Before starting a small business, particularly one where you are producing items or have customers/clients frequenting your home, check on the zoning ordinances for your area. This is especially important if you live in a town or city. Zoning often places restrictions on what you can do with your home or garage if you use it for other than residential purposes.

*Placing signs in front of your home

*Storing materials (especially those needed for construction projects)

*Using your home for production of items

*Having people coming to purchase

*Operating a small shop

All or some of these may be prohibited in your area.

Then you will have to figure out how you’re going to operate a home-based business and work around these conditions. That’s not to say you’re to circumvent the rules. But you may have to do some of your business at home (bookkeeping, correspondence, phone calls, etc.) and the rest at another location.

Unfortunately this might mean you have to rent a space away from home or work with another business owner. For instance, if you planned a shop in your home, then place your items in other shops. (There often are co-operatives or consignment shops for this.)

Or consider developing an Internet based shop. This type of business usually won’t be so affected by zoning. However, make sure before you start.

Many people start their home business as a part time venture while they’re still working at a job for someone else.   This is a way to earn extra income.  It’s also a good way to determine whether your business has a chance of succeeding and whether you’re cut out to be a home based business owner.

The idea of working for oneself, based from one’s home has great appeal to many people, but they fail to consider the drawbacks they may face, such as those I discussed in “5 Disadvantages to a Home Business”.  So they jump into it full time too soon.

Here are some “to do’s” or a check list when deciding whether to go full time with your business.

*Write the pros and cons on a piece of paper

*Write down a business plan…where you need to be in 6 months, a year, 2 years, etc. and the steps you need to take to accomplish this.

*Determine what you’ll need for equipment and supplies.

*How much will this cost?  For instance, when I began looking into the sewing equipment to make my children’s appliqued vest business more productive, I realized the cost would be prohibitive unless I wanted to get really big and have employees.

*What will you have to net (after expenses) to provide a living?

*How much money must you have saved up to live on for 6 months?

*Do you have a back-up plan if your business doesn’t progress as rapidly as you’d hoped.

*If your work involves the weather (working outside), are you prepared for the days you can’t work and earn anything?

*Have you made enough money from your home based business that you don’t need to use your pay check from your “job” for 6 months?

*Do you see this income trend continuing?

*Have you looked into health and other insurances when you no longer have it with your employer?

Consider these items, see where you stand, and determine how you can overcome any that might prevent you from going full time…if you decide full time is what you’d like.

The majority of people start their home business as a part time venture before going full time, if they ever do expand to that extent. There are several reasons to consider starting parttime:

*This brings in extra income to the household.

*This is a way to expand upon a hobby or a skill (something you enjoy) as a way to earn extra income.

*A home business enables a mom or dad to stay home with their children while the other partner works another job, one that provides benefits, until they decide they can afford for both to go full time. Or it may be that one is not interested in the home business so never becomes involved. That’s okay, too.

*With some home based businesses, especially those conducted mainly via computer and the Internet, you can participate in while away from home or traveling.

*Home businesses often work well for people who must care for ill or elderly family members at home.

*By starting your business part time, you can “test the waters” and determine whether it’s feasible to develop it into a full time, full income venture.

As you conduct your home business part time, you will get an idea whether you do want to go full time or whether this is a better endeavor for you to stay as you are. Some parttime businesses are ideal for a limited time in your life, as my quilting business was. This enabled me to be home when my daughter was young, until other opportunities opened up for me.

Also, some home businesses, particularly those evolving from hobbies and crafts, are timely only for a short period. The market subsides as changes occur in our economy, lifestyles, and environment.

After discussing 5 Advantages of a Home Business (see below), I’ll mention five reasons that could be considered disadvantages, or factors to think about seriously before starting your business.

*Must pay your own health insurance. When you own your own business, there is no one paying benefits. Health insurance, dental, and disability are your responsibility. If you’re starting the business while still working at another job or your spouse is working where there are benefits, then you’ll generally be covered. When you are full time at a home based business, you need to find and pay for your insurance. Sometimes this can be difficult and costly.

*No sick days or paid vacation. Generally, when you work, you earn income. When you don’t work, there isn’t money coming in. Most home based businesses don’t have employees to work when you aren’t able. Perhaps a family member is involved with you and can keep things going when you can’t work. But if you organized the business based on both of you working, income could be less when one doesn’t.

*Must make sure you pay taxes, social security and medicare deductions…and on time. When you’re working for someone else, you’re aware you pay taxes and part of the social security and medicare. However, it isn’t your responsibility to make sure it’s deducted and filed on time. As a business owner, this is your task. You must take this into consideration when you receive any money…expenses and taxes must be taken out of the gross first.

*Must set up a marketing or promotion program to get work. You’re responsible for getting the jobs or orders. When working for someone else, this often is done for you and you simply complete the task assigned. If you aren’t letting people know about your product or service, you won’t make any sales (or money).

*Have to make an investment in the business opportunity or some equipment. With most businesses, even if they’re small ones, there is some initial investment. This might be as little as a couple hundred dollars to thousands. There usually are outlays as you operate the business. There is no expense account with a boss picking up the tab. Some of these expenses may be tax deductible, but you have to make an investment first.

This is not to discourage you from starting a home based business. As long as you’re aware of the disadvantages of operating one and allow for them, you’ll may find this is the route for you to take.

Many advantages exist with a home based business and appeal to people who are creative, self-starters, and want to take charge of their lives. However, just because you may not like working for someone is not a reason for starting a business of your own. You simply may need to look for another job.

