Category: Start a Home Business

    LLC or Sole Proprietorship

    Businessman working hard at office

    There are many benefits to having an LLC company for your business.
    First off, I’m not a lawyer and you should consult a lawyer in your local area to find out all the pros and cons of having an LLC business.

    It was not even a question for our Structural Engineering firm to start with a LTD (limited company in Canada). The benefits outwayed the challenges to having a LLC.

    The LLC exists as a separate entity from any of the shareholders of the business. So, other than (in Canada) the Taxman who can get what they are owed regardless, the company is liable instead of the shareholders for any claims against it whether it be general comprehensive liability (someone drives the company car and injures another) or errors and omission liability for any errors done in the commission of the work. Of course, as a business (whether sole proprietorship or LLC) you should have general comprehensive liability and errors and omissions liability so this way the claim is against the company and any liability claims are against the company rather than you personally.

    As well in order to have a business bank account for more than one person to have access to as shareholders it is best to have an LLC entity. Of course, you have to make sure you need two signatures of shareholders on cheques so there isn’t any possibility of improprierty by one of the shareholders.
    You will need to “create” the LLC documents with the rules of the company and shareholders etc. but there are plenty of free LLC agreements you can see if they work for your business.

    As a LLC, you can probably also write off many expenses to the company and our accountant can do many things like carrying over liabilities to the next year and he is worth the investment to do the end of year taxes as LLC have many write-offs that a sole proprietor does not have in business.

    For the future, you can sell the business to another person much easier if you retire as the company is separate from your personal assets and liabilities.

    One or more persons can be employees of the company with the tax advantages of being employees to get money out of the LLC company. Of course, you could still be independent consultants and bill the company for your services.

    LLC company has so many advantages that once you get beyond a certain revenue that you personally claim on your personal income tax, everyone who is in business should have a LLC as a consultant for the benefits and write-offs. However, once again, I will say I am not a lawyer so you should consult one in your local area. Our structural engineering firm has been a LTD (LLC) since 1992 and the company has been healthy in its growth and it provides us with salaries take home as employees as well as a hired bookkeeper.

    For more on starting a home business you can check out Members | The Business of At Home Business  for anyone interested in being in business!

    Categories: Legal Tags: Tags: , , ,

    Will The New Business Fail?

    As the phrase goes, “there is no guarantee in life” but there are certain steps you can take to make sure your new business doesn’t fail.

    Step 1. Research research research

    Do your research before you even start your new business as to whether there is a market out there for your business. There are many ways to research whether anyone wants your new business by looking at your ideal customer and the demographics of the audience.

    You can check if there are any competitors in your market which can be a good thing because it means there are people buying but dig deep to make sure they are a viable business or holding it all together with smoke and mirrors. There are many Internet marketers who “make a million” one year and crash the next because they don’t put in the foundations of a good business.

    Now, if there are competitors and they have a sustainable business, what makes your business unique from their business so you can stand out from your competitors. For example, when this auto repair shop fixes a repair, they also wash the car whereas you could be the auto repair shop that fixes repair, washes car, rotates tires and installs new window wiper blades. Who doesn’t love free window wiper blades!

    Whether you want to or not, it is good practice to do a business plan for your new business before you start because once you look at the expenses vs. income, market research, marketing plan and obstacles to your success, you will be able to see before you spend a penny whether your business will fail.

    Step 2. Start your new business part-time

    I’m not a believer in quitting your job without knowing whether your new business is going to be successful so you should do it part-time while you are working at your job. Any business whether it is internet-based, production or offline , you can do it part-time. Steve Jobs worked in his parent’s garage while creating the Mac. So, even a cleaning company you could start part-time and clean in evening offices that are closed. You could go to weekend trade shows or events to display your product to see whether people will buy or they are interested enough to invest. You can join your local Chamber of Commerce and talk about your business to see what feedback might be from other local business entrepreneurs. You could create a Meet-up with the title “Internet Marketing Success” or if you are an artisan, “
    Crafting Business made Easy” and share free information and make connections with others to form collaborations on a part-time basis. With your first sale, celebrate but don’t quit your job until you are getting enough money to replace your monthly expenses. You could be a part-time consultant for other companies and work from contract to contract.

