How to Start a Home-Based Business

I wrote these brief articles to help business support services owners, but many of the principles apply to other small and home-based businesses. And now, on with the show!

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Introduction

Graphic caricature of Judy Vorfeld by Serenata of www.seresign.com There's no real beginning and no real end to this publication. It's just a series of related ideas intended to help different people in different ways. Successfully operating a computer-related business depends as much on personal traits as on skill and talent.

Prospective clients look for integrity and dependability, in addition to a good product. You must become known as someone people can trust and respect. And you must get the word out. Knowing you're talented and experienced aren't enough. You must understand the potential client's viewpoint and come up with credentials. Good credentials. I'm not talking about degrees. Often experience is what you have to offer. And savvy potential clients understand the value of experience.

I hope you find some worthwhile information here in your effort to plan and start a home-based business, whether local, virtual, or a combination of both!

Accountability to Others

Accountability. Responsibility. You know you have a great deal to offer, and that strong ethics are important. Somehow you must convey this to your potential clients. You probably want to join a good organization, one that can be a fine mediator for you, but wonder which way to go. And the costs are sometimes significant.

Many Internet business owners face the same dilemma. When I opened my online business, I searched high and low. I found the Better Business Bureau, a highly respected organization, only to discover that to join the online BBB you must first be a local member. That didn't work for me - I'm a one-person operation, and the high cost of membership didn't fit my budget. So, even though it is excellent, and particularly good for larger businesses, I moved on.

Graphic of handshake relative to being accountable to othersThere are other fine organizations, like Better Internet Bureau. You may want to find an organization that relates directly to your business. Find one that demands great ethics and professionalism.

As the emphasis on privacy policies grew, so did my interest in joining a good organization that handled that, as well. After studying all the organizations and their costs, I ended up with Privacy Secure. One of the requirements for membership is give a release to have a D&B credit check.

What most of us want is to belong to high-quality organizations that have reasonable membership fees. Not cheap. Reasonable. You want them to be your advocate should a problem with a client arise, and to be just as fair to anyone protesting your business practices. Following is just a sampling of organizations designed to ensure ethical business practices.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Advantages of a Home-based Business

  • Experience fewer transportation costs
  • Gain personal satisfaction
  • Have ability to work flex hours
  • Have considerable independence
  • Spend less on wardrobe
  • Spend less on eating out
  • Have authority to make your own decisions
  • Maintain direct contact with vendors, clients, etc.
  • Have opportunity to apply your creativity and talent to your business

Analyzing Yourself

It's time to ask yourself some difficult questions. By analyzing yourself and your goals, you may decide to stop right now. You may also decide to wait, start immediately, or totally change the focus of your service.

Ask yourself:

  1. Is my type of business in constant demand?
  2. How many other businesses offer the same services?
  3. Where might it be in three to five years?
  4. Can I create a demand for my services?
  5. Am I good at spelling and grammar? (If not, some types of businesses may not be for you, unless you work in areas like spreadsheets and databases or handle chores like telemarketing where a lack of good writing skills is acceptable. Or unless you have a partner who writes well.)
  6. If I'm going into Desktop Publishing, do I have sufficient knowledge about graphics, typographic and print reproductions and procedures to proceed?
  7. Will my computer software and hardware make up for what I lack in creative ability?
  8. Can I effectively compete in terms of price, quality and delivery?
  9. Can I price my service to give me the projected profit?
  10. Do I have the time required to network effectively and market my business?

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Basic Steps

If you've done a tough self-analysis, you're probably ready to begin critical research. Much of this depends on whether you're planning a local or virtual business. Keep in mind that "virtual" can mean clients in your community whom you support with online, fax, email, and snail mail services.

