What Do You Expect From the Business

It’s important to know what you can give to the business. It’s equally important to know what you expect the business to give you. You may be thinking, “That’s easy. I want independence, wealth, and status.” But which of the three is most important to you? How important is personal satisfaction? How about creative expression? And how about the impact your business may have on your family? These considerations, and more, are all important when selecting a business that’s right for you.

You’ll want to look at both business goals and personal goals. You may find a business goal contradicts a personal goal, and you’ll have to make a choice between them, or at least modify one or both. For example, you may list spend more time with my family” as a personal goal and “build a national franchise operation” as a business goal. Chances are, your business goal of developing your operation nationwide will involve considerable travel. Thus, you would likely be spending less time at home, not more. So you may decide, instead, to develop a local business close to home and perhaps even choose one that gets the family involved in its operations.

The role of knowledge in business

The most strategic factor in business today is knowledge.

Most people think that large businesses (with their lawyers, accountants, engineers, etc.) seem to have a major advantage over the small business owner in terms of knowledge. This may be true, but the situation isn’t as bad as it seems.

As you grow, you can afford to hire more specialists. And there are many places to go to get information that costs very little or is free.

A recent study by a large Louisiana university stated that only 3% of small business owners ever set foot in a library. Go to a library with a good business section and learn to make good use of it. Librarians may have a Master’s Degree in Library Science, but they often find themselves being used as overeducated file clerks. Find one who is eager to make use of their expertise to discuss your informational problems. Even if they don’t have an immediate answer, many are willing to spend some research time digging up the answer.

Local colleges and universities with business schools often have professors and staff who are knowledgeable in business. Sometimes a professor will assign an advanced student to a study project in your field of interest.

The Small Business Administration has a consulting group known as score (Service Corps of Retired Executives), consisting of retired businesspeople. These consultants work basically free of charge and are available to small business owners needing advice on such subjects as advertising, personnel and operating problems.

Other: Local governments, Chambers of Commerce, Business Bureaus can be of help in local problems.

Is there a Chamber of Commerce in your city?

To be read after text 6.

Home Office: pros and cons

As you’ve been planning your business so far, you’ve probably been working out of your home. This is a very good experience to help you decide whether you’d like to continue operating there.

There are a lot of advantages of a home office, but space requirements for your product or service will be the key factor here. The dining room table is not going to work. Even if yours is a service business requiring little equipment, you will need at least a den, attic, basement, garage, or other space that can be closed off. This is not only for you and your family’s peace of mind, it’s required by the IRS. If you’re single, of course, you may use your entire living space as an office. The only tests required are those of your comfort and how many customers will be calling. But if your residence is primarily just that, you must consider “set - aside” space.

The financial advantages of a home office are the tax deductions. You are allowed to claim a percentage of your household expenses as business.

You may need or want to add “Beware of the Dog”, “No Trespassing”, “Private Entrance”, “Private Parking,” or some type of directional sign. Remember, you’re in a residential area and what your customers may be looking for, your neighbors may not like. Contact your Director of City Planning for the codes.

Another consideration is insurance coverage. Your insurance deductions. The proportion is based on the size of your shop or office in relation to the total living space. These expenses include utilities and telephones, improvements, maintenance, insurance, snow removal and lawn care.

You will also save time and money in travel costs, clothing, lunches, parking. The question is: Will you work productively there? Many people can discipline themselves to a routine. Perhaps your business doesn’t lend itself to routine. But, if you’re the type of person who needs the sounds of people and the activities of an office setting, the transition could be difficult. By all means, if you work at home, get out regularly. You will need the stimulus to maintain your enthusiasm.

You must also check the local ordinances in your area before you operate at home. Some of the common ones are noise, pollution and traffic. Your common sense can guide you, but your lawyer and the police department will tell you for sure. Consider signs. Will your customers need to find you? Signs are some of the most strictly enforced codes in communities and one small sign over your doorbell may be all that is allowed – and may be all that is necessary. Find out! Carrier may not allow activities permitted as hobbies as businesses activity at home. If your product or service falls into this category, it may void your homeowner’s insurance. Check with your agent. He’ll be able to tell you. If your current insurance company won’t cover your business activity at home, check around. Other companies might, and with little or no increase in your premiums.

A home office, then, will depend on

• Type of business

• Space available

• Costs

• Codes

• Personal Adaptability

Make a table and speak on the advantages and disadvantages of a home office.

To be read after text 8.