Top 10 Mistakes Home-Based Business Owners Make

While it may be true that there is no place like home, it is also true that running a home business may not be as easy as it looks. Dividing your home in order to create a suitable location for your business - while keeping the remaining space comfortable for those living in the house - will take some careful planning.

1. Trying to fit a round business into a square house. Not all businesses can realistically succeed in a home-based location. Take a look at your needs for equipment, work space, storage, inventory and employees to determine if it is simply too difficult to run your business from your home. Service-based businesses are typically easier to fit comfortably into a home than retail or manufacturing businesses. Many people learn the hard way by not being realistic upfront.
2. Lack of motivation. It is easy to become distracted. A home business should be run in the same manner as an office-based business. You need to motivate yourself to go to work in the morning and maintain that motivation during the course of the day in order to succeed.
3. No room to grow. If you are fortunate and your home-based business is successful, you may need to expand. This may simply mean purchasing another computer or printer, or making space for an employee. It is important while setting up a home business environment to anticipate growth. How do you know if it is time to expand beyond your home into a real office?
4. Overspending what you are saving on overhead. Too many business owners justify spending money on all sorts of equipment by not paying overhead. In the end they overspend. Watch your budget.
5. Forgetting to promote your company. It is not uncommon for home-based business owners to get a little too comfortable working in a relaxed environment. Too often this means not getting out and promoting the business. Email newsletters are a valuable means of promotion. Conferences, industry events, and even local chamber of commerce gatherings can help you build your customer base.
6. Not having a client-friendly environment. You may need to have clients come to your home. Too many home business owners have had to make excuses for their house, kids, dog and the lawn sprinklers before sitting down with their clients. Set up the office portion of the house for business only.
7. Technical insufficiencies. Many home-based businesses are not dedicated or up-to-date. Your business computers should not be networked to the home computer where your children are hogging valuable bandwidth downloading games. And your technical equipment should be as state-of-the-art as you need and can afford.
8. Zoning nightmares. You may not know the zoning laws for your neighborhood, but your neighbors may be able to recite them. There are many stories of home business nightmares because of zoning laws. The more discrete your business is, the less likely you will have problems. However, read the zoning laws regardless.
9. Overlapping home and office. One of the advantages of working from a home-based office is that you can spend more time with your family. However, as much as you love them, you need to have a separate office space and set some ground rules so you can work while other activities are taking place at home.
10. Lack of a business plan. Just because it is a home-based business does not mean you do not need a business plan. You should be taking your business just as seriously as if you were heading into any other type of business.

Taken from allbusiness.com

10 Steps to Running a Successful Home-Based Business

No one wants his or her business to fail, but that prospect is something that every business owner must consider. Luckily there are steps you can take to help ensure your success. These steps are easy to follow and will help you to become a successful home-based business owner.

1. Plan ahead. Take the time to make plans for every eventuality that may arise. From natural disasters to unexpected financial problems, you will need to have a plan that can be readily accessed to get you through a difficult time.
2. Put money aside. Don't begin your business with delusions of overnight success. You'll need funds to tide you over while your business grows and becomes profitable. Put some money aside that you can tap into if necessary.
3. Organize your time. Being a responsible business owner means managing your time wisely. Initially you will need to spend extra time making your vision a reality. Build that time into your schedule.
4. Organize your space. You can't run your business effectively if you are wasting time looking for an important receipt under reams of loose paper. Take some time to organize your home office and make sure you can function efficiently.
5. Stay focused. Family responsibilities, chores, TV and the warmth of your own bed can all distract you from the task at hand. Remove as many distractions as you can from your home office and stay focused.
6. Figure out tax laws now, before it is too late. Don't wait to research the tax laws that will impact your new business. Do your research now so you will be prepared come tax time.
7. Advertise your business. You can't afford to wait for your customers to come to you - you need to go out and get them. Advertising is an investment, and spending money now to market your business effectively can pay big dividends down the road.
8. Get the proper equipment. If you are running to the nearest Kinko's to send a fax, it is time to purchase the equipment you need to run your business correctly. It is an extra expense, but it's a necessary one.
9. Cover your assets. Don't wait for a natural disaster to destroy your entire inventory - now is the time to purchase the insurance you need. Do not incur losses that could be avoided by having proper insurance.
10. Do not get discouraged. Success does not come overnight. It will require dedication, hard work, and a lot of extra effort to make it a reality. Many business owners quit when all they needed to do was hang in there for a few more months. This is your dream; do all you can to keep it alive.

