A friend recommended that I get a “flip video” and start using it.  So I bought one – I’m a sucker for new technology – but I still haven’t figured out if it will help my business.  Here’s how I intend to use it:

• To record tutorials on small business subjects
• To record presentations, which I can then edit and package and put on the web or sell
• To personally connect with people who might want to buy my products and services.

As usual, the technology comes before the human element.  I’m struggling with how to get good pictures on the video – maybe it’s because I can’t stand looking at myself on this thing.

The Crafted Webmaster. I read a great post today from Nicolette Tallmadge at The Crafted Webmaster about how to use video to promote an art website. She says, for example, that a 2 minute video can do more to connect you with potential customers than a 1000-word post.  What do you think?  Do you like video on blogs?  Do you watch videos?  What kind do you watch?

What makes a good video? Videos I like are those that are (1) entertaining and (2) informative.  If they don’t meet both criteria, I’m usually not going to watch.  I should add that a poorly done video is less than worthless.  If it looks like the person is terrified, or if they can’t talk, it all shows up pretty quickly in a video.  A video can also destroy your credibility just as fast as it can build it, so if you are going to put yourself on a video, make sure it’s done well.

My favorite videos. I am addicted to The Quilt Show which has some great videos. Of course, they are professionally produced.  If you have examples of videos you like – or think are awful – let me know. I am going to start working on this.  Maybe if I get up enough courage, I’ll post a video on this blog.

Image source: Newscom

The health care field is one of the fastest growing today, and with more and more Baby Boomers reaching Medicare eligibility, this field will be (pardon the expression) “booming” over the next 10-15 years.  Employment of health records technicians is expected to increase 16% or more through 2013, and many hospitals, medical offices, health care providers, and home health services are outsourcing these skills to home-based individuals.

Think for a minute of every kind of health care office you can imagine – physical therapists, chiropractors, dentists, podiatrists, optometrists, and on and on – ALL of them need coders and billing services!

The new economic stimulus package (American Recovery and Reinvestment Act) recently signed by President Obama provides incentives for health care providers to use Electronic Health Records (EHRs) starting in 2011.  This change to electronic records means (1) more billing and coding can be done at home electronically, and (2) there will be increased demand for EHR-knowledgeable specialists in these areas. While at present only 10% of coders code from electronic records, paper records will almost certainly all-but disappear in the next few years.

Home health records technicians come in two broad categories:

• Billing specialists and services businesses
• Coding specialists

Medical records billing services. These individuals understand the requirements for getting medical bills paid by Medicare and provider networks such as Blue Cross/Blue Shield.  They charge by the claim for entering data and submitting claims; some will also manage accounts receivable for their clients.  Many physicians, for example, find that outsourcing their medical claims billing offers them faster payments and higher rates of payments.

Physicians submit claims online through secure email (for HIPPA security) and claims are transmitted directly to the provider network.  Since everything is done electronically, your clients don’t have to be your neighbors; they can be anywhere.

Coding Specialists.  Coders are the people who put codes on claims that get sent out for payment. Excellent coders are always in demand, because the codes determine whether a claim gets paid or not. The American Assn. of Professional Coders says that about a third of coders work from home.  Hospitals in particular are finding it cheaper to pay coders to work from home by the hour, either as employees or independent contractors.

I know several coders at a hospital in my town who are being asked to work from home, and my niece works out of her home as a coder.  With today’s technology, they can receive doctor’s notes over the Internet and do their coding and send back documents the same way.  The average annual wage for a coder is $43,500, but these are mostly employees; specialists receive more.  I wasn’t able to determine how much self-employed coders get.

Training and Certification Required. To set up a billing service or coding service you will need to learn the business.  You might want to find a local company and work for them for a while to learn, or you can go to training classes.  You will also need to be trained and certified.  The American Association of Professional Coders offers training and certification or check with the Commission on Accreditation for Health Informatics and Information Management Education (CAHIIM) for an accredited institution in your area.

If you are detail oriented and good with computers, a home-based billing service or coding service might be a great opportunity for you.

Image source: Newcom

Everyone gets into a slump once in a while.  From baseball players to the economy, there are natural cycles or rhythms to life, and everyone experiences a down time now and then.  I wrote recently about motivating yourself, but how about your business?  What can you do to get your business out of a slump?

1.  Check your expenses. We all get into a certain level of spending that is comfortable, but I’m guessing you may be spending money on some things that you don’t really need to.  There may also be expenditures that you aren’t even aware of, that you are paying for every month.  Look carefully at your credit card bills and bank statements and check to see if there are any ‘lurkers’ there.  For example, I recently found that I was paying monthly for a service that I no longer used.  But I forgot to cancel it.  Canceling it took just a few minutes and now I have that money available for other things.

