Seattle Small Business Blog

Have you decided to start a home-based business? You may be juggling a full time job, a part time job and family life. You know that there are many things you need to do in order to successfully start your business and work from home. How are you going to fit your business project into your daily commitments? It’s easy to become overwhelmed and lose focus. Losing focus will cause you to take no action. Action is essential to moving on from where you are now, to where you want to be.

Here are 5 tips to stay focused on starting your home based business:

1. Chunk down

If you have a large task to tackle, it is always easier when you break it down into smaller components. You’ll find it easier to focus because you won’t feel as overwhelmed. For example, “Register a business name” can be broken down into: “Think of five business name ideas,” “Find out how to register business name,” “Get registration form” and so on.

2. Keep a “to do” list

Once you’ve broken down major tasks into smaller ones, make and keep a “to do” list. Always keep a notepad and pen with you so that you can jot down any new ideas as they arise.

3. Schedule your time

Every evening, decide on three to five tasks on your “to do” list that you wish to accomplish the following day. Stay focused on these tasks and only move on to the next tasks on your list once these have been completed.

4. Set goals

There is nothing better for staying focused than setting goals. Visualize exactly where you want to be in a month, six months and a year. In a month’s time, do you want to have registered a business name and got all your equipment set up? In six months time, how many clients do you want? How much revenue do you want to generate in a year’s time?

5. Just say “No”

Be assertive and carve out more time for your business project. Saying “no” to that extra demand by your boss every once in a while, can get you home one hour earlier a couple of days a week. How about cutting back on the amount of housework that you do? Imagine how you could channel that extra time into your business.

If you put these five tips into practice, you’ll definitely find it easier to focus on and achieve your ultimate goal of working from home.

When you decide to start your own business, there are many decisions to make. A critical decision is to decide what legal or formal structure the business will take. This is important because if you desire to work with wholesale suppliers or establish business credit, you will need to prove that you are a legitimate business. There are four forms your business can take: sole proprietorship, partnership, S-Corporation, and limited liability company. (There is also another corporate entity, the C-Corporation, but this structure is not often used by small businesses and will not be discussed here.)

A sole proprietorship is the simplest form your business can take. It has a very simple legal structure and you must get a business license from your state to get a sales tax license, if your state has a sales tax. The disadvantage of this business form is your personal assets are not considered separate from your business assets. If you sell a product and the product injures someone due to a fault, the victim could sue the distributor of the product and they could sue you. Not only can your business assets be attached, but your personal assets as well. The advantage of this type of business structure is that you are allowed almost all of the business expenses and deductions that corporations can get. If you make a profit this money is added to any salary your received from your job or other income and is taxed at the normal rate. If you have losses, then you can often deduct these losses from your salary or other income.

An S-Corporation is the most common type of corporation used by small businesses in the United States. A S corporation does not pay taxes on its profits. All profits and losses flow through to the shareholders(you) and is considered ordinary income for tax purposes. Ordinary income is different from earned income in that you do not pay Social Security and Medicare taxes as well as federal income taxes. You only need to pay the basic federal income tax. An important advantage of incorporating is it limits your liability. Your personal assets cannot be attached and liquidated by creditors; only the corporation’s assets. In addition to limiting liability, an advantage of incorporating is credibility. When your business name ends with “Inc.” wholesalers will be more willing to deal with you, it is easier to get into trade shows and it is easier to find trade credit.

A partnership is formed when two or more people sign a partnership agreement and file taxes as a partnership. Partnerships have several disadvantages. If you or your partner are sued, then each of the partners is personally liable. If you and your partner decide to part ways, dissolving the partnership can become messy. A partnership does not enjoy all of the tax benefits nor is it as flexible as a corporation. And partnerships are considered a high value target for an IRS audit. Each partner is liable for a co-partner’s wrongdoing. An alternate form of partnership, the limited liability partnership (LLP), is formed when two or more people form an LLC (see below). The LLP enjoys most of the same benefits as the LLC, though each partner is often still responsible for the others’ wrongdoings.

