7 Steps to Starting a Business from Home

By Rieva Lesonsky

Are you considering starting a business from home? Technology has made it easier than ever to work from home, and the concept is also more acceptable than it’s ever been. But before you decide to set up shop in your spare bedroom, take these 7 steps.

1. Keep it legal. Fewer communities restrict home-based business these days, but you still need to check with your local zoning board to make sure your address is zoned for business operation. If your business will involve frequent deliveries or pickups, clients visiting your home or employees or contractors visiting (which could cause parking issues) you could run afoul of the neighbors.
2. Play it safe. Just because you’re working from home doesn’t mean you’re exempt from the normal protections of business. You should still talk to an insurance agent about business insurance as well as property and casualty insurance, especially if clients will be coming to your home.
3. Choose your space wisely. Ideally, you want to work in a separate room with a door you can shut. That could be a spare bedroom, converted garage, basement or even a separate structure in your back yard. If you don’t have that much space, look into ways to create a dedicated area for your business. Even if it’s just a corner of the dining room, having a space that’s your own will make you more productive.
4. Equip yourself for success. Tech tools are crucial to the professionalism of your home-based startup, so don’t penny-pinch. You’ll want a computer dedicated solely to your business, and most likely a second phone line as well. Other productivity tools include a multifunction scanner/printer/fax machine and a good phone headset. If you’ll be on the road a lot or meeting clients at their locations, investing in a smart phone, laptop or netbook can help keep you productive out of the (home) office.
5. Set boundaries. You need to set ground rules with your family, friends and neighbors before you launch your business. Discuss your and their expectations. While many home-based entrepreneurs relish the flexibility of working from home, you should clarify your daily schedule with your family so they know when you can (and can’t) be interrupted.
6. Take care of the kids. It’s unrealistic to think you can work on your business while watching children. If you have small children who aren’t in school, you will need to arrange child care for at least part of the day. Some home-based entrepreneurs split the cost of a nanny or set up child-care co-ops where each person watches all the group’s children one day a week.
7. Know your limitations. Some people just aren’t cut out to work at home—they find the lure of the TV, fridge and YouTube too tempting to resist. Before you start your business at home, be honest with yourself about your motivation, temperament and focus level. If you don’t have what it takes to work from home, don’t set yourself up for failure. You can get information about factoring invoice, unsecured business loan, and small business loans

Rieva Lesonsky is CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Follow Rieva at Twitter.com/Rieva or visit SmallBizDaily.com to read more of her insights on small business.

0 comments - Posted by Robert Wagner at 8:30 AM - Categories: Rieva Lesonsky's Blog

What You Need to Know to Get a Loan From a Community Bank

By Rieva Lesonsky

I’ve been writing about small business and talking to small-business owners for nearly 30 years. During that time, community banks have always been a resource for entrepreneurs to get credit and business loans. One of the advantages of community banks was always their personal treatment. It’s easy for an entrepreneur to develop a relationship with a banker at a smaller bank—and it’s also a smart move.

But a few years back, when business financing was easier to come by, many small-business owners fell out of the habit of keeping their business bankers informed about what’s going on with their businesses. With a wide variety of places to turn to for business capital, entrepreneurs didn’t have to rely so heavily on community banks.

It looks like the tide is turning. Obviously, access to capital has been tough to obtain for the past few years, and entrepreneurs once again have been turning to community banks. The Independent Community Bankers of America, an organization of several thousand community banks, reported in March 2009 that its members were acquiring more new customers than before the credit crisis.

In recent months, however, more community banks have failed—largely those that got involved in troubled commercial real estate mortgages. As a result, community banks are facing tougher scrutiny from federal regulators, and in turn are looking more closely at their small-business loan customers, the Wall Street Journal recently reported.

For entrepreneurs seeking business financing, these changes mean it’s back to the old days for community banking. Here are some things you’ll need to know when seeking a loan from a community bank:

Be prepared. Community banks will want a lot of information about your business before they’ll give you a loan. Be prepared to provide everything they ask.

Be open. Bankers need to investigate your business thoroughly to prove the loan is not a bad risk. You’ll need to be willing to grant full access, whether to your financial records or tours of your business facility.

Be communicative. Even after you obtain financing, bankers will expect you to stay in constant contact with them. One entrepreneur cited in the Journal article supplies his bank with monthly financial reports. 

Be honest. Most entrepreneurs are happy to share good news with their bank, but keep bad news to themselves. That’s exactly the wrong approach today. If a key customer is slow to pay, or some aspect of your sales is hurting, be honest with the banker about the problems so the two of you can work together to find solutions.

