Tips for Running a Home Business

Cheap computers: The used computer market is a good source for inexpensive equipment, particularly if you don’t need the latest state-of-the-art wizardry. Leasing is also an option to reduce your cash outlay.

Fax without a fax: If you have a modem and if a document exists as a file on your computer, you can send it to someone’s fax through an option available on such online services as MCI Mail and CompuServe.

Copier features: You may want a copier that can handle legal-size as well as letter-size paper. Also, note that copiers are rated based on how many pages the manufacturer thinks they can handle monthly.

Laser-printer savings: Leaving your laser printer on all day will make a mark on your electric bill. Consider saving the documents you need to have printed in a computer directory, and print them out several projects at a time.

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How to Win in Business While Paying Less in Tax (continued)

The business portion of your car usage also qualifies here. Keep a log and if your business mileage is, for example, 35 per cent of the total driven, then deduct 35 per cent of: gas, repairs, license, insurance, maintenance and depreciation. Again, keep receipts.

You can even pay a spouse in a lower bracket to work for you, which shifts income so less tax will be paid. You should look at what you would have to pay another person to do the work, but can probably pay your spouse more because he or she obviously knows the business better and is likely to be more productive than an outsider.

The same applies if you pay a child or other family member, again shifting income to a lower tax bracket. After all these deductions, don’t be surprised if you have a loss. Now use this loss to reduce your regular employment income and so save tax.

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How to Win in Business While Paying Less in Tax

Shocked by all the income tax you pay? Then think about entering the wonderful world of self-employment, full time or in addition to your regular job. If you can use part of your home for your self-employed activities – which must have a reasonable expectation of profit, but more about that later – you should be able to deduct part of the expenses of running your home.

Let’s say you use a room to make candles, handle bookkeeping, do freelance writing or photography or any other activity with revenue potential. If that room represents 15 per cent of your home’s total floor space, you may claim 15 per cent of: the rent or mortgage interest, gross property taxes, heat and light bills, home insurance, maintenance costs and similar expenses.

(Note: some experts feel deducting the mortgage interest could imperil that part of the home’s tax-free status as a principal residence. Still, that would probably not be too serious a problem under the present tax-free capital gains provisions.)

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How to Run a Country Business (continued)

7. Analyze how much you enjoy talking to people, because in the country you’ll spend more time doing this, with topics like crop conditions, catfish, frost heaves and minnows. And if you don’t get excited about these things in the country, you’ll wither like a prune because that’s all there is to get excited about.

8. Ask yourself how well you can adapt to things like fresh garden vegetables, shotguns, pot-luck suppers, gossip, slaughtering lambs, wood-burning stoves, dead cats, fly swatters, pickup trucks. If you can’t live with a lot of things you associate with country living, maybe you shouldn’t associate yourself with the country.

9. Check your wallet. A country location doesn’t necessarily mean a low price tag. A small business can cost anywhere from $10,000 for a small gift shop to well over a million dollars for a posh resort. Have enough money to make the changes that will make it really yours.

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How to Run a Country Business

Here’s his checklist for people who are asking themselves, “Should I really?”

1. Make sure you’re not a “character.” In the suburbs, sometimes a personality that doesn’t exactly sparkle can sneak by. But in an uncrowded room, a less-than-attractive personality will stand out.

2. Make sure you have excellent business judgment. In the country, you’re on your own; you’re out in the open, naked, exposed. When a city slicker makes a fool of himself, there’s no hiding, no covering up, no room for error.

3. Check your marriage. A strange environment on top of closer-than-you’re-used-to living conditions tends to bring out the worst in both husband and wife. If you plan to open a mom-and-pop business, ask yourself whether you know anything about your spouse’s work habits.

4. Don’t move in if you have serious doubts about being accepted by the community. If you think the town will have reservations about you, make reservations elsewhere.

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Tips on How to Set Up Your Home Business

Do a self-assessment – and be painfully honest in evaluating your strengths and weaknesses. Do you have the entrepreneurial traits – independence, self-confidence, persistence, flexibility and resourcefulness – to be your own boss?

Pick your area of interest, and prepare a business plan that examines the industry, competition, marketing, financing and financial forecasts. If you have a salaried job and are unsure about taking the plunge, test the waters first by moonlighting evenings or weekends. Seek legal advice, and pick a suitable legal structure: sole proprietorship, partnership or incorporation. If there are risks in the product or service you sell, incorporate to protect yourself from personal liability. Hire a good accountant to do proper tax planning. Crunch the numbers to see if it’s advantageous to end your fiscal year sometime other than Dec. 31.

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Business Tips for Going Green

One of the consumer buzz words will be green, as in environmentally sound products and services. Here are some ideas to help you get in on the business of improving our environment, and marketing the product successfully to green-minded consumers:

Manufacturers should realize that consumers will not be fooled long by green washing, that is, trying to pass off environmentally dangerous products as good for the environment.

Ask consumer groups to select the features of your product that are truly environmentally safe, and identify those they feel are ecologically more dangerous.

If environmentalists don’t like anything about your product, work with them. If you cannot find an immediate solution to your product’s environmental deficiency, you may be able to put a positive marketing spin on your willingness to work with consumer groups to find a solution to your product’s deficiency.

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Tips On Doing Business in Japan

RESEARCH — Do your homework. Establish market potential for the product and the best means of market entry. Check to see if product modifications are necessary to meet Japanese technical standards such as metric system conversions.

AGENDA — The Japanese do not like surprises when doing business. Carefully prepare an agenda in advance and stick to it. Provide any materials requested ahead of time so they will have adequate time to look them over and translate them, if necessary.

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Tips to help get a home business off the ground

Here are 10 suggestions for home business:

* Do a market survey. Before starting a business it pays to find out if there is a need or a market for what you intend to offer. Talk to suppliers and possible customers to assess the market.

* Check insurance. The need for protection increases with business growth. Consider extra charges for replacement values when updating coverage. Provide adequate liability insurance.

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How to Establish a High Standard of Ethical Practice

There are definite, concrete steps business leaders can take to establish and maintain a high standard of ethical practice corporations. Formulate an explicit statement of corporate values to which everyone can refer when issues arise. This will not provide clear cut answers in many cases, but it will serve to focus management attention on the principles involved in the decision. . Develop a code of business practice to cover those areas, such as purchasing, advertising and investment, where ethical pitfalls and traps are commonplace. The code should reflect guidelines and policies rather than consist of lists of rules. Make sure that senior managers review this code annually. . Develop a training program that is based on the actual ethics issues and problems that managers and employees could experience in the company. Nothing is more effective in this context than dealing with situations that have actually occurred within the organization. . Identify the responsibility for conducting business in an ethical manner in employee job descriptions and performance reviews. . Give the responsibility for auditing ethical business practices to the internal audit function so that it becomes as accepted a part of business as financial auditing. . Establish a fear-proof and confidential appeal system which any employee can use when he or she believes that a manager or executive is engaging in unethical behavior. There must be a direct pipeline to a senior executive who can handle such problems confidentially, providing anonymity for the person raising the issue, while respecting the rights of the person who is accused. . Reinforce the corporate expectation for ethical behavior through speeches, articles in internal publications, reports etc.

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