How to be your own boss
Many people now is making a big change in their lives starting their own home business. That is be your own boss.
We know that changes are hard to make and becoming an entrepreneur from night to day is not that easy, but I have found an excellent article that will help you out to start your own company and be your own boss.
Every big change starts with little steps. Read the full article and pay attention to this blueprint that will turn what you know about home business.
Starting a small business from home: benefits, strategies, and tips for a successful launch
Many people find themselves starting a small business from home as a result of such life-changing events as retirement or parenthood.
A business based at home will benefit you personally by eliminating a daily commute and allowing for a flexible schedule, and financially because you will not need to purchase or lease a space and can determine how much you earn.
There are several advantages to starting a small business from home. Other than allowing you to change your lifestyle and rediscover your latent talent and strengths, being a home-based entrepreneur also comes with the following benefits:
1. Independence and personal freedom — Generally, working from home means you have less commute time and more time to commit to work. Good time management skills will enable you to gain control and shape your work life in line with your objectives as a business owner. You have the freedom to work and earn as you choose, and you can mold the business to suit your financial goals.
2. Tax benefits — The IRS stipulates that if you use a portion of your home for business, you may claim a home office deduction. Actually, you can claim several associated items on your tax return, including:
- A portion of your rent (or mortgage), utilities, maintenance, and insurance
- Vehicle expenses related to business operations; you may either take the standard mileage deduction or itemize the items (gas, parking, toll fees, and repairs)
- Business trip expenses, especially overnight or out-of-town trips; eligible travel expenses include airfare, ground transportation, hotel, meals, entertainment, and other business-related expenses
- Health insurance — home business owners may deduct the premiums they remit on the health insurance policy for themselves or their employees; additionally, out-of-pocket health insurance
expenses are considered a deductible by the IRS
3. Flexibility and adaptability — Unlike with traditional brick-and-mortar establishments, the advantage with a home-based business is the flexibility it allows the owner to modify business plans and strategies so as to be responsive to changes in the marketplace. It is possible to test out new business ideas without significant economic risk, and the enterprise can scale as the need demands.
4. Lower financial investment and overhead costs — Since the business is being run from a home-based office, there is an overall reduction in overhead costs. Telephone, electricity, and internet access are all part of the domestic budget, while car running expenses are kept to a minimum.
5. Increased productivity, competitive advantage, and chances of customer return — Starting a small business from home lowers operating costs, which can be passed on to customers, and it makes it easier to provide clients with personal service.
The inherent personal touch that small businesses offer is a great incentive for repeat customers.
Since financial compensation depends on the productivity and overall business management of the business owner, this invariably spurs great enthusiasm for commitment to work and can enable you to be more competitive.
Having drawn-up a business plan and considered the benefits of being your own boss, how do you go about launching your business?
Here are some strategies to consider so your business gets started off right.
1. Personal assessment — As a starting point, it is important to assess your personal strengths for self-employment.
2. Business planning — Determine the kind of products (or services) your home-based enterprise will be offering. Come up with start-up costs and determine whether you can personally fund the business or whether you will require financing.
Define your business goals and your break-even point — this indicates where profit from revenue tips the scale from expenses.
3. Budget — Determine your investment budget by considering start-up costs, financing, and other funding options to establish your break-even point. These are still estimates, but they will give you a good idea of what to expect. In the initial consideration for profitability and staying afloat, the major items are easily the start-up costs and funding options.
However, you need to factor in whether some of the work will be handled by a professional, such as an accountant or lawyer, and if hiring such a specialist will be a onetime or repeat occurrence.
4. Compliance — Some of these items may be optional, but it is good to be armed with the necessary documentation in case your business demands it. It may be necessary to incorporate your business for legal purposes, obtain a tax identification number, and comply with other government requirements such as payroll tax requirements, health insurance, and business licenses and permits.
5. Online presence — Secure a domain name, register with any of the available hosting companies, and create a website. Social marketing has become the stock-in-trade for businesses, and it is a good idea to invest some time in polishing up your business profile on these media, including Google+, Facebook, LinkedIn, etc.
It is imperative, however, to gauge your family’s support and strive to keep everyone happy by arranging the home-based workplace such that nobody’s space is compromised.
The following should also be considered:
- Understand pertinent legal issues to operating your business.
Speak with a legal expert regarding laws and regulations within your state or county, especially those that pertain to operating your type of business from a residential home. Certain ordinances such as zoning restrictions may be in force in your neighborhood. A legal advisor may also give you some helpful hints on tax implications.
- Be prepared to compete. Most likely, your business venture is not unique, and it is prudent to know your competition just as much as you research on your market potential, as the two go hand-in-hand.
- Get rid of insurance policies you don’t need. Insurance is meant to mitigate risk and protect you against the really big stuff. While it is worth having small business insurance, review your level of exposure to loss to determine the appropriate policy.
Be your own boss
It is always a good idea to evaluate the risks associated with starting the particular business you want to launch. In most cases, you can mitigate these risks, once identified, by incorporating them at the planning stage as part of your overall business strategy.
Find this article at: http://smallbiz.theupsstore.com/blog/small-business-blog/2013/05/14/starting-a-small-business
So, do you accept the chanllenge to be your own boos?