  • Start by contacting your local chamber of commerce, public library, or community college. Ask for resources that help people start small businesses.
  • Investigate International Virtual Assistants Association , IVAA, at http://www.ivaa.org, and study its offerings. There are other fine VA organizations, but IVAA ranks at the top. Becoming a member is similar to taking a continuing education course that never ends. You will be able to share your knowledge, and benefit from a wide variety of expertise from other professionals.
  • Go to my site's AskJudy area to study the questions and answers. Feel free to ask a question, and hold your hat when you read the answers! We keep all submissions anonymous.
  • Go to Janet Attard's fantastic Business Know-How site. Join the forums. Read the articles. Subscribe to the ezine. Buy Attard's books. She's tops in the field.
  • Go to Business Owners' Idea Cafe and read through its offerings.
  • Buy or read books and articles that will provide you with easy-to-understand information and tools, such as:

    SBA Business Plan Outline; How to Open and Operate a Home-based Desktop Publishing Business by Louise Kursmark, published by Globe Pequot; How to Open and Operate a Home-based Secretarial Services Business; How to Open and Operate a Home-based Résumé Service, both by Jan Melnik and published by Globe Pequot; The Home Office and Small Business Answer Book by Janet Attard, published by Henry Holt; and Brian Hill's 50 Tips For A Better Business Plan.
  • Bookmark Inc.'s site. Excellent for small businesses.
  • Sign up for my small business ezine, Communication Expressway.

Cold Calling

Graphic of telephoneDid you know there's a site on the Internet that tells Americans what is acceptable and not acceptable regarding "cold calling"? Yep. The Securities and Exchange Commission put together a great site to tell us our rights as far as cold telephone calls are concerned. We can learn from them!

Do we have a parallel on the Internet? Absolutely. Unsolicited Commercial Email. In both telephone and email, there are rules that work for everyone except the over-enthusiastic (notice I didn't say rude) people so eager to make money that they run all over the rights of the recipients. Increasing numbers of people are greedy and ruthless and will stop at nothing to make money. It's not easy to know where to place trust.

There's another kind of cold calling, used in local circumstances, and the principles of thoughtfulness and consideration can just as well be applied when you telephone or email someone regarding to your small business products or services.

If you make cold calls by phone, planning to visit later, note the name of the person who helps you. (Example, "Hi, I own a ____ business nearby and wonder if there's a good time to drop off a few samples [of my work].")

If you get an "okay," make your visit brief . . . note the name of the person with whom you connected (receptionist, office manager, etc.- aka Gatekeeper) Build upon this informal, important relationship. If you're in the neighborhood, drop by and say "hi," but be brief. You want potential customers and people who might refer you to remember you in positive ways.

Make warm calls. When you drop off material, get (and memorize) the name of the person (usually the gatekeeper) who receives it. Explain that you'd like to set up an appointment with the person in the company who buys your type of service. Make a note of that person's name for the next visit or any type of follow-up. Write an occasional "thank-you" note to gatekeepers, expressing appreciation for their great customer service. Drop off a small gift occasionally, just to remind them that you're in for the long haul.

IDEA: put your promotional material in a regular letter-size file folder, and create a tab with the category of your business (HR testing; typing; tech writing; carpet cleaning; travel consultant; massage therapist, etc.).

Sometimes people are more inclined to file and later use something like this . . . and remember it . . . than if you give them a flyer or brochure. Be creative when looking for that edge.

The idea, whether you are phoning, mailing, emailing, or stopping by unannounced: be warm, low-key, professional, and brief. And it never hurts to do some homework on a company ahead of time. If you want to make inroads, make sure you're a match.

Yes, all these details take time and effort, but you'll be pleasantly surprised at the response if you do your homework and turn cold calling into a warm, pleasant experience.

Here's a good article on cold calling: Cold calling: article by Securities and Exchange Commission.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Direct Mail

While a mass direct mail campaign offering discounts or coupons may not be for everyone, mailing postcards or letters to targeted audiences may bring results. If you have a limited budget, send out just a few each month.

Do your homework. Contact only those businesses that may want to use your services . . . address the letter to the person in charge of such decisions. You can be fairly sure that if you send to "Manager, Human Resources," or "Dear Sir or Madam," and don't include the person's name, your letter will probably be recycled.

Your potential client has needs. Address those needs by offering solutions. Features tell, but benefits sell. If you send letters, include a business card and a polished brochure. Be prepared to contact the same businesses at least eight times before seeing any significant response.

Make your writing bright, to the point, and lay it out professionally. The two most important items in a direct mail letter are the headline and the P.S. You can educate, generate calls, or generate sales, but do only one at a time . . . be specific . . . make it easy.

Two of the most important words are "free" and the person's name or the word "you." Give the reader a reason to respond . . . use bullets . . . follow up with a phone call a week or so after the mailing.

