Things to do before you start a home business

Whether you are a stay-at-home mom or a displaced worker, you may have considered starting your own home business. While there are many opportunities available, there are some things to do before you start a home business that will make things easier in the long run. Remember, that starting a home business is not a way to get rich fast and in most cases, your hours will be dictated by client needs. You can control some aspects of your working hours but you should do them up front.

Talk with your family

One of the most important things to do before you start a home business is to speak with your family. This discussion should involve allocating chores if necessary and establishing boundaries around your work area. Family members should understand that even if you are at home, if you are in your work area, it is time for work and you should only be disturbed for emergencies. Failure to do this could result in your home business failing as you may find yourself constantly interrupted.

Establish your plan

While many people do not feel that a home business requires a business plan, this does not mean that you should not establish goals. Running a business from home entails certain financial considerations that you may not have considered. You will need to plan for taxes, registering your business with your town (when required) and ensuring you have the necessary equipment and supplies. In addition, you will want to have a plan for growth and plan for what happens if you wind up with more business than you can easily handle on your own.

Check legal issues

Each state and town has different ordinances that govern businesses that are run from home. Depending on your individual business, you may need to register your home business with your state or your town. Some will merely require that you file a DBA (Doing Business As) registration which is very inexpensive. However, if you will be shipping products, storing products, etc., you may need to have special licensing arrangements. In addition, you will want to find out if you have to have any special types of insurance for your home business.

Set up an accounting system

Before you start a home business, decide on an accounting system. You may only need to use something simple for billing like PayPal or you may need a more complex system. There are numerous billing options available that you should study before deciding which one is right for you. In addition, you should draft agreements to use with clients for billing and receiving payments. It is a good idea to establish an agreement regarding late payments early for your home business. Otherwise, you may find that you are consistently receiving late payments and may have no recourse.

Starting a home business is very exciting and has great potential for many people. However, if you do not prepare well, you could easily fail. Understanding what things to do before you start a home business and taking the necessary steps to prepare can help build a solid foundation for long-term success in your home business.

Image credit: By Hellno2 (talk) 13:15, 23 August 2009 (UTC).Hellno2 at en.wikipedia [Public domain], from Wikimedia Commons

Why it is easy to fall for work at home scams

Behind the cloak of legitimacy

Internet scam games are pretty common, even back in the late 80s and early 90s, there were hundreds of them that were rampant. Today, Internet scammers are more prolific than ever and they are preying on people who are smart enough to steer clear of fake product offerings.

But the story remains

Unfortunately, many work at home scams hide behind a cloak of legitimacy. They "claim" to have been highlighted on popular television stations, claim a "relationship" to popular websites and display other signs of being legitimate. Unfortunately, you do have to spend some time digging around these sites to find the "real story".

Taking advantage of bad situations

While it may not be readily evident, when the unemployment rates creep up, more scams tend to rear their ugly heads. This is largely because these con artists depend on people being desperate enough to try anything to get money in their pockets. It's not just work at home scams that seem to get worse, it's a whole host of other scams that become more prevalent including mortgage fraud scams, credit repair scams and even cheap gasoline scams. It never seems to end.

People need something to believe in

I am of the mind that most of us feel that people are good in their hearts. Unfortunately, some of these scam artists actually wind up getting conned by someone else and then sharing their scam with unsuspecting people. I equate this to brainwashing - Remember the old shampoo commercial that was "if you tell two people and they tell two people....and so on and so on....". These scams depend on people to fall for "thin" air and pipe dreams. Some are extremely clever and tell you that you need not worry about spending a red cent.

A new twist on an old scam

Some of you may remember the scam back several years ago that "claimed" to be willing to compensate members for referring other members. The "general" idea was that you signed up for free, you signed others up for free and the site would then "share profits from advertising" with the members.

This scam was taken to entirely new levels when the company launched their site after getting more than 200 million dollars in venture capital funds. The trouble started when members started spamming information about the site all over the Internet promoting the benefits of the program. That program for those who do not remember was All Advantage. You can read the All Advantage Edgar filing and see for yourself what that model looks like. So you see, Internet marketing scams are not new, they've been around at least since then!