    Step 3. Start your business

    So, you have been working part-time at your business and you’ve made the sales that have been consistent or got the contracts to fulfill that could give you the income per month to start your business. You have done your research and you have been marketing to your ideal customers who have given you repeat business. You have reviewed your business plan and made adjustments needed from doing the work part-time. You have done future projections of income and how you will increase it once you work at it full-time.

    For our structural engineering home office, we worked part-time weekends and evening doing design and putting in hours to finish work to deadline while commuting back and forth to a job. We had three to four regular clients who gave us regular work so when we got laid off from work, we could easily go full-time in our home office.

    You have all your government required licenses and you are set for making your business into a system with foundations to make the business grow. You are ready and there may not be any guarantees but you have done all you can to make your business a success!

    For more on starting a home business, go to The Business of At Home Business Community at http://boahbtips.com/member

    Categories: Start a Home Business Tags: Tags: , ,

    Home Business Startup Checklist

    Who is your target market?
     What products or services will you be offering?
     Who is your main competition?
     What is your value proposition?
     How will you deliver your products or services?
     What will you name your business?
    Administration
     Where will you work? Determine where your office space will be.
     Purchase or set up your office equipment and supplies (eg, desk and good chair, computer, printer, phone line, software, basic supplies, etc.)
     Set up a separate business address for correspondence.
     Set up a separate business email address.
     What kind of legal entity will you create? Complete the legal requirements and registration. Identify a lawyer or accountant to help you.
     Obtain an Employee Identification Number (EIN). If you are a sole proprietor, this may be your social security number.
     Register your name and buy the matching domain name.
     Purchase web hosting, if you are going to have a website.
     Order business cards.

    Home Business Start-Up Checklist (continued)
    Finances
     Set up a separate banking account for your business. Obtain a separate business credit card.
     Determine how you will pay and get paid. Set up the systems you will use (eg, Paypal and/or credit cards).
     Set up a system for tracking your finances.
     Prepare an initial budget and financial forecast.
     Set your initial business and financial goals.
    Support
     Identify relevant industry websites and forums. Start networking.
     Identify and join a mastermind group.
     Decide which training you will use, if needed. Get started.
     Find people who can perform the tasks you will not be doing yourself. (e.g., website design and development, accounting).
    Promotion
     Create your marketing plan and calendar.
     Create an action plan with deadlines.

    Take a deep breath and get started!!
    Come and get resources, support and action moving forward in your home business at http://boahb.com/

    Categories: Run a Home Business, Start a Home Business

    What should I know about starting a Home Business?

    You should be aware of the regulations that might affect the business you are interested in running from home.

    I know rules and regulations are boring.

    However, the government whether overall or local has the power to close your business down once you get started.

    Whether your business is in your local community or on the internet or both, there are always rules.

    Other than the government wanting their taxes from your revenue and the government wanting to make sure your business work environment is safe for your employees, your neighbours whether living in the home beside yours or apartment across the way from yours will be the biggest issue which some people don’t consider when starting their business.

    Your neighbours can complain about the new traffic coming to your home office. Your neighbours can complain about lack of parking from your client visitors taking up spaces. Your neighbours can complain about the increase in noise or the increase in smells etc. from your new business. The neighbours go to local authority who can fine you depending on the bylaws or rules in your community. In an apartment complex, all these complaints can apply and you could be evicted if there is rule on no businesses in your apartment bylaws.

    We started back 20 years with our own home-based local engineering business when home-based business bylaws were only just being created but we have always made sure we are a quiet neighbour by making visits to clients residence a priority and clients come on infrequent basis to your home office.

    Believe it or not, even if you have a business always on the internet, if your neighbours notice increased deliveries they can complain to local authority.

    So, always be a quiet neighbourhood business. 🙂

    Categories: Start a Home Business Tags: Tags: , ,

    Home Business Startup Costs

    onestepforward

    Home Business Entrepreneurs are a vital and growing part of the business economy in North America. According to Global Entrepreneurship Monitor 2012 United States Report in 2012, over 69% of new entrepreneurs started from home. 55% of the new businesses remained at home even if they hired employees. Also, the average financing was $15,000 with 82% of the entrepreneurs receiving financing from personal funds, family or friend. If you are thinking about starting a home business, it is possible to start from home with less money than you think!

    If you haven’t heard the term “bootstrapping”, it is a new mindset for you to save money by doing some of your startup activities yourself and financing your business plan.

    1. The first step would be to create a budget of potential income and expenses possible in the first year. Most important would be to define all the expenses as income may not come in the first year.

