Ok. I'm doing it. Starting a home business!!

[SDSorority]

Hi everybody!! I have decided to put on my big girl pants (so to speak ) and start my own home business! I'm very excited but have NO idea where to start. Here's what I have so far:

A website
A business idea

Rather than selling a product, I'll be selling a free-lance type writing service.

That said... I must need a business model, accounting software, legal things.... right? Has anyone started their own home business before? It seems really overwhelming.... but maybe I'm thinking too hard about it?

 

[msmayor]

Who is going to buy your service? Is there a need for it? Have you been approached by others to do this type of work before?

Where will you market your service? How will you price your service?

Do you have the legal paperwork in place? If you are writing for others, do you have a work-for-hire contract form to spell out clearly who really "owns" the words being written?

 

[Sadie22]

You might get more responses at wahm.com or workplacelikehome.com or such sites.

 

[SDSorority]

Who is going to buy your service? Is there a need for it? Have you been approached by others to do this type of work before?

Where will you market your service? How will you price your service?

Do you have the legal paperwork in place? If you are writing for others, do you have a work-for-hire contract form to spell out clearly who really "owns" the words being written?

These are great questions for me to think about! I have the answers to most of them, but not the legal stuff....

 

[schoen]

I would first focus on getting some clients! Once you get one or two jobs under your belt you will have real marketing materials, and better than anything else, you'll have some cash! You might get lucky and find a client who will let you work as often as you like (this is the case for many of my FL writer friends) Good luck! I am self employed and it is very satisfying!

 

[Cheshire Figment]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

 

[Karenj2]

If they have them in your area, try to find a small business association in your area - they had lots of great free classes, that help you think of all the potential pitfalls...

I had my own business (selling hand-painted pottery), and I took the classes, but ignored some of the advice, because I wasn't going to be a brick & mortar store, and my business failed. (I started up too quickly, and didn't spend my money wisely.) I'm still glad I did it, but I would have liked for it to succeed.

Mike is on the ball - listen to him!

ETA some more thoughts:
- How will people pay you? If you use a merchant service, how will you make sure the transactions are safe? (Can you afford the transaction fees from the merchant service provider?)
- How will you get the customers? Will you advertise (how?), use word of mouth, just open your site and hope for the best?
- Are you going to charge by time? By project? Per Page? What about corrections/edits - is that a separate charge?
- How will you send the files back to customers? What formats can you support? Will you also do layouts? (i.e., headings, columns)
- Will you print & mail end results to customers?
- Are you going to officially open as a business (IRS-wise)?

 

[SDSorority]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

THANK YOU!!!

 

[*pixie*dust*]

Congratulations on your venture.

Who will be your clients? I mean do you already have a market segment in mind? That will make a huge difference on what and how you start.

 

[hlkeck]

Don't do ANYTHING until you make yourself an LLC or incorporate. You will protect your personal assets that way. I'm a small business lawyer and this is a top 10 thing that people don't do that can get them in big trouble. Go to your state's website and find out how to do it - it's generally under a couple hundred bucks and there are detailed instructions on the site.

Get a CPA. Get a small business lawyer. Open a bank account in the business name. Try to not commingle business funds and personal funds. Small things...but they can save your house.

Don't sign a personal guaranty on anything unless you absolutely cannot avoid it.

GOOD LUCK!!!!

 

[lovesmurfs]

Hi everybody!! I have decided to put on my big girl pants (so to speak ) and start my own home business! I'm very excited but have NO idea where to start. Here's what I have so far:

A website
A business idea

Rather than selling a product, I'll be selling a free-lance type writing service.

That said... I must need a business model, accounting software, legal things.... right? Has anyone started their own home business before? It seems really overwhelming.... but maybe I'm thinking too hard about it?