A limited liability company enjoys some of the tax benefits of a sole proprietorship, as well as the liability protection of a corporation. There is no double taxation that can occur with a corporation. The liability is limited, in that the owners are protected from liability for certain acts and debts of the LLC, but may still be responsible for any debts beyond the fiscal capacity of the company.

Before any final decision is made about the type of business structure you choose for your business, consult a tax attorney or CPA. They can give you advice based on your individual needs as to what structure is best for your business, as well as additional ways to limit your liability and insure that you pay the least tax possible.

Starting a home business has been one of the biggest growth industries in the last decade. There are thousands of new business owners entering the online arena everyday.

No matter what type of business product or service you choose to participate in, there is one and only one starting point.

The only place to be starting your new home business is, in your mind, more importantly your mindset.

It is imperative for you to know the Who, What, Where, When and Why’s when considering starting up a home based business. No matter what type of venture you may choose, if you cannot answer the five W’s you will greatly hinder your chances of success dramatically.

Let’s take a look at the five W’s individually.

WHO? Who are you doing this for? Is it for personal gain and notoriety, family obligations or maybe to help a friend in need. If you do not clearly know and understand who you are doing this for, you will have a very difficult time maintaining the motivation to achieve the level of success you desire.

WHAT? Do you clearly know what is you that want to achieve? Is it to attain financial independence? Contributing to your retirement plans? Is it to put a down payment on a new house? Do you want to be able to quit your job, or do you just want to be able to purchase those big ticket items you have always yearned for?

It is crucial to know exactly what it is you wish to achieve. You have to be able to close your eyes and picture in your mind, down to the finest detail, what your life would be like once you achieve success. If you don’t truly know what it is that you want, it is almost guaranteed that you are not going to get it.

Achieving success comes from knowing precisely what it is you want. Then next step is to set goals that are specific, measurable, attainable, realistic and time based, better known as S.M.A.R.T. goals. To learn more about goal setting just do a quick search on your favorite search engine, there is a great deal of information available.

WHERE? Research is the key here. There are countless ways and places to set up a home business on the internet. What is most important here is to keep a level head and an open mind while doing your research to determine your chosen field.

Sales pages are finely tuned to trigger impulses and emotions to get you to buy now, this very second. Fight those urges to click that order button, step away from your computer for a moment if you have to.

Take the time to actually study what is being offered. How much is it going to cost you? Is it a one off, monthly or yearly cost? What is the actual product or service that you are receiving, and is there something else out there that may better serve your needs.

It is highly recommended that you never hit the order button on your first visit. Take a look around and do some comparison shopping, or window shopping if you will. If the original offer was the best you can always return and purchase at a later time.

A quick example. Let’s say you find that perfect ebook with resale rights and you just have to have it, and the cost is $97.00. Try this out first. Type the ebook’s title into your favorite search engine. You may be pleasantly surprised to find the exact same title for as little as $5.00 maybe even less with the same resale rights. Remember that the first offer you see may not always be the best in value for your dollar. The internet is extremely competitive.

WHEN? Knowing when to launch your business is where many marketers fall short. Ensure that your business is completely ready to go. Test everything before your launch. Check your webpages for loading time, grammar and spelling. Do all the pages and links work properly? Test your newsletter. Does your autoresponder send the messages when they are supposed to go out? Are the messages formatted correctly? Do those links work? Is the payment and delivery system perfect?

When setting up your business try to keep your mindset as if you were the customer. Would you purchase this product or service? Would you subscribe to this newsletter? Is there value being offered? What makes this product or service stand out from the rest? Until you can answer these questions with conclusive statements, you are not ready to launch.

Always keep in your mind, your name and reputation are always at stake. Online purchasers have very little tolerance when things go wrong.

Studies have shown that you usually have thirty seconds or less to grab your visitors attention. If there is nothing of great value, your potential customer will simply move on and probably never come back. Be completely ready when launch time comes. On the internet first impressions are paramount.

