Archive for January, 2007

Is Working From Home Your Dream?

The reasons for starting a home based business vary from one individual to another, but making sure new businesses succeed is in the best interest of every American. Small businesses employ six out of every 10 American citizens. Small businesses add to the economy and they pay a large percentage of taxes. These reasons make the success of the small or home based business key to the prosperity of the country.

Aspiring entrepreneurs and work from home business owners share some basic characteristics. The shared characteristics are:

  • Independence
  • Visionaries
  • Dreamers

However, there are some significant differences in the perception of running a business that exists between these two groups.

People who dream of becoming entrepreneurs want to do something they love. Many dreamers have a hobby or a skill that they want to turn into a business venture. Another reason that dreamers cite for owning their own business is being their own boss. Interestingly enough men more than women cite this reason.

Women regard flexibility and time at home as the major reason for exploring the idea of starting a home based business. The number of women who participate in work at home opportunties is growing at an astounding rate. Work at home moms have found their own special niche on the Internet and are exploiting this business opportunity.

Business owners agreed that being their own boss was the major reason that they started a business. However, the flexibility was not the main concern after a few months. Actual business owners stated that in the first years of owning a business, flexibility was just a concept. Being the only person working a business in the initial stages requires a huge commitments of time.

“Not to discourage home business ownership” stated a respondent to a home business questionnaire, “But there is a huge learning curve when you start a small home based business just as it would be if you buy a McDonald’s franchise. There are areas of business that the average person does not have to learn when they are working for someone else. However, in your own business, you need to learn to read a balance sheet and how to put one together, you have to learn how to market your business. There is a lot to learn”

The dreamers in the survey wanted to leave their children an estate worth millions of dollars. People who already owned a business did not consider this as important. The owners of businesses did feel a commitment to giving back to their communities by donating both time and money.

An interesting observation was that the dreamers thought it would take less than 1 year to show a profit in their business while business owners specifically those who had Internet type businesses, stated that within 6-months their business was profitable.

Many of the dreamers have an idea for a product or service that they envision as a way to create a profitable business entity. The people who already own a business state they took the plunge first by deciding on a name and the business set up. People who owned Internet businesses stated that they found a product that interested them and then set up the business.

Working from home is a dream for millions of would be business owners. The good news is that the Internet makes it incredibly easy to start run and build a business empire. the only thing holding anyone back who wants to work from home is fear. This is the perfect time to start your own business. Nike tells you how – Just Do It!

Home Business Strategies that will Grow Your Business

A fundamental principle of work at home entrepreneurs is understanding that $100 today will be more valuable than $100 a year from now.

When you make adjustments for inflation, the concept becomes clear. If you had purchased the domain names that have become very popular i.e. “work-at-home” or “home based business” with the .com extension, your domain name would be worth a lot of money compared to what you would have paid for it in the early days of the Internet. Also Internet services increase in price.

The cost that are available today to build a business will usually be less expensive than if you wait for 6 months to a year to start your work at home opportunity. Not only will you lose potential profits from waiting to start your business, but most services and products will cost more.

The work at home opportunity will be worth more as time and your efforts increase its value. Your return on investment will more than cover your start up costs.

The interesting thing for work at home business owners to consider is that you can increase the value of your business by investing time. A cash investment is not always required.

Some work at home entrepreneurs would rather pay someone to conduct some portion of their business activities. Having someone create a website or providing copywriting services are value added service. These activities add value to the business but require a cash outlay.

However, a new work at home entrepreneur can provide “sweat equity”. When the owner of a business does not have the funds to pay for outside services or does not want to invest money, they must do the work themselves. This is when time has to be the investment. However, the equivalent results should be achieved.

When you understand the time/value concept as you build your business, you are building a profit center that is as much an asset as a home, savings account, stocks or bonds. A home based business is an asset that can be used to increase your net worth.

The best advice that can be provided to a home based business owner is to establish this time value of money concept firmly in their minds. You can trade time for money or conversely pay money to buy back your time.

Once this key concept is applied to every phase of the business, the impact will be seen in the profit margin. The key to the success of your business may be in realizing the potential value of every dollar that comes into your hands and how you leverage it.

Sometimes the problems show up when financial decisions have to be made regarding the allocation of money. Some business owners make the choice to flitter away hundreds of dollars in cash on non-essentials and basically eat up potential profits.

Other work at home entrepreneurs do not use their time unproductive ways. Surfing the net for hours to join chat rooms or to find the latest video game is a poor use of time. This time could be used to find new customers, set up ad campaigns or to find a Joint Venture Partner. When you use your time or your money in unproductive ways, your business suffers.

