Home-Based Business

Summary

Starting your own business at home can be a viable business opportunity. This publication will give you some idea of the types of businesses which can be operated from the home and provide some tips on start-up, pros and cons, and available resources.

Tips on Starting a Home-Based Business

• Pick a home business idea that interests you, for which you have a talent or expertise, for which there is a need, and which you can afford to finance.
• Do your market research. In a home business, as in any business, getting as much information as possible on your customers, competition, suppliers and market area before you start is essential.
• Do a complete business plan, including financial planning, before beginning.
• Check on and obtain all necessary licenses, permits and registrations for your line of business. This includes checking with your city/town/R.M. to see if it's legal to operate your business from home.
• Have business cards, stationery, brochures, etc., printed by professionals. A polished, professional look is particularly important for home-operated businesses.
• Advertise. Scan and target T.V. and radio stations, newspapers, magazines and newsletters geared to your market. Use public and special libraries to access this information. Canadian Advertising Rates and Data (CARD) lists Canadian publications, T.V. and radio stations, and their advertising rates.
• Self-market. Go to stores, companies, etc., to market your service or product in person. Be sure to spend some time finding out about your potential customers before you try to "sell" them.
• Designate and design a work area that is separate from the mainstream of your home activities. Install a separate business phone, fax and Internet connections.
• Check on any extra insurance needs. Shop around for policies, but make sure that you're adequately covered.
• Make use of free publicity. Send out news releases, present your product or service to a newspaper editor, radio or T.V. producer if applicable.
• Don't overlook management/bookkeeping. Lack of managerial expertise is one of the single highest causes of business failure. Take courses, seek expert advice or hire help, but do learn basic management skills before you start.
• Talk to owners of similar businesses outside your market area to get an idea of the potential and status of that line of business.
• Join trade associations, business community associations, (i.e., chambers of commerce), business networks or clubs to help establish contacts.
• Check both federal and provincial taxation requirements with Canada Revenue Agency and the Provincial Retail Sales Tax Office in the provinces where these are applicable. Find out about allowable deductions for automobile expenses, business meals and entertainment, and home offices expenses for self-employed persons.

Home-Based Business Ideas

It's important to note that some of the businesses below may be subject to the approval of local authorities (i.e. health, zoning, etc.)

Arts-related Businesses: Antique Refinishing and Repair Appraisals - Art, Antique, etc. Art Dealership Artist Cartoonist Costume Design Entertainer Film Production Illustration/Graphic Arts Music/Dance Lessons Photography Publishing	Miscellaneous Businesses: Candy Making Catering Cooking/Baking Dog/Cat Breeding Dog/Cat Grooming Rentals
Business Services: Accounting Advertising/Public Relations Answering Service Architecture Billing Service Buying Calligraphy Collection Agency Consulting Coupon Clipping Service Data Processing Detective Agency Editing/Proofreading Entertainment Bureau Home Economics Importing Interior Design Inventor's Bureau Lobbying Messenger Service Personnel Agency/Executive Recruitment Research Software Development and Sales Stationery—Design and Production Technical Writing Telephone Solicitation/Surveying Trade Show/Convention Organization Translation Typing/Secretarial/Word Processing Writing	Personal Services: Astrology Baby Items/Stork Deliveries Babysitting/Day Care Beauty Salon/Barber/Beauty Consultant Bed and Breakfast Chimney Sweeping Cleaning Cooking Lessons Counselling Dentist's Office Doctor's Office Gift Basket Service Important Dates (Reminder Service for Birthdays, Anniversaries, etc.) Insurance Agency Lawyer's Office Limousine Service Mobile Home Rental Registry Party Planning Plant/Pet/House Sitting Private Investment Real Estate Resume Writing Sewing/Tailoring/Dressmaking Shopping Service Sports Lessons Telegrams—Singing, Cookie, Balloon Tours, Transportation Services (Children, Seniors, etc.) Travel Agency Videotaping Special Occasions Vocational Counselling
Retail Businesses: Furniture Retail Home Retailing & Selling Mail Order	Manufacturing/Design/Repair: Clothing Design Doll Manufacture and Repair Furniture Manufacture and Repair Jewellery Design and Repair Repair—Electrical, Appliance, etc.
Trades: Carpentry Contracting Electrician Landscape Design/Gardener/Horticulture Vegetable Growing Plumbing

Pros and Cons of Working at Home

• Pros:
  • Lower costs: office/store rental, commuting, tax deductions, child care.
• • Time saved: work when most productive, combine work and home chores, commuting time.
  • Own boss: set own priorities, direct financial benefit when doing well.
  • Can be home with family.
• Cons:
  • Work space: may be hard to set up a permanent, separate work space. If you must see clients/customers in your home it can involve costly renovations or you may have problems creating a professional image.
  • Time: can be difficult to find quiet time to work or, conversely, work may cut into your family/personal life; it may be hard to "get started".
  • Travel: if you visit clients in their office/store it may require a lot of time and will involve higher costs.
  • Isolation.

Resources

Samples of Books Available Regarding Home-Based Business

• Dollars on Your Doorstep - Gregory Kishel and Patricia Kishel
• Home Business Opportunities, A Treasury of - Russ Von Hoeschler
• Home Business: The New Reality - Barbara Orser
• Homemade Money - Edna Sheedy
• Women Working Home: The Home-Based Business Guide and Directory - Marion Behr and Wendy Lazar

Samples of Books on Specific Businesses

Arts Related

• How to Make Money in the Antiques and Collectibles Business -Elyse Sommer
• How to Survive and Prosper as an Artist -Caroll Michels
• Promoting and Selling Your Art -Carol Katchen
• Sell Your Photographs -Natalie Canavor
• Selling Your Handcrafts -William Garrison
• Start and Run a Profitable Craft Business - William Hynes

Business Services

• Successful Conference and Convention Planning -Robert Drain and Neil Oakley
• Words for Sale -Eve Drobot and Hal Tennant, editors
• Starting and Building Your Own Accounting Business -Jack Fox
• Start and Run a Profitable Consulting Business -Douglas Gray
• Complete Guide to a Successful Small Client Tax Practice -Ralph Guyette
• Making Money with Your Microcomputer - Robert Traister and Rich Ingram

Miscellaneous

• Get Rich Through Multi - Level Selling -Gini Graham Scott
• Marketing Your Product -Douglas Gray
• Successful Catering -Bernard Splaver
• Marketing Your Service - Jean Withers and Carol Vipperman

Retail

• Successful Direct Selling -Ronald Bernstein
• How You Too Can Make at Least $1 Million in the Mail-Order Business -Gerardo Joffe
• Sell it by Mail: Making Your Product the One They Buy -James Lumley
• $36 000 a Year in Your Own Home Merchandising Business - Barry Masser

Prepared by: Saskatchewan Regional Economic and Co-operative Development