For most home based business people, the first contact with potential clients is by telephone. This initial contact can either make or break your reputation as a serious businessperson. The following tips will help you present your home based business in a professional manner:

• Install a dedicated telephone line in your home to be used for business calls only. If this is not feasible or is cost prohibitive, talk to your service provider about obtaining a “smart ring” on your line. This feature will give you a separate phone number for business purposes only and will have a distinctive ring, which will become easily recognized as a call intended for business purposes only.

• Always answer the telephone by identifying your business. Speak in a professional, clear manner. Try to smile when you are speaking with clients; it’s amazing how a bad mood can be transmitted through your voice. A happy, upbeat reception will immediately put others at ease, thereby opening the door for you to promote your business.

• It is not a good idea to have children answer the phone unless they have been fully trained to do so and can appreciate the subtleties of telephone communication.

• Keep background noise to a minimum. Close the door to your office to shut out extraneous babble and remember lower the volume on the radio before you take a call.

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A concern many home based business people have is "will people take me seriously if I work at home?" From my experience, any doubts that prospective clients might have about the credibility of your business can be overcome by being scrupulously professional in all aspects of your business.

Here are six tips to help you present a professional image in your home based business:

1) Invest in well-designed and professionally printed business cards

A well-designed business card is one of the least expensive and most cost efficient ways to promote your business. Carry them with you at all times and don’t be shy about handing them out. Networking doesn’t always happen in a controlled setting and you never know when a potential client will approach you.

Don't be tempted to print your own business cards using the blank sheets from the stationery store. Nothing marks you as an amateur faster than home-made business cards. Professional printing costs less than $50 and is well worth the investment.

2) Use your business logo on everything, and keep it consistent

Your logo should be readily identifiable with your home business and project your company as a professional, well-established operation. This is known as “branding” and has become an industry-wide benchmark for establishing immediate recognition for particular goods or services. Invest in pre-printed stationary, which proudly displays your logo, business name and contact information and use it in all correspondence and invoicing.

3) Don't use your residential address for mailings

Have all business mail directed to a Business Centre or Post Office box rather than your residence, especially in smaller communities where a residential address is easily recognizable.

4) Open a business account for all your banking services

One of the first things you should do as a new home-based business is open a business account for all your banking services. Not only will this allow you to keep your personal and business transactions separate, it will enable you to establish a better rapport with your banking institution, thus providing a ready record of financial transactions should you need to discuss financing in the future.

In addition, you should have your business name printed on all cheques and credit card invoices relative to your business. The more you get your name out there, the more readily recognizable your business will become.

5) Use good telephone etiquette

For most home-based business people, the first contact with potential clients is by telephone. This initial contact can either make or break your reputation as a serious businessperson. This article covers telephone etiquette for home business in detail.

6) Conduct yourself professionally even in casual meetings

Self-promotion is the mainstay of any home based business and marketing your product or service professionally is crucial. Attending local trade venues such as Chamber of Commerce meetings offers a prime opportunity for networking with other like-minded business professionals.

No matter how small or casual the meeting, remember that people form impressions of your business through these encounters. Hence it is important that your appearance and behavior always project a professional image.

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Starting a home-based business is an exciting venture. But before you begin, complete this self-assessment so you're prepared for what you're getting into.

The rewards of home-based business

What do you want out of your home-based business? Having a home-based business has many rewards: the freedom of being your own boss, the personal satisfaction of accomplishment, and the chance to earn an income that is only limited by your skill and determination.

The downside of home-based business

There's no arguing that having a home-based business is a wonderful way to make a living. I've done it for the past 20 years and wouldn't have it any other way.

However, having a home-based business takes a level of effort and energy that many people underestimate. It can place incredible demands on your time, your family relationships, and your money.

And the unfortunate fact is that the majority (estimated as high as 70 per cent) of all new businesses fail within three years. It's rare for a new business to provide any significant financial return to the owner in the first two or three years. Yes, you read that right. Even if your home-based business is successful, it may be three years or more before you are making the kind of income that you would like.

Do you have the personal qualities required?

Are you independent, ambitious, confident, hard working, a risk-taker and a problem solver? Do you enjoy working alone? Successful small business owners often have most of these traits.

Do you have the knowledge required?

Are you knowledgeable about the industry or type of business that you are considering? Are you really excited about your idea? Do you have business training in sales, marketing and production? Do you have the ability to put together a business plan?

Do you know your weak areas?