Time really is money. Using the time/money principal as an effective business concept will add value to your business. The more time you spend building your business will
show in your bottom line.

Turn Your Hobby Into A Home Based Business

Do you have a hobby that makes money for you? Are you passionate about politics or home decorating? Does your family and friends come to you for advice on a particular subject because they consider you an expert? If you answered yes to any of those questions,  you may have the skills necessary to start a home based business.

A wise man once said that you have to “make the most of your life today”.  If you have been sitting on the fence of life waiting for some miracle to happen  to change your finances, you can stop waiting. The fortunes of life come to those individuals who actually look for a business opportunity then act when real legitimate opportunity presents itself.

Taking something you love to do and creating income from it is the stuff that dreams are made of. Our hobbies help us to relax and forget our everyday problems and troubles.  But if that hobby that we love so much could also benefit us financially, we have created the perfect home business.

Everyone has a skill and is an expert in some area. Even if we are the best procrastinator in the world, we can write an ebook on how to procrastinate our way through life and end up rich. There are probably a million procrastinators on the Internet who would love to know that they are not alone.

Millions of individuals scour the Internet on a daily basis with myriad of interest and similar hobbies. Everyone is searching for more information about their field of interest and passions. The Internet is the major source of information available in the world. Millions of people use the Internet to find solutions to problems.

These individuals are looking for an “instant fix”. If you can give these surfers answers to the questions, you may have a viable business model. You have a head start on a home based business.

If your hobby does not translate well to the Internet, you might want to explore affiliate program. Affiliate programs are basically a business in a box. You just plug in your efforts to an existing business model. You learn to market a product in several ways so that you can start to earn money,

Home Business Ideas-Turning Trash Into Treasure

If you have an extra room in your home where you store gobs of “things” and “junk” that the family will use at some future time, you should think about refitting the room into an office for your home based business. There are many advantages to running a business out of your home.

One of the major benefits of a having a home based business is the tax advantage. By changing a room in your home to a business office, you can qualify to deduct some basic household expenses into legitimate business expenses. The home computer that requires monthly payments can pay for itself when you use it as a business tool for your home based business.

A simple calculation will show you the basic savings advantage of using a room in your home for a home based business. Start by calculating the percentage of the house that you will use for your business.

If the total house is 1200 square feet and there are 5 rooms in the house, you can safely assume that approximately 10% of the home’ will be used for business. If your mortgage payment is $1200 than you can deduct approximately $120.00 per month for the home business deduction. That is an instant deduction of over $1,200.00

In order to qualify for some business deduction, you must have the intent of making a profit. The time that the IRS gives small business owners to show a profit are usually 5 years. You can meet this qualification if you make a profit in any 2 year period within the 5 year period.

You should always consult with a tax professional who understands the tax code as it relates to a home based business. Seek out a competent tax accountant to get the maximum tax savings and deductions for your small businesses.

But the standard deductions that large Fortune 500 companies use can be utilized by small home based business owners. The Government provides some of the same tax deductions for small businesses that large companies enjoy.

There are some caveats to using a room in your home for your home based business. To meet the eligibility requirements for a home based business, the room designated for this purpose must be used exclusively for the business.

You can not allow the kids to watch TV or play bumper pool in this room during off hours. The room must be used exclusively and regularly as the primary business location.

However the positive news is that you can deduct basic business expenses such as office supplies, including paper, ink refills for your printer (which can be very expensive)and anything related to running your business. If you subscribe to trade magazines that have something to do with your business, this is a qualified deduction.

Other business expenses that are standard are:

  • Business use of your car or truck (mileage can really add up)
  • Percentage of your utilities
  • Tax consultant, bookkeeper
  • Magazines and books
  • Software that you purchase to run your business

When you establish your home based business, you will use Schedule C, Profit (or Loss) for Business or Profession form to claim your business deductions. Even though the IRS states that claiming business-at-home deductions will not trigger an audit, it is better to be doubly safe and maintain excellent records.

Always consult with a qualified tax preparer so they can provide you with excellent insight into keeping the records for your home based business.

Can A Home Based Business Make You Rich?

Can a home based business really make you rich? The answer to the question is a resounding yes. We know that people on Ebay earn gobs of money daily. Seasoned Internet marketers prove that they earn hundreds of thousands of dollars per month with their virtual empires. Getting rich on the Internet is possible.

A home based business opens the window of opportunity for riches. There is also a lot of hype surrounding some home based business opportunities that sound too good to be true. In reality, these claims of sitting at home doing nothing can be described politely as overkill or over zeal.

Whether a home based business is your ticket to financial freedom, success and fame is determined by you. If you select the right home business, there is no reason that you can not become wealthy.

