Getting Ready To Work At Home

Good for you! You've decided you are going to start working at home! Now that you are going to "be your own boss" there are some things that you will need to consider, plan, and prepare for before you actually become self-employed, and then after you are successfully working at home.

What Are You Going To Do?

Hopefully, you already have some idea about what it is you are going to do at home to earn money. You should be planning to do something that fits your current skills, educational background, and prior work experience. You might want to be a medical transcriptionist, but if you have never done it before, haven't taken any courses in transcription, and don't have the right equipment (hardware and software), then just wanting to be a transcriptionist won't be enough.

Can you legally, and logistically, start the business you want to operate? Before you decide to open a Doggy Daycare Center, you should find out what licenses or permits you need. Can you do doggy daycare in your backyard or garage, or do you need to rent a storefront? Do you live in a highly populated area where there are likely to be dog-owners who work all day and need doggy daycare?

Is there a ready market for the services you want to offer? Have you taken the time to investigate whether there is a need for your services? Do you know how to approach prospective clients? What are you going to charge?

As you can tell by this list of questions, there are many things to consider before you start working at home.

How Do I Advertise My Business?

You can have the most valuable service to offer, but if no one knows that you are offering the service, you won't get many clients. You don't have to have an unlimited budget in order to start the process of advertising your business. In fact, all you need is a computer and a printer to get started!

You need to think about having business cards, brochures, flyers, and a Business Fact Sheet that lists the services you offer and other pertinent information about yourself and your background (similar to a resume, sometimes called a précis). You should also get your own website, and that is really cheaper than you think it might be.

You also need to think about where you can advertise, either cheaply or, better yet, for free. Schools, churches, and other local organizations often put out newsletters---and you can usually get them to print a facsimile of your business card for a fairly reasonable fee. Look for community bulletin boards when you can tack up your business card or business flyer (be sure to keep a supply of push-pins in your purse or glovebox of your car!).

I've Got Clients, and I'm Getting Paid---Now What?

Congratulations! That's what it's all about! Working at home...and getting paid. Now you have to think about keeping track of your business expenses, keeping accurate records, and preparing to file your Self-Employed Income and pay taxes (Federal Income Tax [FIT], Self-Employment Tax [which is similar to FICA/Medicare], and State and City Tax [SIT] if applicable).

Generally speaking, anything that you buy or pay for strictly to use for business is an eligible business expense. You will need to keep your receipts, statements, and other invoices for these expenditures.

You will need to claim your self-employment income on your Federal (IRS) and State/City income tax forms. The wisest course of action is to consult a tax accountant or contact the IRS directly for assistance in filing. Do keep in mind, however, that you will owe Federal Income Tax, Form 1040, and Self-Employment Tax, Schedule C, which is similar to what is usually called FICA tax. Note also that you must pay both portions of FICA: the approximately 8% that you would have paid as an employee and the 8% that your employer would have paid. This tax is in addition to your FIT/SIT.

As you have read, working at home isn't a "game," but there are lots of "rules." You have to work hard at working at home, but it is rewarding---and you can do it!
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Eugene Rivera is an internet marketing protégé. He is the webmaster of Secrets of Online Success. Learn about all the money making techniques to achieve success on the Internet. Click on our webpage at http://www.secretsofonlinesuccess.info
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