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The Entrepreneur Magazine Starting a Home-Based Business

The Entrepreneur Magazine Starting a Home-Based Business

by Entrepreneur Magazine, Inc Staff Entrepreneur Media

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From the experts at Entrepreneur Magazine—Everything you need to know to start and grow a successful home-based business.

Extra money, a better lifestyle, the satisfaction of building a business you believe will really take off—whatever your motive, the success of your home-based business depends on making the right decisions from the very start. And


From the experts at Entrepreneur Magazine—Everything you need to know to start and grow a successful home-based business.

Extra money, a better lifestyle, the satisfaction of building a business you believe will really take off—whatever your motive, the success of your home-based business depends on making the right decisions from the very start. And this comprehensive guide will help you do just that. It's packed with expert advice from some of the most experienced and knowledgeable people around—the staff of business consultants at Entrepreneur Magazine. You'll learn:

  • What businesses are best conducted from home.
  • How to research your potential markets, analyze the strengths and weaknesses of your competition, and set your prices accordingly.
  • How to organize your finances correctly right from the start—and avoid disaster later.
  • How to establish effective advertising and promotional strategies without spending a lot of money.
  • How to handle the legal aspects of a home-based business—forms of operation, licenses, zoning ordinances and restrictions, and taxes.
  • How to control crucial, but often overlooked, issues like time management, business image, and working in isolation.
  • How to turn a room into an office and buy equipment, supplies, and fixtures to create an efficient, comfortable working environment.

    Also available from the Entrepreneur Magazine library: The Entrepreneur Magazine Small Business Advisor, Second Edition, Starting an Import/Export Business, Small Business Legal Guide.

Product Details

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Entrepreneur Magazine Small Business Ser.
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6.22(w) x 9.31(h) x 0.78(d)

Read an Excerpt





An ever-growing number of employed persons are realizing the limits of working in corporate America. After years of battling their way through daily commutes in gridlock traffic, tolerating office politics, and sacrificing their personal lives to meet deadlines and satisfy others' expectations, they have decided that enough is enough.

Home-based business is providing a way for these people to realize their potential. Perhaps the oldest method of entrepreneurship, it is growing in popularity every day.

If you have been compelled to forfeit your personal or family life to make a living, you can now look forward to having the best of both worlds.

As people head home in droves to start businesses, another change is taking place. People used to think that if someone worked at home, it was because he or she couldn't get a job or had been laid off or fired. Now, working at home and starting a home-based businesses has become not only acceptable but a sign of individual capability.


The number of home-based businesses has grown dramatically. Some of the many advantages home-based business offers include:

  • Freedom, flexibility, and administrative control
  • Increased productivity
  • Decreased operating costs
  • Greater individual earning potential
  • Reduction of stress
  • More time with family

Thanks to technology, people can work as productively from a spare bedroom, den, or garage as from any commercial facility. As we increase our focus on efficiency and value, home-based entrepreneurs can be proud of their ability to avoid the high costs associated with industrial/ commercial start-ups. Their new found flexibility allows them to devote more time to their families.


The word entrepreneur conjures images of bold risk-takers, creative pioneers, and determined spirits-- individuals who look at things a little differently from everyone else. The word is French in origin, but the entrepreneur has definitely become an American phenomenon and represents one of our greatest natural resources.

Just what kind of person is a home-based entrepreneur? There is no stereotype. All kinds of people are starting businesses from home-- twenty-somethings, octogenarians, city dwellers, suburbanites, country folk, college grads, and high school dropouts. All types of people can find success from home.

Entrepreneurs share at least one thing in common: the willingness to take a risk and start a business. Cut from a different cloth, home-based entrepreneurs are not professional managers who want to work for someone else. They are self-starters who want to take control of their own destiny. Now, more of them are finding that the home offers an environment better suited to that goal.

Home-based entrepreneurship comes at a price. Although there is a great deal to gain by making your home the shared focus of your personal and professional life, you must be prepared to work hard, make sacrifices, and press the limits of your self-control to make your venture successful. Every entrepreneur encounters obstacles during start-up. By taking the home-based route, you can avoid many of the hurdles traditional start-up businesses face, such as facility and location requirements and costs. At the same time, you take on a whole different set of responsibilities:

  • Developing a professional image
  • Managing your business and your household
  • Separating your personal and professional commitments for the sake of your business
  • Dealing with isolation
  • Fitting a company into a home environment

Each of these items will be discussed at greater length in other chapters of this book. All of these responsibilities will require your attention. Neglect any one of them and your enterprise may never get off the ground.

This chapter will help you understand some of the intangible aspects of working from home. It offers you some proven strategies for tackling some of the less obvious problems you may confront.

As home-based entrepreneurs with families will attest, running a business from home creates a spirit of pride within the household. This "all for one, and one for all" way of seeing the business as a family enterprise makes the family willing to endure financial and personal sacrifices to benefit from the long-term goals of the business.

Entrepreneurs who achieve success are able to strike a careful balance between family and business life: the two enhance each other, bringing out the best in both. The family goes into the venture with an enthusiasm that grows stronger as the business grows stronger. Successful home-based entrepreneurs have learned to place the concerns of the family at the forefront of their lives while not letting these concerns interfere with business decisions that must be made.


How many times have you thought to yourself, "I'm going to do it. Today, I'm going to get started with my plans for my own business," only to shuffle that ambition into the recesses of your mind for future consideration? The thought of starting a business is frightening for most people-- even those who eventually do it successfully.

Starting a business forces you to come to grips with the feasibility of your ideas and the proportions of your own strengths and weaknesses. Self-doubt and second-guessing of your potential for success and financial security are often the results. That's why the question "Are you ready?" becomes much more poignant. Only by confronting your fears and hesitations can you begin to evaluate your strengths and weaknesses, your likes and dislikes, and the type of business that might be most suitable for you.

Facing your insecurities also forces you to ask yourself why you want to be in business for yourself. Although the answer may appear obvious to you, upon closer examination you may discover other, more pertinent reasons. Did you know that the primary motivating factor for many people isn't money, but opportunity-- opportunity not offered to them by the corporate world? A home-based start-up is one of the best ways for entrepreneurs to maximize their opportunity while minimizing their costs.

The corporations' loss is definitely an economic benefit to the small business community as growing ranks of entrepreneurs contribute their unique visions and talents. According to the Small Business Administration (SBA), home-based business is the fastest growing segment of small business.

Starting a home-based business is the American dream for a growing number of entrepreneurs. To take advantage of that dream, however, you must consider some factors before embarking on your own business venture. These include:

  • Your primary reason for being in business for yourself
  • The amount of risk capital available
  • The amount of credit available
  • Your skills
  • Your likes and dislikes
  • The amount of effort you are willing to expend
  • Your financial goals
  • Whether you can begin full-or part-time

Numerous money-making concepts are presently on the market. You may have an original idea that you would like to develop. Ultimately, the decision of what type of business you're going to start rests with your own ambitions.