People still get conned

Ironically enough, there are still people who get conned into signing up for these types of scams because it's easier to depend on someone else to offer them a "turn-key" way of making money than it

Mythbusters: I am my own boss

Laughable! One of the reasons so many people claim to enjoy freelancing or working for themselves is the claim they like the idea of being their own boss. Make no mistake about it, while there is some measure of truth to this, you really are not your own boss.  Why? Simple!  Here's some of the reasons you cannot claim to be your own boss.

Deadline matters

Let's face it when a client offers you an assignment, you have a deadline. If you fail to meet the deadline you may not be paid for your work. When you are working under a deadline, the customer dictates that deadline meaning they are the boss.  In the rare instance when you are working without a deadline, then maybe you can consider yourself your boss.

Pay rate matters

While it is true that freelancers set their own rates, if we are honest with ourselves, we've been known to make concessions. After all, a steady stream of work at a few dollars less is not always the end of the world. In fact, if someone offers me $5 less than my standard rate but says that I will have X

Self-­Employment: A dose of reality Part II

After reading a really misinformed article about the joys of self-employment I felt that I really needed to respond. As I started my rant, it quickly became apparent that there was no way I could finish this in one blog post because the level of stupidity that greeted me was just beyond the pale. I started the rant a couple of days ago. I was so wound up however that I needed to take a break! Please do take the time to read the first dose of reality before you read this one or it will not make sense.

Self-employed do not have to put up with the moods of people higher than themselves in work.

Wow! Just plain WOW. Has this person EVER worked with a client who was in a bad mood? Has this person ever had a client criticize their work for no good reason? My guess is that nearly ANY person who is self-employed can point to one client who one day went off the rails and screamed, complained for no seemingly good reason or simply refused to pay for a piece of work that was completed and delivered. If you haven't been a victim, you haven't been self-employed that long and you can anticipate this will happen one day.

Self-employed people are also not earning a measly wage or salary, but making big money for themselves

This was also giggle worthy for a number of reasons. For the most part, people who are self-employed are NOT making big money when you consider (a) the number of hours they are working (b) the amount of taxes they are paying and (c) all those benefits we take for granted when we really have an employer. Keep in mind those who are self-employed are buying their own life insurance, paying for their own medical insurance and paying 100 percent of social security tax instead of their employer paying half of it. Not to mention when you have a computer or other necessary tool break down in the workplace, you are responsible, not your employer. This is delusional.

Self-employed people are also at the liberty of going to work in any dress code that they desire

This at least is MOSTLY true. Provided of course that you don't use a video interview with a new client or have clients dropping by to meet with you.  At least ONE part of the article was ALMOST accurate.  I'm sure that at least one self-employed person can talk about this better than I can since for the most part, I couldn't care less what I wear when I work.

Self-employed people can be proud of what they have created

THIS THIS THIS YIKES this is such a broad statement that I cannot even begin to think how to address it so let me say this about that. My guess is almost everyone has had at least ONE assignment as a freelancer (yes, you're self-employed if you are a freelancer) that made them cringe.  Here are a few for instances:

A writer is asked to write an article that is STUFFED with useless keywords that mean nothing. A website developer is asked to create a website that is loaded with flash and other features they do not agree with

A client demands the freelancer do some task they simply know will not work out well, but the client insists.

There are a lot of benefits to being self-employed but if these two posts show anything they show that the person who wrote the original article is not nor never has been self-employed.

Self­-Employment: A dose of reality Part I

As a means of keeping up with what other people are writing about the trials and tribulations of being self-employed, I often read other blogs, articles and various tidbits especially if they offer tips. Let's face it, we could all use some guidance. However, every now and again, I come across an article that leaves me scratching my head and wondering if the person who wrote it ever worked for themselves. I thought it might be a good idea to share some of the thoughts that one person has about being self-employed and make sure that others understand the folly of believing these kinds of outrageously idiotic comments. Because I have a LOT to say about this, I'm going to break it into parts (otherwise you'll fall asleep reading it).

