We'll Hubby and I had to make a very difficult decision this week. The good bad news is that we are closing our shop. The reason this is good bad news is that it means I will be able to focus totally on my marketing business, which has been the real money maker all along. Even better is that I will be able to run the business from our home which means almost no overhead! I am very excited and happy about this turn of events!

Problem: You are looking at one of the world's best procrastinators (as evidenced by how much time I spend here in FT every day) and "wanderers" (I wander over here and do this for a little while, then I wander over there and do that for a little while...) I know that working from home takes a lot of self discipline and I'm a little concerned about how I'm going to do, however, I am bound and determined to make this work.

Question: Does anyone else here work out of their home and can you give me some advice to get me off on the right foot?

How exciting CarolinaCarol. The first thing that I would do is develop your business plan for at least the next 3 years. Most successful small business owners eventually admit they have to construct a formal business plan.

Most small business people are intimidated by the whole business plan scheme. They'd really like some help without having to pay for the expertise, or take the time out to take a course. So, if you're already running a pretty successful business, or you've just hatched a great idea for a business and want to run with it, you might take a minute or two to check out Bplans.com: http://www.bplans.com/ a Web site that holds your hand through the business plan process. The site offers sample business and marketing plans and The Plan Wizard, a tool for building your custom plans. It also links to other helpful sites for business planning and cost estimating.

JoJo - I think you are exactly right about the business plan...I do not have one and I think if I did, I could have saved myself some time and money when I first started out! I know I definately need one...it's on my "To Do" list.

BTW - I found out today that a residential phone line is about 1/2 the price per month as a business line and you can still get a yellow page listing if you want one!

[This message has been edited by CarolinaCarol (edited 03-01-2001).]

CarolinaCarol: My wife and I had an in-home business. We passed out business cards with our residential phone number. It wasn't long before we got a call from the phone company. When I answered the phone with our business name instead of a simple "hello," they had me and we wound up with 2 choices: change our phone number or buy a business phone line. We bought the business line.

You are much better off using a portion of your home strictly for your business and nothing else, i.e., telephone line, desk, file cabinet (with only business files) chairs for you and customers, etc. In other words make your business office look like a business office. A separate entrance from the house is better yet --- and all of this is necessary if you are going to deduct a portion of your home as a business expense.
You will project a professional image to your customers and satisfy the rapacious IRS at the same time.

Great tips, fjohn. Thank you for sharing them with us.

CarolinaCarol, I brought up the "Tips For The Small Business Owner" thread for you to take a look at. I hope you and others will find some of the tips useful in your business.

CarolinaCarol, since you agree that it's vital to have a good business plan. I thought I would add this tip: Even if you have a plan in place, make sure you review it periodically with a critical eye. Your plan should be flexible, but it should keep you pointing and moving in the right direction.

Here are some fundamentals for a good plan:
* A mission statement/statement of purpose
* A detailed description of the business
* A market assessment
* A marketing plan and distribution channels
* A production plan
* A management philosophy/plan
* A timeline and long-term projections
* A financial statement/plan

BTW, If you're really good at writing business plans, you might just consider that as a small-business possibility. Most companies pay others to write their plans for them!

Do you need a permit of some kind to operate a business from your home? I know that one would be required here, planning permission for change of use etc. Sometimes it is written into house deeds that businesses cannot be run from them.

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From over the pond....

Oh, good point Sue. I'd better check into that one.

Don't forget insurance. Your personal homeowner's insurance won't cover your business contents or liability. Many personal insurance policies offer extensions for small businesses run in the home at an extra cost depending on what your business is, but you have to declare this to your insurance agent/broker.

Here's a quirky one for new business owners who run their business from their homes: If you register your business name with the state (so no one else can use the name), be prepared to fill out a form from the Federal Environmental Protection Agency concerning any dangerous chemicals you may use in your business.
It doesn't matter if your total involvement in use of chemicals is with a bottle of Wite-Out, the Feds want to know.

Well...were all done with the move and I feel like I've been beat with a big ole stick! I hate moving stuff and finding a place for all the things from the shop that I couldn't bare to part with was a real trick. I'll be having a pretty good yard sale next weekend.

Thanks for all the tips y'all! Keep 'em coming...I never would have tought about some of this stuff (ie the insurance coverage) myself.

I know that when you are running your own business, reducing your overhead can help increase your bottom line. Here are 2 simple ways to save on paper expenses:

1) Reduce the weight of the paper used in your printers, copiers, and fax machines. For example, use 20-pound paper instead of 24-pound. Given how much paper the typical office uses in a year, even a few ounces saved per ream adds up quickly.

2) Photocopy on both sides of the paper. The extra few seconds it takes to push the duplex (or double sided) button on the machine can help cut copy paper usage by almost as much as 50%.

Hi Stewpot and myself haven't really ot any tips for you but we both hope everything works out well for you and your husband.Best of luck to you both.