    2. Looking at the expenses, see how you can save by reducing expenses by, for example:

    a) doing your own bookkeeping

    b) using your existing furniture for your office rather than buying new or go out to garage sales to find used items.

    c)asking your computer saavy family member to help you setup your internet in exchange for…

    For most service businesses that are home-based, the initial year is the most expensive but saving money by creating an office in your home and using existing furniture and computer equipment helps to reduce costs.

    Now on to needing money, a bootstrapping entrepreneur will use:

    a) their own personal savings

    b)credit cards debt

    c)ask family or friends for startup money or if you are lucky, use your family members skills within your business in exchange for whatever you decide on.

    The advantage to using your own personal finances is you are not indebted to any other person or company like a bank.

    Without knowing what your startup expenses will be, you won’t know what money you need to raise before you even start your business. So, even though the thought of doing a business plan may be something you consider unnecessary, even if you are going to be bootstrapping, a business plan is worth doing to see what you need for the first year.

    Government Resources for Writing a Business Plan

    The U.S. Small Business Administration has a free resource on creating a business

    The Canadian government resources at Canada Business Network

    Australian government at Business Plan Template

    Great Britain at Write a Business Plan

    Go and write up your business plan even if you aren’t going to a bank for financing because it is the guide and plan to use in your first year to keep costs under control!

    by Jane Gardner from Jane-Gardner.com To empower and implement your business dreams!

    Categories: Start a Home Business Tags: Tags: ,

    Home Office

    office

     

    Designing an Optimal Home Office
    Your home office makes a big difference on your overall productivity and work happiness. Having a great home office makes it easier to concentrate and will help you get more done in less time. Here are some of the many things you should keep in mind while you’re designing your home office.

    ==> The Space Itself

    Your home office should be separated from the rest of your house and especially the rest of your bedroom. If you don’t have a separate office space set aside, at least use curtains or other material to partition off the space.

    When you step into your home office, it should feel like you’re stepping into a workspace. It should not be an extension of your bedroom.

    ==> Designing Your Flow

    Place all the tools you’ll need within arm’s length. In other words, your phone, your keyboard, your printer tray and your notepad should all be in reaching distance if those are tools you use regularly.

    ==> Measure Your Space

    Before you buy any equipment, make sure you take a tape measure and measure everything out. The last thing you want is to buy office equipment only to discover that it doesn’t fit.

    ==> Make Sure Your Cabinets Have Room to Open

    This is one of the more common home office design mistakes people make. They remember to measure the cabinet’s space, but forget to measure enough space for the cabinet to open out. You don’t want your cabinet to hit anything else when it opens – including you or your chair.

    ==> Add Real Plants

    Working in a home office all day can be quite stuffy. Research has shown that nature and real plants can help people concentrate and boost mood.

    Add a real plant or two in your workspace to help lift your spirits.

    ==> Invest in a Quality Chair

    Sitting in a low quality chair can result in back pain, aching shoulders and other kinds of body pains. If you’re going to spend money on anything in your office, spend it on your chair. Get a quality chair that supports your spine and allows you to work for extended periods of time without undue pressure.

    ==> Lighting Is Important

    You don’t want to work in dim lighting. Having good lighting helps reduce strain on your eyes, promotes better mood and helps improve productivity.

    The light in your office needs to appear diffused, so it can’t just come from one source. Ideally you’ll have three or four different lights that all contribute to an overall sense of having a well-lit room.

    These are some of the many things that go into designing the optimal office. Your office space has a big impact on your overall workflow. The time you put into improving its design will pay off many times over.

    Categories: Home Office Tags: Tags: ,

    What is a perfect name for my business

     

    a smiling businesswoman holding empty card

    What is the perfect name for my new home business? Is there a reason I should pick a business name carefully? 

    When it is time to figure out a name for your new home business sometimes it can be something that you agonize over and wonder am I picking the right name? The idea that once you file the business name with the local government means it is “written in stone” can sometimes hold you back from picking one. 

     

    What’s in a name? that which we call a rose
    By any other name would smell as sweet;  

    from Romeo and Juliet

    Michael Fortin, in his book “10 Commandments of Power Positioning” says your business name should stick in people’s mind long after they have met you.  Make it unique. Have it reflect what you do in the name, be “Heather’s Wedding Wreaths” not “Heather B. Business”.  A person will remember a unique business name.  At the very least, have what you do in your name,  ABC Cleaners not ABC Enterprise.