Even though "free" is an important word, be cautious. People selling products can get by with this more easily than people selling services. It's a perception thing. You are going to work hard to position yourself as a professional, and everything you say and do will add to or detract from this image. Don't sell yourself short.

Most people give up far too soon, not understanding the value of building a solid foundation held in place by patience and hard work.

It's possible that--in a business offering such a combination of personal and professional service--you will get better results with marketing methods other than direct mail. Analyze this carefully before starting a direct mail campaign.

And if you want to learn about how to become an expert postcarder, go to Martha Retallick's Postcard Marketing Secrets site. Her book is worth every penny!

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Financial Considerations

Your ability to successfully sift through sales presentations will play a major part in your financial success. Start with a business plan and a marketing plan.

Once you've started, especially if you have a separate phone line for your business, you become the target of many businesses and organizations. Self-discipline and good analytical skills help decide what technological tools, insurance, advertising, equipment, and furniture, etc. to buy, and what organizations to join.

New, exciting toys are everywhere, but are they for you? If you work by appointment only (as do most home-based word processing business owners), do you need a pager or cellular phone? Do you need the latest software upgrade or hardware goodie? And if so, now? Move cautiously until you're bringing in regular income . . . and even then, spend cautiously.

When considering every expenditure (including building a Web site), ask yourself if--and when--this will help you bring in revenue. Bring your accountant into the picture.

Consider this: could you make better use of your money by joining successful organizations that will provide you with professional knowledge, support, community exposure, leads and information, than by paying for extensive, expensive advertising?

Never allow any salesperson or ad to distract you from a solid fact: it's your money. Don't give in to peer pressure!

For a free business plan outline, go to The Capital Connection at http://www.capital-connection.com. Find sample marketing plans at this site.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

General Tips

  • Be prepared to describe what you do in 15 seconds or less. This is your Unique Selling Proposition. It's a powerful marketing tool, usable in both formal and informal settings. Your description will change as your business evolves.
  • If you have a job typing labels, consider typing the info in a database. This involves almost the same amount of keystrokes as typing labels, but allows for extensive sorting. This also allows you to offer the client the readiness to merge the database with personalized letters at any time.
  • Stay visible in the community. Once you're established, give speeches (if you have that ability) to civic groups. Toastmasters is a great organization if you decide to learn public speaking. Often there is a local Speakers Bureau where you can register. Or quietly volunteer.
  • Keep a printout of your clients' phone numbers in your briefcase or handbag. Sometimes when you're on the road you may check your voice mail only to discover someone has left an urgent message, but no phone number.
  • If you are discussing a large project, tell your client you'll need a non-refundable deposit prior to beginning the project. If he/she protests, you may be talking with someone you can't trust. If he/she values the project and you as a professional, they'll gladly provide the deposit. Accepting large jobs without requiring a deposit, even if the person was referred by someone you know, may set you up to lose. You are a professional. Act like one.
  • After you've finished a job, tell your client that you'd appreciate referrals. A satisfied customer is your best advertising medium. We've heard that in one month a satisfied customer tells three people of his positive experience, but within a week an unhappy customer tells seven people of a bad experience.
  • If possible join a local group of related professionals. Then everyone shares operational and marketing ideas. As you get to know these people, you discover those who use programs that complement what you do. Then, when a prospect asks if you can do a certain type of work, and you don't, you can take the job and sub it out to a colleague. (Sometimes it's wiser to simply refer the prospect directly to that colleague.)
  • Always look for potential customers. Even if you presently have sufficient clients, look to the future. Don't take anyone's business for granted.
  • If you have a home-based business, you may want to place "By Appointment Only" on all your marketing material, especially if you provide a street address.
  • Leave your business cards and brochures in as many places as possible. Keep a supply in your briefcase. I got a speaking engagement from having left a brochure with a business two years ago. Put a date somewhere on your brochure: you'll be glad you did!
  • Every time you mail a payment for a local billing, include a business card in the envelope. You never know who might see it.
  • If you have a newsletter, take copies with you and hand them out generously. Ask friends who have businesses to let you put small stacks of your newsletter out in their lobbies. A newsletter helps reflect your work and your personality.
  • If you have a website, make sure to add the URL to all your business documents, including business envelopes.
  • ANTI-VIRUS PROTECTION   Explain to any clients who need their files via the Internet or floppy disks that you virus check all your files before they're opened on your hard drive and before they go to the client. Make sure you advertise this fact. You're working to build a reputation for quality. It's a good idea to virus check:
    1. All floppies and CDs created on your computer that are going to someone else.
    2. All floppies and CDs others give you for use in your computer.
    3. All files uploaded to and downloaded from the Internet.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Gratitude and Ingratitude

Always give clients more than they expect. Treat your clients with warmth. Be grateful even for those who take too much time or seem critical. There are always life lessons in such situations.

