Home-Based Business For Dummies^?, 2nd Edition

by Paul Edwards; Sarah Edwards; Peter Economy

• ISBN13: 9780764577635
• ISBN10: 0764577638
• Edition: 2nd
• Format: Paperback
• Copyright: 2005-02-01
• Publisher: For Dummies

Summary

With 25 cost-saving tips for setting up a home office Live your entrepreneurial dream -- from the comfort of home Starting a home-based business is the easiest, cheapest way to become an entrepreneur. But where do you begin? Relax! This friendly guide shows you the way -- from choosing the right business opportunity, to paying your taxes, to dealing with distractions at home. Discover how to: Choose the right business for you Tap 14 sources of start-up funds Create an effective marketing campaign Set boundaries between home and work Deal with insurance and taxes

Author Biography

Paul and Sarah Edwards are award-winning authors who have sold over a million copies of their ten books. They write a monthly column for Entrepreneur magazine and cohost a weekly radio show on BusinessTalkRadio.Net.

Peter Economy is the coauthor of For Dummies books on economics and personal finance.

Table of Contents

Introduction	1	(4)
About This Book	1	(1)
How This Book Is Organized	2	(1)
Part I: Beginning at the Beginning	2	(1)
Part II: Managing Your Money	2	(1)
Part III: Avoiding Problems	3	(1)
Part IV: Making It Work: Moving Ahead	3	(1)
Part V: The Part of Tens	3	(1)
Icons Used in This Book	3	(1)
Where to Go from Here	4	(1)
Part I: Beginning at the Beginning	5	(100)
Chapter 1: What You Need to Know about Home-Based Business	7	(14)
Home-Based Business Defined	8	(1)
The Basics of Home-Based Business	9	(5)
What kind of business will it be?	9	(2)
Managing your money	11	(1)
Avoiding problems	11	(1)
Moving ahead	12	(2)
The Good News and the Bad	14	(7)
Reasons to start a home-based business	14	(2)
The pitfalls of home-based businesses	16	(1)
Understanding when you're ready to make the move	16	(5)
Chapter 2: Mirror, Mirror on the Wall, What's the Best Business of All?	21	(24)
Starting Something from Scratch	22	(4)
Doing what you have been doing in a job	24	(1)
Doing something new and different	25	(1)
Buying a Business	26	(15)
Home-based franchises	28	(6)
Direct-selling opportunities	34	(4)
Business opportunities	38	(3)
Identifying Which Option Is Best for You	41	(1)
Finding Your Niche by Specializing	42	(3)
Chapter 3: Hot Opportunities Now and for the Future	45	(20)
1. The Maturing Population	45	(3)
Daily needs	46	(1)
Professional services	47	(1)
Special services	47	(1)
2. Great Migration South and to Smaller Places	48	(1)
3. Universal Connectivity: the Electronic Environment	49	(1)
4. Economic Globalization	50	(2)
5. Increasing Numbers of Self-Employed	52	(1)
6. Living off the Grid	53	(1)
7. Rising Physical and Property Security Needs	54	(1)
8. Education for Youth and Adults	55	(1)
9. Health Care: Up in Demand and Cost	56	(3)
10. Luxuries as Necessities	59	(2)
Where You Can Learn about More Home Businesses	61	(4)
Chapter 4: Marketing 101: Getting Customers	65	(22)
Identifying Your Best Customers	65	(2)
Tapping Into Your Customers' Needs	67	(4)
The WPWPF principle	68	(2)
Carving out a niche	70	(1)
Marketing: Different Roads to Meeting Your Goals	71	(12)
Word of mouth	73	(1)
Referrals	74	(2)
Public relations	76	(3)
Direct marketing	79	(1)
Advertising	80	(1)
Web sites and e-commerce	81	(2)
Developing a Marketing Plan - Now!	83	(4)
Part 1: Overview	84	(1)
Part 2: Marketing objectives	84	(1)
Part 3: Situation analysis	84	(1)
Part 4: Marketing strategies	85	(1)
Part 5: Financials	85	(2)
Chapter 5: Making the Web Work for You	87	(18)
Bidding for Work	87	(3)
Sites that specialize in putting buyers and sellers together	88	(1)
Tips for winning bids	89	(1)
Keys to keeping clients and building your business with them	90	(1)
Getting Listed in Directories	90	(3)
Online business directories	91	(1)
Association memberships	91	(1)
Going local: SmartPage listings and search-engine local listings	92	(1)
