Four years ago, Pam Baker, a mother of two, quit her job as a bookkeeper. "I liked my job, but was tired of the looks I'd get from management if I missed work because one of my children was sick. Plus, after my expenses I was only clearing an extra $20 a week!" Pam determined of starting business by herself bookkeeping service, which now grosses more than $28,000 a year. As busy as her business is, though, she still is able to arrange money for starting business around her first priority—her family. Pam is just one of the millions in the last decade who have taken initiatives for starting home-based businesses. According to LINK Resources Corporation, a New York City-based research firm, 4.1 million women had preferred the benefits of starting a home-based business. Further, the total number of full- and part-time home-based businesses should hit 24.3 million by the end of 1994, generating more than $380 billion in revenues.

Women have preferred of starting home based business for many reasons: high quality day care, though improving, can be difficult to find and is costly; the need for both spouses to work to maintain a medium standard of living is almost a necessity; and technological developments and advances in computers, fax machines, and other office equipment have enabled the average person to set up an affordable home office. In addition, in the 70s women learned they could not do it or have it all. Trying to balance their careers with family obligations and relationships with their husbands just did not work—except for the few superwomen who had some magic formula to make it all happen! Many were tired of climbing the corporate ladder, having to do twice as much as their male counterparts just to be recognized.

Instead of surrendering all their goals and aspirations, women in the '80s began to use their educations and previous work experiences in starting home businesses by themselves, many which are still being run out of their homes. This is not to say, however, that everything is easier for the home-based business owner. The time spent on a home business may well exceed the "normal" forty-hour work week; there can be endless distractions, including interruptions from family and relatives (usually when you are in the middle of a very important telephone conversation!); and your customers may think you are never closed and call you at all hours, day or night. For example, Baker works about fifty to sixty hours a week, with approximately twenty hours of that time spent at clients' offices. Her daughter is in school, but she still has to make arrangements to have her son watched while she makes office visits. Baker says, "I try to work at the businesses when my son is in preschool. Luckily for me, I've just hired my mother to do part-time office work for me. This works out great because I not only have dependable help, but also a built-in babysitter if one of the children is sick."

Though starting a home-based business may lead to a more hectic home life, home-based businesses have the important element of flexibility not usually found in a regular 9-to-5 job. Home-based business owners can tailor their businesses to fit their needs as well as their families' needs.
They also have the freedom to work in their offices at any hour; run their businesses according to their philosophies; and pursue any new opportunities their business may offer. Most find the advantages of a home-based business far outweigh those of a "regular" job. As Baker says, "I'll never work for anyone else again!" Jerrie, who owns a gift basket business, takes her three-year-old son with her when she makes deliveries. She says, "I do not apologize for bringing my son. I believe with so many women beginning businesses who have small children, people are just going to have to accept that children will sometimes help or accompany their mothers." Home-based business owners (whose numbers are increasing every year) usually start at the top. They are the presidents, the bosses, and the board-of-directors of their businesses all-in-one. Unlike employees of other companies, every action they take affects their businesses in some way. They are responsible for all aspects of starting a business, which include financing and budgeting; marketing and advertising; dealing directly with customers and suppliers; keeping accurate records; and maintaining production of services or products.

Some women entrepreneurs formerly worked in the corporate world and concluded they could be more effective in starting home business. Their business skills, honed while working for outside companies, greatly contributed to their successful business ventures. In fact, many business experts recommend first working in a business outside the home similar to the one you are thinking of starting. To some, starting a new business becomes overwhelming, and they go out of business in less than a year. For those who persist (often working other jobs while starting their businesses), the rewards are great. Women business owners have a distinct pride in them and in what they have accomplished—in ways that few other jobs had given them. What types of starting home based business are financially beneficial? In the past, women babysat or ironed and mended clothes or made crafts from their homes to earn "pin-money," yet they were not seen as being business owners or entrepreneurs. At present, however, the types of home-based businesses are as varied as any list of established businesses. They include everything from catering to clowning; from garden consulting to cleaning. Take a look at any community bulletin board and you can see endless advertisements for different small businesses, many of them home based.

Many women of the advanced age are interested in starting home based business, main source of livelihood independently. Some are full-time, some part-time, depending on the type of business and the time the woman has to put into her business. The tips of starting home business can help any interested men, because today jobs are performed interchangeably by men and women. I choose to focus on women's home-based businesses, however, because so many women are seeking alternative ways to balance their careers with their families and personal goals. By featuring the following women's businesses, I hope, women who might have been hesitant about starting a business will be encouraged to go ahead with their ventures. For this reason, too, 1 has tried to be realistic in describing the strategies of starting a new business. There are no get-rich-quick stories here, or magic formulas for instant success, only actual facts about real women working very hard for starting a home based business.