In the small business world, you need both return customers and referrals.

You may wish for a bigger budget for promotional items and gifts, and you'll be in the same situation as many small business owners, but that doesn't mean you can't say "thank you" in many imaginative, inexpensive ways.

Your tokens of appreciation don't need to be lavish. And most clients don't expect (or want) a constant barrage of mugs, magnetic business cards, imprinted pens, and calendars.

Take the time to snail mail a thank-you note or letter each time you get a referral from a customer. Send little notes at random times just to stay in touch, letting them know they are appreciated. These days, an occasional brief phone call when you don't want anything but to say "thanks" is novel enough to be appreciated.

When you find an article on the Internet that reinforces a client's point of view, send her/him the link. If you find a newspaper or magazine article that s/he might like, take time to clip it and mail it, along with a short note.

You show appreciation when you place a link from your site to theirs, refer them to a third party, or mention their expertise in a forum or newsgroup.

And best of all, regularly use one of the most important phrases in every language, "Thank you."

However, if you have a client who is abusive . . . delinquent in paying for your services . . . not merely critical, but just plain mean, you have every right to explain that you will:

  • Begin the next assignment as soon you are paid in full for work done to date
  • Withhold files and/or hard copy until you've received payment
  • Be happy to refer them to someone else
Sometimes two people simply aren't a good match. That's expected. But clients with little or no self-respect treat others with little or no respect. If this is happening to you, it may be time to stop and re-group.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Independent Contractor

Please do not start a business thinking you can persuade someone owning a small, home-based secretarial service or similar business to hire you as a typist. There are two basic reasons:

  1. Unless you are an established Independent Contractor, compliant with IRS guidelines, and willing to work on a contract basis, most small secretarial services will not hire you. They don't want the complications of withholding taxes, Social Security, of carrying Workers' Compensation Insurance, and of paying benefits, etc.
  2. Most people in our business generally contract work to trustworthy people whose work they know. Click here to learn some of the differences between Employees and Independent Contractors.

Having said that, please . . . don't give up. Be resourceful and creative.

Networking

Why bother attending networking meetings when all you want to do is sit in your office and crank out work? Unless you're working primarily for online clients, you won't have enough business to keep you profitable. And how do you think you'll get online clients if you don't have any/many of those?

You are the head of your Marketing department, and will need to mingle with people in your community . . , and on the Internet . . . who can ultimately refer others to you. Healthy networking builds professional credibility.

To learn everything you ever wanted to know about networking, go to Nancy Roebke's site at http://www.profnet.org. Read her articles ... subscribe to her newsletter. Her organization helps people in every level of small business, and she is a fantastic resource.

But there's more than being able to describe your business, as Nancy writes:

When I suggest the following, it really surprises a lot of people, because it seems to defeat the purpose most business professionals have when attending networking functions. I suggest you DO NOT talk about your firm...UNLESS asked. IF asked, people WILL listen to what you say:

WHAT!?!?!? Go to networking functions and NOT talk about my firm? What sense does THAT make? A lot of sense. The chances of actually "making a sale" at these events is slim-people haven't had a chance to get to "know, like, and trust" you yet.

These functions are EXCELLENT for starting the relationship process. The best way to do THAT, is to become GREAT at asking questions . . . Non-threatening, information-gathering questions. Questions about THEIR profession, about THEIR lives, about THEIR needs.

This is also the best way to be remembered, when doing follow-up . . . People remember those who took an interest in THEM, instead of those who spent the whole time talking about themselves.

Search local business publications for groups that you may want to visit. Check out a chamber of commerce (more, if you're in an urban area)and determine the chamber's interest level in promoting the interests of its members . . . look for groups that hold meetings in terms of content; location; day of the week; and time of day . . . look for groups that focus on passing leads, (referrals) once they know each other. Be willing to give the group a minimum of six months of steady attendance before you begin to get referrals.