Here's the hit list and below you'll see why I strongly disagree with these perceptions:

• People who are self-employed are very much their own bosses
• Self ­employed people are also not making money for other people, but are making themselves rich
• Self-employed people are also not at the mercy of their bosses, but are productive
• Self-employed do not have to put up with the moods of people higher than themselves in work Self-employed people are also not earning a measly wage or salary, but making big money for themselves
• Self-employed people are also have the liberty of going to work in any dress code that they desire
• Self-employed people can be proud of what they have created
• People who are self-employed are very much their own bosses

THIS is so wrong on so many levels that I am always staggered that anyone believes this anymore! Just because you are not actually working for a boss does not mean you are the boss! This is one of my all-time favorites. You DO still have a boss probably a lot of them; your customers! If you believe that you do not have to answer to a customer, then yes, you don't have a boss. Just keep in mind that your customers are likely to be telling you what they expect, when they expect it and what they are willing to pay for it as well.

Self-employed people are also not making money for other people, but are making themselves rich

This made me laugh out loud really it did. Does any person out there believe that your clients are NOT making money off your work?  Let's face facts: Whether you design websites, write articles or develop iPad applications SOMEONE is making money off your work BESIDES YOU. And, chances are that as a self-employed person you'll do well but rich isn't probably the word I'd use. Self-employed people are also not at the mercy of their bosses, but are productive

Only someone who has never been self-employed could really believe this hogwash. First of all, you're not just naturally productive and in fact you ARE at the mercy of (bosses) clients: After all, you have to wait for the assignment, you might have to wait for further direction, you probably have to wait for them to pay you as well. Good grief, if you are trying to decide on self-employment and working for someone else and this is the best you can do, then you best head to your local McDonalds and find a job there!

Stay tuned for more of my rant: Sorry, but to me, this is the biggest conglomeration of erroneous information I have ever read in a single article (yes, all of this came from ONE article!). 

Stop crabbing about competition please

I am a full-time freelance writer. I have had a long-term understanding this is a highly competitive business and that it requires hard work. I have built my freelance writing career by understanding you not only have to work hard, but you also have to work smart.

I’m active on numerous writing sites; WriterAccess which for me is my “gravy”. I write more pieces on this site than any other. At this site, writers pick up work that is assigned by clients, they are the only on with access to the assignment and when the customer accepts your piece you’re paid for it. Relatively straightforward. Writers are assigned a “level” from two to five when they start and they can move up to Level 6.

The “competition” on this site comes from clients; many use what are known as “love lists” and some of them are – shall we say crowded. Clients may post five pieces and have 22 writers on the love list meaning there are potentially 22 people competing for five pieces. Some you win; some you lose. As a Level 6 writer, on average, I earn between five and ten cents a word for each submitted piece.

When a client rejects a piece at WriterAccess one of two things can happen: First, when the writer followed directions as a rule of thumb WA will purchase the piece, pay the writer and take ownership of the piece. Second occurs when the writer simply missed the boat: The writer takes ownership of the piece and they’re not paid for it. In fairness, with nearly 2,000 submitted pieces, I’ve only had a couple of outright rejections.

Article Document is another site I frequent; this site pays a per click rate although from time to time, there are paid assignments. My goal here is to always to compete with myself. This site posts a list of topics and writers pick their piece from a list and write to their hearts content. In this case, the writer (level) rating is determined by the editor rating.

Most pieces require 500 words and once they are submitted they go through an editor. Editors review the piece and grade each one based on a scale. You’re never going to make a million dollars on this site unless you write solely there every day and you are willing to spend hours a day sharing your work. However, it’s a great way to build a portfolio of writing and get a few extra dollars spending cash ever month. If I ever calculated my “pay per word” I would probably never write again!

It’s also worth noting that once a writer picks up a topic it becomes invisible to other writers. Since I’ve never had a piece here rejected, I have no clue what the rules are. However, I’m assuming if the piece is rejected the writer still owns the piece and therefore can use it for another client, on their own blog or for whatever.

