Flying Without a Net

Flying Without a Net © 2003 Elena Fawkner One of the most exciting and daunting things about starting yourown home-based business as your sole means of income is thereality that no one is responsible for your success or failurebut you. The lure of the home-based business is undeniable. Butbefore joining the revolution, take the time to think about thereal implications of self-responsibility. In the past, you'vealways had the security of knowing that your employer was takingcare of the background details ... you know, those little thingslike retirement plans, health insurance and capital investment.And making enough money to cover your salary and vacation time.Now it's all down to you. So, let's take a look at four of the biggies: health and safety,insurance, tax issues and zoning. HEALTH AND SAFETY No matter how much you've invested in setting up your business,nothing is more valuable to your business or to you as your goodhealth and safety. Apart from obvious measures such as ensuring you have adequatehealth insurance, keep the following basics in mind. => You Are Not A Machine Take regular breaks. These are important for your physical andmental health, not to mention your productivity. Breaks can beparticularly important if your livelihood requires you to spendhours on end in front of a computer. The last thing you or yourbusiness needs is for you to develop carpal tunnel syndrome! Avoid the temptation to do household chores or errands on yourbreak time. That's not a break. Do something that breaks themental spell, something that gets you out of your workenvironment for fifteen minutes every couple of hours. Go wanderaround outside and take some deep breaths to cleanse your lungs.Lift weights. Call a friend. Go sit in the backyard with a cupof cocoa and enjoy the sunshine. It doesn't matter what you do,but make yourself do it. Set an alarm to remind yourself if youmust. => Use the Correct Equipment the Right Way Make sure you use the correct equipment for the task at hand. Ifyour work requires long hours in front of a computer, make surethat your desk and chair are properly aligned and your work areais well lit. Ensure you maintain good posture. => Nap when sleepy Many home-based business owners work odd hours. That, after all,is one of the advantages! But if you start working very early orwork very late into the night, your sleep patterns need toadjust accordingly. Therefore, if you find yourself feelingsleepy mid-afternoon, take an hour's nap. Any longer though andyou'll risk waking sluggish and tired. Set an alarm to wake youif think you'll go longer than an hour or 45 minutes. Don't tellyourself you can't afford the time to take a nap. A nap will dowonders for your productivity and you will be refreshed andready to get back to work. You'll find you'll accomplish muchmore by the end of the day than you would have if you forcedyourself to keep ploughing ahead even though you were so sleepyyou couldn't think straight. => Home Alone Security Security is an issue for any home-based worker. Apart frompersonal security which is always an issue for everyone whereverthey work, the home-based office with its usual array ofexpensive computer and other office equipment, and heaven knowswhatever else electronic gadgetry is a prime target for thieves.So take these basic precautions: * Don't expose your expensive office equipment to the view ofcasual passersby. Obscure the view with foliage (but not so muchthat you provide a place for would-be intruders to hide) anddraw the blinds when you're away from home. * Keep your doors deadbolted when you're home as well as whenyou're away. * Think twice about inviting new clients to your home office.Try and meet at the client's office wherever possible or, ifnot, at a neutral location. * Ensure your property is well lit at night to deter intruders. * Don't advertise the fact that you work from home. * Consider using a post office box for your office address. Thisis particularly useful if you run an online business and areconcerned about revealing your residential address to all andsundry. * Get an alarm system installed and display the alarm company'ssign prominently on your property. * A dog can be a great security device, not to mention companyfor the solo worker! INSURANCE Don't rely on your homeowner's insurance to cover your business.Most policies limit loss of business property to $2,500 anddon't cover losses away from the home. And you can just forget about claiming on your homeowner'spolicy for injury sustained by a client visiting your homeoffice. So ensure you obtain business insurance separate from yourhomeowner's policy or, if your insurance company offers it, anendorsement to your existing policies. This type of extension,where available, can be as low as an additional $200 or soannually. The kinds of risks to consider, depending of course on thenature of your business, include: => Health and Disability Check with any trade or professional associations of which youare a member for health insurance packages. Many suchassociations will have negotiated insurance packages for theirmembers and this can be a good way of getting good cover for acost-effective price. Other types of insurance to consider are disability insurance incase you can't work due to illness or disability and workers'compensation (remember, you may be an employee of yourbusiness). Depending on your personal situation, you may alsowant to consider key man insurance which protects your businessin the event of your death. The business becomes the beneficiaryunder this type of policy and this cover is intended to enablethe business to replace you. => Property This covers your physical assets - furniture and equipment,inventory and supplies including, where required, cover forequipment taken away from the premises such as laptop computers. => Liability There are three main types of liability insurance. Depending onyour business you may need only one or two or all three. Thethree types are (a) general liability which covers you foraccidental injuries sustained by business visitors; (b)professional liability if you are a member of a professionaloccupation such as a lawyer or an accountant; and (c) productliability which protects you against damage caused to a thirdparty as a result of a defective product. => Business Interruption This type of insurance covers your lost profits as a result ofsome insured event which makes it impossible for you to carry onyour business such as a fire or flood. TAX ISSUES One expenditure you should definitely not try and avoid is anaccountant to prepare your taxes. There are many home office taxdeductions available but they are scrutinized carefully by theIRS so make sure you get professional help in this area. The types of deductions available to the home business ownerinclude a proportion of your housing costs and expenses if youuse a part of your home exclusively for your business; use ofyour car for business purposes; health insurance; postage; trademagazines and other business-related publications; and capitalequipment. The best way to save money on accountant's fees is to keepaccurate, organized and complete records. Keep your receiptsorganized so that when tax time comes you can hand everythingover to your accountant in a nice neat package. In addition, do not hestitate to contact your accountant foradvice if and when you intend to take on employees. A whole slewof responsibilities goes along with employing others in yourbusiness including withholding tax and social security benefitsand workers' compensation to name just a couple. ZONING Finally, a word about zoning. Zoning laws can be inconsistent sojust because your friend Dave can run a business out of hisgarage in town X doesn't mean you can do the same thing here intown Y. Some municipalities will give you a hard time if you'rereceiving clients on the premises but will turn a blind eye ifyou're not. Others focus on the detriment your business causesto the amenity of your neighbors. If your neighbors find theycan't park their car in their own street because of the flood oftraffic to your door, expect problems. Also, don't expect to beable to erect a sign in front of your house or, possibly,anywhere visible from the street, advertising your business.Still other municipalities will restrict the numbers ofemployees that can be employed in the home business. In thesemunicipalities you often won't have a problem if you're a soloworker but once you start hiring employees to work on thepremises you may have trouble. So, before you start your business and invest a lot of capitalin getting set up, check with your local authorities what, ifany, zoning restrictions you need to be aware of. These are just a few of the major headache areas when you cutthe ties and set out on your own. By taking the time to getthese things in order before you get underway, you'll create asafety net for yourself and your business so that when things gowrong, as they inevitably will, your dream of a home-basedbusiness of your own will continue to be a happy reality and nota nightmare. ------** Reprinting of this article is welcome! ** This article may befreely reproduced provided that: (1) you include the followingresource box; and (2) you only mail to a 100% opt-in list.Here's the resource box to use if reprinting this article:------Elena Fawkner is editor of A Home-Based Business Online ...practical business ideas, opportunities and solutions for thework-from-home entrepreneur. http://www.ahbbo.com