Many of these businesses are service-oriented because this type of entrepreneur usually requires less money for starting a business. Dr. Geoffrey Kessler of the Kessler Exchange, a researcher of bank of information for small businesses says service businesses are one of the best to start in the '90s.

According to his report, "Service needs for the 16 million busier and busier two-income families will mushroom. So will those for the burgeoning number of single-parent and single-income families. The elderly and the affluent people of the world will be more numerous and wealthier than ever before. They, too, will want more services. What is a service of starting a business? It is one that fills a need in your community. How can you determine what people need? Listen! If you hear people saying over and over, "I wish there were someone who could help me ...," or "1 hate doing. . . !" or "I wish 1 could hire someone to do it for me!," there might be an opportunity for a service-type business. Once you have an idea for one or two businesses see how many similar businesses are offered in your community. If there are others like the one you are interested in starting a small business, think how you could improve or interpret such a business in your way. You could offer better rates; offer better hours; target a wider (or smaller) age group; improve customer service; or offer door-to-door delivery.

Questions To Ask Yourself Before You Start

Where Will You Work?

Where you work will depend on whether your service involves going to your customers' homes or offices or their coming to you. With a cleaning business, for example, you (or your workers) will be going to clients' homes; but if you have a tax or financial service where your customers come to you, you will need adequate parking spaces and a home office, preferably with a separate entrance (or one that can be shut off from your house so that your customers do not hear the cartoons your children are watching, or, worse, their squabbling!). Your home office may be a corner, closet, room, or other space that can be used exclusively for starting home based business. Pam Baker's office is now in her dining room, but she has plans to remodel her garage into an office. She says, "I'd like my office moved where I can shut the door on it at the end of the day. Whenever I walk by (my dining room) now, I'm reminded of work."

Setting up an office for starting home based business—in no matter how small a space—will help establish your business as a serious venture to yourself and your family. If you plan of starting a small business, your business be more than just a hobby, your work area will have to look professional. Determine what basic equipment you need, and purchase it new or used. You can always upgrade later as your business grows (and it will if you are determined enough!). Installing a separate telephone line for your business (with an answering machine or service or voice mail) is almost a necessity if you have a family. Just one teenager can tie up a phone for hours! You will lose money for starting a business if your customers cannot reach you. Having your own office or space will help you to set in your mind that you are ready for starting home business. It may take some self-discipline, especially at first, to walk away from household distractions, but to succeed in starting your own business, remind yourself to save that wash, or tape that TV program to see later, after your business is closed.

Is It Permissible To Work From Your Home?

Before you open for business or begin to advertise, check with your local authorities for starting home based business. Honey, who has a silk flower business, first checked with her township. She was given permission of starting a home business as long as customer traffic and deliveries did not get so heavy that neighbors would complain. Honey says, "1 also went to my neighbors to tell them what I was planning to do. They said they would not mind and thought it was a neat idea. One even gave me some orders!" Your state may have regulations and licensing requirements for starting your own businesses, such as catering; caring for animals, children or the elderly; or operating a beauty salon. Check with your state department of health or social services, or call your local state representative or senator to get a listing of state agencies that issue small business licenses for starting small businesses at home. Your regional Small Business Development Center (SBDC) will also have information about your state's business regulations.

Who Should You Talk To Before You Start?
* A good accountant can be worth his or her weight in gold! He or she can show you how to set up a good bookkeeping system and keep vital records for tax purposes. Two women who run a party business have this to say about their accountant: "We send him our quarterly statements, and he tells us how much money we are making and if we should even be in business!"
* A lawyer who specializes in small business matters is a valuable resource. He or she can legalize your business name (even though you can do this yourself) and can give counsel on steps to take to protect yourself and your business from possible lawsuits.
If you can only afford one hour of a lawyer's time, take it. Even a brief appointment may help save you time and prevent future costly, legal mistakes. Good legal advice can give you the peace of mind you may need, especially if this is your first business venture. As your business grows, you can always hire a lawyer for more information.