What type of business will give you the most satisfaction? Which concept will allow you to achieve your goals and is that idea marketable? You should aim to start a business that you will enjoy running, one that is in a growth industry that has accessible markets in your area, and one that will allow you to develop financial freedom.


An old saying states, "Businesses don't fail, people do." A business is merely a reflection of the people running it. If the people running the business are strong in one area and weak in another, the business will show that. This correlation is even more apparent in small businesses.

As the owner of a small business, you will have to handle many different responsibilities within the operations of your company and cope with a variety of situations. For some of these situations, you will have only limited experience, if any at all. As an entrepreneur, you have to know your strengths and weaknesses so you can compensate in some way for the areas in which you are not proficient.

To determine your entrepreneurial strengths and weaknesses, take the time to evaluate the major accomplishments in your personal and professional life and the skills that enabled you to complete those tasks. This evaluation involves three steps:

  1. Create a personal resume.Start by listing your professional experience. For each job you've held, write a short description of the various duties you were assigned and the degree of success you experienced. Next, list your educational background and any extracurricular activities you participated in during your scholastic career. Finally, write down your hobbies.
  2. List your personal attributes. Are you personable? Do you feel comfortable around other people? Are you self-motivated? Are you a hard worker? Do you possess good common sense? Are you good with numbers? Do you have effective verbal and written communications skills? Are you well-organized?
  3. Detail your professional attributes. List the various management roles and tasks you expect to face: sales, marketing, financial planning, accounting, advertising, administrative, personnel management, and research. Alongside each function, write down your competency level-- excellent, good, or poor.

Key Attributes

Use the following sample checklist to audit your personal and professional attributes. By putting together a resume and a list of your attributes, you will have a fairly good idea of your likes and dislikes and your strengths and weaknesses. Once you know these things, you will be able to identify what qualities you will bring to the business and what areas may require training or additional help.

Some of the key attributes you need to possess are:

  1. Initiative. You need to be able to work well independently. Much of the support available when you work for someone else won't be found at home. You can't turn to a supervisor or coworker and ask for help. Therefore, it is very important for you to be a self-starter and to be able to critique your own work.
  2. Risk taking. Without the ability to take risks, you won't go very far with your home-based venture. There are no guarantees that your business will succeed. If you want the security of a guaranteed income, remain an employee of another company.
  3. Creative thinking.Most people associate the entrepreneurial spirit with an ability to innovate. Entrepreneurs are willing to try something new, to look at things differently, to find a niche and fill the void.
  4. Motivation. Just because you work for yourself doesn't mean you can work less. Instead, it may mean just the opposite: working longer hours and wearing many more hats than when you worked for someone else.
  5. Experience. You're going to need experience both in the field of business you choose to start and in general business principles. A great many entrepreneurs have great ideas and a lot of talent, but don't know the first thing about running a business. Remember, most home-based businesses are run by one or two people. There won't be anyone in your business to turn to for answers, and there won't be anyone looking over your shoulder to make sure that you do the right things-- on time. If you don't know the basics of running a business, you'd better do some quick self-education.
  6. Organization. Plan your time and organize your activities efficiently. Develop a schedule and adhere to it.
  7. Ambition. You don't have to be ambitious to the point of greediness, but you should have enough ambition to keep going in the face of adversity. Some people may not take you seriously because you operate from your home, but you can't let that get you down. You have to be persistent enough to get around any prejudice regarding home-based businesses.

Some of these attributes are inherent; others can be learned. Successful home-based entrepreneurs strongly suggest joining associations, subscribing to magazines, and reading small-business books (especially in your area of interest). See the appendixes at the end of this book for lists of these resources. Ask other people in the same type of business about situations they've encountered and how they handled them. Learn from their mistakes so you won't make them yourself.

Setting Objectives

Many entrepreneurs go into business to meet a set of personal goals they've established for themselves. For some, it's as simple as having the freedom to do what they want when they want, without anyone telling them otherwise. For others, achieving financial security is a major personal goal. Whatever they may be, your personal objectives play an integral part in selecting a business that will be right for you.

After all, if you start a business that doesn't meet your personal objectives, chances are you won't enjoy it. Sooner or later, it will become just a job; you'll lose interest or you won't put enough work into it to make the business work.

When forming goals, whether personal or business-related, consider their most important characteristics:

  1. Specific and detailed. Whether your goal is to start a business, raise capital, or lose weight, you must be very specific: size, shape, color, location, and time.
  2. Positive and present tense. A financial goal is not just to pay bills or get by, but to be financially secure. Set a specific minimum amount of dollars in a given period.
  3. Realistic and attainable. If you set a goal to earn $100,000 a month when you've never earned that in a year, your goal is not very realistic. Begin with a figure that's realistic. Once that first goal is met, you can project additional ones.
  4. Short-term and long-term. Short-term goals should have these characteristics and be attainable in a period of weeks or months, up to one year. Long-term goals can extend much longer. You are the only one who can set these parameters. You must decide what is a realistic time frame and what is not.

Once you've set your personal goals, decide which ones are most important to you. This will help you examine your entrepreneurial desire and how it relates to other important aspects of your life.

Risk Assessment

Every business venture, regardless of timing, products, services, personnel, and capitalization, has inherent risks attached. The first two tasks you should complete are (1) assessing those risks and (2) taking steps to diminish them.

Once you have a clear picture of the risks involved, you can make an educated decision on whether to proceed. Some techniques for assessing risks include:

  • Research similar types of businesses. Look at their locations, advertising, staff requirements, and equipment. They are also your competition; get an idea of what you will be up against.
  • Research current market trends. What seemed like a hot idea over the past few months may only be a fad. Find last year's phone book and call several of these types of businesses. Are they still around? If you live in a small community or want to expand your research, your local telephone company may have a library of phone books from other cities.
  • Know your strengths and likes. Does this type of business suit you? Is it too physical? Not physical enough? Do you know experienced persons who can handle the areas that you personally have little or no expertise in?
  • Create a family budget. How long can you live without a paycheck, in case you need to put all your income back into the business? What other income can you reasonably expect while you're in start-up? Make sure your family understands what you are doing. Ask for their support. They are sharing in the risk, and they will be more willing to assist you if they understand exactly what you are doing.
  • Know how changes in the economy will affect your business. Is this the type of business that could be damaged if inflation rises by two points? What's the history of this type of business during various economic waves?
  • Write a business plan. Once you are serious about starting, your business plan will be your blueprint. It can be simple or complex, depending on the type of business, number of investors, and so on. But it is necessary, if you really want to increase your odds of success as an entrepreneur. See Chapter 3, "Planning for Success," for a detailed description of how to write a business plan.

When starting a business, proper planning and research are absolutely necessary. There is no other way to succeed. Many people get into business, put up the needed money, and then fail without ever knowing why. If you don't take the time to research your prospective business, you may fall victim to one of these common start-up blunders:

  • Insufficient capital requirements
  • Optimistic market opportunities resulting in an overestimation of projected sales
  • Saturation of the market by the competition
  • Poor access to markets because of a bad location
  • Inadequate equipment projections

Don't let any of these blunders occur. Do the required market research, as detailed in Chapter 3 and do the necessary business planning. Your first research and planning steps are to assess your start-up requirements and calculate how much income you are going to need to get your business off the ground.

