The Westchester Guardian
FEATURE
Be Your Own Boss, 1: Starting a Home-Based Business Continued from page 2 partnerships or corporations controlled by them. You’ll waste no time in commuting. Your working days will be largely unstressed. You’ll pay no office rent every month. There can be significant tax advantages to having an office at home. With a business operated from home, after-hours security is never a problem. You may work harder than you’ve ever worked before-but you’ll enjoy every minute of it because you’ll be working for yourself.
What’s My Line? Service-oriented businesses require no investment in inventory. Chances are you have untapped skills or knowledge the world is seeking and is willing to pay for. Consider these: Consulting services: Office management, investment counseling, estate planning, real estate management, income tax preparation, interior decorating. Services for busy homemakers: Homeor office-cleaning services, shopping and gift buying, package pick-up and delivery, dog walking, pet grooming, pet or plant care while homeowners are away, home repairs (if you have the proper skills and tools). To do contracting, plumbing or electrical work you’ll need a special license. Some home-based entrepreneurs have had success offering narrowly specialized services, such as organizing clients’ closets and home storage space. Services for parents: Child care and baby sitting; academic coaching; delivery and pick-up of children at school. A big selling point, if you are a retiree: parents always feel more comfortable when children are in the care of a responsible older adult. Hobby-related skills: Buying and selling antiques and collectibles, making and selling arts and crafts, sewing and needlework, cooking, catering, fly tying, tennis or golf lessons. Computer-related possibilities: With a personal computer, you can keyboard manuscripts for writers. Heavy Stuff: Do you own a van or pick-up truck? Consider interior or exterior house painting, gardening, landscaping and yard services, swimming pool maintenance, light moving or hauling, messenger service and package delivery.
Plan Ahead Your first move should be to call or visit an office of SCORE (Service Corps of Retired Executives), an agency sponsored by the Small Business Administration, with offices in large and small cities across the
country. Experienced SCORE experts offer free, confidential, one-on-one counseling for small businesses, and in-depth workshops and seminars. In Westchester, the SCORE office is at 120 Bloomingdale Road, White Plains, NY 10605. Telephone: 914.948-3907. Office hours are from 9:00 a.m. to 12 Noon, Monday to Friday. All communities regulate the occupations that can be performed from home, categorizing them quite broadly. Your next step should be to investigate zoning regulations by consulting a copy of your local zoning ordinance. A comprehensive business plan is a must for anyone seeking outside capital. Most likely you’ll be self-financed in the beginning, so you can forego elaborate profit-and-loss projections. Start small and feel your way as you go. However, you should know the answers to the following key questions before you start: Who will be my typical target customers? How will I reach them? What products or services will I provide? How do they differ from existing products or services? Who are my competitors and what are their strengths and weaknesses? How will I find customers? How will my business be advertised or promoted? How much capital will I need to get started? What will be my monthly expenses? How much monthly income do I expect initially? A year from now? Two years from now? Estimate what your startup costs will be. Such expenses can include payments for licenses or permits, legal fees, equipment and furniture, plus basic office supplies and stationery. Also add the cost of insurance; if you have a homeowner’s or renter’s policy, such additional premiums can be nominal. Now determine your monthly fixed expenses (also called “overhead”), including lease payments for equipment, telephone expenses, postage, professional dues and publications, and costs of advertising and promotion. To show a profit, of course, income must exceed outgo. Home-based business owners often forgo taking a salary in the beginning, preferring to plow profits back into the business.
Making Room Regardless of the nature of your homebased business, you’ll need a place from which to operate it. Determine your space requirements and find--or create--adequate Continued on page 4
THURSDAY, May 12, 2011
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