* A licensed property and casualty agent can evaluate for starting your own business insurance needs. These agents usually do not charge a fee, unlike an accountant or lawyer. They are paid a percentage of the policy premiums you pay. Start with the agent who handles the policies of starting home based business. If he or she cannot help you, ask for a referral to another agent who can.
* A growing number of financial advisers and home-based business and professional practice consultants provide services for individuals in starting small business. They can help in starting your own business: find start-up money, help with the bookkeeping, and suggest ways to manage and expand your business.
* Of course, you should do some of your own research before you hire any expert's services. Check with these sources first:

• Local chamber of commerce
  
• Local women's business club
  
• State association of insurance agents
  
• State bar association
  
• Your bank
  
• Local library for county business and professional directories
  
• Other women with home-based businesses

Talking to women who have been starting home-based businesses for many years may be helpful for you as a best research source. These women can recommend the services of those who understand and have had experience of starting home-based business. It will pay off to look around for the best people to help you in your business. Remember to ask all the questions you can think of before you hire any experts. If you are not satisfied with their services, try someone else. After all, it is your business and you know best what goals you want to achieve. What kind of insurance does a service business need? According to independent insurance agent Kathy Delp, "It depends on the type of business. For example, you may need more liability coverage if you have customers come to your home office, additional insurance to cover equipment if you produce a product, or insurance covering accidental breakage or damage if you work in clients' homes." She recommends you check your homeowner's policy to see if it contains any personal business coverage. After you decide what you want covered, your agent can modify your present policy of starting a new business with an extension to adequately cover your business needs. If your present policy cannot be extended, your agent can recommend a company that will offer the coverage you need.

Kathy Delp also believes that an independent insurance agency may be the best type of agency to ask about business coverage because they deal with many insurance companies. An independent insurance agency, which has flexibility because they're not affiliated with just one large company, can recommend the best carrier at the best price. When purchasing insurance, home-based business owners should make sure they have adequate liability coverage; and second, enough business property coverage. If your car, truck, or van will be used in your business, check with your agent to make sure you are properly covered. Study your business insurance policy—know what is covered and to what extent—before starting your own business. Keep copies of your policies in a safe place. Also keep a listing of your agents and their phone numbers close at hand so you can easily call them if the need arises.

Will You Work Alone Or With A Partner?

This is a good question to discuss with your attorney. He or she can tell you the advantages and disadvantages of a sole proprietorship (a business owned by one individual); and a partnership.

(A business owned by two or more persons).Three out of four businesses are sole proprietorships. If you start a business by yourself, you are the sole proprietor. You make all the decisions; you decide which direction your business is to take; and you get any related tax savings and, of course, all the profits. In other words, it's your "baby." As with a baby, though, a sole proprietorship is also the full responsibility of the parent (owner). You have to pay any business debts, and anything you own can be subject to liquidation if you cannot have money for starting a business. You have to learn to handle all aspects of your business. You should have plans in place should you die or become incapacitated.

Most of the strategic tactics of starting a home business are sole proprietorships, and their originators have loved the challenges involved in their business ventures. If they were not sure how to handle certain aspects of their businesses, they went to people who could help them, or figured out their own methods through trial and error. A partnership has the advantages of combining the skills, expertise, and capital of two or more persons. Partners share the responsibilities and the costs. Whether you have been friends for twenty-five years or just met recently, you should have a written, legal agreement drawn up by your lawyer. Why? Unfortunately, two-thirds of all partnerships dissolve, many due to irresolvable differences between the partners.

The partnership of two women in starting a home based business, who had been friends ever since childhood, worked well until one of them got married. The husband was jealous of the time his wife gave to the business, so to placate him, she put in less time. Her partner became resentful that she was doing all the work. The married woman dropped out of the business to start one with her husband. As a result, the women's friendship has never been quite the same! A lawyer can draw up a partnership agreement containing information such as how much each partner invests; division of salaries, duties, and responsibilities; participation of each partner in the profits and losses; what happens if one partner wants to sell out or dies; and other details to equally protect each partner's interest. A partnership of starting a new business must be based on trust; but people are only human and a legal agreement can help prevent future hassles if you go your separate ways.

How Much Time Will You Need For Your Business?

Whether your business will be full or part-time is, of course, a factor. Regardless of your choice, it is better to take step in starting small business and endeavor diligently in starting your own business with huge amount of profitability— unless you are completely prepared to do so. Careful planning will save your time and money for starting a business in the long run. Here are some basic time-management tips:

* Keep a record of week s’ worth of day-to-day activities to see how many free hours you have a day
* Set your priorities. Family, business, and volunteer work should each have their place. You may have to cut down on your volunteer time or settle for a less-than-perfect house, but you will need all the extra hours you can to get your business started while still having time for your family.
* Make goals and set tentative deadlines for meeting them. Decide what steps it will take to reach each goal and schedule them, one-by-one, on your calendar.
* Sit down with your family and tell them what you are going to do. Tell them you love them, but you are going to be busy starting a new business and so would appreciate all the help and understanding they can give. They'll probably be enthusiastic about your new job until the morning comes when you've forgotten to do the "white" wash. If you involve your family in starting your own business in the initial stage of establishment, they will be less apt to act resentful.
* Be realistic. Remember that everything will take longer to accomplish than you expect. Be flexible and learn to make the most of whatever blocks of time are available during the day, especially if you have a family. One divorced mother of four has her own wallpapering and painting business. She says, "I work four days a week, leaving one for errands or family matters. I let my customers know that my family is first in my life and that there may be interruptions from time to time. If they cannot handle that, I will refer them to someone else."