How Much Money Will You Need to Start?

There are a great many philosophies regarding the actual start-up costs associated with a business. Some entrepreneurs have begun successful operations with next to nothing, often using the start-up financing techniques discussed in Chapters 3 and 4. There is nothing wrong with that approach if you're willing to sacrifice yourself and spend a great amount of time and energy making your home-based business work. But under-capitalization is one of the primary reasons for business failure.

You must make sure that all your start-up costs are accounted for-- not just your opening expenses, but your initial operating expenses as well. Generally, these numbers can be estimated from similar businesses operating in an area that is comparable to the one where you wish to open, or from trade associations, trade periodicals, suppliers, and other industry sources described in Chapter 3.

Although every business has unique costs associated with it, some start-up costs are general to most home-based businesses; these are described next.

  • Phone and utilities.Some telephone and utility companies require deposits; others do not. A deposit should not be required if you have established a payment record with the company as a homeowner or tenant. Telephone deposits are determined by the number of phones and the type of service required. Unless you need a large number of phones and lines, the deposit is likely to range from $50 to $200. Deposits for gas and electricity (when required) will vary according to your projected usage. It is possible to lower them by not overestimating your initial consumption of these utilities.
  • Equipment.Equipment costs will vary from operation to operation, depending on how equipment-intensive each one is. Common equipment needs are office machines and supplies. To determine what your equipment costs will be, list all of your requirements for efficient business operations. Next, price those items by obtaining quotes or bids from several vendors. Government purchasing agents usually require three closed bids, which is a good minimum number of quotes to start with. Use the quotes you receive to estimate your start-up equipment costs.
  • Fixtures. The broad category "fixtures" can include items such as partitions, paneling, signs, storage shelves, cabinets, lighting, shelves, tables, stands, wall systems, showcases, and related hardware for product storage or display. The cost of fixtures depends on a number of variables: location within the home, size and present condition, the type of merchandise to be sold, what kind of image you want to project, and whether new or used fixtures are purchased.
  • Inventory.Like equipment, inventory requirements change from business to business. Even if you have a service business, you'll still need to store your inventory of office supplies, such as stationery, invoices, and purchase orders.
  • Leasehold improvements.Immovable installations within your residence that result from remodeling are called leasehold improvements. They include carpeting and other flooring, insulation, electrical wiring, plumbing, bathroom installations, lighting, wall partitions, windows, ceiling tiles, painting, security systems, and some elements of interior design. Because the cost of improvements can vary tremendously, you must investigate your needs carefully.
  • Licenses and tax deposits.Most cities and counties require business operators to obtain various licenses or permits to comply with local regulations. The costs for licensing will vary from business to business in conjunction with the particular start-up requirements. In addition to licensing fees, you'll also need start-up capital for tax deposits. Many states require an advance deposit against future taxes to be collected. In California, for example, if you project $10,000 in taxable sales for the first three months of operation, you must deposit 6.5% ($ 650) with the state tax bureau when applying for your sales tax permit number.
  • Marketing budgets. Most businesses require a strong "grand opening" push to get off the ground and build a customer foundation. Most companies determine their first year's advertising budget as a percentage of projected gross sales. They peg their ad budgets at 2% to 5% of their projected gross sales.
  • Professional services.During start-up, you'll probably need the help of a lawyer and an accountant to make sure you meet your legal and tax filing requirements. Fees for these professionals will range according to their expertise and your geographic location.
  • Pre-opening payroll.If your involvement in the business will be full-time, you'll have to set aside at least one month of pre-opening salary for yourself, in addition to a three-month reserve. This payroll reserve will also apply to any employees you might hire during the business start-up phase.
  • Insurance. Plan on allocating the first quarter's cost of insurance to get your business rolling. A word of caution: If there is ever a time for realism, exercise it when estimating these costs. It is better to have a cushion of excess money to support the start-up of your business than to have insufficient capital.
How Much Income Will You Need?

To determine how much money you have available to invest in a business, evaluate your credits (assets) and debits (liabilities) by using the Personal Balance Sheet on page 22. List all your assets and their value in the top portion of the form: house, car, jewelry, and so on. Then list all your debts in the bottom portion: credit cards, mortgage, bank notes, personal debts, auto loans, and so on. Compute the ratio between total assets and total liabilities to determine your net worth or degree of indebtedness. This ratio is assets;liabilities, or line A;line B. The ratio should approach 2;1, or, if you are like most people, 1;2. This is generally referred to as the acid-test ratio or quick ratio. If your assets exceed your liabilities, you should be able to keep the creditors from knocking on your door.


The responsibilities of a home-based business owner are vastly different from those of a corporate employee. When you work for someone else, you are responsible only for carrying out your particular duties. A home-based entrepreneur, however, must also pay the bills, seek out new clients, and market the company.

To perform all these tasks and still maintain a professional image, a home-based business owner may need to make some sacrifices. A key factor is how you manage your time. This takes discipline and knowing when and what to delegate. Time management is important not only to the psyche of the owner, but also to the bottom line. Without it, your business can suffer. Follow the guidelines below to stay on schedule.

Logging Your Personal Time Use

Realizing the importance of time allocation and its influence on your business is definitely the first step in establishing a time-management system for yourself. You'll want to begin by exploring your personal uses of time. Once you become more aware of the ways in which you spend your time, you can remedy your less efficient approaches to various tasks.

The only way to track your use of time is to keep a log. Record your work segments in this log for as long as it takes to get a good reading of your typical usage of the workday. (One or two weeks should be sufficient.) Aside from its obvious concrete benefits, keeping a log is an extremely important practice because it creates awareness of the way in which you run your business.

Here are some questions you can ask yourself at the end of each logged workday, to make the most of the process:

  • What time did I start my most important project today? (There's a saying: "The way the first hour of the day goes, so goes the day.")
  • Could I have started it sooner?
  • Did anything distract me from completing it? What? Why?
  • Could I have avoided the distraction?
  • Did I recover immediately? (Often, a 10-minute distraction will require another 30 minutes to resolve.)
  • What might I have done differently today?
  • What, right now, is my single biggest time-management problem?

That last question is very important. Time wasters must be identified and eliminated by looking within yourself and assessing your time profile candidly.

Let's deal with interruptions. There are two types: necessary and unnecessary. That distinction is more important than it might appear. To test this, just ask yourself, "If I did not have a single interruption for a month, where would my business be?"

Many interruptions are necessary; the way in which we choose to handle them allows them to bog us down. If we go into a situation knowing full well that there are going to be interruptions because they're part of the business we're in, then we can create ways in which to deal with them effectively. For instance, instead of allowing your incoming calls to be the variable that ultimately determines your daily schedule, you can let your answering machine or answering service take all calls and then choose which ones you will return at a specified time during the day. In that way, your time is yours rather than someone else's.