Rieva Lesonsky is CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Follow Rieva at Twitter.com/Rieva or visit SmallBizDaily.com to read more of her insights on small business.

0 comments - Posted by Robert Wagner at 12:50 PM - Categories: Rieva Lesonsky's Blog

Why You Need a Vacation—and How to Take One (Even When You Own a Business)

By Rieva Lesonsky

Summer is here and you’re probably dreaming about taking a vacation. How long has it been since you’ve had one? If you’re like most small-business owners, longer than you care to count.

It doesn’t—and shouldn’t—have to be that way. While you may think you’re helping your business by working 24/7, in reality, we all need to step back from time to time to gain perspective and recharge our batteries. Easy to say, but hard to do? Not really. Here are some tips for taking a vacation even when you own a business.

Keep it short. For most business owners, even a three-day weekend away is a big change from our usual routine. If you can’t make time for a longer trip, booking a few short getaways over the summer can be a good solution. Once the small trips convince you your business won’t collapse without you, take a longer one.

Use the cloud. Cloud computing means your company’s data and files are stored on the Internet so you can access them anywhere. No more forgetting key files back at the office—with the cloud, you can work anywhere so you don’t have to worry about getting horribly behind while you’re away.

Get help. Turn to trusted employees to hold down the fort while you’re away. Many of us entrepreneurs are “control freaks” who find it difficult to delegate. By forcing you to give up some responsibility for a limited time, a vacation can actually help your employees grow—and show you that you really can let them handle more than you think. Your employees are likely to welcome the chance to stretch their wings and prove themselves.

Stay in touch. Use mobile tools like netbooks, laptops and smart phones to stay in touch with the office no matter where you are. Don’t be chained to your devices, however; limit yourself to checking in a few times a day.

Think different. While you can’t “turn off” your business-owner mind entirely, both you and your business will benefit if you use your vacation as a chance to recharge your brain. I get some of my best business ideas while traveling and seeing new places, people and sights. Instead of obsessing about what’s going on back at the office, try to “stay in the now.” Let your surroundings inspire you and who knows? You just might come back with your next million-dollar idea.

Rieva Lesonsky is CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Follow Rieva at Twitter.com/Rieva. Visit SmallBizDaily.com to read more of Rieva's insights. Visit http://www.startupnation.com/hot-business to buy her newest e-book, 23 Hot Businesses to Start Right Now!

0 comments - Posted by Robert Wagner at 11:33 AM - Categories: Rieva Lesonsky's Blog

Looking for a Summer Hiring Solution? Try Interns

By Rieva Lesonsky

Are you ready to ramp up your business for the economic recovery—but still feeling leery about bringing on full-time employees? Maybe you don’t want to take on the responsibility of their benefits and payroll taxes. Or perhaps you’ve outsourced to independent contractors in the past, only to get burned when projects weren’t completed to your satisfaction.

Hiring interns can be a great solution for business owners seeking enthusiastic, energetic workers. And with summer almost here, now is the perfect time to start your search for interns.

One benefit of hiring student interns is the cost savings you’ll enjoy. Depending on your state, you may be able to hire unpaid interns who work simply for college credit. Some states require you to pay your interns at least minimum wage, but they still cost far less than a full-time employee and won’t require benefits like health and medical insurance. (Visit the Department of Labor website for federally mandated requirements; find your state’s Department of Labor website here.)

Begin your search by contacting local colleges and universities. Ask about the internship programs they offer and what hours, pay and credits they require employers to offer. Then create job descriptions for each position you’re looking to fill, and post them with the schools.

In order to land qualified interns, you must give them the chance to really learn something—not just fetch coffee and file papers. Interns want to use their educations and learn skills that apply to their future careers. You’ll also gain more from your interns if you take advantage of their skills and interests For instance, since college students are typically tech-savvy, you might consider putting interns in charge of your company’s social media outreach, having them teach older employees computer skills or asking them for help with updating your company’s Web site.

While interns may have tech skills, they’re likely to be “green” in other areas since this may be their first time in a business environment. It’s important to set aside time to provide interns with proper training and mentoring so they can adjust to their jobs. Give interns lots of feedback, and involve them in the business. Take their suggestions seriously—and you may get some creative ideas you would never have considered without their help. You can get information about factoring invoice, unsecured business loan, and small business loans

0 comments - Posted by Robert Wagner at 2:06 PM - Categories: Rieva Lesonsky's Blog

3 Hot Startup Markets You Need to Know

By Rieva Lesonsky

Are you thinking about starting a business? Choosing a growth industry improves your odds of getting business loans, business investment or angel capital. Here are 3 hot startup markets to consider.