WHY? One of the most important questions to ask. Why am I building this business? Why will my customers buy from me? Why is this the best product? Why did I choose this web hosting company? Being able to answer any and every possible question about your business will give you the knowledge and the tools to build your website as well as your compelling sales pages to perfection.

Asking yourself why will clearly give you the right answers to provide your future subscribers and customers before they need to ask.

Keeping the five W’s in your mind throughout the planning, preparation, testing and launch phases of your business will provide you with the greatest chances for success. You owe it to yourself and to your potential subscribers and customers.

Your mindset is what is going to make or break your business, after all everything starts with an idea.

Setting up a home office is one of the most important tasks you will face when you make the decision to work from your own home. Your home office can be a corner of your kitchen or living room or, if space permits, a former spare bedroom.

Size is less important that functionality. When deciding on where to set up the nerve center of your business, there are some factors you need to consider.

Is the area well lit?

Proper lighting is extremely important. Spending hours at a time in a dimly lit work space can create eyestrain which, after long periods of time, could lead to more serious problems with your vision.

Are there plenty of electrical outlets?

Take into consideration what appliances you will have in your work space. Your computer system will require an outlet for your cpu, monitor, scanner, printer, speakers (sometimes) and other ancillary equipment you may have.

Is the area well ventilated and dust free?

All of that computer equipment needs to “breathe” to remain cool and functioning properly. If you have ever “fried” a computer you know how important it is to keep the fan clean and dust free.

Do you have telephone access?

In addition to having a telephone handy for business purposes, you will also require telephone access for your modem. You may also consider a separate telephone line for your business. It is much easier to track telephone business expenses for tax purposes if you have a separate phone line. It’s also important that your clients can reach you. If your clients have to compete with your teenagers telephone habits, chances are they will call someone else. Make certain that this separate line is set up to receive phone calls while you are online. Most major telephone companies now offer that service. You may pay a few extra dollars a month for it, but it will pay for itself over the long haul.

How much “foot traffic” will there be?

You want your office to be as isolated as possible. Can you imagine trying to speak with a client or figure out html code with kids screaming in the background? Not a very professional picture. If you have no choice but to have your office in a high traffic area, adjust your work schedule to coincide with family activities. Sit your family down and explain the importance of your work and why you need their cooperation. It won’t always work out that way but at least it’s a step in the right direction.

Are your supplies well stocked?

It goes without saying that you need to have normal office supplies. Even if your work is online you still need the pens, pencils, note pads and so on.

Have you set the ground rules?

One of the stickiest challenges you may encounter comes from your friends. People who do not work from home seem to think that if you do, you have all the time in the world to visit. This can become a major problem if you do not set the parameters. Setting out the ground rules is important to the overall health and well being of your business. Let your friends and extended family know your business hours and explain to them that you are not available during those periods of time. The sooner you do this the better.

Do you “dress the part”?

Conduct your business in a professional manner. Just because you work at home does not mean that you should throw out the rule book. Maybe you have read the humorous comment about “working in your pajamas.” It sounds good in sales messages, but the truth is you are much better off if you awaken in the morning and prepare yourself for your work day as if you were still trekking off to the office, because you are.

You will be much better prepared to focus and get down to business if you dress the part. That doesn’t mean that you need to squeeze into the normal “office” attire. It does mean that you set the standards for your business and much of that has to do with “mindset” and self-image. Dressing comfortably is a one of the serendipities of working at home, but you will be much better prepared for business if you dress the part.

Lastly, and most importantly…

I have one final word of advice for the new work at home entrepreneur. Having your office right down the hall can be a blessing, but it can also be a curse. Remember to take time out for yourself. Most people believe that working at home comes with certain privileges, and it does. However, it can also become all-consuming and take total control of your life.

Don’t allow that to happen. Create your schedule and live by it. Make sure you turn off the lights, shut down the computer and “go home” at the end of your work day.

So, you’ve decided to start a home based business. Congratulations! and welcome to the fast-paced world of entrepreneurship. While there is a lot to learn, your effort will be worth it. The thrill of growing your business, the freedom and flexibility to set your own hours, and the possibilities of ever-increasing financial rewards are all wonderful reasons to start your home based business.