After you have completed your daily log of activities and identified your own personal time wasters, divide them into categories so you can classify and conquer them. Most time wasters can be categorized as self-imposed or system-imposed:

Self-imposed time wasters or those you create yourself. These include:

  • Insufficient planning
  • Failure to anticipate
  • Poorly defined goals
  • Unrealistic time estimates
  • Procrastination
  • Attempting too much
  • Mistakes (your own)
  • Involvement in details
  • Ineffective delegation
  • Over-control
  • Reverse delegation
  • Going directly to people (when intermediates could handle)
  • Calling people unexpectedly
  • Excessive socializing
  • Inability to terminate visits
  • Preoccupation
  • Emotional upset
  • Lack of discipline
  • Fear of offending
  • Inability to say no
  • Arguing
  • Failing to listen
  • Slow reading
  • Distracting objects in work environment

System-imposed time wasters are those things that the business system or other external forces (like other people) bring upon you. These include:

  • Insufficient planning by others
  • Lack of company policy
  • Inconsistent values within company
  • Lack of authority
  • Meetings
  • Delays
  • Waiting for others' decisions
  • Poor communications
  • Lack of feedback
  • Unclear problem
  • Mistakes (other people's)
  • Mechanical failure
  • Overlong visits
  • Low-priority memos
  • Overstaffing
  • Understaffing
  • Lack of clerical staff
  • Lack of competent staff
  • Ineffective secretary
  • Distractions

Many things believed to be system-imposed are really self-imposed-- or a combination of the two. For instance, if a neighbor drops in to chat, you have a time waster caused by others. But if you invite that kind of behavior by being open to it or failing to discourage it, then you are also bringing it upon yourself, at least to the degree to which it occurs. Observe your own behavior in these instances. Did you in any way initiate these visits or prolong them?

Keep Visits Brief

A drop-in visit is common in the home office setting, and it can be a real time-waster. Here are some tricks you can utilize to ensure that its toll on you is minimal. First, arrange your furniture in a way that does not make people feel overly welcome and comfortable. (If you deal regularly with clients, however, this advice does not apply.) If someone remains a chronic, unwelcome drop-in, diplomatically let him or her know that you have work to do and will socialize only after office hours. It might help to have a script arranged if you are afraid of floundering. Don't feel bad. Remember that this is one aspect of running a business. The other party should feel apologetic for not demonstrating more sensitivity where you are concerned. Another method you can implement when people stay just a bit too long is to have a few closings that will help them get the picture. You might say, "Before you go . . ." or, "Before we wrap up, is there anything else you wanted to cover?" Be as businesslike as possible at all times.

Keep Phone Calls Brief

The telephone should be handled in much the same way. Many people keep stopwatches or clocks handy and when a certain number of minutes have elapsed (7 to 10 minutes seems common), they begin winding down the conversation with closings like those mentioned above. Let people know you're ready to conclude. Take charge. State your goals at the beginning and summarize them at the end.

If you think you receive an excessive number of phone interruptions, solving the problem may require you to do the following:

  • Prioritize calls. It may not be clear where the phone interruptions are coming from or how many there are. In a telephone log book, write down each phone interruption as it occurs. After a few days, review when the calls came in, their sources and relevance, and the time spent on the phone. Look for trends. Is there one particular caller or group of callers? Once you have this log of callers, you will be able to take action to resolve the problem, either by timing the calls, winding up the conversation by introducing one of the closings above, or making a list of pertinent callers to get back to at a time when you aren't so busy.
  • Screen calls. If you have employees or an answering service, they may have been informing clients that you are the only person to talk to regarding their questions, when in actuality they may be able to help the callers just as effectively. Be sure your employees (or answering service) know how to handle specific items or problems so you won't be interrupted. This will save time for you and the callers.
  • Avoid telephone tag. Avoid wasting your time in returning phone calls to people who are continually not available.

When the person you are calling is not in:

  • Ask when is the best time to contact the person. Get specific information.
  • Ask to speak to the person's secretary or administrative assistant, or a coworker. These individuals may be able to address the purpose of your call, or at least they will work more closely with the person you are trying to reach and can suggest ways of reaching him or her.
  • Ask whether the person you are calling can be paged. The person you are calling may simply be down the hall talking with a co-worker or away from his or her desk for just a few moments.
  • Tell the person you are talking to as much as you can about the purpose of your call. When your call is returned by the person you're trying to reach, he or she can have answers ready for you.
  • Give a specific time when you will be available for the return phone call; for example, "I will be in from 9: 00 to 11: 45 A. M. and in the afternoon from 3 to 5 P. M."

    Make a telephone appointment for a specific time, such as 3 P. M., to return the call or have it returned to you. Many people treat telephone appointments with the same attention given to in-person appointments. The only difference is that the meeting takes place on the phone.

    In these situations, ask yourself, "Does this encounter help me complete my objectives?" If not, it must be dealt with swiftly and efficiently. (The aforementioned diplomacy will go a long way in making sure that people continue to work with you rather than deciding to go elsewhere. If they fail to understand the importance of getting work done rather than socializing, then perhaps they are not the right people for you to work with.)

    Keep Meetings on Schedule

    These same principles apply for meetings. Even though you probably won't have employees in the beginning, you will have meetings with clients, vendors, and suppliers. You will want to set a businesslike tone without being officious. Many people mistake businesslike for unfriendly. In the ideal working environment, people work together on goals in a businesslike fashion. This cooperation shows up in the bottom line. Set time limits on your meetings and make everyone present aware of them. Make sure the purpose of the meeting is clear. Develop and distribute an agenda, and establish firm time limits for each subject to be discussed. Encourage people to get their points across in as little time as possible. Another way to cut down on meeting time is to make sure that only the people who really need to be there are present. Make sure your meetings start on time. Much time is wasted when people who show up on time must stand around waiting for a scheduled meeting to begin. Don't schedule meetings unless they are really necessary. Most people spend too much time in meetings simply because too many unnecessary meetings are held.

    Do your homework before any meeting. Jot down notes on the agenda, and organize your thoughts so that you don't waste time once the meeting begins. Request that others do the same. Postpone the meeting if everyone is not prepared. Take personal responsibility for the productivity of a meeting. Participate in ways that fulfill both the purpose of the meeting and your own needs.

    When you need to keep notes of a meeting, try to record them as the meeting progresses. You won't have to invest time doing it afterwards, and you'll be less likely to leave out pertinent points. Write legibly. If necessary, have the notes typed immediately afterward so that they can be of value right away to you and to the people to whom they are distributed.

    Organize Your Paperwork

    Most desks are a disorganized mess that contributes to the time crunch in an obvious way: Valuable time is spent just finding things. In the long run, many people begin to believe that they are as inefficient as their messy desks. In other words, organization and time are quite closely linked. Solutions to the problem of office organization have filled volumes. Here are a few tips:

    • Handle each piece of paper once.
    • After you have looked at it, don't add it to the growing piles; do something with it.
    • If you think you will need it for information, file it with other background information (and make sure you go through this file and weed out what you don't need every month or so).
    • If it requires immediate action, place it in one of the stackable letter trays on your desk. Label these files, for example, "To Read," "To Do," "To Pay," and "To File." All of the other papers should sail right into the most efficient receptacles ever created for paper: the wastebasket.

