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Computer Times
October Feature Article

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More than 20 million people are working at home with computers today. Technology has brought power to the home office and made it possible for a home-based business to project a corporate image and compete against large companies.

Why are home-based businesses so popular? When you asked home-based workers they say:

• You are your own boss.
• You control your own time and your own fate.
• "Down-the-hall" commute saves both time and money.
• You enjoy the comforts of home - (always good food with a large no-smoking section.) J
• Dress code is super (from birthday suit to jogging suit.)
• House is safer because you are always home.
• More time with the family.
• Free to do chores like shopping, cooking, or picking up the kids.
• You can exercise or take a TV break whenever you choose.

While all of this may sound wonderful, be aware that a home-based business does require skills and self-discipline. Don't believe all the hyped up business opportunities on the Internet and in magazines and newspapers that make it sound like anyone with a computer can get rich quick. Many ads and postcards tell us we can instantly make thousands of dollars a month with our computer, working part-time. The fact is, if something sounds too good to be true, it probably is. When I get calls offering me such great deals, I always tell the callers I wouldn't feel right taking such a great opportunity away from them. I also remind them they could make much more money doing what they're recommending rather than selling me their idea, IF the opportunity is such a great deal. Every legitimate way we have seen to make money with computers takes good old-fashioned hard work and does not make you rich overnight.

I feel the most important thing you can do, before you decide to make money with your computer, is ask yourself what you love to do. What is your passion? If money were no object, if you did not have to make a living, what would you do with your time? If you can then turn your passion into a home-based business, you will never have to go to "work." Instead, you will look forward to every day with eager anticipation as you do what you love to do. It doesn't get much better than that.

When you finally decide on a home-based business you would love to do, the real work begins. First, you must get a few basics out of the way:

• Check zoning laws and subdivision restrictions to be sure it is legal to run a home-based business in your neighborhood.
• Choose a descriptive name for your business so people know what type of business or service you provide.
• Register your business with your city, county, and state to avoid legal problems later.
• Get a business license and federal tax ID to project a bigger image.
• Set up a small business checking account to keep your business separate from family finances.
• Order professional looking business cards to project a quality image.
• Order a business phone line to be listed in the Yellow Pages.
• Buy a comfortable chair if you will be in the office a lot. [This is the best investment I ever made.]
• Set up a comfortable desk/work area.
• Select a computer that can be expanded as your business grows.
• Select appropriate software such as a contact manager, easy accounting software, and Microsoft Office
• Increase your insurance (computer system, liability, health, disability, etc.)
• Get a bulk mail permit if you will be doing large mailings of 200 or more letters.
• Lease a basic postage meter to save numerous trips to the post office for mailing packages and to allow precise postage for letters over 1 ounce.
• Use existing equipment/materials to save on startup costs.
• Buy only what you need. Avoid overspending.

Once you get the basics in order, it is important to realize that running a successful home business requires more than simply buying a computer system and printing up business cards. Home workers must face the same challenges of larger companies. They must:

• Get new business/clients
• Promote their business
• Manage time
• Manage money
• Manage business growth
• Plan and prepare for taxes
• Manage legal issues
• Stay organized
• Be a smart businessperson

The home-based worker must also find substitutes for benefits taken for granted in the corporate world like:

• Company-paid health insurance
• Pension and retirement plans
• Office socializing
• Secretarial support
• Raises and bonuses
• Support from other departments

In spite of these challenges, with a "can do" attitude and an entrepreneurial spirit, you can reap many positive rewards. To help you reap the greatest rewards, we asked a few very successful home business people for tips they would give to new entrepreneurs. A summary of their comments follows:

• Don't go overboard on startup costs. Buy only what you need.
• Be self disciplined with a strict work schedule. Let your friends and relatives know you don't socialize during work hours.
• Keep your office space separate from your living space.
• Stay well connected. Use the Internet, e-mail, phone messaging, call forwarding, and other phone features to stay connected with clients at all times.
• Keep a broad outlook. Don't get so involved in the details that you lose track of the big picture.
• Do research, go to trade shows, and talk to others in the business to get ideas for cutting expenses and working "smarter."
• Focus on "quality" service and products, not on money. A money back guarantee does little good for a customer who still has downtime.
• Really "care" for your clients. Treat clients like family. Your schedule should be your customer's schedule. Remember, your clients are your employers.
• Listen to your clients. Take the time to get to know their needs and give each client personal care.
• Be prepared for the unknown. An area flood or a UPS strike can have a dramatic impact on your business.
• Have a second source of income so you can reinvest your profits.
• Use your own seed money, however little you may have, to truly be your own boss. That way, every dollar you invest in yourself only costs you a dollar and not a dollar plus high interest; every dollar of profit belongs to you.
• Determine if there is a need for your product or service BEFORE you invest.
• Do not give away your services. Be professional and ask for a fair price that will cover taxes, insurance, and other overhead expenses.
• Consider using independent contractors and temporary employment services on an "as needed" basis instead of hiring full time employees.
• Develop a support group of experts. Log into the small-business sections of on-line services like Prodigy and America Online.
• Enter partnerships with caution. Have a written agreement and be aware that successful partnerships are much more difficult than successful marriages.
• Keep your sense of humor.

There are many great resources available on the worldwide Web to help you make high profits with SOHO computing. A few sites to get you started are:

The "Work From Home" channel at iVillage (www.ivillage.com/work ) is primarily aimed at "mompreneurs"--mothers who want to work out of the house.

Entreworld.org, from the Kauffman Center for Entrepreneurial Leadership in Kansas City is a virtual mini-MBA program (http://www.entreworld.com ). It addresses the big-picture aspects of starting and building a business. The site acts as an entrepreneurial portal, offering its own content and providing links to related Web resources.

Every home business today needs their own Web site. This give you an image of a larger business and also allows customers to find you on the Web. We have searched the Internet for you and found the very best place for you to register and maintain your Web site. Our friends at ArisHost will register your Web site and give you full Microsoft Front Page capabilities for only $30 per year. Just click here to get started on your own Web site. If you already have a Web site, you could save yourself some money by moving it to Arishost.

We wish you all the best as you work at home with computers.

Till next month . . .

Happy Computing! J

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