Are you willing to take training courses in your weak areas? Will you hire experts to do the things that you can't do? Do you have the money to pay for this assistance? Do you want to set up a partnership with someone who has the skills that you lack?

Do you have the family support required?

Do you have the full support of your family? When you work at home you are around family members a lot more hours of the day. You also will likely be working longer hours, at least to start. And the money situation will be iffy. What impact will this have on your relationships? Your prospects for success will improve when those close to you share your commitment.

Do you have enough money?

Starting a home-based business is often more costly than you think. And you won't have a regular pay cheque for quite a while. Are you prepared to spend the money required during the start-up phase? Be thorough and realistic about how much you need right from the start so your business isn't jeopardized after you've invested months of hard work.

And here's an excellent entrepreneurial self-assessment quiz that I think you might find interesting.

Money is usually the biggest obstacle that people face when wanting to start a home based business. To determine if you can afford to start a home based business now, follow these three steps.

Step 1: What do you own already?

Make a list of what you own (these are called your "assets"). Include bank accounts, real estate equity (this is the difference between what you owe on a piece of real estate and its current market value), retirement accounts, and other assets.

Step 2: Figure out how to use your existing assets

Once you have your list of assets, figure out how you might use them to help you finance your business. Do you want to use your savings? Sell anything? Use assets as collateral for a loan?

Step 3: Figure out startup costs

"Start-up costs" refers to what its going to cost you to start your business and run it for the first six months. Why six months? Because that's the average amount a time it takes a home based business to get organized and start bringing in money. Keep in mind that your start-up costs need to include at least a minimal salary for you, because you do need to continue to pay the mortgage for that home based business!

Today my Outlook got completely wiped out and I feel... well, not the way I thought I'd feel.

I pretty much run my home based business out of my Outlook inbox folders. It's my giant electronic filing cabinet, to-do list and template holder. Also my ideas file.

So how do I feel? Not devastated but... oddly relieved. There's this rush of "school's out" energy. FREEDOM.

Interesting! And yes, I do have an external back-up source so I can get them back. But I'm going to wait a few days and see what happens. If the sky doesn't fall I might just leave it and start over! Is this the new face of office productivity?

Update 8 hours later:

The first wave of panic has set in. What about my file that contains the confirmation emails of the 100+ forums, services, affilate products, and software downloads that I am subscribed to? Darn, maybe I will have to recover the email after all.

Update 24 hours later:

I've been thinking about it: Do I really need that information? How many of those 100 can I even remember? I made a list and could only come up with 15. What that tells me is that a lot of the things I've signed up for I don't use anymore (or maybe never used). So why am I keeping the information? It's like hanging on to anything - because "I might need it someday".

And part of it is that I sign up for stuff, throw it in that file, and then never get around to cleaning it out. So my "virtual home" gets cluttered. Sort of like all the stuff that starts to clutter up my "real home".

I remember my brother-in-law telling me about his decision to get rid of all the bubble-wrap he had been saving. He decided that when the time came that he needed some bubble wrap, he'd just go buy a package.

I'm wondering if that same principle could work with my file. The worst that could happen is that I'd have to sign up again, or ask to have my log-in info emailed to me.

So do I really need to recover that information?

Update 48 hours later

I caved. I kept wondering if there was something important in there that I was forgetting. But it's been an interesting experiment. My initial feeling of relief tells me that I have a yearning to reduce the amount of stuff in my life - whether that's email, household clutter or commitments. I'll keep you posted.

Depending on where you live and the nature of your business, you may or may not require a business license to operate a home-based business.

Most of the time, a quick visit to your municipal office can steer you in the right direction. They will be able to tell you where and how to obtain licensing information for professionals and small business owners.

Once you have filed your application, your municipality’s Planning Department will inform you of any zoning requirements which may affect your business.

It is crucial that you contact your state’s Department of Commerce in order to find out whether or not your home-based business falls under licensing guidelines. In addition, check out whether you will need any of the following permits:

Health Department Permits

If selling food is part of your business, whether you sell directly to customers or operate as a wholesaler to others, you will be required to obtain a county Health Department certificate.

The cost varies from one location to another and is generally based on business size and the type of equipment your business uses for production.

As a general rule, fees for Health Department Permits fall within the $25 - $50 range. The Health Department will most likely arrange to have your premises inspected prior to issuing this permit.

Fire Department Permits

Depending on whether or not your venture requires the use of any flammable materials for production or if your business caters to traffic from the public, you may be required to obtain a fire department permit.

Again, this varies from one municipality to another with some areas only requiring periodic fire inspections in order to ensure your premises meets all fire safety codes.