Then there’s Blogmutt. A different kind of animal. Literally and figuratively. Writer “levels’ are determined not necessarily by how well you write but by how much you write. Everyone starts at zero and you move up based on the number of pieces you write. The “points” can be a bit confusing so I encourage you to review the FAQs that explain the process. Freelancers earn about three cents a word regardless of how long they’ve been writing at Blogmutt and regardless of how many posts they have submitted. It’s important to be aware if a client rejects a post at Blogmutt you can recycle the post to another client or you can use it any other way you elect to. You own it, period.  The average rejection rate is around 10 percent. My current rejection rate is about six percent (higher than I like it!).

Then there’s the client list: Blogmutt has many clients in various fields including business, technology, medical and legal. Clients have a couple of options; they can order “generic” posts based on “generic” keywords or they can post what are known as “one-time keywords”. Clients also have the option of determining how many words they wish to pay for. The minimum posts are 250 words and the writer earns $8 if the post is accepted.

The current “maximum” is 1200 words and pays $72 (six cents a word by the way); keep in mind, only writers who are at level seven or above can write these longer posts. There are other “longer” posts which are 900 words open to writers at level 5 or above which pay four cents a word and 600 words which are open to writers at level 4 or above that pay 3.2 cents per word, the same as the 250 word posts.

Here’s the rub: There is no process in place to curb competition. In fact, one of the things I personally like most about Blogmutt is there is an “open” process where writers can pick the client they wish to write for. However, this is sometimes tricky because of the one-time keyword option and a source of consternation for many writers.

What’s the problem? Well simply put some writers feel there should be some form of “curbing” of who writes a one-time keyword for a client. Blogmutt has a system in place that shows a writer if someone has a “draft” in progress. It’s important to note this “warning” only appears for an hour. With one-time keywords, many writers simply avoid the piece if someone else is working on a draft. For myself, I don’t and here’s why.

Make sure you understand these work at home stumbling blocks

Working from home can be both rewarding and frustrating. Before deciding between going to an office and working from home, it is important to weigh the pros and cons. Far too often, working at home basics are overlooked.

Overlooking the pros and cons may have an impact on long-term success. While it is true that self-employment offers far more flexibility than working a traditional 40-hour a week job, before making that leap, you must weigh the risks and rewards.

Flexibility has a price

One of the biggest pros of being self-employed and working from home is flexibility. However, flexibility may come with a steep price tag.  Having the ability to take time off when needed is helpful but, missed deadlines, working weekends and loss of personal time may be the price tag. While it is certainly beneficial to have the opportunity to make a trip as an escort on a child's field trip, the problem is that time may have to be made up.

Costs versus benefits

Nearly every "expert" will inform those who are considering working from home about the possible cost savings. While it is true that there are some costs that will be significantly reduced such as eating lunch out, gasoline or other transportation costs and of course wardrobe costs, there are other expenses that are going up as well.  Some of the added expenses you can expect include increased heating or air conditioning costs, telephone costs may increase and food budgets are likely to be strained. Other costs that must be considered when self-employed include office supply expenses, medical and life insurance costs and of course taxes.

There are many expenses incurred when working at home that are tax-deductible but they must still be funded ahead of time.

How to find no fee work from home jobs

Considering working from home? Don't get scammed!

While the unemployment rate continues to drop, more people are searching for additional ways to make money. Many are turning to online job searches to find more traditional brick-and mortar jobs while others are searching for work at home opportunities. One of the challenges of course is sorting out which jobs are worth pursuing and which are merely multi-level marketing opportunities or worse yet, someone trying to separate you from your money.

While it is true that not all money-making opportunities that require you to pay up front for registration or other fees are scams, there are a lot of them. In most cases, it is wise to steer clear of any opportunity that suggests you should be paying for the opportunity to earn money. Here are some simple ways to find legitimate work at home jobs with no upfront fees.

Heed the following tips and warnings:

What You Need for Success

• ·         Computer
• ·         Internet Connection
• ·         Resume
• ·         Patience
• ·         Understanding what a scam looks like

Tips & Warnings

• ·         Not all sites that require payment are scams
• ·         Carefully review terms of service for all sites
• ·         Find out how and when you will be paid
• ·         Use caution disclosing personal information

Increase your odds of finding work at home

There are some things you can do to get yourself ready to work from home. One of the first things you will want to do is prepare your resume. While working at home is not the same as working for a company, you will still need a resume. Your resume may be either a typical resume or may be posted on a blog or other site. Highlight your top skills for best results.

