121 Ideas To Start A Home Business (Part 2)) - By: Roberto Bonomi

The internet business' money & entry plans: You must have enough money to cover your costs of living and starting your internet business during the following startup period:

* From six months to a year to get underway
* One to three years to turn a profit
* Three to five years to become self-sustaining.
* There are five entry plans that you can consider as options:
* The Sideline Plan: Keep your full-time job and develop your business as a sideline until it takes off
* The Part-time Plan; Provide yourself with a part-time job income while you build up the operation.
* The Interchange Plan: Start your job with a major client from you previous job (if ethically possible), or even turn your previous employer into your first major customer
* The Reduction Plan: Reduce your expenses to be able to live from your working spouse or partner salary until your business gets underway
* The Clients-Source Plan: If you are a recognized expert in your field, you might be able to assure your source of revenue, with a retainer contracts with a few clients for one year
* Get deposits, retainers or partial progress payments as often as you can.
* Ask for payment up front for expenses or arrange to charge them to your client's account.
* Bill immediately upon delivery of your service or product.
* Don't give credit from your pocket, take bank cards.
* If you receive checks, use a check guarantee service
* Offer two to five percent discounts to obtain your payment within 20 days from the date of invoicing.
* Be careful with overdue accounts, the longer the accounts are overdue, the less likely they are to be paid.

Where To Look For Start Up Money For Your Internet Business

Most easy home businesses do not involve extensive startup costs, so you most probably will be able to "bootstrap" your fledgling operation using your own money, but if you can't, use...

* Credit cards. Be clever in this, try to limit charges to items that will pay for themselves, generating income as quickly as possible.
* Personal loans. If you or a spouse have a good credit record, and an existing job, banks will usually give you a personal
* Home equity loans. If you own your home, see if you can refinance it, and this will give you a startup capital.
* Microloans. If you need an amount smaller than $ 25,000 the US Small Business Administration and a variety of private foundations offer microloan programs, that are not based on your personal assets but rather on good character and proven management ability.

The IRS

* If you meet the basic criteria established by the IRS for starting an internet business at a home office, you can deduct the cost of operating and maintaining that part of your residence used for business. So you can claim your deductions, whether you live and work in a house, apartment or condominium
* In order to be able to claim your deductions, the portion of your home you wish to claim as a tax write-off, must be used exclusively and regularly for business. And that portion of your home, must be either your principal place of business or a location where you meet with customers or clients in the normal course of business activities.
* If you qualify for a home-office deduction, there are many expenses that you can deduct
* Mortgage payments and capital improvements, pro rated for the portion of your residence used as an office.
* The cost of operating your car
* Dues you pay to professional and trade associations.

Note: You must be sure the IRS considers you a self-employed individual or independent contractor rather than an employee. This rules can be tricky, so it's wise to consult your accountant for clarification.

Avoid Unnecessary Risks

Get Needed Insurance Your homeowner's or apartment dweller's insurance may not protect you against the following contingencies:

* Business property: You must consider purchasing business property insurance to cover your computer and other office equipment and furnishings.
* Liability for accidents or injuries to customers or business visitors. Consider purchasing a rider to your policy to cover anyone who comes to your home on business.
* Damaged or stolen business property. Even your car will not be covered if you use it for business, if you don't indicate that on your policy and pay the additional amount required.
* Malpractice or errors or omissions This kind of insurance s will cover you against claims that your product or service harmed someone or caused a business loss.
* Disability insurance can cover you against loss of income should you become disabled.
* Partnership insurance will protect you against suits arising from the actions of any partners you have.

Asure Your Payment When You Are Starting An Internet Business

* You will avoid many problems with customers and clients, with a good contract.
* You can obtain pro forma contracts on computer software
* A written contract is always better that a verbal one
* A contract will make your customers take you more seriously
* Spell out specifics such as...
* What product or service will you provide
* When will you provide it
* How you will do it
* What it will cost
* When and how, customers or clients are obliged to pay you
* Consult an attorney or colleagues about the kind of contract you should use. You can as your professional or trade association for information

Your Internet Business Needs Promotion

* Utilize on line promotion resources
* Utilize off line promotion resources
* Utilize word of mouth use face-to-face contact to establish relationships that can generate leads. Talk with people about what you do and listening carefully to find out how you might serve them.
* Get referrals from satisfied customers.

Start An Internet Business But Don't Become A Workaholic

* Don't be fanatic! Take a break every few hours, and that will increase your productivity and your creativity.
* Make Time for Your Private Life
* Set up a firm schedule, but establish and respect a fixed stopping point every day
* Make sure clients know your work hours, because you live there, your are not supposed to receive them at any time. You must learn to say "I will look at it tomorrow" or "We can talk about it on Monday"...
* Hey, you are your own boss, working from your own home! So take some time for doing something you enjoy such as gardening, playing with a pet, or sitting in the sun.
* Remember that relaxing on a regular basis, has therapeutic effects

Make Use Of The Technology

Use as much as the following as you can:

* For standardized documents, your can use the templates that come with your word processor
* The spell checker, grammar checker, and electronic thesaurus features that come with the software
* Special preprinted stationary
* A computer - OF COURSE :-)
* Letter - opening machines
* E-mail and Internet - OF COURSE :-)
* Programmable telephones
* Bubble jet or laser printers
* Electric staplers
* Letter folders and dictation equipment.
*And accept payments with credit cards using ClickBank. You can click HERE to learn how to do it.

THere's No Need For Isolation To Start An Internet Business

* Don't Become Isolated and Lonely: Keep in Contact To avoid feeling isolated, starting an internet business at home requires you to take the initiative and become involved in the world around you. Here are seven ways to keep in contact with peers and colleagues:
* You can join professional, technical or trade associations, and community organizations.
* Read specialty newsletters, journals and magazines to keep you informed about what's happening in your field.
* Go to courses, workshops and relevant seminars
* Try to maintain contacts with peers with regular breakfast, lunch or dinner meetings
* Join forums or networking group that meets on a regular basis.
* Don't neglect the importance of personal and professional friendships.
* If you have more to lose through the lack of knowledge than the cost of an expertise, it's time to hire one.
* If the time you spend on repetitive matters exceeds its benefit, hire an employee, so you can take on an extra project.
* One of the best things about self-employment is that you can tailor your work to fit your own values, priorities and lifestyle.
* Find a match between the life you would like to live and what the world needs and will pay for

About the Author

Author of THE SECRET of The Magic Lamp and it's 42 Self Help CD with Subliminal Messages, that can be found at http://www.drbonomi.com and also author of The Easy Home Business Web Site at http://www.easy-home-business.com

Article Directory Source: http://www.articlerich.com/profile/Roberto-Bonomi/29997

Additional Articles From - Home | Business | Entrepreneurs