    You may feel comfortable using form letters for some of your correspondence. They may not be personal or impressive, but form letters provide fast and concise information that may be more valuable than a personalized letter. They also save the time it takes to personally compose a new letter for a repetitive situation.

    Keep your correspondence as brief as possible, cutting out superfluous words and phrases. Whoever said, "If I had more time, I would have written a shorter letter," understood that clear writing is a skill that requires a lot of practice and attention. Say what you mean; don't make your reader interpret vague references and suggestions. Use your dictionary. Be clear about what you want and you're more likely to get it.

    You can do other things to discourage clutter. Establish a message center on a bulletin board or some other central place, so that messages don't get misplaced. Make sure your phone lists are current, and keep pads and working pens by the phone. (How often have you spent time searching for those?) Spend 10 minutes at the end of each day tidying up. This will ensure that you will not only start each day in a fresher state of mind, but you will prevent mounds of clutter from accumulating.

    Identify Your Objectives and Priorities

    Earlier, the issue discussed was priorities. In keeping your time log, for instance, you will be forced to determine which of your activities are more important for meeting your greater objectives, and which are less important. That kind of prioritizing must be done because it is the only way you can determine which of your waiting tasks should be done ahead of the others. But, by definition, you must determine your objectives before you can prioritize them. If you've already written your business plan (discussed in Chapter 3), you will have a clear vision of your ultimate goal. Your business plan should highlight your short-and long-term goals for your home-based venture. One short-term goal might be "Turn over the initial inventory by June." A long-term goal might be "Expand the business to overseas markets within the next 10 years."

    By creating a list of both of these types of goals, you can determine which ones take precedence over others. The more comprehensive your list is, the more thorough your planning becomes. Your list should serve as a guideline, but it isn't engraved in stone. You can revise it as is necessary to maintain your focus.

    Your list will come in handy during your daily operations. Time puts double pressure on a person torn between two projects that seem equally important. Should you take care of the filing or make an appointment to finalize a client's contract? One may seem more immediate because assorted paperwork is piled on your desk, but the other could put money into your bank account. Weigh the two tasks according to your needs, and according to how significantly they will contribute to your long-term goals.

    Once you have outlined your long-term and short-term goals, explore what you must do to accomplish them. You might make a daily "To Do" list, with each specific duty highlighted. You should incorporate both your personal tasks and your professional responsibilities in the list, and indicate when you need to carry out each activity. For example, making your bed in the morning is not as important as making a call to a client in another time zone. Some activities can be delayed; others cannot.

    Next to your list of activities, put numbers indicating their order of importance. If you need to carry out an activity by a specific time, list a deadline. These notations will help you keep your schedule in order. On some days, you may find that two or three things need to be done at the same time. When that happens, try to delegate some tasks, or, if possible, adjust your schedule.

    Delegate Skillfully

    We've mentioned delegation as a method of time management. In this section, you will learn why it's important to use this often-overlooked tool.

    Delegation is vital to a one-person operation. Without it, important first clients could be lost forever, and your reputation could be damaged. Delegation is a learned skill, not a trait business owners are born with. It's important for you to seek out as many clients as possible and perform work for them, but you can have too much of a good thing. With delegation, you can take a step back and evaluate your operation more objectively, fine-tuning your business as you go along. There are three types of projects you may encounter:

    1. Projects only you can complete
    2. Projects you or someone else can complete
    3. Projects only others can complete

    No matter how hard you try, you will never be able to handle all the projects you want to finish yourself. Some people are afraid to let go of work because they feel that (1) it won't get done, (2) it won't get done properly, or (3) both. This is where home-based operators should take a second look at the part-time employees they hire or the service bureaus they contract with. Are they really not worthy of additional work because they can't do it? Or can they do it, but the owners are just afraid to delegate? Can you hire someone to deliver important paperwork instead of doing it yourself? Will you allow a service bureau to mail out your products instead of trudging to the post office each day yourself?

    Delegation is not a dirty word. It can help home-based business owners manage their own time and help others learn about the company they work for. Here are a few simple steps you can take to put delegation into practice on a day-to-day basis:

    1. Choose part-time employees or service bureaus that will perform the task adequately.
    2. Identify the task that is being delegated.
    3. Specify when you will check on their work, be available for questions or problems, and so on. Encourage and reward employees or service bureaus for their work by giving them more.

    Just about everybody procrastinates, so there's no room for guilt or bad feelings where this issue is concerned. There are steps you can take to conquer this element of modern life. Without understanding and dealing with procrastination, writing down goals for the rest of your life will help only minimally. You've got to get over the hump that may be preventing you from carrying them out.

    Procrastination is doing low-priority things (or nothing) when you know you should be doing high-priority things. One of the many reasons for procrastinating is that you simply don't have your priorities straight. After you have completed your detailed priority list, assigning a sequence to the tasks should no longer be a problem. The most common reason that people procrastinate is that they are putting off the prospect of dealing with a potentially unpleasant task. (Often, they actually enjoy the work once they take the first step and dive in.)

    What are the best ways to face unpleasant tasks head-on? If you own your own business, try calculating the amount of money that your delay is costing you. Delays are very expensive. If you delay handling an inquiry, for example, you could lose a customer and the potential for hundreds of dollars. If you delay servicing a machine when it needs it, you could end up with a very costly breakdown. Sit down and calculate the costs. Seeing the actual dollar amount will be surprisingly effective. If you lose a machine for a day, for instance, you're looking at lost productivity hours as well as emergency repair bills. And the frustration of knowing that the work loss could have been prevented probably won't help much.

    Promise yourself a reward for finishing an unpleasant task. Even a small one might help you get there sooner. Just as you wrote down your goals, let other people know about your tasks, particularly the ones you are having difficulty accomplishing. That method could help your resolve as well. Give yourself a deadline--an early one, if possible-- and stick to it.

    One of the best ways to tackle difficult projects is to break them up into smaller, more manageable pieces. Anything is bearable for a few minutes of time. Arrange to do an unpleasant task for just 5 or 10 minutes. Chances are that once you get started, it won't be so difficult. You may even find yourself enjoying it. The hardest part is always getting started. The dread that accompanies a future project always seems to build on itself, making the project much worse than it was to start with. The trick is to get started, any way you can. Divide the task into time segments or individual units.

    If you are avoiding a certain task because you fear you may not be good at it, that is an entirely different issue. If you can assign the task to someone else, then do so, rather than wasting time debating whether you can do it. As a home-based business owner, you can assign certain tasks to independent contractors who are experts in their fields: advertising, sales, public relations, computer graphics, and so on. You'll be using the delegating principles outlined earlier to maximize your efficiency.

    These techniques provide excellent ways of dealing with the procrastination that haunts everyone. They can be put into practice time and time again. The underlying element that must be changed, though, is your overall attitude about the things you have to do. Your "Do It Later" attitude has to become a "Do It Now" attitude. Most entrepreneurs count themselves among the "Do It Now" people. If they aren't born that way, they make sure they become that way. Things don't just happen for entrepreneurs. Entrepreneurs make things happen.

