HOW TO REORGANIZE YOUR TIME TO

ACCOMMODATE A HOME-BASED BUSINESS

Almost everyone needs or wants more money coming in, and with

this desire most would like to start some sort of extra income

producing project. The trouble is, not many of these people seem

able to fit "a second job" into their time schedules.

It's true that most people are busy, but extra time for some sort

of home-based extra income producing project can almost always be

found. It may mean giving up or changing a few of your favorite

pastimes--such as having a couple of beers with the guys or

watching TV--but if you score big with your extra income project,

you will have all the time you want for doing whatever you what

to do.

Efficient time management boils down to planning what you're

going to do, and then doing it without backtracking. Start by

making a list of the things you want to do tomorrow, each evening

before you go to bed. Schedule your trips to the store or

wherever to coincide with the other things you have to do, and

with your trips to or from work. Organize your trips to take care

of as many things as possible while you're out of the house.

take stock of the time you spend on the telephone---and eliminate

all that isn't necessary.

Whatever chores you have to do at home, set aside a specific time

to do them, and a specific amount of time to devote to them. For

instances, just one hour a day devoted to yard work would

probably make your property the envy of all your neighbors. Don't

try to do a week's work in one big flurry. Whether it's painting

your house, fixing leaky faucets, or mowing your lawn and

trimming your shrubs, do a part of it, or one particular job each

day, and you'll be amazed at your progress.

Take care of all your mail the day, you receive it. Don't let

those bills and letters pile up on you. If you're unable to pay a

bill immediately, file it in a special place that's visible, and

note on the envelope the date you intend to pay it. Answer your

letters the same day you get them.

Once you start listing and planning what to do, and then carry

out your plans, you'll find plenty of "extra time" for handling

virtually any kind of home-based income producing project. People

in general may not like routines or schedules, but without some

sort of plan as to what is supposed to be done, the world would

be mired in mass confusion. Laws, ordinances and regulations are

for the purpose of guiding people. We live according to an

accepted plan or way of life, and the better we can organize

ourselves, the more productive and happy we become.

The secret of all financially successful people is simply that

they are organized and do not waste time. Think about it. Review

your own activities, and then see if you can't find a couple of

extra hours in each day for more constructive accomplishments.

When you begin planning, and then when you really become involved

in an extra income producing endeavor, you should work it exactly

as you have organized your regular day-to-day activities---on a

time basis. Do what has to be done immediately. Don't try to get

done in a hour something that's realistically going to take a

week. Plan out on paper what you have to do--what you want to

do--and when you are going to do it. Then get right on each

project without procrastination.

Finally, and above all else, when you're organizing your time and

your business, be sure to set aside some time for relaxation. Be

sure to schedule time when you and your spouse can be together.

You must not involve yourself to an extent that you exclude other

people--particularly your loved ones--from your life.

Taking stock of the time you waste each day, and from there,

reorganizing your activities is what it's all about. It's a

matter of becoming more efficient in the use of your time. It's

really easy to do, and you will not only accomplish a lot more,

you will also find greater fulfillment in your life.

LEGALITIES & TAX ADVANTAGES

IN A HOME BUSINESS

Every year, several thousand people develop an interest in "going

into business." Many of these people have an idea, a product or a

service they hope to promote into an income producing business

which they can operate from their homes.

If you are one of these people, here are some practical thoughts

to consider before hanging out the "Open for Business" sign.

In areas zoned "Residential Only," your proposed business could

be illegal. In many areas, zoning restrictions rule out home

businesses involving the coming and going of many customers,

clients or employees. Many businesses that sell or even store

anything for sale on the premises also fall into this category.

Be sure to check with your local zoning office to see how the

ordinances in your particular area may affect your business

plans. You may need a special permit to operate your business

from your home; and you may find that making small changes in

your plan will put you into the position of meeting zoning

standards.

Many communities grant home occupation permits for businesses

involve typing, sewing, and teaching, but turn thumbs down on

requests from photographers, interior decorators and home

improvement businesses to be run from the home. And often, even

if you are permitted to use your home for a given business, there

will be restrictions that you may need to take into

consideration. By all means, work with your zoning people, and

save yourself time, trouble and dollars.