Search for freelancing sites

There are several websites that offer freelancing opportunities. Do a search on Google for "online freelancing sites". Sites like Upwork, Fivver, Freelancer and others are available for finding good opportunities.

• ·         Do your homework — Before registering at any freelance website, search for problems. Type Scam: Name of site into Google before you register. It is important to remember that nearly any site that has been online for any length of time will have a bad review or two so make sure that you read each user's issues very carefully before deciding.
• ·         Research always helps — Check out the Better Business Bureau website for complaints against freelancing sites. This one step alone can help you from being taken advantage of.
• ·         Talk to community members — When you visit freelancing sites, see what others in their community forums are discussing. These forums can often provide great insights as to job quality, earnings and how often people run into problems. Again, keep in mind that no one will be 100% happy with every freelancing site and it is important to weed out sour grapes from legitimate complaints.

Bidding on jobs

When you begin bidding on jobs, carefully read the job descriptions. Make sure that you are bidding on legitimate opportunities. Remember, even freelance marketplaces get buyers who have bad intentions. Read opportunities thoroughly, understand what is expected and only bid on jobs that you know you can complete and make sure you get an upfront payment for fixed-rate assignments.

How to find freelance writing jobs online

If you are considering starting a freelance writing career, you will need to take some steps that can help ensure your success. As you are preparing to start your freelancing career, make sure that you are fully prepared by having the necessary tools.

A fair amount of discipline is needed to be a successful freelance writer. You must dedicate time to ensure that you are meeting deadlines and the commitment to submit only top quality work each time you submit it.

Determine early on what your goals are for freelance writing, both in terms of productivity and in terms of the time you wish to commit. Then you'll be on your way to getting started.

What steps you need to take

There are some basic steps you'll have to take to pursue a writing or blogging career online. They are:

1. Getting prepared - the first step that you will need to take before you start searching for freelance writing jobs online is to ensure that you have all your tools prepared. Equipment should be in good working order, your internet connection should be stable and you should have the proper software that you will need to succeed. You can use OpenOffice for most word processing jobs, or you can use Google Docs. Either of these systems will be sufficient.
2. Create your profile and portfolio - one of the key things you will want to do is show your potential clients what your qualifications are. You should create a portfolio and profile to highlight your skills and your work. Your profile should contain a professional looking photograph of you as well as your contact information. The portfolio section should contain links to your work with the most recent work highlighted first. If you have specific types of work you do not wish to do, you should avoid placing samples of it (for example, press releases). If you are not utilizing a freelancing site, you can easily set up a professional looking blog that can serve as an online portfolio and resume.
3. Establish a presence - now that you have established your profile and portfolio your next step will be creating an online presence. You can do this by joining sites like LinkedIn. Set this up with your educational experience, work experience and link it to your online profile and portfolio. This will be a necessary step to getting your name out. You may also want to consider setting up a page on Facebook to let people know what you can do. If you do set up a Facebook page, link this to your LinkedIn profile as well as your online portfolio.

Are there any real online jobs out there?

Many who were previously employed have found their unemployment benefits exhausted in spite of numerous extensions to benefits by Congress. This set of unfortunate circumstances has helped contribute to the number of people who are turning to the internet as a means of earning additional money. Sadly, it has also contributed to the number of unscrupulous people who take advantage of them. This leads many people to wonder if there are any real online jobs out there. The fact is, there are online jobs that are legitimate and in some cases can turn into full time careers provided that the employee has the required skills.  The challenge is finding these jobs.

Freelance sites

Although finding an online job through a freelance site can be challenging, there is far less chance to be taken in by an online job scam.  Most online freelance sites like Upwork protect those who register by having checks in place that help them weed out fraudulent job offers. This may include flagging capabilities by community members as well as quality teams who verify job offers.

Writing sites

Writing sites for beginners include sites like Blogmutt, Article Document and CrowdCloud. However, more seasoned writers can also do well on sites like Blogmutt, Writer Access, Constant Content and Article document. Whatever you do, do not pay for writing opportunities; there are plenty of sites that offer free membership in return for a portion of your earnings.