    With my husband’s Structural Engineering firm, we called it Peak Engineering because Maple Ridge is below Golden Ears which has two peaks.  Also, whenever we tell people our name, we say Peak, as in mountain peaks spelling since peek is another spelling. It seems fairly easy for people to remember the name spelling though Brian is usually called Brain.  Or maybe, he just thinks it is an appropriate name for him.

    For my company, JGardnerMarketing, I took a business name that was my name + marketing since our local government registrars have stricter guidelines about business names.  I could not have called it The Business of At Home Business because it used the word business in it was too generic.  So, it is alway good to check with your local authority and see what type of business name they will not approve before you send in names for approval.  With our local government authority, you have to give them three choices for the business name and if they disapprove the first name, you’d better like the second and then third name.  So, don’t start printing up your business cards or letterhead until you get the business name approved by the government.

    Also, if you pick a name too close to a trademarked name or  it seems to come close and the other business can sue you and make you change your name.  So, no Burger Queen or Starebucks for you!  You can do a search through local Yellow pages, Google, your local Business registry and domain search.

    If you want to go put up a website using your Business Name, you had better check early before registering your business name with your local government.  It is not possible to have the exact same domain name in the internet and when you are looking at the world businesses up on the internet, the odds are good that there would be a ABCCleaner.com up on the internet already!  You don’t want to be known by the website domain of ABCCleaner2.com.

    Michael Fortin in 10 Commandments of Power Positioning had another good test for picking a business name that people remember.  Create about 5 business names and tell some of your friends you’d like to know what they think of the names.  Ignore this advice (just kidding).  What is important is to see them or call them up in an hour or two and ask them to recite the names.  See which names stuck in their mind and that will give you some idea on the uniqueness of the business name.

    When deciding on a Business Name for your Home Business remember to:

      • pick a business name unique to you
      • pick a business name that has what you do for a living in it as an action word –  Cleaning, Engineering, Marketing, Writing–  somewhere within the business name
      • check that the business name is not already being used on the World Wide Web
      • check with local government authority on their business name rules
      • test some business names by getting friends to remember the most memorable of a list after an hour
      • stay away from other businesses names who are already registered as they can sue you to change it ,if it is too close

    In the end, what your business name is will not define your business in your customer’s mind. Who you are and how you deliver the services or product to them  will be the reason customers will return to your business.  Micheal Fortin’s book “10 Commandments of Power Positioning” has some other great ideas about keeping your business name in top of mind of your customers so you receive a copy when you sign up for The Business of At Home Business newsletter.

    Categories: USP Tags: Tags: , , ,

    Start a consulting business – Fred’s story

    Fred consulting paperwork to start his home business

    Fred consulting paperwork to start his home business

    What do you need to do when starting a home business as a consultant?    The continuing story of Fred, the home based business consultant.

    Fred had made the decision to work from home as a consultant rather than an employee. He had talked to his employer who was agreeable to them starting a new relationship with Fred as a part-time consultant.

    For Fred to be an independent consultant, some of the things he would need to do are :

    1. Set up a home office space and office equipment
    2. Define a business name for his company
    3. Decide on the type of business as to whether he wanted to be a sole proprietorship or have an independent limited company
    4. Apply for a business number with the government so he could remit his taxes and fullfill any other government requirements when running your own business
    5. Apply for a business licence from his town or municipality so that he can run a business from his home.
    6. Sign a contract with his client (his previous employer) defining his responsibilities and his hourly rate for his services
    7. Make sure that the relationship between him and the client  was clearly defined in the contract including:
    • The defined hours of work he would be available in his home office for communications
    • The number of hours he might be required to spend in the client office during the week
    • The  other expectations of work involved activities such as meetings or required paperwork
    • The easy access to the intranet system for email conversation and collaboration and review of documents

    Fred made sure he went to see a lawyer to see what should be in his standard contract to define his and his client’s role and responsibilities in this new relationship.

    Fred went to see his accountant to review all the government rules and regulations he would have to fulfill as a a self employed business.

    Fred also went on the internet and checked his federal government website on how to start a home business as the brochure listed the steps clearly on what regulations he had to follow whether it was:

    1. United States of America 

    2. Canada 

    3. Great Britain

    4. Australia

    All the governments have very good step by step guides on starting up a home business so check them out!

    Categories: Fred Tags: Tags: ,

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