FREQUENTLY ASKED QUESTIONS ABOUT WORKING FROM HOME
By Lesley Diamond
There are so many people who have been laid off in this difficult economic climate, and many are now starting their own telecommuting businesses. As a result, it's vitally important for all to understand the pitfalls and to educate themselves so they can succeed in working at home. Here are some answers to frequently-asked questions about work-from-home businesses:
Q--IS IT EXPENSIVE TO START A WORK-FROM-HOME BUSINESS?
Review your budget--know ahead of time what you're willing and able to invest into your business. Start off by taking a good look at what kind of expenses you expect to have in starting up, ongoing maintenance and promotional advertising. A lot of businesses start out small, and work up to reinvesting any profit back into the business. If you are going to be primarily working online in Internet marketing, blog writing, affiliate marketing, graphics design, etc. and do not have a computer, you may want to look into affordable leasing options. If you do need to finance the startup, be extremely careful not to create a hole you may have trouble digging out of later.
Q--WHAT EQUIPMENT AND SOFTWARE WILL I NEED?
This depends on what type of work-from-home business you're running. For your home office, you will probably need a computer, phone, good Internet access, and a printer/scanner/copier/fax. I like to use a laptop computer, as this allows me to move around and not be tied to my desk. I can take it to a coffee shop and change my surroundings while working on my online business. You will also need software for word processing, spreadsheets and slides, as well as email and Internet browsing. And depending on what line of business you're in, there will be the specialized software for bookkeeping, photography, accounting, web development, graphics, etc.
Q--WHAT ABOUT TAXES?
A lot of new work-at-home business owners just want to be able to get on with the job and start making money. But when the end of the year comes, they start worrying about taxes. But it really isn't that bad. Be disciplined and keep track of money going out, money coming in, and ensure you keep receipts for all the business expenses.
Get a second bank account, even if it's just under your own name. The more you separate out "business" finances from "home" finances, the happier the IRS will be with you. And having separate bank accounts for your personal and business use will make it easier for you to keep track of what is going on.
The IRS has really tried to make this as simple as possible for the millions of people who run small businesses from their homes. In general, in the U.S., you simply file your normal form 1040 and add on a Schedule C, which describes your business income and expense. You can deduct all sorts of things, from the electricity used to heat your office area of your home to the computer you bought to do your finances on. So again, remember to keep all receipts.
Q--CAN YOU SUGGEST ANY FURTHER RESOURCES THAT CAN HELP ME?
Find out about your local trade and networking groups. They offer the home-business a wealth of information, networking opportunities, ideas and resource libraries. The larger organizations will also usually offer their members good deals on various services such as advertising and insurance. Here are just a few:
* The National Association for the Self-Employed (nase.org)* The National Small Business Association (nsba.biz)
* The Federation of Small Businesses (fsb.org.uk)
* Small Business (smallbusiness.co.uk) has a large directory of information for small businesses in the UK.
One of the most important things you can have when starting or running your own work-from-home business is knowledge. You need to know what works and what doesn't, and the easiest way to learn is from others who have done it before you. There are many, many books out there that can help you. Devoting an hour to reading a book can save you weeks of struggle.
Keep a business book in your bedroom and in the bathroom. Get business books on audio tape to listen to while commuting. Try the new electronic book formats--they're great, as you can take a large number of books with you without carrying the weight. Great for commuting or holidays.
On my website, http://workfromhomejobtips.com, you'll find suggestions of excellent books to help you on a variety of subjects.
Lesley Diamond, the Webmaster of Work from Home Job Tips, was once a well-paid Project Manager. But after years of stressful work, daily commuting, office politics and working extremely hard to ensure other people's businesses were successful, she decided she REALLY wanted to work for herself. She started over with a new profession and is now free to follow her passion.
If you're interested in Working from Home, please visit Lesley's site to learn more about running your home business. And while you're there, leave a comment and share your stories about working from home.
Visit Lesley at: http://www.workfromhomejobtips.com
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