To become wealthy from a home based business, there are some qualifications not only for the business model but for you The myth that regular people can start and grow a profitable business may only be part of the Internet legend or could be the whole truth depending on what you are willing to sacrifice to win at the Internet game.

The alternative ways to earning money other than a home based business are rather depressing. That other lifestyle that consists of a 9-5 job that begins with a 6:am commute is enough incentive to make anyone at least try making a living from their online business.

Going to a stressful job may be the spark that creates a burning desire that causes you to make a change in your life. Being a prisoner of the corporate world has led many people into the fresh air of freedom that only owning their own home based business offers.

These individuals who make a decision to be their own boss want to create the best life for themselves and their families. These individuals are looking for a dynamic change in their personal and financial life. Home based business owners are dreamers who dare to believe in the possibility that there really is a home business that can change my life.

With the New Year come new plans to implement your home business strategy and take the Internet by storm. So it is time to take stock of your home business aspirations and find the business that will work for you.

The difference between the winners and losers in a home based business is action.
People who succeed in a home based business take the time to investigate the claims and the inflated earning potential of a chosen business model. The savvy home based business owner can separate what is real from information that is hypothetical nonsense.

After a thorough investigation, the time comes to make a decision. This is the cross roads. What business model will you choose? A lot of would be home based business owners have investigated several programs trying to find “the one” that will allow them to cash in on the riches that the Internet will provide. After months and months of investigation, these individuals are still at the crossroads and have not made a decision to start a business.

Getting rich on the Internet is no longer a pipe dream. There are documented success stories of individuals who go from rags to riches using the Internet. There is a lot of work involved in making a home based business profitable. A little effort here and there will not result in financial freedom or huge profits. But with knowledge, some work and dedication and an unwavering focus on your goal, you have the formula for success.

Fail to Plan Then Plan to Fail in Your Home Based Business

If you already have a home based business, there are some specific processes and activities that you use every day, and every month of the year. These processes and activities insure that your business runs smoothly. Does anyone else know how to run your business in case something happens to you. Do you have documentation that will  insure a smooth transition if a friend or family member had to run your business?

The most important item in your home based business arsenal is “The Business Plan”.

I can hear the moans and groans of home business owners all across the country. The business plan is just a road map. You do not have to hire a grant writer or ghost writer to put together the plans for your business.

In fact, you are the only one who can put your dreams and vision on paper. For those who have never put a business plan together it is not rocket science. There is some basic information that is required. The writing does not have to be formal or for that matter written correctly.

The emphasis here is to create a set of action items that when completed yield a profit.

The most important part of the business plan is that the dream has been put to paper. Writing down your plans increases your motivation. A business plan also shows the legitimacy of your business entity.

Some home based business owners never create a business plan for their home based business. This is a big mistake. A business plan is the only road map that you have that focuses you on the path to a sound system for product creation, marketing and profits. In the long term, the business plan you create today will guide you on your road to business success.

Once you put your plan and ideas on paper the plans and ideas become solid evidence of your intention. These written plans also make you concentrate on what the business is and will become.

Another important reason for having a plan is in the case you need capital at some point for the expansion of your business in the future. A complete business plan will show the bank or your backers that you are serious. about the success of your home based business.

Home based business also go on sale on the Internet. If at some point you want to sell the business, having a business plan as part of the sale will ease the transition of the new owners also.

Your personal business plan should include:

  • The name of your business
  • The business entity – Sole Proprietor, Corp., LLC, etc.
  • Mission Statement
  • Product/Service You Will Offer
  • Identification of your market – Who are your customers?
  • Marketing & Advertising Methods
  • Performa
  • Pricing
  • Profit/Loss (other financials)
  • Plans for Expansion of Business
  • USP (Unique Selling Position)

An important element in a business plan is the financials. When you complete this section, you will have a firm grasp on the total budget for the business. You may discover that you are spending more money than you are bringing in. Or, you may discover that you are breaking even or making a profit.

Your business is not real until you have at least an overview of the business on paper. If you use your business as a tax write- off, the best way to prove to the IRS that you have a business is a business plan and your business checking account.

If you are struggling trying to complete a business plan, you may want to consult with friends or family to discuss some of the business basics. When you explain your vision to a third party, the third party may be able to articulate your dream and get your plan in writing.

Ninety percent of home based business owners do not have a definite plan for building their business empire. The smart thing to do is to define the business by creating a simple plan of action. After following the business plan, you are not progressing, then find an expert who can help you put the other pieces of your plan together. If you can articulate your dream, you can achieve your dream.

If you need help creating your business plan you can contact governmental agencies like SCORE or the SBA.