Congratulations! There are a number of online resources. What you really do need is a Business Plan. A quick Google search:

http://www.essortment.com/all/secretarialserv_pch.htm
http://webcache.googleusercontent.c...aer.uca.edu/profiles/industry_profiles/32.pdf
http://www.wahm.com/articles/the-entrepreneurs-guide-to-typing-services.html
http://www.ehow.com/way_5436897_do-market-typing-services.html
http://www.businessknowhow.com/officesupport/secretarial.htm

The major parts of a business plan are found in: http://www3.uakron.edu/cba/fitzgerald/competition/businessplan.htm

Obviously, you may not need the level of detail found in most business plans (most are required for small business loans, etc.), but you really need to be sure to identify what your business is all about, your reason for being -- mission, and your competition. That will define the type of clients you seek and the direction your marketing will be positioned to. Are you going to focus on college/university students? Small businesses? Legal transcription? How are your services going to be better than XYZ Speedy Fingers or ABC Typing on the Internet?

Also, remember the five P's of marketing a new product or service: Product, Price, Place, Promotion, People.

Best wishes!

 

[SDSorority]

OMG guys your tips are so great!!!!! THANK YOU so much for all of your help!!!!

 

[hipchickie]

Don't do ANYTHING until you make yourself an LLC or incorporate. You will protect your personal assets that way. I'm a small business lawyer and this is a top 10 thing that people don't do that can get them in big trouble.

I just wanted to say that this will not always protect your personal assets. Talk to a lawyer and understand what, if anything, could put you at risk (gross negligence IIRC is one thing you can be personally at risk over)

 

[kaywoody]

Where I live (near Ft. Worth, Texas) there is a Small Business Development Center. It's funded by the state and the Small Business Administration. They offer classes about starting a business and have mentoring programs to help develop a business plan, how to files taxes, etc. They will even assign you a mentor to answer questions and have someone's brain to pick! Best of all it's free- paid for by our tax dollars. There might be something like that near you. Ours is sponsored by the local junior college.

They were a lifesaver as I started my business. It was nice having some assurance that I was on the right track!

 

[SDSorority]

Where I live (near Ft. Worth, Texas) there is a Small Business Development Center. It's funded by the state and the Small Business Administration. They offer classes about starting a business and have mentoring programs to help develop a business plan, how to files taxes, etc. They will even assign you a mentor to answer questions and have someone's brain to pick! Best of all it's free- paid for by our tax dollars. There might be something like that near you. Ours is sponsored by the local junior college.

They were a lifesaver as I started my business. It was nice having some assurance that I was on the right track!

Thanks for this tip!!

 

[bettymae1121]

Not sure if this is something that would apply to you since your doing freelance writing, but there is such a thing as Errors & Ommisions insurance for business. If you goof something up for a client and it costs your client money, you can reimburse your client and then your E&O insurance will reimburse you. A lot of at-home travel agents use this type of insurance in case they goof up when booking travel (and we all know how $$$ it can be to change travel arangements!). If you think that possible errors could cost you or your clients money, this might be worth looking into.

 

[hlkeck]

I just wanted to say that this will not always protect your personal assets. Talk to a lawyer and understand what, if anything, could put you at risk (gross negligence IIRC is one thing you can be personally at risk over)

I'm the person who originally posted that - and I am a lawyer - and while there are some things that can pierce the corporate veil ---- it's a tough standard to get through if she's properly incorporated, and generally takes a fraudulent act.

NOT doing it at all is a far greater problem. And very easy to get to her personal assets if she doesn't.

 

[Cheshire Figment]

The "problems" with incorporating a small business, especially a one-person business can include:

1. Having to keep current with the State.
2. Having to file Corporate Income Tax Returns (Federal and State).
3. Just about any time you are trying to get a loan or line of credit you will be asked to personally guarantee the transaction, so your assets are at-risk anyway. And,
4. If you mess something up, the lawsuit will be against both the corporation as well as against you personally.

 

[Swimalie]

You've gotten some great advice. I also recommend you join your local Chamber of Commerce. Not only join but also attend their functions. Go market yourself in person. Have a short statement as to what you are doing and why people should chose you over someone else. Some call it the 30 second elevator commercial. Practice it and have it ready. Get some marketing materials ready - logo, name, tag line, etc. I have a business that I've been doing from home for 8 years (I stopped marketing when I had my son 5 years ago). My business has Beacon in the name so my tag line talks about the "brightest ideas". Tie things in... Hope that helps. A good marketing person can help a lot as well.

 

[rodney.watkins]

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