Some chamber and networking groups simply act as support organizations, and--because you have a home-based business--you may need a support group or club. Know your needs and act accordingly.

Be cautious of joining a chamber that is too activity oriented. You want to look for one one that is well-rounded, and will help promote your business and your community not only locally, but (if they're on the Internet) globally. Meetings always need to be a means to an end, not the end themselves. It may take time to discover the distinction.

Call and ask for more information, and note the response time in getting back to you. Look for groups with affordable membership dues. Perhaps the time will come when you may have so much business you'll regretfully have to resign from a networking group.

Check the quality of each group's printed information, but don't necessarily judge the group by its paperwork. This group may need typing and design help, and you may be the one to do it! But go slowly: limit the amount of typing/design you do to a time frame and see how things work out.

Typists always run the risk of being asked to volunteer, or showcase, their talents for organizations. They are more vulnerable to being over-used than people offering other types of business services. Organization leaders rarely ask attorneys & CPAs to give away their services to the same extent they ask typists and designers.

While it's nice to hear praise, and it may be justified, your primary focus must be on making your business succeed. If you're going to work on an organization's project over an extended period of time, estimate how many hours this will entail per year. Include driving time. This gives you a picture as to the practicality of the project in light of your need to grow your business.

So, if you volunteer to create/maintain a small newsletter, consider limiting it to six months or a year. This allows the members to see that you are skilled, reliable, and a person of integrity.

Try not to overdo group involvement or you won't have time to enter into all the aspects of business that can help it succeed. Balance is vital. Decide how many hours annually you can devote to formal networking, then try to stay within those limits. Look for value in referrals and knowledge.

Stay close to people with knowledge and experience. Learn about them . . . then learn from them.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

News Releases

Sending news (press) releases is an excellent way to promote your business and bring in new business. Use them when you do some of the following:

  • Open your business
  • Make any significant changes
  • Win or sponsor contests
  • Launch a Web site
  • Have upcoming speaking engagements
  • Get published
  • Become an officer or board member of an organization

Be creative. Keep your text clean, terse. Don't tell the whole story. Write in such a way that a reporter will want to learn more and call for an interview . . . and always thank them for interviews, either by phone or, more appropriately, by sending a brief note . . . with a business card enclosed.

Write in the active voice. Always refer to yourself using your last name after your introduction.

Try to make your release so interesting that editors or reporters will contact you to do a further interview.

If you enjoy writing and have strong business skills, consider news release packages as profit centers and offer them to new or existing businesses. Check with a member of your local press to determine what they prefer in terms of news releases, photos, etc.

Create a database of snail mail addresses, email addresses, fax numbers, etc. of the local press. This will be a help when you're making announcements for your business or for one of your clients.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Pricing

Research in several directions . . . look at other areas in which you excel, such as editing, linguistic translation, résumés, graphic design, accounting, paralegal work, collections, software training, office management, coaching, consulting, presentations, medical or legal transcription, database or spreadsheet management, charts and graphs, academic or business writing, and forms creation.

Perhaps you'll charge more per hour for writing than for basic word processing, and more for consulting than for writing, etc. Click here to download a copy of my work order in Adobe Acrobat Reader. Feel free to use it as a basis for your own work order.

Always date any price sheets going out, and stipulate that they may change without notice. You will probably discover that you will change pricing regularly, depending on demand and other factors. And any price you have is negotiable!

While many experts will give you a formula of what to charge per hour, I suggest you check with other, similar businesses in your community. Explain that you are starting a similar business and ask if they'd be willing to let you have a copy of their pricing standards. Most owners will gladly share not only pricing, but other valuable tips. Mature business people know there is plenty of business to go around.

You now can discover all kinds of price lists on the Internet, and they can be a good guide for you. But there's nothing like analyzing your locale if you're working locally. In my area, the Valley of the Sun, prices change dramatically depending on whether or not the business is in an upscale community, a more middle-class "commuters" community, or a retirement community.

When quoting a job, take your time. I cannot over-emphasize this! Don't let your client push you into quoting too quickly. I lost almost $200 by not properly assessing the time it would take to copy text with very small print. I agreed to quote by the job rather than by the hour, and let my client's sense of urgency pressure me into quoting before I'd analyzed several major factors ... oh, what a difference the font size makes! Three to five more minutes and I would have made a better decision. Oh well.