One of the requirements imposed might be off street parking for

your customers or patrons. And, signs are generally forbidden in

residential districts. If you teach, there is almost always a

limit on the number of students you may have at any one time.

Obtaining zoning approval for your business, then, could be as

simple as filling out an application, or it could involve a

public hearing. The important points the zoning officials will

consider will center around how your business will affect the

neighborhood. Will it increase the traffic noticeably on your

street? Will there be a substantial increase in noise? And how

will your neighbors feel about this business alongside their

homes?

To repeat, check into the zoning restrictions, and then check

again to determine if you will need a city license. If you're

selling something, you may need a vendor's license, and be

required to collect sales taxes on your transactions. The sale

tax requirement would result in the need for careful record

keeping.

Licensing can be an involved process, and depending upon the type

of business, it could even involve the inspection of your home to

determine if it meets with local health and building and fire

codes. Should this be the case, you will need to bring your

facilities up to the local standards. Usually this will involve

some simple repairs or adjustments that you can either do

personally, or hire out to a handyman at a nominal cost.

Still more items to consider: Will your homeowner's insurance

cover the property and liability in your new business? This must

definitely be resolved, so be sure to talk it over with your

insurance agent.

Tax deductions, which were once one of the beauties of engaging

in a home business, are not what they once were. To be eligible

for business related deductions today, you must use that part of

your home claimed EXCLUSIVELY AND REGULARLY as either the

principal location of your business, or place reserved to meet

patients, clients or customers.

An interesting case in point: if you use your den or a spare

bedroom as the principal place of business, working there from

8:00 to 5:00 every day, but permit your children to watch TV in

that room during evening hours, the IRS dictates that you cannot

claim a deduction for that room as your office or place of

business.

There are, however, a couple of exceptions to the "exclusive use"

rule. One is the storage on inventory in your home, where your

home is the location of your trade or business, and your trade or

business is the selling of products at retail or wholesale.

According to the IRS, such storage space must be used on a

REGULAR Basis, and be separately identifiable space.

Another exception applies to daycare services that are provided

for children, the elderly, or physically or mentally handicapped.

This exception applies only if the owner of the facility complies

with the state laws for licensing.

To be eligible for business deductions, your business must be an

activity undertaken with the intent of making profit. It's

presumed you meet this requirement if your business makes a

profit in any two years of a five-year period.

Once you are this far along, you can deduct business expenses

such as supplies, subscriptions to professional journals, and an

allowance for the business use of your car or truck. You can also

claim deductions for home related business expenses such as

utilities, and in some cases, even a new paint job for your home.

The IRS is going to treat the part of your home you use for

business as though it were a separate piece of property. This

means that you'll have to keep good records and take care not to

mix business and personal matters. No specific method of record

keeping is required, but your records must clearly justify and

deductions you claim.

You can begin by calculating what percentage of the house is used

for business, Either by number of rooms or by area in square

footage. Thus, if you use one of the five rooms for your

business, the business portion is 20 percent. If you run your

business out of a room that's 10 by 12 feet, and the total area

of your home is 1,200 square feet, the business space factor is

10 percent.

An extra computation is required if your business is a home day

care center. This is one of the exempted activities in which the

exclusive use rule doesn't apply. Check with your tax preparer

and the IRS for an exact determination.

If you're a renter, you can deduct the part of your rent which is

attributable to the business share of your house or apartment.

Homeowners can take a deduction based on the depreciation of the

business portion of their house.

There is a limit to the amount you can deduct. This is the amount

equal to the gross income generated by the business, minus those

home expenses you could deduct even if you weren't operating a

business from your home. As an example, real estate taxes and

mortgage interest are deductible regardless of any business

activity in your home, so you must subtract from your business

gross income the percentage that's allocable to the business

portion of your home. You thus arrive at the maximum amount for

home-related business deductions.

