writing business. Focusing solely on nonfiction, I am offering to write articles, reports, press releases, and other business and marketing documents. As part of my business, I am also offering writing instruction so that clients have the option of learning to write better themselves. You probably know a lot of other writers, but my business stands out in several important ways.

First, I offer writing instruction as well as writing services – I’m not insistent on doing the writing myself because I know many small business owners would rather do their own work. In addition, my background includes a broad base of journalism, technical writing, and marketing. This is rare, as most writers specialize to an extreme. With my varied background and business focus, anyone you refer to me will get the professional writing services they want – not overly specialized experience they don’t need. My clips and references confirm this. (See my website at www.[your site here].com, where I’ve included testimonials from several happy clients.)

Several of my business cards are enclosed, along with a full list of the writing services I offer. If you know of someone who has a writing deadline looming, and can’t quite get to it, please mention my name and offer one of my cards. I would be more than happy to meet with them and see if I can help. Most importantly, however, I want to thank you for all of your inspiration. My conversations with you after Job Club really helped me to focus on what I want to do, and what I do well. With this business, I have both. If you would like more information, please don’t hesitate to contact me at the phone number below.

Sincerely,

[your name and business name here]

Home Business To do list
- Approach local media regarding articles and interviews.
- Set up a time and date to perform regular marketing activities. Pick out which ones you will do ahead of time, so you are prepared.
- Obtain quotes from service providers (as needed) such as printers, marketers, and mail houses.
- Research networking and speaking opportunities.

Announcing Your Home Based Business is Key

So, here’s one basic marketing exercise to get you started. Go through your Rolodex (or contact manager or address book). Write a letter announcing your business to almost everyone you know – anyone who might conceivably use your business or recommend it to someone who might use it. Put the letter on your new letterhead. Why send a letter to almost everyone you know? Everyone who knows you, and might refer people to you in a positive manner, should be aware of the opportunity to do so. One of the most overlooked chances to get new clients is failing to mention the business – or failing to directly ask for referrals. Why write a letter? A letter provides the recipient with a visual reminder, written information about your business, and (because you will tuck business cards inside this), cards to hand out to referrals they meet. Well crafted, this letter should provide the recipient with key words and (if room) suggestions of people to look for (for example, “Do you know anyone who…”).

Choosing the Right Recipients for Your Work At Home Business

Because I said ”almost” everyone you know, there are, obviously, a few exceptions. You might not want to send the letter to

• People who know you but don’t like you. Stick to people who respect and admire you.

• People who simply are not in a position to refer your business to others, such as those who are seriously ill or in prison (unless those groups are part of a key target audience for your business).

• What about people you know who are students or unemployed? These are judgment calls. Generally, students are not good referral sources unless they are in graduate studies or working as interns. Unemployed people are likely to be so stressed over their job search that they won’t think to refer you to someone—and it might even be awkward. (“Well, because I blew that interview and you won’t hire me, how about using a friend of mine? He just started his home business.”)

• In general, the closer a person might be to your potential clients, the more likely you should send him a letter. So, a retiree who stays in touch with the corporate office is worth the letter. But a retiree who is out on the water jet skiing, having eschewed contact with former colleagues, should probably be skipped. Although your list can be winnowed, don’t overlook people simply because of how you know them. Yes, you know Betty because you both have kids in the “Mommy and Me” class you both attend. But Betty isn’t restricted to that role even though she might be a full-time mother. She still knows people, stays in touch with them, and could be extremely helpful if she knows the details of your business.