Networking the Internet Way	93	(3)
Online forums	93	(1)
Social networking sites	94	(1)
Online etiquette for making winning relationships	94	(2)
Using Your Web Site to Attract Customers and Clients	96	(3)
What it takes to get traffic	96	(2)
Making it easy for visitors to become customers	98	(1)
Building and Maintaining Your Web Site	99	(8)
Hire someone to create and maintain your Web site	99	(1)
Create a Web site yourself	100	(1)
Skip the Web site and create an e-commerce site	101	(1)
Regardless of who creates it, make your site good	102	(3)
Part II: Managing Your Money	105	(108)
Chapter 6: Making the Transition to Working for Yourself	107	(24)
Transitioning into Your Home-Based Business	108	(12)
Five steps to take before leaving your job	109	(2)
Overview of starting a home-based business	111	(9)
Six Ways to Get the Cash Flowing	120	(3)
Beginning part-time with your new business	120	(1)
Working part-time at your old job	120	(1)
Turning your employer into your first client	121	(1)
Taking business with you (ethically!)	121	(1)
Financing your business with startup funds	121	(2)
Piggybacking with your spouse or significant other	123	(1)
Sixteen Sources of Startup Funds	123	(3)
Putting Together a Business Plan	126	(2)
Knowing When to Move On	128	(3)
Chapter 7: Keeping Track of Your Money	131	(26)
Organizing Your Finances	131	(2)
Setting Up a Business Account	133	(1)
Accepting Credit Card Sales	134	(4)
Choosing the Best Bookkeeping System for Your Business	138	(6)
Check registers and bank statements	139	(1)
Financial statements	140	(3)
Key financial ratios	143	(1)
Finding Happiness in Positive Cash Flow	144	(7)
Treating cash as king!	145	(2)
Finding seven ways to kick-start your cash flow	147	(1)
Understanding collections	148	(3)
Getting a Loan	151	(6)
Discovering different kinds of credit	151	(2)
Getting the loan you want	153	(1)
Fixing your had credit history	154	(3)
Chapter 8: The Price Is Right: Deciding How Much to Charge	157	(18)
Figuring Out What Your Prices Must Cover	158	(5)
Salary	160	(1)
Overhead	160	(1)
Direct costs	161	(1)
Profit	162	(1)
Sizing Up Your Potential Customers and What They Will Pay	163	(1)
Researching Your Competition	164	(2)
Pricing Strategies That Deliver Sales	166	(9)
Creating value for your clients	166	(1)
Setting your prices: five approaches	167	(3)
Changing your prices	170	(3)
Deciding whether to discount	173	(2)
Chapter 9: Getting Health Insurance and Planning for Your Retirement	175	(16)
Providing Your Own Benefits	176	(1)
Choosing Your Health Care Coverage	177	(9)
The spectrum of health coverage	178	(1)
Fee-for-service and indemnity health care plans	179	(1)
Managed care plans	180	(4)
Other health care coverage	184	(2)
Considering the Need for Other Benefits	186	(5)
Income protection	186	(1)
Life insurance	187	(1)
Retirement and savings plans	187	(1)
Time off	188	(1)
Child care	189	(2)
Chapter 10: Getting a Grip on Taxes and Deductions	191	(22)
Understanding Which Taxes to Pay - and When to Pay Them	192	(13)
Who has to pay?	193	(5)
When do you have to pay?	198	(1)
How much do you have to pay?	199	(2)
When is an independent contractor not an independent contractor?	201	(4)
Taking a Look at the Home-Office Deduction	205	(2)
Reviewing Other Important Tax Deductions	207	(1)
Discovering Sometimes-Overlooked Ways to Save On Your Taxes	208	(2)
Uncovering the Ins and Outs of Sales Tax	210	(3)
Part III: Avoiding Problems	213	(48)
Chapter 11: Legal Do's and Don'ts	215	(20)
Understanding the Forms (Legal Structures) of Businesses	216	(6)
Sole proprietorship	217	(1)
Partnership	218	(2)
Limited liability company	220	(1)
Corporation	220	(2)
Name Registration	222	(3)
Trademarks, Copyrights, and Patents	225	(3)
Trademarks	225	(1)
Copyrights	226	(1)
Patents	227	(1)
Zoning, Licensing, and Permits	228	(4)
Zoning	229	(2)
Licensing and permits	231	(1)
Tax Requirements	232	(3)
Chapter 12: Using Outside Resources and Experts	235	(16)