    The first step is taking initiative-- turning an idea or thought into reality through action; making something happen that might not otherwise occur.

    The initiative process is characterized by:

    • Action rather than waiting passively for something to happen
    • Willingness to move from the known (the status quo) to the unknown
    • Independence rather than dependence
    • More emphasis on risk than on security
    • Expansion rather than restriction
    • Concern with opportunities to assist and support, and de-emphasis of personal rights (your rights at times need to be secondary to getting the job done)
    • Greater willingness to take an extra step. If everyone does only his or her share, there will always be a percentage left undone. People need to do more than their share, contributing whatever is needed to complete each task.

    Entrepreneurs are masters of their own time. They have separated their priorities from their commitments, they have learned how to set long-term and short-term goals, and they have learned to schedule their valuable time in a way that allows them to act on those goals and still retain the flexibility necessary to be open to change and growth. In short, they have learned to manage time.

    Time Management Tools

    Here are some of the many tools available to keep you focused and working efficiently:

    • Filing system. You may need a filing cabinet, file folders, an in/ out basket, and dividers for alphabetizing invoices or other documents. A host of other filing tools are available to help you put paperwork in its place-- and find it again when needed.
    • Calendar. Among the many options are a wall calendar, a date book, or a dry-erase chart. Some of these items are more useful when you're at your home office; others help you keep track of your deadlines while you're on the road. To gain the greatest control and most detailed record of your time, use date books that divide the day into hours.
    • Contact management system. You can use a variety of up-to-date tools to manage relationships with your clients, such as contact management software, e-mail and voice mail systems, and answering machines.


    Though the advantages are attractive, maintaining a successful home-based business is not easy. In the beginning, especially, demands on your time and assets will be considerable, and dedication to the success of the business is critical. These demands may increase the stress already present in operating any business, and can take their toll on family relationships, creating tension both during and after work hours.

    The privacy and freedom gained from home-based business ownership often lead to problems. The absence of outside scrutiny also means insulation from outside input and suggestions, and can result in stagnation and a failure to keep up with the newest market trends. All of these factors can prevent growth and future market success. Separating family and business life is an important step toward the successful management of both. By setting boundaries for proper roles and behavior in each setting, it is possible to head off role carryover problems before they occur. Family members need to know what to expect from you when the arena changes from home to work.

    Family/ Business Boundaries

    You can establish fair and reasonable family/ business boundaries in a variety of ways. Work out guidelines together, creating a family/ business "creed" or "mission statement." Central to the theme of the document should be the fact that business decisions must be based on what is best for the company, and that family politics and problems should not interfere with your business operations. By the same token, business should not dominate your home life.

    All family members should be present when the creed/ statement is done. Family goals should be set first and can be placed in the document as a preamble to the guidelines. Once goals are set, specific guidelines for achieving this success should be outlined.

    Once goals and guidelines have been set, it 's a good idea to create physical boundaries as well. Separate areas of the house should be designated as work-only areas, separate telecommunications should be installed for business use, and traffic and noise levels must indicate respect for business hours in the home. Chapter 6, "Setting Up Your Home Office," gives some valuable suggestions.

    Here are some simple tips to keep the family and business separate:

    • Close the door to your office while you are working. This is a sign to family members not to bother you.
    • Close the door to your office when you have finished working for the day. This will keep you from rushing into your office at all hours of the night.
    • Don't let your children answer your business phone. You may think it's cute; customers won't.
    • Make sure children know you are not to be bothered while you are "at the office."
    • Don't answer your business phone after hours. Your recorded answering message should state your business hours.
    • Don't do household chores during business hours.
    • Schedule short breaks in your workday.

    Turning Your Home into a Business Site

    Some home-based entrepreneurs feel that starting up a business is as easy as making a declaration that they are in business. Every part of the house is used to accommodate the business. Every drawer is used to stash receipts, invoices, and other items that deal strictly with the business. Friends, family, and just about any other persons stopping by the house are free to interrupt the businessperson at the drop of a paper clip. These home-based businesses suffer from a poor image. Is it any wonder that many of these businesses don't last?

    Not all home-based entrepreneurs conduct business in this manner. In fact, with the influx of corporate refugees into the home-based arena, a new wave of professionalism has hit the home office. Specific rooms are now set aside as offices only. Within those home offices, business is conducted away from the disturbances of family, friends, and day-to-day distractions. Accountants and lawyers are consulted. Separate phone lines are installed, and cutting-edge office equipment is put in place. What eventually transpires is a metamorphosis of a room in a house into an office where business is conducted in a professional manner.

    The first thing you have to do when setting up a home-based business is to establish-- for yourself, your family, and your friends-- rules that separate your home life from your work life. The first rule involves the office space. It marks the boundary where home life stops and work life begins. When you are in your office, you are conducting business.

    Your home and business should not mix: They should coexist. Isolating your office from your family life allows you to conduct business without distractions. You can start creating boundaries by approaching your home business as a business. That means developing a sense of professionalism. One of the most significant but least tangible problems home-based entrepreneurs face involves creating and maintaining a professional image. Here are some things you can do to build professionalism:
    • Keep regular business hours so that work seems like work.
    • Build a separate entrance or arrange for direct access to your office so that visiting clients or business associates won't have to traipse through your house to get to your office.
    • Establish family time and work time. Don't let personal matters intrude on your work time if you can, and don't let business matters interfere with the time you've set aside for your family.
    • Make provisions for child care if business demands are such that you cannot adequately care for your children and the business at the same time.
    • Rent a mailbox at the post office or at a private mailbox service, to establish a commercial address rather than a residential one.
    • Install a separate phone/ fax line for your business.
    • Maintain all business records inside your office.
    • Have stationery, business cards, envelopes, note pads, and other office supplies printed with your business name, logo, and address on them.
    • Develop some sort of messaging system-- an answering machine, an answering service, or a voice mail service-- so that clients can leave messages in your absence.

    The home-based business basics listed above may seem very conventional and somewhat restrictive, until you realize what you expect from the businesses you deal with. What would your reaction be if a toddler answered the phone when you called a corporate client? How would you feel if a supplier sent you an invoice written on a piece of scratch paper? As a businessperson, you take certain things for granted. You assume that the businesses you deal with will fulfill certain professional conventions.

    As a home-based businessperson, you may feel tempted to skirt those conventions. In fact, being unconventional may be what prompted you to work at home in the first place. Even so, disregarding the basic rules of business won't work to your benefit in the long run. "Making do" without printed stationery and a well-planned phone system may not cut into your productivity, but it won't boost your image much. For most home-based businesses, taking advantage of every opportunity to foster a professional image is critical.

    A retail operation develops its image in a variety of ways. Its merchandise, its location, its signs, its window dressing, its salespeople-- all of these factors add up to the public's perception of the operation. But if you conduct business from your spare bedroom or den, you have access to none of these attention-getting devices. Your business image depends on whatever limited interaction you may have with clients (and potential clients)-- and that means every detail counts.