* Get organized. At the beginning of each month, one mother, who has a basket and chair caning business, marks down her and her children's activities in different colors on a calendar. She writes down due dates for long-term projects (hers and her children's), so things are not let go until the last minute. She laughs as she says, "If anyone ever stole my calendar, I would be lost! It would be far easier to replace a TV or VCR than it would be to remember everything that has been scheduled and written on that calendar!" She also plans a month's worth of meals for her family, so she doesn't "have to think when making the weekly shopping list."

All schedules are subject to unexpected changes, of course, whether due to family illnesses, weather conditions, car or appliance breakdowns, etc. But having a home-based business, the owner often has the advantage of being able to work around these crises. If you are a woman with children, you will have to make the most of your free time. Keeping your office or work area organized will help you save time in picking up where you left off, whether to start a meal or take your turn car pooling. Write yourself a note to help you remember where you stopped. Periodically, file your papers to help keep your office in order. A tip from the magazine Home Office Computing says if it takes you longer than a minute to find something in your home office, you should take a few minutes to reorganize. The old adage, "Time is money," can be applicable in starting home based internet business, because any time you waste takes money from your pocket.

Will Your Business Be Full-Time Or Part-Time?

Unless you have substantial savings put away or someone else to support you, starting a business full-time is usually not the best way to go. According to the SBA, millions of people are engaged in starting online business. Many of them work for other companies, but the numbers that are working for them is increasing every year. Starting your own business will give you time to learn how to run a business. You can take courses as needed or work in a similar business to get the experience and know-how you will need in your own. Working at home part-time in addition to your regular job will also enable you to save money to invest in your business. Plus in some cases you can maintain your health benefits. With the present healthcare crisis, you need health insurance, especially if you and your spouse are self-employed. It only takes one severe medical crisis to bankrupt an uncovered person or family! There are business associations such as the National Association for the Self-Employed (NASE) that offer health insurance for small business owners.

Your starting online business will dictate when it is time to go full-time, though you may decide you still like it just part-time. Either way, it's your decision, and you will have to decide what's best for you. Will your money for starting a business be an "in-home" business or "out-of-the-home" business? Some home-based businesses involve out-of-home work, such as landscaping, cleaning, and entertaining. Others involve more "in-home" work, such as writing, handicrafts, upholstery, and computer businesses. Many involve both going out to customers and then doing related work in the home office as in a bookkeeping service. Be aware of the percentage of time your chosen business venture will involve in-home or out-of-home work. Knowing this will help you decide matters such as your wardrobe (professional image or working clothes), child care needs, home office hours, coverage of your office when you are away, and other needs of your business.

How Will Your Family Be Affected Or Involved?

As mentioned earlier, discuss your business venture with your family. Let them know how much you need their support. Consider the following:

* Expect an adjustment period. Your family may have a hard time accepting you really are working from home. They will interrupt you at any time, even when you may have an important business call. Let them know you are always there for them, but you have to do your work, too. It will take time to find the right balance between your family and business obligations.
* Emphasize the positive. Let your family know that you are flexible—you can arrange business hours so that you can be a classroom mother or take summer picnics, etc.
* Involve your family whenever you can. Linda Pack, a freelance photographer, often takes her ten-year-old son on assignments whenever he is home from school. Linda says, "Justin acts as my assistant, carrying my tripod and camera bag and getting extra film for me. Sometimes, he even gets into the photos, like when I photographed a local herpetologist for a magazine article. I needed a shot of the man showing his snakes and lizards to someone, so I used my son. Justin got to hold a twenty-five-pound python and a large iguana and now he has pictures to prove it!"

If family members want to help out in starting home based business, give them responsibilities they are capable of handling, such as answering the phone, collating papers, or even creating designs or logos for brochures or pamphlets. Joan, who has a painting and wallpaper business, hires her high school daughter to help her in the summer. She lets her younger children paste paper that is ready to be hung. If you have infants or preschoolers, there would be difficulty in starting a home-based business without help. Some women pay babysitters to come into their home to watch the children while they work. Others barter sitting time with friends who are home with their own small children. And some work when their husbands come home. It's not easy to be involved entirely in starting a home-based business and a family, and at times you may feel you are performing a crazy juggling act. Joan says, "My business has helped support myself and my family and I feel good about what I do. My children are proud of me, and I know I can be there when my kids need me. Need I say more?"