2.  Refresh your marketing. Look at how you are marketing your products or services.  Are you getting the best value for your dollars?  Every marketing effort goes stale in time, even the best ones.  Look at McDonald’s; they have a new ad campaign every few years, for a good reason – people get tired of seeing the same old ads.  If you are using an advertising agency, get a new one, or get a new person to do your ads.  If you are doing them yourself, find someone creative to help you develop something new.  How about a contest?  Or a promotional event?

3.  Repackage or clear out your inventory or services. If you haven’t sold something in a while, have a clearance sale and get rid of it.  Or give it as a donation to a charity and take the tax deduction. Repackage products; put a couple of them together and sell as something new.  If you are providing a service, develop a new higher level of service.  For example, create a premium service with extra features.  Or go the other way and do a “low cost” alternative service, being careful not to give away your time too cheaply.

4.  Develop new markets. Who might need your products or services that you haven’t marketed to yet?  If you are selling to Baby Boomers, for example, maybe younger groups might want what you are selling if you package it differently. A quilter who has been selling to gift shops might want to start making quilts for sale at flea markets.

5. Refresh your website. Web sites too need updated regularly.  Put in a whole new look, with new photos and new copy.  You can build up the suspense and create excitement by letting your readers know about the upcoming change.

Just thinking about these ideas has given me some of my own.  Spring is coming and I’m going to get ready to get out of my winter business slump.  How about you?

Image source: Newscom

What kinds of home business opportunities are there for creative individuals?  What is the outlook for creative work in the economy?  There are lots of home businesses you can start now to fill a need in your community and give vent to your creative talents. Here are just a few examples:

Catering. Creative cooking is an art (if you don’t believe me, watch the cooking contests on the Food Channel), and businesses still need caterers to prepare meals for groups and events.  If you can convince local companies that you offer a quality service at a competitive price, you will have more business than you can imagine.

Interior Design/Home Decorating - The interior design industry is expected to grow 19% in the next few years.  If you have skill with design, you could work with furniture companies or architectural firms to design homes and offices.

Desktop Publishing - Desktop publishers create newspapers, newsletters, books, catalogs, and directories.  With many companies outsourcing more functions, you may be able to connect with a book publisher or newsletter publisher and work from home to create the publications they want.

Sewing and Upholstery - If you have skill with a sewing machine, you can make money sewing clothing, home furnishings, and upholstery.  Big commercial sewing has gone to other countries, but there is still a market for custom-made and designed items.  For example: wedding dresses, re-upholstering furniture, draperies, and costumes.

Quilting. You can make money in a variety of ways with your quilting skills, from taking commissions on quilts for others, to doing the machine quilting for a quil someone else has pieced.

Writing and Web Writing- Talented writers are always in demand, and there are many markets for writing you can tap into.  Once you get into a specific niche and get your portfolio built up, you’ll find you can make a living as a writer.  The Internet world is still growing, and if you have familiarity with the web and blogging, you should be able to find work.

Having fun doing what you love and making money at it are the most important attributes of small business success.  I’d love to know what you are thinking about.

Images source: Newscom

Yesterday’s post about aiming high got me thinking about how to stay motivated. Some days it’s difficult to get up and get going – even when your office is just around the corner (literally!) from your bedroom and the kitchen.

I know how it feels. Working at home has its own rewards – and drawbacks. The rewards are that you can work in your jammies and not have to talk to anyone. The drawback is that you are working in your jammies and not talking to anyone. For you – and me – I offer you a list of suggestions to get you re-motivated on those days when it’s difficult to get up and get going.

1. Clear the deck. When my office is a mess (and that’s frequently!) I’m not motivated to get going. Either last thing before you quit at night or first thing in the morning, clear the deck by clearing up the mess on your desk and decide on the first 3 things you need to get done that day.

2. Act like it matters. It does. Sometimes when we’re working at home it doesn’t feel like we are really working a “real” job. But if you look at your last month’s bank statement, you will see that you are doing this for real. If you don’t have a business bank account, get one. Get business cards, even if you don’t have anyone to give them to right now. Get and use letterhead. Get a business signature on your email. Get a real URL with email connected to it, not just .aol or .gmail. Why does this motivate you? Because acting like you are doing this for real is exciting. I’m not saying it will keep you motivated forever, but if you’re having a bad day, the thought that you are in a real business and that it does matter may be enough to get you past the slump. It works for me.

