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