Updated June 2019
People Are Coming Home To Work – Home-Based
Offices Are Becoming The Way Of The Future
Home Business Startup Facts – People in countries all over the world are coming home to work. Home-based offices are becoming the way of the future. Tens of thousands of workers are opting for this way of life, a life in which they can make their own hours, commute to work in seconds, make their own choices and become their own bosses.
For many the home office is becoming the location for a full-time job and the primary source of income. For others it is a part-time venture. Many start on a part-time basis and grow their business into a full-time operation.
Current figures and statistics available indicate that during last year the percentage of self-employed working from home jumped by almost 12% to approximately 20 million. While working at home has an almost irresistible appeal to many, and many have some big misconceptions of what it is like,
here is some very useful information that can help you get started successfully.
The Legalities of Working at Home
Before setting up your new business it would be advisable to check on the legal status of your business. You need to check your country’s laws for your particular area which may dictate if you can legally operate a business from home.
I realize that many businesses never check on this particular aspect for their home-based business and chances that they ever get into difficulties with the law are probably pretty slim. If there are no changes in structure and you do not have customers and or employees enter your home, regulations will tend to be far easier.
Laws and regulations change from country to country, but the following 5 factors will generally be regulated items:
- Separate business from family.
- Square footage of the home which is taken up by commercial space.
- Employees working in the home.
- Certain occupations such as jewelry or clothing
- Storage of commercial goods, especially any hazardous materials.
Most cities or counties require businesses to be licensed. Some home-operated businesses, however, are not required to have a business license. Check with your local City or County Clerks Office to obtain regulations for your locality.
If you are using your own name as your business name it will not need to be registered, but if you use any other name, or even your abbreviated name, almost all localities require that you register the name. This is called a fictitious name registration or D.B.A. “Doing Business As” registration. If your name is:
Randy M Jones and your ‘name your business’ Randy Jones or Randy M Jones Enterprise you will not have to register it, but if you call it: RMJ Enterprises you will generally have to register the name.
Most states in America have a name search bureau which is a part of the state government. You will generally be able to call this office to see if a given name has already been registered to someone else in the state. This is important to do, or it could be costly later. If you give your business a name which is already registered to another company that other company may demand, and even take legal action to make sure you comply, that you cease to use the name.
Your Company as a Legal Entity
Businesses are most commonly set-up as one of the following entities:
The Sole Proprietorship
Most new businesses choose the Sole Proprietorship. It is the least complicated. It requires no paperwork. The proprietor you, or you and your spouse as the owner, or owners, are taxed for all net profit from your business. You add the income of the business to other income, or deduct the business loss from other income. Your tax adviser can give you specific information.
The disadvantage of the Sole Proprietorship is that as the owner you can be held fully liable in a lawsuit. An incorporation on the other hand, will give you some protection. In this case the “INC” rather than you is the legal business entity. If you are starting a business that tends to have liability exposure the corporation may be the way to go. In this and other legal questions, only a lawyer can give you competent legal advice.
Partnerships are generally chosen when unrelated individuals own a business. A partnership should be set up by a lawyer, or all kinds of problems can develop later.
Design Your Work-space Round You
First, you must determine how much space you need. Chances are what you may initially think is quite large may be crowded or not enough space. While many businesses are started from a corner of the bedroom or kitchen, if the space is available it would be far better idea to take a spare area of the house and convert it into your office.
There may be space in the basement, garage, or a spare bedroom. Having a separate space is more efficient and will make for maximum efficiency. It is also psychologically important. You do not want home activities to interfere with your business, or vice versa.
Friends and family will need to be told politely firmly that business hours mean business and dropping in or calling to chit chat is not acceptable. Psychologists suggest that you work “from” home not just in your home. There is a danger of becoming isolated. Inasmuch as time allows, participate in seminars and local business activities and organizations.
It is said and also my own personal experience is that owners of new businesses never have enough time or money. The majority of small businesses which do not succeed will fail because they are not properly financed.
In your financial planning carefully review all required start-up expenses as well as on-going expenses before revenue will be generated. Estimate your profit margins and all fixed and controlled expenses.
Almost all entrepreneurs will tend to be much more optimistic about their estimate of the financial performance of a business taken what is necessarily realistic. There are always unforeseen expenses.
It is a good idea to only invest in absolutely necessary expenses. This applies to furnishings, supplies and all equipment. Computer equipment in recent years has become outdated within a short period of time. So, if what you acquire will serve you well for 2-3 years will be able to upgrade your equipment later on. Your emphasis should be on conserving capital. As your business develops, unexpected hurdles will come along and periods of low revenue. Your capital will make it possible to keep your business operating during these times.
Why You Should Have A Business Plan
Essentially, you will be committing your plan to paper. As you do so your thought will become more formal and concrete and this will tremendously assist you in the development of your business. If you are considering to get financing for your new business either through a bank or the SBA, a formal business plan will be a necessity. Home-operated businesses will have a much more difficult time in obtaining financing.