Taken from allbusiness.com

10 Tips for Home-Based Businesses

Starting a home-based business is never easy. From advertising to zoning, there is always something that will require your attention. Here are 10 tips to keep you focused on your quest to make your home-based business a success.

1. Set a schedule and stick to it. The allure of working from home is powerful - but so in the appeal of spending more time with your family or of taking a nap in the middle of the day. Setting and maintaining a schedule for your workday is critical.
2. Set up a dedicated office area. You can't run a business from your kitchen table. A successful business requires a fully equipped home office. If you have an extra bedroom, consider converting it into office space. If you do not have an extra room in your home, try setting up a partition to create and office area.
3. Be professional. One of the perks of running a business from home is having the option of working in your pajamas, but your customers should not be able to tell that you just rolled out of bed. Maintain normal office hours and a professional demeanor when answering your phone or dealing with customers.
4. Advertise. Just because you build it doesn't necessarily mean they will come. To succeed, you will need to advertise your new business. Advertising and marketing don't have to be expensive, but they have to be done.
5. Familiarize yourself with the applicable tax laws. You are about to enter a whole new world of taxation. To avoid ending up frazzled by April 15th, take the time now to discuss your options with your accountant or with another qualified professional who can advise you about your tax situation.
6. Check with your zoning commission. Make sure there are no zoning laws that will prevent you from running your business from home.
7. Formulate your business plan. Where do you want your business to be in six months? How about in five years? Many small business owners mistakenly think that a business plan is only necessary if they are going to have investors. But businesses of all sizes can use a business plan as a roadmap to success.
8. Get on the Web. The Internet is the single best way for a home-based business to reach out to prospective customers. Even if your business isn't "e" anything, you need a website that can function as an online brochure for your company.
9. Do your research. You may think that your idea for your home-based business is unique. But unless you do some market research, you won't know whether or not your market is already saturated. Market research can help you find a special angle for your product or service, giving you an edge over your competitors.
10. Don't get discouraged. Many businesses fail simply because their owners became discouraged after a disappointing trial period. You will have to show grit and determination to make your business succeed. Hang in there and do all that you can to make your business the success you know it can be.

Taken from allbusiness.com

How to Succeed on the Home-based Entrepreneurial Journey

As a home-based business entrepreneur you are choosing to do something bold. You are taking a journey on a road less traveled. Obviously, if I tell you that 95% of all businesses fail you'll realize that to succeed you will require safe directions.

You'll have to make decisions like, is this going to be a real business? Will it be a move from where you are now to the land of Freedom? Or will it be just some additional income for you and your family, a little pleasure trip?

The choice you make will determine rather on not you will have an opportunity to end up in the top 3% of the income earning population. Whatever you choose you will need a few things to make your journey feasible.

A vehicle: The business you've chosen. Some girls like fast cars some girls don't. Some girls are going to spend the money, some want to start with the economy model.

A map: The system that your company already has in place. Others have already followed this map and know the directions work. They know what roadblocks to watch out for and where the potholes are. You only need to follow the directions and not try to reinvent the wheel.

A coach to ride shotgun: Your sponsor, partner or mentor. Remember the map? Whoever rides shotgun will be there to guide you. Sometimes you'll have trouble reading the map. They'll know and understand the roads because they've already traveled on them. It''s a win win situation.

A suitcase: You'll need clothes, makeup and some good reading material. Let's talk girl talk for a minute. You can't make a first impression on the second try. Increase your first impression power by dressing a little nicer and putting your best face. I do not mean you always have to wear a business suit and make up. Keep in mind however what kind of impression you want to make.

As for reading material you should be reading books and magazines that will improve your knowledge. Do you know who you want to be? A businesswoman learns about her company, how to run a business, finance, and yes, she works on personal development.

