Home Based Business Tips from the Government of Canada
Of all of the different entities that would encourage you on developing your home business, one might not expect the government to be at the top of that list. But the Government of Canada and many other federal governments around the world has caught onto the home business trend and is now advising people of the different things they should think about when planning a home business operation.
For example, the government talks about the generation of ideas, how to plan for your business, how to secure the capital needed and how to make sure that your productivity is still high in spite of everything else. These are all very real concerns to the average home business worker and for that reason it is definitely a good idea to take the suggestions that anyone might make seriously. The government really has nothing to gain out of people going into home business for themselves, so it is definitely a good source of information since they have all of the statistics in front of them in the form of tax returns, bank records and benefit information.
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.