If you are self-employed, you claim your business deductions on

SCHEDULE C, PROFIT(or LOSS) for BUSINESS OR PROFESSION. The IRS

emphasizes that claiming business-at-home deductions does not

automatically trigger an audit on your tax return. Even so, it is

always wise to keep meticulously within the proper guidelines,

and of course keep detailed records if you claim business related

expenses when you are working out of your home. You should

discuss this aspect of your operation with your tax preparer or a

person qualified in the field of small business tax requirements.

If your business earnings aren't subject to withholding tax, and

your estimated federal taxes are $100 or more, you'll probably be

filing a Declaration of Estimated Tax, Form 1040 ES. To complete

this form, you will have to estimate your income for the coming

year and also make a computation of the income tax and

self-employed tax you will owe.

The self-employment taxes pay for Social Security coverage.

If you have a salaried job covered by Social Security, the

self-employment tax applies only to that amount of your home

business income that, when added to your salary, reaches the

current ceiling. When you file your Form 1040-ES, which is due

April 15, you must make the first of four equal installment

payments on your estimated tax bill.

Another good way to trim taxes is by setting up a Keogh plan or

an Individual Retirement Account. With either of these, you can

shelter some of your home business income from taxes by investing

it for your retirement.

HOW TO START A PROFITABLE HOME-BASED BUSINESS

                                                                                            

In these days, it's becoming increasingly difficult to make ends

meet with just one source of income. Thus, more and more people

are investigating the possibilities of starting their own

extra-income business. Most of these part-time endeavors are

started and operated from the comfort and privacy of the home.

Most of these people are making the extra money they need. Some

have wisely and carefully built these extra income efforts into

full-time, very profitable businesses. Others are just keeping

busy, having fun, and enjoying life as never before. The

important thing is that they are doing something other than

waiting for the government to give them a handout; they are

improving their lot in life, and you can do it, too!

The fields of mail order selling, multi-level marketing, and

in-home party sales have never been more popular. If any of

these kinds of extra income producing ideas appeal to you, then

you owe it to yourself to check them out. But these aren't the

only fields of endeavor you can start and operate from home,

with little or no investment, and learn as you go.

If you type, you can start a home-based typing service; if you

have a truck or have access to a trailer, you can start a

clean-up/hauling service. Simply collecting old newspapers from

your neighbors can get you started in the paper recycling

business. More than a few enterprising housewifes have found

success and fortune by starting home and/or apartment cleaning

services. If you have a yard full of flowers, you can make good

extra money by supplying fresh cut flowers to restaurants and

offices in your area on a regular basis. You might turn a

ceramics hobby into a lucrative personalized coffee mug

business. What I'm saying is that in reality, there's literally

no end to the ways you can start and operate a profitable extra

income business from your home.

The first thing you must do, however, is some basic market

research. Find out for yourself, first-hand, just how many

people there are in your area who are interested in your

proposed product or service, and would be "willing to stand in

line and pay money for it". This is known as defining your

market and pinpointing your customers. If after checking

around, talking about your idea with a whole lot of people over

a period of one to three months, you get the idea that these

people would be paying customers, your next effort should be

directed toward the "detailing" of your business plan. The more

precise and detailed your plan - covering all the bases relating

to how you'll do everything that needs to be done - the easier

it's going to be for you to attain success. Such a plan should

show you start-up investment needs, your advertising plan, your

production costs and procedure, your sales program, and how your

time will be allocated. Too often, enthusiastic and ambitious

entrepreneur jump in on an extra income project and suddenly

find that the costs are beyond their abilities, and the time

requirements more than they can meet. It pays to lay it all out

on paper before you get involved, and the clearer you can "see"

everything before you start, the better your chances for success.

Now, assuming you've got your market targeted, you know who your

customers are going to be and how you're going to reach them

with your product or service. And you have all your costs as

well as time requirements itemized. The next step is to set

your plan in motion and start making money.

Here is the most important "secret" of all, relating to starting

and building a profitable home-based business, so read very

carefully. Regardless of what kind of business you start, you

must have the capital and the available time to sustain your

business through the first six months of operation.

Specifically, you must not count on receiving or spending any

money coming in from your business on yourself or for your bills

during those first six months. All the income from your

business during those first six months should be reinvested in

your business in order for it to grow and reach your planned

first year potential.