A set of keys: Your mindset, how you think and what your beliefs are. How you talk to yourself.

Your 'why', is it big enough? Are you passionate enough about your 'why' for it to see you through any hardship you will, most definitely, encounter on your journey?

Your character, are you diligent, humble and giving? Do you have integrity? You can have the best vehicle, map and coach and still not succeed. You must have the right keys?

Your mindset

• How do you feel about money? Are you afraid of it? Do you believe it is evil? Do you believe you deserve it?
• How do you talk to yourself? Do you tell yourself encouraging things like, 'I am unstoppable.' 'I am in the process of becoming a self-made millionaire.'

Your 'Why'

• Why are you taking this journey? What are your dreams? What are your objectives?
• Are you passionate enough about your reason that you can keep your destination foremost in your mind in through the storms in life?

Your character

• Is this all about you? Are you doing this solely to make your dreams come true or do you desire to help others? Are you seeking to live a joyful thriving existence through philanthropy? What would that look like? Feeding the poor, building wells for water in third world countries, helping abused women, or perhaps giving to stop sex trafficking across the world.
• Are you prepared to lead with integrity? To brand your name for the world to see knowing you will be under scrutiny of everyone you come into contact with.

Are you unstoppable? Are you prepared to stop for repairs, most of which will be to your own mindset? Are you willing to discover the real you? There are a lot of questions here. They require answers.

Usually people find the greatest success when they take the time and effort to write out the answers to these questions. Use this article like a worksheet by copying it and writing the answers out.

As you read this you had thoughts and feelings about how you would answer these questions. They are telling you about you. These answers can be used to assist you on your road trip to Freedom.

By now you see the advantage of having the right tools and guidance. Decide now to commit to equipping yourself with the right keys. Remember that you cannot possibly fail unless you give up.

'til next time, Janette Stoll

Starting a Business: The Business Plan

So, you've decided to start your own business. One thing you will need to successfully launch and fund your business is a plan. Here is a guide to what you need to include.

Business Plan Outline

• Cover sheet: Name(s) of principle(s); name, address and phone number of business

Statement of Purpose (see below)

Table of Contents

The Business

• Description of the business
• The market
• Competition and feasibility study
• Location of business
• Management
• Personnel
• Application and expected effect of loan or investment
• Summary

Financial Data

• Sources and application of funding
• Capital equipment and furniture lists
• Projected balance sheet
• Break-even analysis
• Projected income statements
• Three-year summary
• Detail by month, first year
• Detail by quarter, second and third years
• Notes of explanation
• Cash flow projections
• Three-year summary
• Detail by month, first year
• Detail by quarter, second and third years
• Notes of explanation
• For an existing business (also include the following documents)
• Profit/loss statements for past three years
• Balance sheets for past three years
• Business income tax returns for past three years
• Personal income tax returns for past three years

Supporting Documents

• Personal resumes, job descriptions, personal financial statements, credit reports, letter of reference, letters of intent, leases, contracts, other legal documents, and anything else of relevance to the plan

Statement of Purpose

• A brief, less than one page, statement of the business plan objectives

Questions

In general

• What is the purpose of this plan? Will it be used as an:
• Operating guide?
• Financing proposal?
• What is the business structure (i.e., sole proprietorship, general partnership, limited partnership, C corporations, or Subchapter S corporation)
• Who is (are) the principle(s)?
• What is to be done?
• Why will it be successful?

For a financing proposal

• Who is asking for money?
• How much money is being requested?
• What is the money needed for?
• How will the funds benefit the business?
• How will the funds be repaid?
• Why does the loan or investment make sense?

Description of the business

• What the business is (or will be)
• What market you intend to service, the size of the market, and your expected share
• Why you can service what market better than your competition
• Why you have chosen your particular location
• What management and other personnel are required and available for the operation
• Why your investment or someone else's money (debt/equity) will help make your business profitable

Questions

• Type of business; primarily merchandising retail, manufacturing, wholesale or service?
• What is the nature of the product(s) or service(s)?
• Status of business start-up, expansion of a going concern, or take-over of an existing business?
• Business form: sole proprietorship, partnership or corporation?
• Who are the customers or clients?
• Why is your business going to be profitable?
• When will (did) your business open?
• What hours of the day and days of the week will you be (are you) in operation?
• What have you learned about your kind of business from outside sources (trade suppliers, banks, other business people, publications)?