3. Stay Focused. Easier than it sounds. It’s so easy get distracted by what I cal BSO’s (bright shiny objects) – those things that draw us away from what need to be doing. Eliminating the distractions and staying focused can bring us energy and give us additional motivation.

4. Hang around with positive people. I talked today to a woman who is starting a home crafts business. Her excitement and positive energy got me motivated too. Energy is contagious – be sure you don’t catch the negative stuff. When i am down, I call my favorite aunt. She’s always funny and positive and full of energy – at the age of 91!

5. Do something for someone. I learned years ago that when I started to feel down and sorry for myself, the best way out of the slump was to find someone who needed help and do something for them. It can be small – like a card, a small gift, an email, or phone call. I am always surprised how I feel more positive and motivated even when I’m not doing anything for my business.

6. Form a support group. It can be a sometime-group, or a formal MasterMind group. Get together with your group on a regular basis to support each other and talk through issues and problems. It’s a great way to keep each other motivated and moving forward.

7. Take off. On those days when you can’t do anything else, it’s sometimes best just to call it a day – or an hour. Take a walk; read a book; watch your favorite TV show. Sometimes you just need to clear your mind and not think about it for a while. Some of us work 6-7 days a wek, and it’s difficult to stay motivated without a break. Taking off can bring you back to the job with renewed enthusiasm.

Aim at the sun and you may not reach it; but your arrow will fly far
higher than if you had aimed at an object on a level with yourself.

– F. Hawes

Maya Angelou often quotes this phrase and I was reminded of it today and wanted to share it with you. If you are just starting your home business, it’s sometimes difficult, always challenging, and often very scary.  You may not be sure you are going to succeed, but aiming low doesn’t help.  Aim high.  Dream big.  Then get out there and make it happen.

I remind myself daily of my dream with positive affirmations and a look at my vision board.  How do you keep yourself motivated?

Images: PicApp

In the past few days, I have been talking about home business taxes and how to take a home office deduction by determining the percentage of your home that is used for your business and collecting the information about home office expenses.  Today I’ll let you know about daycare businesses, which are a special case.

Determining the percentage of space. First, the “exclusively” section of the requirements for deducting home business section doesn’t apply to daycare businesses.  The portion of your home that you use for daycare doesn’t have to be exclusive. I guess the IRS figures you can’t possibly keep toddlers in one area – they need to use the bathroom and be in the kitchen.  To qualify for this deduction,  you must be a licensed facility.

By the way, “daycare” can also include care for elderly (over age 65) and those unable to care for themselves, as long as you are a licensed facility.

Determinging percentage of time. In addition to figuring what percentage of your home space is used for your business, as I outlined earlier this week, you must also determine what percentage of the time this space is used for daycare purposes. Let’s say you have children in your living room during the day, from 6 a.m. to 6 p.m.  That’s half the day, 5 days a week, or 60 hours a week, out of 168 hours a week, or about 36 percent of the time. You don’t have to use the room absolutely exclusively during the day; you can’t shut your family out of the room.

If you serve meals at your daycare facility, the expenses for those meals go on your Schedule C for your business profit/loss, along with your other regular business expenses.

If your home business sells locally, there are a number of online sources you can use to reach your local market. Except for the first one, which is a phone call service, they charge in one of two ways:

CPC – cost per click – you pay for each time someone clicks on your ad.

OR, CPM – cost per thousand – cost per thousand page views. You get charged for every thousand times that your ad is viewed.

I don’t know which is better, but it makes sense to me that CPC is more meaningful, since you only get changed if someone expresses interest by clicking on your site.

1800FREE411 Here is how it works: Someone calls the number and asks for “flower shops” “Scottsdale, AZ” – they hear your ad – when they call, you get billed.

Yelp reviews businesses in an area. If your business is rated highly(over 3.5) yo9u can buy “premium” service.

Google Adwords allows you to create a short ad and display it for specific search results. For example, if you have a quilting business, you could put an ad on every search for “quilt shop” and your city name.

Citysearch.com also allows you to place an ad on a page with ads, including video and photos.

Local.com (the same as yahoo.local ? ) is an interesting site. When I went to the site, it already had the information on the city I lived in, with ads for restaurants and other local recommendations. Their Local Promote service says it also includes ads on other search sites.

Ask.com sponsored listings has two levels of service. The cheaper level of service, for small businesses, works on a CPC (cost per click) basis.

Each of these services says they will provide you with the widest audience and the most exposure for your clicks. You certainly can’t afford to sign up with all of these services.