Establishing Trade Accounts	236	(1)
Using Support Services	237	(3)
Finding Good Lawyers, Accountants, and Other Professionals	240	(9)
Lawyers	241	(1)
Accountants	242	(2)
Bankers	244	(2)
Business consultants	246	(2)
Insurance agents and brokers	248	(1)
Cashing In on Barter	249	(2)
Chapter 13: Eluding Scams, Rip-Offs, and Other Headaches	251	(10)
Sniffing Out the Scams	252	(5)
Job-at-home	253	(1)
Business opportunities	254	(1)
Franchises	255	(1)
Direct-selling, network marketing, multi-level marketing	256	(1)
Places to Check	257	(1)
Finally, Be Wary of	258	(1)
A Final Word	258	(3)
Part IV: Making It Work: It Moving Ahead	261	(48)
Chapter 14: Staying on Track with a Serious Business Attitude	263	(18)
It All Begins with a Serious Business Attitude	264	(4)
It's what's inside that counts	264	(2)
What's outside counts, too	266	(2)
Separating Your Work from Your Personal Life	268	(2)
Avoiding Interruptions and Distractions	270	(4)
Dealing with interruptions	270	(1)
Dealing with distractions	271	(1)
The last resort	272	(2)
Routines Rule	274	(2)
An Organized Home Office Is a Happy Home Office	276	(5)
Managing your office	276	(2)
Managing your time	278	(1)
What's a priority and what's not?	279	(2)
Chapter 15: Coexisting with Kids, Relatives, Neighbors, and Pets	281	(14)
What to Expect from Your Kids	282	(3)
What to Expect from Relatives, Friends, and Neighbors	285	(1)
What to Expect When Working with Pets	286	(1)
Workaholics, Unite! (It's Time to Get a Life!)	287	(2)
Teaming Up with a Spouse or Other Loved One	289	(6)
Knowing when to team up	290	(1)
Figuring out how to team up	291	(2)
Building a healthy, long-term relationship	293	(2)
Chapter 16: Don't Just Stand There, Grow	295	(14)
Becoming a Success	296	(1)
Identifying the Upside and Downside of Growth	297	(5)
Understanding why you may want to grow	298	(1)
Recognizing the many different ways to grow	299	(1)
To grow or not to grow	300	(2)
Bringing In Partners	302	(2)
Cashing Out and Other Exit Strategies	304	(7)
Putting a value on your business	306	(1)
Now what?	306	(3)
Part V: The Part of Tens	309	(30)
Chapter 17: Ten Tips to Succeed in Your Home-Based Business	311	(8)
Do What You Love	312	(1)
Treat Your Business Like a Business	312	(1)
Become an Expert	313	(1)
Don't Be Shy	313	(1)
Charge What You're Worth	314	(1)
Avoid Unnecessary Expenses	314	(1)
Manage Your Cash Flow	315	(1)
Keep Your Day Job	315	(1)
Build a Solid Customer Base	316	(1)
Ask for Referrals	316	(3)
Chapter 18: Ten Things to Avoid	319	(6)
Don't Turn Your Bedroom into Your Office	319	(1)
Don't Use Your Office as a Family Entertainment Center	320	(1)
Don't Work Morning, Noon, and Night	320	(1)
Don't Allow Paperwork and Office Equipment to Take Over Your Home	321	(1)
Don't Let Housework or Hobbies Distract You from Getting Your Work Done	321	(1)
Don't Fill Your Cabinets and Refrigerator with Junk Food	322	(1)
Don't Expect Business to Come to You	322	(1)
Don't Expect to Be an Overnight Success	323	(1)
Don't Give In When Someone Tries to Occupy Your Precious Working Time	323	(1)
Don't Expect to Work Effectively with Children Underfoot	324	(1)
Chapter 19: Ten Myths about Working from Home	325	(8)
You Have to Be a Salesperson to Be Successful	325	(1)
You Can't Work with Kids at Home	326	(1)
You'll Get Rich Quick	327	(1)
You Can't Make Any Money	327	(1)
Home-Based Businesses Aren't Real Businesses	328	(1)
Home-Based Businesses Are Cheap	328	(1)
There's No Going Back	329	(1)
If You're at Home, You Must Not Be Working	329	(1)
You Can Write Off Everything	330	(1)
You Can Run around in Your Pajamas All Day Long	331	(2)
Chapter 20: Ten Things to Do if Times Get Tough	333	(6)
Save for a Rainy Day	333	(1)
Manage Your Cash Flow	334	(1)
Keep in Touch with Your Customers	335	(1)
Push Your Clients to Pay Their Bills	335	(1)
Minimize Expenses	336	(1)
Offer a Special Promotion	336	(1)
Subcontract for Others	337	(1)
Volunteer	337	(1)
Moonlight	338	(1)
Refuse to Give Up!	338	(1)
Index	339