For a New Business

• Why will you be successful in this business?
• What is your experience in this business?
• Have you spoken with other people in this type of business about their experience, challenges and rewards? What were their responses?
• What will be special about your business?
• Have you spoken with prospective trade suppliers to find out what managerial and/or technical help they will provide?
• Have you asked about trade credit?
• If you will be doing any contract work, what are the terms? Reference any firm contract and include it as a supporting document
• Do you have letters of intent from prospective suppliers or purchasers?

For a Take-Over

• When and by whom was the business founded?
• Why is the owner selling it?
• How did you arrive at a purchase price for the business?
• What is the trend of sales?
• If the business is going downhill, why? How can you turn it around?
• How will your management make the business more profitable?

The Market

• Generally explain who needs your product or service, and why

Questions

• Who exactly is your market? Describe characteristics: age, sex, profession, income, etc. of your various market segments
• What is the present size of the market?
• What percent of the market will you have?
• What is the market's growth potential?
• As the market grows, will your share increase or decrease?
• How are you going to satisfy the market?
• How will you attract and keep your share of the market?
• How can you expand your market?
• How are you going to price your service or product, to make a fair profit, and at the same time, be competitive?
• What price do you anticipate getting for your product or service?
• Is the price competitive?
• Why will someone pay your price?
• How did you arrive at the price? Is it profitable?
• What special advantage do you offer that may justify a higher price?
• Will you offer credit to your customers (accounts receivable)? If so, is this really necessary? Can you afford to extend credit? Can you afford bad debts?

Competition

Questions

• Who are your five nearest competitors? List them by name.
• How will your operation be better than theirs?
• How is their business: steady? increasing? decreasing? Why?
• How are their operations similar and dissimilar to yours?
• What are their strengths and/or weaknesses?
• What have you learned from watching their operations?
• How do you plan to keep an eye on the competition in the future?

Location of business

• What kind of building do you need?
• What are the attributes and/or salient features of your present or desired business location?
• Why is this a desirable area?
• Why is this a desirable building?
• Does the community around which you intend to locate the business show enthusiasm for you and your business?
• What are the advantages and disadvantages of the site in terms of wage rates, labor unions and labor availability?
• How much space do you need?
• Do you need a long-term or short-term lease?
• Is the building accessible by public transportation?
• Is the building close to customers or suppliers?
• Is free or low cost parking nearby?
• What are the state and local taxes, laws, utilities, zoning and variables that may affect the location of your business? 
• How do you plan to keep an eye on any demographic shift in your area?

Management

Questions

• What is your business background?
• How does your background/business experience help you in this business?
• What management experience do you have?
• Do you have managerial experience in this type of business?
• Do you have managerial experience acquired elsewhere, whether in totally different kinds of business, or as an offshoot of club or team membership, civic or church work, etc.
• What weakness do you have and how will you compensate for them, i.e. will you hire employees or pay consultants who have management abilities/expertise that you don't have?
• What education do you have (including both formal and informal learning experience) which have bearing on your managerial abilities or knowledge of the industry?
• Personal data: age, where you live and have lived, special abilities and interests and reasons for going into business?
• Are you physically suited to the job? Stamina counts.
• Why are you going to be successful at this venture?
• Do you have direct operational experience in this type of business?
• Who is on the management team?
• What are the duties of each individual on the management team?
• Are these duties defined clearly? How?
• Who does what? Who reports to whom? Where do final decisions get made?
• What and how will management be paid?
• What additional resources have you arranged to have available to help you and your business (accountant, lawyer, etc.)?