Don’t Forget The Tax Man
As in all undertakings of life from birth to death and beyond, the Inland Revenue Service will be there to watch over you. Almost all small, home-based businesses will start out as “Sole Proprietorship.” This legal status is best for ease of handling and for tax benefits. Your net business income or loss becomes an addition or deduction to other income you can declare at the end of the year.
Careful record-keeping of all business revenue and expenses is a must. Keep a separate business checking amount for your business. Do not inter-mingle business and personal expenses. Other special tax benefits and regulations apply to home-operated businesses. You should obtain professional advice from your tax adviser.
One disadvantage of being self-employed is not having health and disability insurance. You may also need liability insurance. Your homeowners insurance covers your belongings in your home, but it may not cover all business inventory and equipment. Check with your insurance agent to make sure you have the right coverage.
Factors that will Determine Your Success – Do Your Homework
The more you know about your business, the better your chances of success. Attend seminars and join trade associations. Read books and trade publications. If you do not have a business background a business introductory class at a local college would be advisable.
Planning is Key to Your Online Businesses Success
You and your family’s future and livelihood are at stake. So your decision and planning to start a business are very serious matter. Establish a long range plan which encompasses your business and financial plans.
You should obtain legal or financial advice from an attorney or accountant before committing to nay long range or major financial transactions. Agreements with suppliers or customers should be put into writing.
You Must Wear Many Hats
Small business owners over time can become experts on a variety of subjects. At the start the most important aspect is the mind-set. Your communication to the rest of the world through all available means will determine your success. Here is an abbreviated marketing check list:
Membership in Organizations
Invest in Good Equipment
The right equipment will make your work easier and your business more efficient. To conserve cash used equipment should also be considered.
So What Are Your Chances Of Success?
The better you think they are the better they generally are, and don’t forget that among thousands of others:
Apple Computer, Domino’s Pizza, and Walt Disney all started as home-based businesses.
There is a great deal of expert advice and resource material available to you. Much of it is free of charge. A variety of literature is available, both excellent books on all business subjects and various magazines. Your local Chamber of Commerce often sponsors classes. Banks can give you advice, or can be used as a sounding board. Local schools offer a variety of classes of interest to business owners. Don’t forget the Public Library. Last, but not least, don’t forget your Government.
SBA (small Business Administration) offers a range of services such as loans, financial consulting, computer and technical consulting services and a variety of publications.
Check your local telephone pages, or contact:
Chambers of Commerce provides literature, telephone referrals and other services to small businesses. Contact your local Chamber of Commerce or:
Internal Revenue Service offers a variety of services which includes workshops, films and publications to clarify tax matters for small businesses. Contact your local tax office.
#Tens Of Thousands Of Workers Are Opting To Work From Home – Home-Based Offices Are The Future
Ok folks there you have it, a run down on what you will have to do and possibly need if you decide to startup your own home business and earn an income from it.
Of course one of the best ways by far is if you have your own website or several websites. That way you will have total control over what they advertise or promote or sell. You could even promote a service you can provide or you could have your own creations that you can use a website as your online store window.
If this is the way you would like to progress with your plan to get a home business up and running then I can point you in the right direction of online companies that will provide you with everything you need.
Of course websites, their maintenance and web hosting don’t come cheap so how are you going to pay for this if your funds are limited?
Online Home Business Opportunities
But you are in luck because I know of an online company with a great platform that will launch your home business onto the internet. And you know what? It will cost you absolutely nothing.
Are you interested? Of course you are and I will tell you a little about it then you can go and see for yourself.
The company I know about is called Wealthy Affiliate and you can join at its Starter Membership level. When you do you will receive two free websites. Those website will be hosted for you on the web by its Cloud Hosting Service free of charge.
As I said above you could have several website for your home business and as Wealthy Affiliate is in the business of making money like any other business they do offer an upgrade to Premium Membership. This is not a bad deal either because for the first month it will only cost you about 66 cents per day so hardly going to make you bankrupt is it?
But you know what the best part of this deal is. If you took the upgrade you would receive twenty five websites for free the hosting for all of them as well. Also if you did happen to have other websites that where hosted by another company you could have them transferred over to WA and they would also get the free hosting.
So if you think about it, saving the money from another company means you can use it to pay for the upgrade so you wont really be out off pocket at all, would you?
However if at the end of a month you decide you did not want the upgrade then you just go back to being a free starter member. You still get to keep your two websites but of course you would lose any other ones you created with the premium upgrade. When I joined Wealthy Affiliate I lost no time in taking the upgrade and have never looked back since that day. But the decision is entirely yours and all you will have lost is a little bit of your time trying it out.
To do this there is a link in the image below that will take you to a signup form. All it asks for is few details and absolutely no Credit Card ones required. You then click through to the wealthy affiliate website and you can take the your of all that’s there and get started building your own online home business from the comfort of your own home and without going out your front door.
There’s a Contact Me for on the right side of this page if you would like any more information but if I were you I would just go and take a looksee for myself.
Have an excellent day and thank you for reading this far.