Once you've passed that first six months milestone, you can set

up a small monthly salary for yourself, and begin enjoying the

fruits of your labor. But the first six months of operation for

any business are critical, so do not plan to use any of the

money you business generates for yourself during that period.

If you've got your business plan properly organized, and have

implemented the plan, you should at the end of your first year

be able to begin thinking about hiring other people to alleviate

some of your workload. Remember this: Starting a successful

business is not a means towards either a job for yourself or a

way to keep busy. It should be regarded as the beginning of an

enterprise that will grow and prosper, with you as the top dog.

Eventually, you'll have other people doing all the work for you,

even running the entire operation, while you vacation in the

Bahamas or Hawaii and collect or receive regular income from

your initial efforts.

For more details on market research, business planning,

advertising, selling, order fulfillment, and other aspects of

home-based businesses, check with the distributor from whom you

received this report.

   SECRETS OF GETTING FREE ADVERTISING

The opportunities for getting free advertising for your product

or services are limited only by your own imagination and

energies. There are so many proven ways of promoting your

objectives without cost that it literally boggles the mind just

to think of listing them.

One way is to write an article relative to your particular

expertise and submit it to all the publications and media dealing

in the dissemination of related information. In other words,

become your own publicity and sales promotions writer. Get the

word out; establish yourself as an expert in your field, and

"tag-along" everything you write with a quick note listing your

address for a catalog, dealership opportunity, or more

information.

Another really good way is by becoming a guest on as many of the

radio and television talk shows or interview type programs as

possible. Actually, this is much easier to bring about than most

people realize. Write a letter to the producer of these programs,

then follow up an in-person visit or telephone call. Your initial

contact should emphasize that your product or service would be of

interest to the listeners or viewers of the program--perhaps even

saving them time and money.

Other ways of getting free or very inexpensive exposure include

the posting of advertising circulars on all free bulletin boards

in your area, especially the coin-operated laundries, grocery

stores, and beauty and barber shops. Don't discount the idea of

handing out circulars to all the shoppers in busy shopping

centers and malls, especially on weekend. You can also enlist the

aid of the middle school students in your area to had out

circulars door-to-door.

Some of the more routine methods include having a promotional ad

relative to your product or service printed on the front or back

of your envelopes at the time you have them printed with your

return address.

Be sure to check all the publications that carry the kind of

advertising you need. Many mail order publications just getting

started offer unusually low rates to first-time advertisers; a

free-of-charge insertion of your ad when you pay for an order to

run three issues or more; or special seasonal ad space at greatly

reduced rates. And there are a number of publications that will

give you Per Inquiry (PI) space--arrangement where all orders

come in to the publication, they take a commission from each

order, and then forward the orders on to you for fulfillment.

Many publications will give you a contract for "" space. In this

arrangement you send them your ad, and they hold it until they

have unsold space, and then at a price that's always one third or

less the regular price for the space need, insert your ad. Along

these lines, be sure to check in with the suburban neighborhood

newspapers.

If you send out or publish any kind of catalog or ad sheet, get

in touch will all the other publishers and inquire about the

possibilities of exchange advertising. They run your ad in their

publication in exchange for your running an ad for them of

comparable size in yours.

Finally, there's nothing in the world that beats the low cost and

tremendous exposure you get when you advertise a free offer.

Simply run an ad offering a free report of interest to most

people--- a simple one page report with a "tag-line" inviting the

readers to send money for more information, with a full page

advertisement for your book or other product on the backside. Ask

for a self-addressed stamped envelope, and depending on the

appeal for your report and circulation of the publication in

which your ad appears, you could easily be inundated with

responses!

The trick here, of course, is to convert all these responses, or

a large percentage of them, into sales. This is done via the

"tag-line," which issues an invitation to the reader to send for

more information, and the full page ad on the back of the report,

and other offers you include with the complete package you send

back to them. As mentioned at the beginning of this report, it's

just a matter of unleashing your imagination. Do that, and you

have a powerful force working for you that can help you reach

your goals. 

Some of my thoughts for your next project

Mark Pears