Personnel

Questions

• What are your personnel needs now? In the near future (3 years)? In five years?
• What skills must they have?
• Are the people you need available?
• Will your employees be full- or part-time?
• Will you pay salaries or hourly wages?
• Certain employee benefits are mandatory. Find out what they are.
• Will you provide additional fringe benefits? If so, which ones? Have you calculated the cost of these additional fringe benefits?
• Will you utilize overtime? If so, you  may be required by law to pay time and a half, double time and/or other extra costs.
• Will you have to train people for both operations and management? If so, at what costs to the business?

Taken from www.ntia.doc.gov

Top 10 Tips for Pursuing lifelong Learning with an Informal Lens

Strategies and techniques are provided for developing skills to question, inquire and problem solve for preserving continuous self-motivation to learn.

The top 10 tips for pursuing lifelong learning focus on ways you can continue education through informal learning experiences, as opposed to attending formal class settings. Why this approach? Enrolling in formal continuing education courses and classes is difficult at times, considering life's tugs and pulls by everyday commitments. These obligations are why informal learning methods offer a viable option for continuing your education.

Taking ownership of lifelong learning is necessary to ensure a continued investment in career skills or personal interests. Why? The benefits for continual learning offer opportunity for economic and personal rewards. These rewards are a result of gaining new knowledge for handling changes required in career skills and leading a satisfying life style. The top 10 tips discussed below are designed to help you achieve success in reaching professional and personal goals.

Create a Learning Network: Professional and Personal

Creating a professional and personal learning network is the beginning step in pursuing lifelong learning. The following are tips for successful informal learning strategies using online tools for developing these two learning networks.

• Join organizations - joining professional or community organizations provide a wide variety of opportunities to learn from others in informal settings. Joining these types of organizations put you in touch with people who are interested in learning, just like you. Beyond conferences and meetings there are chances to befriend others who want to share their knowledge and experience, along with gaining new knowledge.
• Professional networking - use LinkedIn to engage in discussions with others regarding the current trends and issues within your career field. Joining groups related to your career field offer the opportunity to engage in informal online discussions with others regarding skills employers view as significant for the future.
• Social networking - use Facebook or Twitter to make connections with people who offer differing opinions and views, along with those with similar beliefs. This provides an informal method of learning, along with remaining open minded about the diverging thought processes of people. Understanding opposing viewpoints is integral to professional and personal growth.
• Google Reader - use this or similar RSS reader service to follow the latest news in your career field and personal interests. Creating a home page using iGoogle or Pageflakes eases the process of personalizing an informal learning network, by providing a place for this information to aggregate. This network may include news, blogs, videos, photos, podcasts, applications and tools for professional and personal growth.

Self-Directed Learning: Becoming and Effective Learner

Why is self-directed learning so important? You become a more effective learner through advanced decision making processes, researching resources, and developing the inner drive to succeed. The following are tips for pursuing additional education through self-directed learning.

• Create an informal learning plan - creating a lifelong learning plan for learning, forces you to make decisions regarding the optimum approach for continual lifelong learning based on needs. A well thought out plan also identifies resources, strategies and goals for succeeding.
• Read professional journals or books - the information contained within is written by professionals and provide insights into the latest research, trends and issues affecting your career. Find time, even if it's only a few minutes each day, to read.
• Read quality magazines or books - these sources of information not only provide the opportunity to gain new knowledge; they also help with improving reading comprehension and writing skills. Read 'how-to" and self-improvement books to learn new work skills or information on things of interest.
• Determine your learning style - everyone has their own way of learning new things. Some people are visual, auditory, musical, verbal or logical learners. Taking a two minute learning style assessment will help create a self-directed learning plan tailored for your specific professional and personal needs or goals.
• Visit the library - either the local public library or college library. These visits offer the opportunity to read quality materials which may be unavailable any other way. College libraries are a great resource for professional or personal reference materials. Most college libraries have an open door policy; however, only registered students may check out materials.
• Visit museums - these informal learning settings offer a new view into things, experiences or facts you may know nothing about. These visits support the desire to learn something new for personal knowledge or life experiences.

Using these top 10 tips as a foundation in the pursuit of lifelong learning will assist meeting your short and long term professional and personal goals in life. Everyone has commitments which tend to make continuing education difficult to achieve. However, if you are considering a more proactive approach in professional or personal growth try any or all of these tips to reach your goals.