The national average for the finished product is about six double-spaced pages per hour, including typing, editing, proofreading and printing. This is at 12-point type, and is approximately 250 words per page. However, much depends on the quality of the source material ... the formatting complexity ... extent of editing, etc.

Determine these before quoting and be sure to see the source before quoting!:

  1. What is the size of the project?
  2. Is the source material hand written, on a cassette, typed, online, or on a floppy disk?
  3. How will the material come to you (hand-delivered, pickup required, mailed, faxed, emailed, etc.)? How will it be returned?
  4. What is the final result to be? Hard copy, camera ready, floppy, faxed, via Internet, etc., or a combination?
  5. What is the deadline for the final copy? (Does this give you time to do thorough proofing?)
  6. Some people charge by the hour or page, and some by the job. Others use combinations. It takes experience and good judgment, but we will still make mistakes. You'll find potential clients who do a flip-flop if you give them an hourly rate for a letter. Be ready to give them CPR if they are sitting in your office! If you know it is a small and simple job, and say it'll be somewhere between $5-$12, they may be more inclined to hire you. Negotiate, but don't give away your work, and always have a minimum per job. Some people have a $15 minimum. Ask around.
  7. You may find that you can do one-page forms in a given amount of time. After you've seen the client's draft, you might say, "I will do it for $25. This includes a copy ready for the printer. If you'd like it on a floppy disk, we use WordPerfect 2000 for Windows and will provide the floppy for an additional $2." Be specific about your software application and operating system.
  8. How do you respond if someone asks you to type mailing labels? Industry standards say you can type up to 100 entries per hour for up to and including four lines. Let's say your basic charge is $20 per hour, and that most labels have four lines. Divide 20 by 4 and you'll know how much to charge per line per label: 5˘. If your label has more than four lines, add 5˘ per line per label.
  9. You may want to charge more if you provide the labels, and even more if you are going to apply them to envelopes. Also, consider the source from which you'll be typing. If it isn't easy to read, or, for example, has some missing ZIP codes, you may want to charge more per label (if you have to spend time obtaining the extra information). If it looks complex, revert to an hourly rate.
  10. Consider requiring deposits on large projects. Much depends on the consistency and credibility of the client. Create a Work Order that explains your key policies and procedures and also allows for estimated job costs. You'll want to talk with the client about payment terms, but sometimes talking isn't enough. When you invoice, always put down the payment terms (net at once, net 15, etc.). If you forget to note the terms, you may have to wait months for payment.
  11. Always make clear that final proofreading is the client's responsibility. Put this in writing on your price sheet, and anywhere else that seems appropriate.

Promises

Cheerfully ignore promises . . . to earn thousands of dollars per day, week or month . . . bloated phrases that you read while sitting in front of your computer. If they were true, the world would be overflowing with millionaires.

We hear from (and visit with) many people who believed that by just having a computer and some typing skill they could earn a substantial income. Not so. It takes time, determination, finding good people to mentor you, and the willingness to make mistakes and learn from them.

Good people have been broken, financially and emotionally. They didn't have enough information to make sound decisions.

Wanting to be at home isn't enough. Having been laid off isn't enough. Generally you need a business plan, a marketing plan, and the time and money to implement them. Boring? Perhaps. But it may make a difference in the success of your business . . . and the length of time it takes to reach your goals.

For a free business plan outline, go to The Capital Connection at http://www.capital-connection.com. Find sample marketing plans at this site.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Targeting Your Market

Selling is a component of marketing. Marketing includes foresight and planning for a profitable future while emphasizing and understanding the customers' needs. This places a responsibility upon your understanding of the customer and delivering a service that fills a need.

You need a written plan, not something you've scribbled on a piece of scratch paper. Try to spend time with professionals in some area of business to get some good marketing ideas. But before you begin, ask yourself what you are willing to do within the scope of your business. Some of the questions below will not apply if you plan to do all your work virtually.