Now that you’ve decided to start your business, you might be wondering “How can I get it off to the strongest possible start?” These seven tips will help:

1) Set up a separate working space in your home. It doesn’t matter if this is a small bedroom, one part of the garage, or a corner of the living room. The important thing is to have some space that you can designate as your working area. This will give you the space and room you need to craft your dream.

2) Stock your working space with materials. This sounds basic, perhaps, but one underlying element of success is that you have easy access to the tools, materials, and other resources you need. Gathering everything close by also keeps you from wasting time searching for it, so this step can be considered a time management strategy, too.

3) Speaking of time management, your third step is to define the parameters of your business. What days and hours will you work? When will you market? When will you provide services or products to clients? How will you keep all of this straight?

4) Balance action with planning. One of the most common pitfalls to successful entrepreneurship is getting too caught up in action without enough planning. Stated another way, this means that you confuse “being busy” with “working on important projects.” The best approach is to plan your next couple of goals and then work backwards to create step by step action plans to reach them. Once you have the plan, then it’s time to take the action.

5) Network like crazy. One of the fastest ways to grow any business is to make connections with other people. Be sure to share your passion and enthusiasm with others at every opportunity. Let people know who you are and what you offer. Remember, people can’t buy if they don’t know you’re selling.

6) Present a professional image. If you want to be treated professionally, present a professional image. Set up a separate bank account for your business. Install a separate phone and fax line. Create professional marketing materials. Be courteous and pleasant in all your customer facing interactions. Basically, be someone people want to do business with.

7) Automate your business as much as possible. Granted, you are just one person (right now) and might have a lot of extra time to take care of all the details. This might work for now, but won’t work into the future as you get busier and busier. It’s best to set up automatic systems and processes right from the start to free up your time to concentrate on the most profitable activities.

These seven tips will get your home business started (and growing) in the right direction.

One of the great American dreams is being able to quit a 9-to-5 job to start building a work at home business. More and more people are making their dream come true. But before you quit that job and set up your home office, there are a few issues to consider.

On the plus side, part of your home and related expenses are tax deductible. It’s convenient to work while your kids are in school and then be home for them when they walk through the door in the afternoon, and let’s face it, not having a boss to answer to is a major plus.

But it’s not always the ideal situation. Starting a business from home isn’t always easy on families. There are many issues that will affect your family. First and foremost are financial issues. Will you be able to handle the hit to your wallet when you don’t have a steady paycheck? If this is an issue, consider working your business part time while holding down a full down job.

It takes a very dedicated person to work from home. There are always distractions to overcome such as the unexpected visits from family members who think you have lots of free time because you don’t work a “real” job. It also seems like telemarketers prefer to call in the middle of the day, and don’t forget the neighbors dropping by to see if you’ll babysit while they run errands. It’s very important to let family and friends know your working hours. Tell them in no uncertain terms that your business is your income and you need to block out regular working hours. Also let them know when you are available.

Along those same lines, it is crucial that you explain to your own family that, although you are home, you are not always available to them. This can be confusing to kids. Set some basic rules for them to follow. Let them know your work hours and tell them you expect not to be disturbed. But occasionally, surprise them by quitting early and doing something fun with them!

Here are a few basic rules that will help you and your family handle the new working situation.

* Make sure everyone knows not to answer your business phone. This will save you in a number of ways. You’ll be sure to always get your messages. Kids are never good at getting all the details. You’ll create a much more professional business image if you answer your own phone.

* If you’re children are typical kids, they will want to “borrow” your office supplies. Give them their own office supply center elsewhere in the house! Otherwise, you’ll start losing your much needed supplies.

*Set a work schedule at the beginning of every week and post it in a prominent spot so family members can check your schedule to see when you will be available.

Though these issues can and probably will arise, working from home is still the American Dream for many people. Learning to set, and more importantly, enforce boundaries for family, friends and clients will make your business less complicated.