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Event: Starting your home-based business

SBOCTeam — Thu, 08 Jan 2009 21:22:16 GMT

Interested in making extra money, escaping the corporate rat race, or just taking more pleasure out of working from home? Small business guru Barbara Weltman shares best practices in starting your home-based business.

A tax and business attorney since 1977, Barbara Weltman has the knowledge entrepreneurs need to get ahead and stay ahead. She is a respected corporate speaker, contributing editor, author of more than a dozen books from major publishers, sought-after expert media source, newsletter publisher and more than ever a trusted advocate for small business owners. Check out http://www.BarbaraWeltman.com for more information.

Post your question for Barbara here and then check back on January 27th at 2:00PM EST, or any time thereafter for her reply. You can post a question any time during the event hour. However, she may not have a chance to answer all of them.

Ask Barbara questions like:

What additional expenses should I have to take into account? (e.g. health insurance)
What savings can I immediately see when working from home?
If I have more than one great idea for a home-based business, how do I choose which one to go with?
How do I separate business from my personal life?

Prior to relying on any legal, tax or financial advice or recommendations provided herein, you are advised to consult with your attorney, financial adviser and/or tax professional to verify the information provided and to determine the applicability of any federal, state or industry specific laws and/or regulations that may apply to you. Bank of America or Barbara Weltman shall have no liability for legal, investment, finance and/or tax decisions based on the information provided.

Re: Event January 27: Starting your home-based business

SBOCTeam — Tue, 27 Jan 2009 20:04:00 GMT

Barbara,
On behalf of the Community, we truly appreciate your time today as well as your professional responses.

Community,
Although our time with Barbara has concluded, feel free to discuss today's event amongst yourselves and feel free to leverage Barbara's responses in your small business. And don't forget, for more information about Barbara, please visit http://www.barbaraweltman.com

Thanks again!
The SBOC Team

Re: Event January 27: Starting your home-based business

BigIdeas4Biz — Tue, 27 Jan 2009 19:57:27 GMT

Separating your personal life from your business life within the confines of your home is challenging. There's always temptation to attend to a personal chore during business hours (working too little) or to visit the home office 24/7. To be successful when working from home, you need to find a balance. It's helpful to set regular hours (whatever works for you) and stick with it. A separate phone line for business is a good idea. And educate your family that you aren't to be disturbed while working (this is easier said than done).

Re: Event January 27: Starting your home-based business

BigIdeas4Biz — Tue, 27 Jan 2009 19:52:28 GMT

Thanks for your kind words. It's a daily chore to stay up on small business information.. Many of my resources are from government agencies, like the IRS and Department of Labor. I also belong to several small business advocacy groups that send out emails and other information. And, because I publish an e-newsletter, Big Ideas for Small Business, and an Idea of the Day, public relations firms and companies send me information on new products and developments. I translate what I've learned into information that I publish. You can subscribe for free to my information at www.barbaraweltman.com.

Re: Event January 27: Starting your home-based business

Vince — Tue, 27 Jan 2009 19:45:23 GMT

Barbara,

It seems as though you are very well-rounded when it comes to small business topics. How do you stay so well-informed on the subjects? Do you subscribe to news feeds? Belong to business associations or organizations?

Thanks Vince

Re: Event January 27: Starting your home-based business

BigIdeas4Biz — Tue, 27 Jan 2009 19:47:15 GMT

Operating from home can save you money to start up and run your business. You save on rent and utilities; you're already paying for your space (and you get a start write-off in the form of a home office deduction). You save on commuting costs. You may also save on work clothes, lunch expenses, and other items you needed to pay for when you worked outside the home.

Re: Event January 27: Starting your home-based business

BigIdeas4Biz — Tue, 27 Jan 2009 19:44:03 GMT

When you start a business from home, be sure to have health insurance coverage. Many people who start home-based businesses do so after they leave a job and continue their coverage through COBRA. This only lasts 18 months and can be costly, so don't automatically sign up for COBRA before looking into other options. Check on availability of coverage through a spouse or domestic partner, as well as through local chambers of commerce and business or professional associations. Also talk with an insurance agent who can help you find coverage. Consider, for example, a health savings account (HSA), which combines a high-deductible (low cost) health plan with an IRA-like savings account. The cost of the insurance as well as contributions to the HSA (within the limits allowed by law) are fully tax deductible.

Re: Event January 27: Starting your home-based business

Tori — Tue, 27 Jan 2009 19:37:57 GMT

Hi Barbara,

Thanks for making your second appearance on the SBOC! I was hoping you could answer some of the questions in the original post.

What additional expenses should I have to take into account? (e.g. health insurance) What savings can I immediately see when working from home? If I have more than one great idea for a home-based business, how do I choose which one to go with? How do I separate business from my personal life?

~Tori

Re: Event January 27: Starting your home-based business

BigIdeas4Biz — Tue, 27 Jan 2009 19:37:25 GMT

Protect your home
If your business computer, inventory or supplies are destroyed during a fire or other disaster in your home, are you protected? If a customer to your home slips on the steps and is injured, do you have liability protection for this? Check with your homeowner's policy; usually business property isn't covered or there are strict limitations, and business guests may not be covered either. Talk with your insurance agent. You may be able to add onto your current homeowner's policy (for only a few dollars) to cover your business. Or you may want to purchase a business owners policy (BOP) to maximize your coverage.

Re: Event January 27: Starting your home-based business

BigIdeas4Biz — Tue, 27 Jan 2009 19:32:23 GMT

Keep it legal
Before starting a home-based business, make sure you're allowed to operate from home. It depends, of course, on the type of work you'll be doing. For a freelancer writer, there's no problem; someone detailing cars in their front yard may have issues with the town. Check local zoning rules to be certain. If you live in a community, check homeowner's association rules. Also check rules on posting business signs (there may be limits on size, location, etc.).