  • Do you want to work typing manuscripts?
  • Do you want to type academic papers?
  • Do you prefer typing or editing?
  • Do you want to work for small businesses, targeting their overflow work? Or in helping them organize their offices? Coordinate conferences? Or in helping with some aspect of their ongoing needs (answering service, database entry, responding to e-mail, travel arrangements, etc.)
  • Do you enjoy writing press releases, and figuring out good publicity for people?
  • Are you better at databases and spreadsheets than at working with correspondence, manuscripts and papers?
  • Do you enjoy bookkeeping?
  • Do you want people coming to your home, or will you meet them in a non-threatening environment?
  • Do you want drop-ins needing an occasional letter typed, or do you want ongoing work from businesses?
  • Do you prefer all virtual work as opposed to local work?
  • Will you work five, six, or seven days a week. What hours?
  • Will you do pick-ups and delivery, or must the clients come to you?
  • Will you decide the software you're to be skilled in, or let the client or potential client determine that?
  • Do you have a list of other trusted, skilled professionals that offer complementary services? If not, will you research in this area?
  • Do you want to be known as resourceful, or just as someone who will take an assignment and do a very good job? Be honest.
  • How long can you wait before you begin earning some income?
Once you determine what you want to do, study how to pursue or discover potential clients.
  • Will you simply advertise, or are you willing to pound the pavement?
  • What part does direct mail play? Promotionals? Networking? Community involvement?

Did you know that generally businesses offering services get most of their clients from referrals? How? By networking . . .

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

Volunteering

Schools . . . churches . . . hospitals . . . social and human services organizations . . . retirement homes . . . children's groups . . . police departments . . . shelters . . . thrift stores . . . animal rescue . . . the list is endless.

Community service is a way to contribute something rewarding while spreading the word about you and your business.

Many nonprofit organizations welcome people who know computers. They may need help in typing data, designing brochures, or training for their key staff. They almost always have funding needs!

You'll probably meet some of the finest people in the community in such groups, and as you earn their trust and respect, they may eventually ask you - for example - to sit on an advisory board. This allows you to give to the community and also to have a higher level of personal and business exposure.

You may want to note these affiliations in your brochures, newsletters and news releases. But never enter this arena primarily for personal gain.

Yellow Pages

This popular form of advertising may give excellent results, if you can afford it and if it will help your business grow. Call some local secretarial services currently advertising and find out if it works for them.

Go through the Yellow Pages to make contacts--get leads--check out the competition. Stay current with what's happening in your field.

If you decide to advertise in the Yellow Pages, be prepared to cross-list by category, i.e., computers, consulting, résumés, typing, desktop publishing.

You may have to choose your top one or two categories, depending on your budget. Consider using the word "typing" since many people still search under this category. This is true online, as well. Most potential clients only understand "word processing" as work done on a word processing machine, not on word processing software.

Ask for a proof of the ad. Read the contract line for line.If you omit something, or make a mistake, you live with it for a year.

Marsha Kopan, of Executive Secretarial Services, says:

I know that there are lots of VAs out there that put lots of money into YP advertising. Personally, I don't use it for several reasons:
  1. It's been my experience that people that use the YP are shopping price.
  2. For the very few calls one gets for the $$$ spent its just not worth it.
  3. Note: I said "calls." "Calls" from the YP are not necessarily signed jobs.

If you do decide to use YP, do it in one that is most commonly used in your area. And, do an in-column ad rather than a display ad. Do not let them talk you into a custom logo display ad. The only difference between a logo display ad and a custom logo display ad is the placement of your logo. A logo display ad places the logo in the upper left of the ad; a custom display logo ad places your logo in the center of the ad and the cost difference is absurd.

Ninety-nine percent of my business has been word of mouth and networking.

On another note, let's hear from Amanda Vlahakis, of Truly Ace, located in the UK.

I use the UK yellow pages and placed my advert in there in June, since then the work has paid for nearly four times the advertising cost for the year, and I have six months left to go. Any call nearly always results in work, I never seem to get people from this source just shopping around, if they call they nearly always want me to do the job.

A lot of work does come from referrals also but if in the UK I would say the Yellow Pages is still a good source of work, and every bit helps from all avenues.

Introduction | Accountability to Others | Advantages | Analyzing Yourself | Basic Steps | Cold Calling | Direct Mail | Disadvantages | Financial Considerations | General Tips | Gratitude and Ingratitude | Independent Contractors | Networking | News Releases | Pricing | Promises | Targeting Your Market | Volunteering | Yellow Pages

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