Yesterday, I wrote about the first step in deducting your home office expenses to cut your taxes – determining the percentage of your home that is used for your business.  In yesterday’s post, I said:

• You must be able to prove that the portion of your home is used regularly and exclusively for your business (daycare homes don’t have to adhere to the “exclusively’ part), and
• How to calculate the percentage of your home used for your home office.

Today, I’ll give you the list of home office expenses you can deduct.  Of course, for all of these expenses, you must have documentation.  The expenses you can deduct fall into two categories:  Direct and Indirect.

Direct Expenses. These are the expenses that directly relate to your home office.  For example, if you painted the office, that would be a direct expense.  Or if you carpeted the area, that would also constitute a direct expense.

Indirect Expenses. Expenses you pay for your home and which can be allocated to your business are indirect expenses. Your mortgage payment, utilities, insurance, and home repairs are examples of indirect expenses.

Form 8829 lists the expenses you can deduct for business use of your home:

• Casualty losses
• Mortgage interest and real estate taxes
• Homeowner’s insurance
• Rent
• Repairs and maintenance
• Utilities

The indirect expenses will be multiplied by the percentage of your home’s square footage (from yesterday’s calculation).  The direct expenses can be used in total. For example, if you painted and carpeted your home office, you can deduct the full amount of this expense, but utilities are indirect and you can only deduct the percentage (10%, based on yesterday’s example) of the total expense.

Completing Form 8829 is more complex than this list suggests, but I’m providing it so you know the kinds of expenses you need to keep records on.  For example,keep your utility bills, rent payment receipts, and all expenses relating to any losses you might have had from casualties (fire, flood, etc.).

Home Value and Depreciation. Finally, you will need to get information on the value of your home and the land it’s on, using fair market value.

No Losses. An important point to remember: Your home office deduction cannot be used to show a business loss.  It can only be used to bring you to a “no profit” position.  Here’s what I mean: Let’s say your profit before the home office deduction was $1000.  You can only take $1000 of home office deduction, no more.  You can’t take $1500 of home office deduction, even if you could justify it, to get a $500 loss.

Yes, this stuff is complicated and you may not be able to get all of the deduction you could take.  That’s why people sometimes give up.  But here’s how I look at it:

If I have good records and I keep everything possible, I can take the information to my CPA or tax preparer.  Sure, I’ll have to pay for someone to help me fill out the forms and get the deduction, but if I’m legitimately using a part of my home for an office, I’m entitled to the deduction in the same way as someone who rents an office for business use.

The key is to keep good records (that is, accurate and complete) and make sure you are abiding by the IRS requirements (the “regularly and exclusively” thing).

Remember, I’m not a CPA or tax attorney.  My purpose is to give you information so you can gather the right stuff to take to your tax preparer.

I want to take a deduction for using my home office this year, since I’m now working full-time from home.  So I’ve been studying how to do this and I wanted to take you through the process.  Some “experts” will tell you not to bother, that the IRS makes it so impossible to do that it isn’t worth the effort.  I’m not saying it’s easy, but it is possible, if you are willing to spend the time to do the work.  If you haven’t taken the deduction before because you were either unwilling to do the work or not sure what was required, stick around.  Over the next few days, I will take you through the process you must use to generate the information to claim a home office deduction.

Let’s assume for this purpose that you are self-employed and that you are not working at home as an employee. You will be filing Form 8829 (Expenses for Business Use of Your Home) to claim this deduction.

“Regularly and Exclusively” Criteria. First, you must set aside an area in your home that is used “regularly and exclusively” for your home business.  The “regularly” part isn’t too difficult; you just have to show a pattern of use (every day, every week, every month).  But the “exclusively” is pretty tough.  As I understand it, you must not do any other work in the area.  (Daycare facilities don’t have to meet the “exclusively” test.)  One example that’s given is the dining room, where you have all your work stuff laid out.  If the room is used once a year for Thanksgiving dinner, it’s not “exclusively” used for your business.

The IRS is tough on this point because otherwise people would take advantage of the situation and pull out their business stuff only when the IRS auditor came around (and, yes, they can come to your home to see if your claim for this deduction is legitimate).

To figure what percentage of your home is used for your business, divide the square footage of the home office area by the total usable square footage of the home to get the percentage.  Let’s say your home is 2500 square feet and your home office area (a room or part of a room) is 250 square feet.  Your office is 10% of the total square footage of the home.  Hold on to this number, because you’ll need it for the next part of the calculation.

Tomorrow, Part II – What home office expenses you can deduct.

Image source: Stockxpert