You may desire, though, eventually to own your own business based upon your interests and a desire for independence. You’ll find several advantages that may appeal to you.

*You are your own boss…to a degree. With a home business, you are the owner, decide what you want to do, and how you’re going to accomplish it. However, if you do want to receive payment, your product or service will have to meet the satisfaction of the person(s) purchasing it.

*You can set your own working hours. Often you can work around family obligations, health issues, or another job. You do have to be a self-starter who won’t be so flexible that you don’t finish projects.

*You can determine your income. You can set your prices, but they will depend on what the market in your area will bear. In order to earn what you need to live on or to provide extras, you will need to be conscientious about working and producing a quality product or service.

*You can work at something you like. Generally when you establish a home business, you’re working at something you like to do, whether it’s an expansion of a hobby or working at a service you enjoy.

*You can work with your spouse. If this is an idea that appeals, you can establish a business at home both of you can become involved in. Thus, you can spend more time together. You can combine your talents, each one contributing his/her experience and expertise. One person won’t have to do all the work.

Other advantages exist with a home-based business that I’ll cover in later postings.

Home based businesses can be many and varied.  With all of them you’re generally self-employed, thus paying your own insurances, taxes, and social security.  Among the variations, you’ll find:

*Working entirely from home such as I did when I operated a dressmaking business.  Customers came to my home with their fabrics, or selected from some I had in stock.  I did the sewing there and they came for fittings.

I also did alterations for a men’s shop.  They usually dropped off the items to be altered and picked them up.  However, if I was downtown, I stopped by the shop.  However, the sewing was done at my home.

With some businesses, you might stop by a client’s home or business to consult about the work.  But the major part of the production will be done at your home.  Many businesses can be operated this way.

*Having your office at home, but working away from home such as one might do with construction, house painting, landscaping, cleaning homes and offices, dog grooming (house call type), surveying, catering.

When my husband Jim was a carpenter, he either did the work for individuals (remodeling or building) or sub-contracted from a contractor who had agreed to oversee the entire project.  In any of these, Jim operated his own business, with office at home but doing the work at another site.

*A combination consist of working at home producing a product, but selling it through shops or shows elsewhere.  I did this when I produced appliqued children’s vests at home but sold them through shops around the country.  Or you might write at home but teach workshops elsewhere. You could  produce a product in your shop at home but install it elsewhere,such as custom cabinetmaking.

*Online businesses are rather unique in that they may fall into the above categories or can be conducted wherever you take your laptop and can connect to the Internet.  Freelance writing, blogging, teaching online classes are a few of the businesses you can conduct as you travel as well as from your home, such as I do. 

Combine this with instant messaging, cell phones, conference calling and other electronic innovations, home businesses of the future can be conducted wherever you place your pillow, although you will need to have a residence in some country and town.

Your business may be a combination of more than one type of business.  With the evolution of the Internet, so much more business can be conducted from home and when you’re traveling, a factor that enables more people to operate a home-based business. 

Home businesses seem to run in my husband’s and my families.  We both grew up on dairy farms, Jim in southeastern New Hampshire and I in the Hudson River Valley of New York State.  Both my parents came from farming families as did Jim’s dad.  Did this make us determined to own our own businesses after Jim finished flying for the Air Force and the airlines?  I don’t know.  But that’s where we’ve gravitated.

Over the years, depending on where we lived and the economy of the times, we’ve worked for others as well as ourselves.  Sometimes we were involved in both types together.  Through these experiences (accomplishments and mistakes), I’ve hopefully gleaned insight I can share with others.

I’ve been a freelance writer for more than 40 years, although I have worked as an employee for newspapers and magazines and a corporation.  I operated a dressmaking, then quiltmaking business from our home for severals and wrote about this for a quilting magazine.  I teach writing and quiltmaking on a freelance basis.

I’ve done housecleaning and gardening.  I helped my mom operate a small family grocery store. 

Jim and his brother owned a vending business, a machinery business, and did some home developing.  Jim operated a one-man carpentry business for 15 years until an auto accident brought an end to this career.  Currently he’s a consultant, helping others set up Internet based businesses.

We also have met many people operating their own at-home and from-home businesses.  I’ve written newspaper articles and magazine columns about these entrepreneurs. 

Do I know all the answers?  No.  However, hopefully, I can give you information, resources, encouragement, and point you in the direction for answers I don’t know.

Welcome to Home Biz Notes!  The source of information to help you develop and conduct your home based business.

Starting a home business, whether one conducted mainly at home or one with office at home and working away, has become the dream of more and more people.  You might say the American Dream nowadays is having one’s own business.

A century or more ago, many families operated home based businesses.  Then the Industrial Revolution resulted in more factories and businesses that employed people in away-from-home locations.

The Internet also has initiated a resurgence in working from or at home.  Some businesses also allow their employees to work much of the time at home, contacting the office through e-mail and phone, instant messaging, online conferencing, etc.  Sometimes these employees even become self-employed and work for the company, from home, on a contract basis.

Blogging, such as we do here at b5media has become a business for writers and bloggers with a variety of interests.  We can work from our home…or away, as long as we have a notebook computer and Internet connections.  But we’re still considered “home based.”

With this greater interest in working for oneself, being one’s own boss, and generally not having employees, it seems practical to have a blog on this topic at b5media.

I’ll discuss a variety of home businesses and information related to them that should help you as you pursue your dream.

Let me know what you’d like to hear about.  How can I help you with information,  resources, and encouragement?