    How will your business come into contact with the outside world? One way is in print, so pay close attention to your logo, stationery, and business cards. Although a company logo may seem like a trivial decoration, a cleverly designed, attractive logo can go a long way toward helping your company stand out in your customers' minds. If you aren't artistically inclined, hire a professional to design your typography.

    If you find it's almost impossible to pry yourself away from your desk when the clock chimes closing time, you're not alone. Home-based business owners know quite well the temptation to keep working through the night. In fact, several factors inherent in running a home-based business fuel workaholism. At an outside office, there are clear divisions in the day-- you see people leaving at 5 P. M., and the cleaning crew comes in around 7 P. M. At home, you don't have the obvious cutoff points.

    Home-based business owners may be overworked simply because so many of them are start-up or one-person operations. Still, workaholism left unchecked leads to some real dangers. Excessive business hours can be a tremendous intrusion on family life.

    The key word is balance. Having your work at your fingertips 24 hours a day can be an advantage if handled correctly. Being able to work at night after putting children to bed is a definite plus.

    To keep some balance between your business and your family life, follow these guidelines:

    • Define your work hours and stick to them. Whether you work normal office hours or work in the evenings, stick to your routine. Let your business associates know that you don't answer phones after hours. Sometimes you will have to violate the boundaries, but if you make long hours the exception rather than the rule, you'll be fine.
    • Create a specific work plan for each day. If you don't set goals and limits, work expands to fill available time.
    • Set up good support mechanisms. Purchase equipment, phone lines, a fax machine-- whatever you need to make your home office more efficient. Arrange an account with a delivery service such as Federal Express, or invest in a postage meter if you're far from the local post office. In that way, you won't waste time running errands.
    • Take breaks during your workday. It is important to get away from your office from time to time during your workday. Take a walk around the block, have a cup of tea, or play a quick game with your children.
    • Close the door to your business. If your office door is open and you can see the work piled up on your desk, you are far more likely to head back into your office to make more calls or do paperwork.
    • Don't talk about business during family time. If all you talk about is your business, your family may grow to resent your entrepreneurial efforts. When you leave your office at the end of your workday, leave your business behind you.
    • Expect the unexpected and work to avoid it. In any new business venture, conventional or home-based, situations happen that are out of your control. Your house may need cleaning, or the garage door may need fixing. You can spread out the most serious events by dividing responsibility for day-to-day activities with your spouse and/ or children.
    • Schedule quality time with your family. It may seem strange to make appointments to spend time with your children or your spouse, but it's a good practice. Making sure you and your family spend time together while you're not working is key to holding your family together and keeping them supportive of your business. If you spend all your time working and neglect your family, you may cause irreparable damage to your relationships with your spouse and children.
    • Talk to your family.If your family is distracting you from your business, you may need to discuss your problems with them. Let them know that you enjoy their company, but that your work is vital to their happiness. Ask for their advice and assistance. In this way, your family will consider themselves part of the solution instead of part of the problem.
    • Keep yourself focused on your work. Home-based business owners know well the feeling of being left out as their family members catch a movie, go out to dinner, or play in the park. Resist the temptation to join them at times when business is more important, and you'll be better able to enjoy yourself when you're not working.
    • Strengthen your life away from home. The most successful home-business owners are able to restrict contact with their families while they are working. Think about meeting clients at their offices, taking them to lunch, or working at the library occasionally.

    Many parents choose to start a home-based business in an effort to spend more time with their children. And although some people are able to successfully meet that goal, others find it difficult to master the roles of parent and at-home entrepreneur. Combining business ownership and parenthood under the same roof can lead to trouble. Children can create inte rruptions that take your attention away from your business, and they can undermine the image of professionalism you try to convey. On the other hand, your business can become all-consuming, keeping you from giving your children the attention they need.

    Making Your Office Child-Proof

    To better balance the responsibilities of raising children and running a successful home-based business, keep the following general rules in mind:

  • Don't rule out child care. If you want your business ness to grow rapidly, it may be necessary to make some kind of child care arrangements, at least occasionally. Besides traditional pre-schools or day-care centers, consider trading off some babysitting time with another home-based business owner/ parent who will watch your child while you work, and vice versa.
  • Teach your children to respect your business. If your children are very young, the responsibility lies with you; a 2-year-old can't understand how important it is not to run screaming down the hall while you're on the phone. Schedule calls during your children's nap time or when they're occupied. With older children, you should make it clear that you are in charge of a business and you can't be interrupted every 10 minutes with problems they can take care of themselves.
  • Address the phone issue. One of the greatest challenges facing home-based business owners with small children is preventing them from picking up a phone extension in the middle of a business call and giggling. To avoid this problem, your best bet is to get an answering machine and, if at all possible, a separate business line.
  • Consider starting a child-related business. If you sell toys or baby products, your clients will most likely be parents, who will be more sympathetic to your situation. An added bonus: Your kids will be delighted if they get to play with samples of your inventory.
  • Get your children involved. Let children apply stamps or labels to envelopes or let older children sort mail by name or ZIP code. Children can be very enthusiastic about the most routine tasks. Remember to keep tasks age-appropriate. If you give a 3-year-old a task he or she can't perform well, the child will get upset, you'll be frustrated, and you'll probably have to redo the task yourself, thereby wasting a lot of time and energy. Giving children tasks they can perform well allows them to feel important. They will have a sense of contributing to your business and you will be able to get some tedious chores off your plate.
  • Situate your office away from your children's play area. Trying to force your children to tiptoe quietly around your home office usually won't work. Just because you are running a business from your home, don't expect your kids to act like grownups. Kids will be kids. They'll be noisy, they'll run around the house, they'll interrupt you, and they'll demand your attention while you are trying to work. To remedy the situation, put your office in a room or space that isn't in the center of your children's play area. With your operation located in a den down the hall or in a basement, you can keep your office free of the common laughs and shrieks.
  • Deal with problems immediately. Children and parents may experience some friction when an office is run from the home. Children may resent having to be quiet when Mom or Dad is on a business call, having to pick up their things when a client stops by, having strangers stopping by the house, or having a parent who is working all the time. The business owner may resent constant interruptions and noise. Don't let these problems fester: address them early. If children complain that you are spending too much time "at work" and not enough time with them, it may be time to reevaluate your schedule. Sit down with your children to discuss the problems and come up with solutions that are satisfactory to both of you.


    When married couples start home-based businesses together, office romance takes on a whole new meaning.

    More and more couples are considering home-based businesses as their route to living happily ever after. Unfortunately, a large number of these couples overlook the fact that they have much more at risk than just business failure. If things go awry, they could end up in divorce court.

    Most husband-and-wife business owners agree that the personal relationship has to be a super-strong if the business is to survive. Young marriages often make for unsuccessful businesses. In general, an established marriage has a better chance of making a business succeed at home.

    When entrepreneurial success is at stake, love alone can't keep your business together. To make your partnership work, Dennis Gaffe, owner of Changeworks, a family business consulting firm in San Francisco, and author of Working with the Ones You Love (Berkeley, CA: Conari Press) says, "You must do a fierce audit to determine whether each of you has what's needed to run a business. Desire isn't enough."