Taken from suite101.com  Written by David Wetzel

15 Steps to Cultivate Lifelong Learning

Assuming the public school system hasn't crushed your soul, learning is a great activity. It expands your viewpoint. It gives you new knowledge you can use to improve your life. Even if you discount the worldly benefits, the act of learning can be a source of enjoyment.

But in a busy world, it can often be hard to fit in time to learn anything that isn't essential. The only things learned are those that need to be. Everything beyond that is considered frivolous. Even those who do appreciate the practice of lifelong learning, can find it difficult to make the effort.

Here are some tips for installing the habit of lifelong learning:

1. Always have a book. It doesn't matter if it takes you a year or a week to read a book. Always strive to have a book that you are reading through, and take it with you so you can read it when you have time. Just by shaving off a few minutes in-between activities in my day I can read about a book per week. That's at least fifty each year.
2. Keep a To-Learn list. We all have to-do lists. These are the tasks we need to accomplish. Try to also have a to-learn list. On it you can write ideas for new areas of study. Maybe you would like to take up a new language, learn a skill or read the collective works of Shakespeare. Whatever motivates you, write it down.
3. Get more intellectual friends. Start spending more time with people who think. Not just people who are smart. But people who actually invest much of their time in learning new skills. Their habits will rub off on you. Even better, they will probably share some of their knowledge with you.
4. Guided thinking. Albert Einstein once said, "Any man who reads too much and uses his brain too little falls into lazy habits of thinking." Simply studying the wisdom of others isn't enough, you have to think through ideas yourself. Spend time journaling, meditating or contemplating over ideas you have learned.
5. Put it into practice. Skill based learning is useless if it isn't applied. Reading a book on C++ isn't the same thing as writing a program. Studying painting isn't the same as picking up a brush. If your knowledge can be applied, put it into practice.
6. Teach others. You learn what you teach. If you have an outlet of communicating ideas to others, you are more likely to solidify that learning. Start a blog, mentor someone or even discuss ideas with a friend.
7. Clean your input. Some forms of learning are easy to digest, but often lack substance. I make a point of regularly cleaning out my feed reader for blogs I subscribe to. Great blogs can be a powerful source of new ideas. But every few months I realize I am collecting posts from blogs that I am simply skimming. Every few months, purify your input to save time and focus on what counts.
8. Learn in groups. Lifelong learning doesn't mean condemning yourself to a stack of dusty textbooks. Join organizations that teach skills. Workshops and group learning events can make educating yourself a fun, social experience.
9. Unlearn assumptions. You can't add water to a full cup. I always try to maintain a distance away from an idea. Too many convictions simply mean too few paths for new ideas. Actively seek out information that contradicts your worldview.
10. Find jobs that encourage learning. Pick a career that encourages continual learning. If you are in a job that doesn't have much intellectual freedom, consider switching to one that does. Don't spend forty hours of your week in a job that doesn't challenge you.
11. Start a project. Set out to do something you don't know how. Forced learning in this way can be fund and challenging. If you don't know anything about computers, try building one. If you consider yourself a terrible artist, try a painting.
12. Follow your intuition. Lifelong learning is like wandering through the wilderness. You can't be sure what to expect and there isn't always an end goal in mind. Letting your intuition guide you can make self-education more enjoyable. Most of our lives have been broken down to completely logical decisions, that making choices on a whim has been stamped out.
13. The morning fifteen. Use the first fifteen minutes of your morning as a period for education. If you find yourself too groggy, you might want to wait a short time. Just don't put it off later in the day where urgent activities will push it out of the way.
14. Reap the rewards. Learn information you can use. Understanding the basics of programming allows me to handle projects that other people would require outside help. Meeting a situation that makes use of your educational efforts can be a source of pride.
15. Make it a priority. Few external forces are going to persuade you to learn. The desire has to come from within. Once you decide you want to make lifelong learning a habit, it is up to you to make it a priority in your life.

Taken from lifehack.org  Written by Scott Young