Published by Tana Hamiter
Work from home is a popular way to run a small company. Work from home has so many advantages; my favorite is what I call the 2 minute commute! Seriously though, it dramatically decreases the start-up costs such as leasing a commercial business space, improvements, utilities and major office equipment expenses.
There are literally thousands of people entering into a work from home based business due to the sagging economy, massive business layoffs, and whole industries vanishing as work moves overseas. Families are needed in the past a second income for those little extras; families now need a steady income they can count on. I strongly suggest diversification (never put all your eggs in one basket).
Here is some basic advice for your income opportunity in your work from home based business:
Consider where you
are setting up the location. Hopefully you will have a room dedicated to your home based business. Tax write off includes a % of square footage and then divides that up for a percent of heat, lights, water, etc. BUT the space must be for you home based business only. So if you do not have a room, then mark out an area that is Business ONLY to keep our friendly tax person happy.
Install a phone line dedicated to your home based business.
Decide on an answering service and in most cases it is required to have a 1-800 number for someone to take you seriously.
Organize your work space with great care. Make sure that you have sufficient space to meet your needs.
Set up an LLC so that your home assets and banking are completely separate from your business. It is easy and inexpensive for a lawyer to do it for you. Well worth the security.
Open a Business Banking account with your business name LLC on the checks.
As soon as possible also get two credit cards with your business name LLC
If needed for your type of business, when scheduling appointments with clients, consider meeting at your client's office or renting a conference room to maintain a professional image. Or learn the new up to date technology of conferencing on the computer. It is fairly easy and not expensive if you use the right services.
Keep excellent records of entertainment and travel expenses. The Internal Revenue Service (IRS) tends to audit home-based businesses more frequently—especially when they are writing off a variety of expenses, including the percentage of the mortgage or rent for your office space.
There are several good record keepers such as Day Timer®, Franklin Quest® and Day Planner that will help you keep track of your expenses. Your accountant or a CPA is recommended and can advise you on deductions you can take and records you must keep for the IRS. Talk with them before or early on in your business so that you are starting your record keeping off on a good track.
Set up a SAVINGS ACCOUNT for your business, remember keep it in a business LLC account. Build it up because when you least expect it, you will need it.
Set up your computer system, proper programs and decide who will handle your repairs and help as you need it. Check out their service and if possible talk to referrals. Do NOT just trust the Big Computer Stores to be there for you. You are usually not a person to them, just a broken piece of equipment and you go into the ‘Q’. Trust me; a good computer person on your team is worth their weight in Gold. A good 2nd PC lap top that can multi task can be a life saver.
Discipline yourself. You must be a self-starter and follow a routine, just as if you were working for any other business. In many cases, you are the only person you can rely on to get the job done. Unless it's an emergency, do not baby-sit or chat with your neighbors.
Tana Hamiter – Goes Green Mentor
1-888-234-2556