    Though it may seem an obvious step, many couples don't objectively examine whether they have the complementary skills to make the business partnership viable. Just because you love each other doesn't mean you have the skills to run a business together. Before starting a home-based business with your spouse, ask yourselves the following questions:

    • Do you enjoy working together?
    • Do you communicate effectively?
    • Do you have skills that are complementary?
    • Can you discuss problems without getting personal?
    • Do you agree on the goals for your proposed business?

    If you answered no to any of these questions, you should re-evaluate your plans to go into business together.

    One of the major issues facing married home-based business owners is defining clear boundaries-- both physical and psychological. To preserve your sanity, you must be able to separate the pressures of your work life from your personal life and vice versa. The first step toward attaining this goal is to agree to solve problems together instead of blaming each other for them. You must learn to communicate effectively under pressure. And when problems can't be nipped in the bud, couples have to agree not to deal with business situations at home on weekends.

    You must also strive to keep your independence from each other intact. It's difficult to complain about your business partner after a stressful day if your partner is the person you're talking to. Spouses need separate friends, individual hobbies, and sometimes just plain old space. After being together all week long, some time apart on the weekends is a good idea. There has to be some separation, otherwise there's a danger the marriage will become nothing but the business.

    There is one area that demands solidarity: housework. You have to be as explicit about home responsibilities as you are about business responsibilities.

    Even if you believe you have all the ingredients for a fruitful partnership, don't take any chances. Draw up an agreement that outlines what will happen to the business in case of divorce.

    Once you get past all the messy details, a business-and-marriage partnership can be extremely rewarding.


    An often-overlooked negative aspect of working from home is the sense of isolation you can feel during the workday. You might take for granted the buzz that permeates a traditional office. The sounds of phones ringing, the drone of employees talking, and the barking of an irate manager may all serve to drive potential business owners into work for themselves. However, these noises may not seem too bad compared to the silence of an empty house. Without human interaction, people tend to feel lonely and isolated. Without someone with whom to discuss your ideas or from whom you occasionally receive a pat on the back, a home-based business owner can become discouraged.

    There can never be a replacement for the human interaction found in the traditional office. If you can accept this fact, you can work to find your own motivational stimuli and you will function just as effectively as you did as an employee.

    Only you can take steps to find others who can motivate you in your work. There are certain activities you can engage in to find prospective clients and build professional alliances. A few of these are highlighted next.


    Meetings are an important aspect of any business, but they serve a dual purpose for the home-based business owner. First, and most obviously, they allow you to communicate directly with your present and future clients. Second, they help you establish rapport with people who can help you in both your professional and personal life. By taking the time to schedule and attend a meeting outside of your office, you demonstrate your willingness to go out of your way to present your products or services to your clients. A home-based business owner who takes the time and effort to put together a presentation and deliver it in person shows a confidence not necessarily conveyed over a phone line or on paper.

    Meetings should be structured; don't schedule them just for the sake of getting out of the house. However, if you find yourself frequently speaking to certain clients on the phone, ask yourself whether it would be better to meet them in person.

    Working Lunches

    Some meetings are impossible to schedule during normal work hours. Your clients may be too busy to host a sales call, or inundated with proposals from many of your industry colleagues. This is where a little extra effort on your part is advisable and will help break up the daily routine you may find monotonous.

    Business meals are generally more relaxed than more formal meetings, and an invitation to lunch could put your client in a more receptive mood toward what your company has to offer. You can also establish friendships and professional networks this way.

    Even if your business isn't conducive to meetings, you can still schedule some luncheons with business partners and focus groups-- or with a friend-- to break up a hectic day.

    Professional Organizations

    Some business-related organizations have been created specifically to get people out of their work environments and into more comfortable settings for personal interaction. The National Association of Home-based Businesses, for example, offers more than 25 programs and services through its HomeBiz Global Center franchises as well as annual events specifically for home-based business owners. Other trade-related groups can offer you information on your specific industry and help you find your business voice through their lobbying efforts. Chambers of Commerce and networking associations can also fulfill your need for social interaction. See Appendix A for details on these associations.

    There are trade associations for nearly every industry you can think of, from craft-making to mail order to desktop publishing. A publication by Gale Research, The Encyclopedia of Associations, is especially valuable. Many libraries have this publication in their reference sections. See Appendix B for other useful books.

    Consider subscribing to any trade publications serving your industry. Not only will they keep you abreast of news concerning your industry; they can also provide information on other organizations you should join. Appendix C lists many helpful publications.

    Community newspapers, local business journals, and other publications can keep you informed on local events affecting your business, and let you know about any local associations you might want to join.

    Organize Your Own Group

    Even the most reserved of entrepreneurs can start up their own focus group, networking club, or trade organization in their area. You would fill a need not currently being addressed by the industry, and that in itself could cause others to join. With a little promotion through a local business journal (perhaps a calendar listing of the date, time, and location of your meeting) or even a flyer at the local library or business resource center, you may find some interested parties.

    A meeting can be a structured event or simply an informal "meet and greet" at your home. Once your group becomes a little more established, you may want to alternate locales or request permission to use a room in the local library or a meeting hall. Low attendance doesn't signify failure; indeed, some groups are better small. The point is that you would be networking with your peers on a personal and professional level.

    The Art of Networking

    Home-based operation in and of itself is not conducive to networking. This does not mean, however, that networking is impossible. Indeed, you have an opportunity to network every time you interact with another human being.

    Let's take one entrepreneur's typical workday as an example. A desktop publisher starts her morning by taking her son to school, stopping briefly to talk to his teacher about a science project. Her next stop is the office supply store, where she picks up her order of toner cartridges, a ream of paper, and a stack of file folders. After a brief stop at a client's business to drop off a contract with the secretary, she is off to meet with a printer about a newsletter job. She then goes home to work on a brochure for a landscaping service. She encounters a question related to the job, so she calls the client and gets his assistant, who promptly answers the question. She finishes the assignment in enough time to pick up her son from school, spending a few minutes with an old friend picking up his daughter. They talk for a moment, and she leaves to drop her child off with her husband, after which she attends a meeting for her marketing focus group.

    How many times during this workday was the desktop publisher faced with a networking opportunity? Answer: At least six, if you don't count immediate family members.

    Every person you encounter could be a potential client. You never know whether people you've talked to on a regular basis could use your services unless you tell them what you do. Whenever appropriate, make sure everyone knows your business specialty. Even if they don't need your services, they may know someone else who does. At the same time, do not make yourself or your work the center of the conversation.

    On a practical note, take samples of your work (if possible) and plenty of business cards wherever you go. You never know when you might find an excellent potential client.

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    ENTREPRENEUR Magazine is the banner publication of the Entrepreneur Magazine Group. It has the largest newsstand circulation of any business monthly and has a total ABC audited circulation of 531,000. The Entrepreneur Magazine Group also publishes Business Start-Ups and Entrepreneur Mexico, as well as software that deals with business start-up management.

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