THE HOME BASED BUSINESS
IS IT RIGHT FOR YOUR BUSINESS & YOU?
michael w. piczak january 2004
some themes for today
Why from home? Assessing the fit for your business Assessing the fit for you Businesses that succeed from the house The advantages The disadvantages
Giving the appearance of being a player
Equipment you will need Some tips Additional resources
why out of the home?
Keep overhead down Test the waters with your concept
Secondary income stream
Why not?
businesses that seem to operate well out of the home
Mail order operations (MOPS) Bed and breakfast (Tranquility Base) Light manufacturing (surgical instruments Leasing (televisions, computers, helicopters, heavy equipment) music industry promotion (R. Rapidi) consulting services Bookkeepers Graphic/web design (Zapp Design) Recording studio (Grant Avenue Studios) Event planning (It‟s „N Event)
very large businesses that started home based
Apple Computers Microsoft
Ford Motor Company
Phillips Services Corp Amblin Productions MoeTion Productions Michael G. DeGroote/Laidlaw Transport Disney Hewlett-Packard
What is tax deductible?
Any expense incurred for the purpose of gaining or
producing income and incurred with a reasonable expectation of resulting in future business and is reasonable under the circumstances including:
House taxes Mortgage payments Utilities Landscaping House repairs (do not include improvements) Snow removal
how much is tax deductible?
Revenue Canada (CCRA) allows the
taxpayer to choose between
the number of rooms devoted to the business or the proportional floor space
Whichever is to the advantage of the
taxpayer
the benefits
So „traffic is building normally‟, so what? Can see your children off to school Can see your children home from school Can be home when children sick Keeps costs down Can deduct expenses that otherwise are
“personal and living expenses” Can work as hard as you want Not in the mood, then do something else Very flexible
assessing the fit for you
Do you have the discipline? Can you stand the isolation?
Any by-laws restricting you from doing
this?
giving the appearance of being a player
Separate phone/fax line for business Having a post office box for address Separate work/office area
Having an office that is all business (no toys, home
theatre setup, no recreation room appearance, etc.) Separate entrance for business Receiving guests in office located at front of house Serious outgoing phone message Use a cell for business only Hold meetings at clients only Having the trappings of being a serious business Being in Toronto
how many locations do you have…1 with 4 numbers
equipment you will need
Separate room Cell phone Business telephone line
Ident-a-call fax line
Fax machine Laptop Scanner Black and white laser printer File cabinet Desk Good chair Good lighting
some tips
Go to work as though you go to work Remember that between 8 and 5 you are at
work Reward yourself after the completion of an ugly task Blend mental with physical work Get out (networking, coffee, your rounds, etc.) Find a nice way to excuse yourself from telemarketing come on‟s
some tips continued…
Turn your business fax telephone off at night Answer the phone professionally
Practice good time management
Get dressed properly if it helps to provide the
right frame of mind Know if you are a morning or night person If your quit time is 6:00, then that‟s it for the day
watch out for these
Disturbing neighbours (no trucks, many
visitors, bad hours, etc.) Respecting local by-laws about soho‟s Getting distracted to the point you get nothing done Getting insular and not networking or getting out Getting lazy
5:20 to knowing more
Video series in SBRC http://www.bizoffice.com/
http://www.business-at-home.us/
http://www.aahbb.org/ http://www.usahomebusiness.com/
http://www.usahomebusiness.com/
http://www.homebusinessmag.com/ http://www.homebiztools.com/