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Table of Contents

Web

Technology

Location

Legal

Personnel Management

Risk Management

Insurance

Business Success Tips

Sample Documents

Checklists

Contributing Authors

	Tom Severance Author of Business Start-Up Guide
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	Steven D. Strauss Author of The Small Business Bible
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	Stephanie Chandler Author of The Business Startup Checklist & Planning Guide
ORDER NOW: The Business Startup Checklist & Planning Guide
	Joe Kennedy Author of The Small Business Owner's Manual
ORDER NOW: The Small Business Owner's Manual

Types

There are two types of home-based businesses. First, there is the one

that started with the intention that it will remain a home-based business.

Because working at home can be easy, pleasant, and inexpensive,

many people start their business from home because that is where

they intend to be for the long haul. The second sort of home-based

business is the one where people start their business from home with

the intent to move it out as soon as it is economically feasible. These

entrepreneurs know that the startup phase of a business is critical,

money is usually tight, and that starting their venture from home allows

them to earmark their precious capital on things other than on

rent and commuting. It, too, is a smart strategy.

Whether you already have a business that you are considering moving

into the home or are thinking about starting a home-based business

from scratch, know that it takes a certain temperament and an iron will

to be successful at it. Do you make the cut? Let’s find out. Take the following

quiz. For every yes answer give yourself five points. For every

no answer, give yourself zero points.

1. Do you have space at home to create a private office?

2. Are you self-disciplined enough to work when your family is

around?

3. Do you have, or can you get, the technology required to run a

modern home-based business: a separate phone line, e-mail,

cell phone, and fax machine?

4. Are you willing to work alone, cut off from old colleagues and

associates?

5. Are you self-disciplined enough to avoid going to the refrigerator,

television, or Internet throughout the day?

6. Does your business model lend itself to working by yourself

at home?

7. Are there minimal distractions at home: no noisy neighbors,

loud babies, or intrusive friends with nothing else to do but

hang out with you?

8. Will your customers still take you seriously if you work from

home?

9. Are you excited about the possibility of working from home?

10. Does your family support your plan to work from home?

Scoring

35 and up: You have both the temperament and support necessary

to work from home.

20 to 35: You might be able to start a successful home-based business,

but be sure to line up all your ducks.

Below 20: Working from home is not for you.

The Home Business Boom

It has never been easier or more popular to work from home. Technology

has made it so that the home-based entrepreneur has all the tools he

needs not only to succeed, but to look like a pro in the process. Computers,

laser printers, web sites, digital voice mail, and the like allow any

small, home-based entrepreneur to look and act like a sophisticated, major

operation. Moreover, attitudes have shifted so that working from

home is often viewed more with envy rather than curiosity, as in days

past. Combined, these changes in technology and attitudes have created

a seismic shift in how work is done, meaning that more and more people

are moving their office into their house.

If present trends continue, it is estimated that within 10 years one of

every three households will have someone working from home. Entrepreneur

magazine estimates that almost $500 billion is generated each

year by home-based businesses. In a recent survey, the SBA discovered

that almost 25 percent of all home-based businesses had a yearly gross

income between $100,000 and $500,000.

So yes, these days, working from home has a bit of a cachet. It is

hip. It is also smart. One of the main advantages of starting a business

from home, either initially or for the long-term is that it dramatically reduces

your overhead, which is significant. Another trait that successful

small businesses have in common is that they keep a close eye on the

bottom line. This is not to say they are cheap; rather, frugal might be a

better word. These businesses know that if spending gets out of hand,

profits are hard to maintain. So a home-based business makes a lot of

business sense since major expenses such as rent, labor, and travel are

almost nonexistent, so the potential for success is greater.