May 7, 2010
Home-Based Business Myths
Home-Based Business Myths By 2003 Priscilla Y. Huff With the American Association of Home-Business Owners stating there are over 24 million home-business owners in the U. S. and other research findings showing that a new home business is started approximately every eleven seconds, you may be considering starting your own home venture. Making money from the convenience of your own home, being able to have more time with your family, and doing work you love sounds like the ideal work-life situation. However, realistically, there are several home-business myths that should be dispelled as you consider starting a home-based business: Myth #1: A home-based business has no overhead. Reality: Often as much as 50 percent of a home-based business#146; billing rate will go towards covering overhead costs, but the good news is that you can deduct from your income tax a percentage of your home-related bills if you work out of your house. It is best to check with your accountant or bookkeeper, or your local IRS office or the site, www.IRS.gov for guidelines about these home office/business tax deductions. Myth #2: I will not need childcare if I work from home. Reality: True, a home business allows you the flexibility of working your own hours, but it is still difficult, if not impossible, to conduct a conference call with a two-year-old in the same room! Truth is, a majority of entrepreneurial moms and dads have some sort of child care coverage#151;either a spouse or babysitter taking care of the children in the home while they work for a block of time; taking their children to a child care center or sitter for a few hours a day; trading coverage with another work-at-home parent, or some other arrangement. Even older children can be demanding and sometimes resentful of your business#146; demands. It is best to realistically discuss your business idea with your family and think carefully about the number of hours you will actually be able to put towards your business. Myth # 3: If I have a home business, I will have time to clean house, continue to volunteer at church and school, cook delectable meals, taxi the kids to all their activities, and have a meaningful, personal relationship with a #147;significant other.#148; Reality: This really is a fantasy world!! A home and small business demands more hours than a regular job#151;especially in the start-up phase. Unless you are a #147;super-woman or -man or #147;supermom/dad#148; (I know I am not!!), then you will have to prioritize the important parts of your life and phase yourself out of all but the important activities and people with which you are involved. Learn how to say #147;No#148; with a smile. On a positive note, you can use your business to help your community like providing jobs or internships to youth, being a mentor to a struggling entrepreneur, donating your product and/or services to a charity auction, and in a number of other ways. And your altruistic efforts will have the added benefit of promoting publicity for your business. Myth #4: I have a great idea that I know will make me lots of money, and I want to start it next week.Reality: Business experts say that the amount of time and research a person puts into a business idea relates directly to the success of that business. Not to damper your enthusiasm, but one of the biggest mistakes a new entrepreneur often makes is starting her venture too soon, before thoroughly investigating the business and its trade. One woman who owns a successful home-based food delivery franchise, took a full year to research the business before she invested a single dollar. In order to grasp a better understanding of what is involved in running a business, experts recommend that you make list of business ideas that interest you, and then work for a time in a business that is similar to the idea that interests you. Phyllis Gillis, author of Entrepreneurial Mothers, said at a seminar I attended, #147;If you think you might like to bake special desserts for caterers or restaurants, bake a hundred pies in a week to see if that is what you really want to do, fifty weeks a year!#148; Working or volunteering in the trade that interests can also give you valuable skills and knowledge you can apply later on to your own home venture and even some funds to help you start your new at-home venture. It is important to also conduct some preliminary market research to see if people need and want to pay for your business#146; products or services. Without customers, you cannot make money. Be aware, too, that it may take from two to five years until your business#146; profits can support you and your family. When you believe you have a good idea and a potential market, then you can begin to write a business plan to set your goals and the steps you will need to get your business up and operating. You may wish you could start your venture tomorrow, but taking the time to first research and plan your business idea, will pay off, literally, in the end and your business will be much more likely to succeed. Myth #5: If I work from home, I can be much more casual in both how I dress and how I treat my customers. Reality: Yes, you can dress in your T-shirt and sweatpants while you make business calls#151;unless you have a home office that receives customers#151;but how you treat your customers should be as professional as any business protocol dictates. Do you respond promptly to customer requests? Do you have professional-looking promotional materials? Can your customers depend on your product and service? How can customers and business associates reach you if you are not in your home office? Do you belong to any professional trade groups or associations? In other words, you can work from your home office, but you should always follow professional procedures and ethics as if you were working from an office as the CEO of a major corporation. After all, you are the CEO of your business, even if you are the only employee. Just remember to act like one, or no one will take your business seriously. If you take the time to plan for your business, prepare yourself and your family, and persist in learning the skills you need, you can make a successful home business a reality instead of just a myth! U. S. Small Business Administration www.sba.gov , 1-800-UASK-SBA (1-800-827-5722) #150; provides listing of local SBA offices that assist people in entrepreneurial ventures. Women#146;s Online Business Center www.onlinewbc.gov provides a listing of these centers that are located across the U. S., and in Puerto Rico and other U. S. territories that offer business education and training to women entrepreneurs at every stage of business development. Priscilla Y. Huff is the author of 101 Best Home Business Ideas for Women, 3rd ed. and The Self-Employed Woman#146;s Guide to Launching a Home-Based Business. She welcomes home-business questions at pyhuff@hotmail.com ; and offers a free list of resources for women entrepreneurs to those who request it. Permission granted for use on DrLaura.com

Posted by Staff at 1:44 AM