1.    Kids. The kids’ market encompasses everything from babies and toddlers to tweens and teens. With 74 million Americans under age 18, and some 4 million children born each year for the last 18 years, America is in an ongoing baby boom. Hot kid-related businesses include day-care centers; clothes and accessories; electronics; home furnishings; and education and enrichment services such as tutoring or afterschool classes in dance, music and art.
2.    Green. The green trend continues to grow despite the slow economy. The federal government’s support of energy efficiency, green building and environmentally friendly jobs has helped. So does the fact that millions of consumers still deem being green important enough to spend more money on green products and services than on ordinary ones. Green areas for entrepreneurs include clean energy (a hot area for VC capital); green building and remodeling; energy efficiency; and organic food, clothing and cleaning supplies/services.
3.    Food. While restaurants have been hurt by the recession, the economy is slowly recovering and the numbers are picking up. Even during the depth of the recession, some hot food trends were born. Among them: mobile gourmet food trucks selling everything from cupcakes to tacos; frozen yogurt shops; and locally-sourced food. Among trends that continue to gather steam, organic foods, gluten-free foods and ethnic foods continue to show strong growth, with Indian food being the latest hot ethnic cuisine to catch on in the mainstream.
Business financing and small-business loans are easier to acquire if you can show your industry is on a growth curve. These three markets are on an upward trajectory, so all you need is the right idea.

0 comments - Posted by Robert Wagner at 9:15 AM - Categories: Rieva Lesonsky's Blog

Improve Your Business With an Advisory Board

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Author:  Rieva Lesonsky

Does an advisory board sound like something reserved for huge corporations? Far from it. Even the smallest business can benefit from an advisory board.

A little bit different than a board of directors, an advisory board is a group of people who don’t have a formal role in your business, but simply offer input and advice. Consider it informal business consulting.

Many entrepreneurs already get this type of feedback from friends, family and business contacts. Creating an advisory board, however, enables you to organize the process better and get advice in a more structured format. It also enables your advisors to interact with each other, which generates additional ideas.

Where should you start when putting together an advisory board for your business? Look for people who have business skills and background in areas where you are lacking. Consider getting members from industries other than your own so that you get different perspectives. Choose people you can trust and whom you can be open with. Between four and eight people is usually a good number of members for an advisory board. Find members by asking your professional networks of colleagues, professionals and others for recommendations.

Have your board members sign nondisclosure agreements and release of liability forms. This protects both them and you. Put your expectations in writing so everyone understands the commitment. Meeting once a month is a reasonable time frame; you’ll typically reimburse advisory board members with stock or a token fee.

Once you’ve got a board in place, listen to their feedback and respect their input. You can ask your board about everything from business capital strategies like angel investment, VC investment and business loans to hiring and marketing strategies. A good advisory board is an invaluable source of ideas to help take your business to the next level.

0 comments - Posted by Tom Markel III at 3:18 PM - Categories: Rieva Lesonsky's Blog

5 Tips for Spotting Trends

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Author:  Rieva Lesonsky

Whether you already own a business or are just starting up, one of the most important skills for a small-business owner is spotting trends.

Why are trends so important? Tracking trends can tell you what business to start, what products or services to sell, what markets to target, where to locate your business and more. Here are some steps to becoming a trend-spotter:

1)  Read industry news. Regularly read key industry trade publications and websites. Join your industry association and participate in events that will keep you on top of trends. Sign up for e-newsletters or RSS feeds, and get the latest news delivered to your computer.

2)  Pay attention to your market’s interests. If your business targets tweens, for example, you should read magazines for tweens; visit the websites they frequent; and check out the TV shows and music videos they like.

3)  Go urban. Trends tend to start in big cities, so you need to watch what’s happening in key urban areas. New York and Los Angeles are the key markets in the U.S.; depending on your industry, you may also want to keep an eye on Tokyo, Milan, Paris, London and other foreign hotspots. Read their daily papers or major magazines to see what people are wearing, eating, doing and buying.

4)  Get out. Go where people gather—a mall, shopping area, public park or restaurant row—and just observe. What kinds of shops, products, fashions and foods do you notice? Choose a place where your target market hangs out. You’ll get lots of ideas from keeping an open mind. You can get information about factoring invoice, unsecured business loan, and small business loans

5)  Get a new perspective. Occasionally mix things up by getting input from a completely different world. For instance, if you sell baby products to suburban moms, reading surfer magazines or tech-gadget Web sites for young men could spark new ideas that will benefit your business.

0 comments - Posted by Tom Markel III at 1:34 PM - Categories: Rieva Lesonsky's Blog