Any business that encourages a lot of people to gather, such as restaurants, boarding houses, or bed and breakfast will be looked at very carefully by the fire department. You will be required to adhere to all fire department requests in order to bring your property up to the necessary fire code standards.

Environmental Permits

Most municipalities now have dedicated departments that deal solely with controlling air and water pollution.

Depending on the nature of your business, the Environmental Protection Agency (EPA) in your district may require special permits prior to any business undertaking. You will have to inform this department as to whether or not you will be burning material, discharging refuse into sewers or waterways or using a product that may produce gaseous emissions (e.g. spray paint).

Closely regulated permits will be issued should your operation fall under any of these criteria.

In addition, the EPA may insist that their approval be granted prior to the start of any construction. Again, check with your state or federal governing power to find out about any regulations that affect your business.

Sign Permits

Most areas now have ordinances regulating the size, location and type of signage allowable. Check with your Zoning Department and get written approval before designing, manufacturing or erecting any signs.

A word to the wise

In order to avoid costly and often damaging repercussions in the future, always check with your County, State and Federal Licensing Commissions prior to beginning any home-based business. The footwork you do now may save you countless headaches and incalculable dollars in the future.

The above article is intended as general information only and should not be construed as financial or legal advice.

Paperwork is a big pain in the butt. However, as the organizational experts continually remind us - doing paperwork is a necessary evil.

If you're anything like me, your desk sometimes looks like a disaster zone. Piles of paper everywhere, not to mention those little yellow sticky reminders. I'd be embarassed to let anyone see my office this week, except for the fact that I know others can relate.

The paperwork solution

An important part of the paperwork solution is having standard forms to accomplish standard tasks. For example, instead of typing out an invoice from scratch each time around, you have a template. Rather than have your various computer passwords scribbled down in multiple places, you have one master sheet.

The right business forms keep your business running smoothly, saving you both time and money. In particular, financial documentation is a must for any small business to succeed. Contracts, invoices, delivery schedules and receipts should become standard for your business. Other forms, such as internal to-do memos and other office documents can be adapted with little or no fuss and be incorporated into your particular business scheme.

Free business forms online

The good news is there are free business forms online that you can use to keep track of every aspect of running your home-based business.

I've done the research and found a list of the top 10 online sites for free business forms. Check these out and see which of them provide the solution you need to organize the maze of paper cluttering up not only your mind, but also your workspace.

(Note: Be sure to read and follow all disclaimers regarding use of forms obtained on these sites.)

1. FreeBusinessForms.com

This is a pretty comprehensive site offering forms for almost any small business transaction. Also available on its pages is a wide-ranging list of how-to articles that offer a lot of information and insight directed at operating a successful small business.

The forms on this site can help any small business owner when they initially begin their operation. The forms designed in “Word” format require manual calculations. Those available in “Excel” format lend themselves to ready calculations and can offer a quick and easy ay to crunch numbers. As timesaving tools, the downloadable forms on this site can be customized to suit your business needs.

2. Legal-Forms-Kit.com

Offers a diverse selection of forms such as Agreement to Retain Services of an Accountant, Articles of Incorporations for a Business, Employment Agreement, and more. Also contains a comprehensive library of free information and resources for small business. Excellent resource site.

3. Smartbiz.com

Comprehensive information base, which addresses many small business owner concerns. Easy to navigate and download forms in both Excel and Word. A must-see for any small business owner or for those considering starting a small business.

After 17 years running my home-based business out of a cramped spare bedroom, I now have the luxury of a 500 square foot loft home office. Best of all, it's at home but not in my house! My new office is in the loft area above the separate garage. To get there, I walk out the front door of my house, cross the cobblestone terrace and go up the stairs to my home office hideaway. Ahhh...

I've been in my "new" dream home office for three years now and the novelty still hasn't worn off. I love the space, the windows looking out into the forest, and the warm fir floors.

Another thing I like is the wall of closets on the right. I have all my supplies and filing cabinets behind those white bifold doors, which helps to keep my working area free from clutter.

The part of the office that you can't see is the sitting area. I've got a cozy area with a sofa, area rug, coffee table, bookshelves and good lighting for when I want to read or meet with clients. You can't beat the sofa for those long conference calls either!

Do you think I have enough desk space? Yeah, maybe I did overdo it...the result of being cramped for space in my former home office. The desktop is blue laminate with bevelled fir edging. Altogether I have 23 feet of desk with three work stations.

The desk was custom made by a local cabinet company. The drawer units are stock cabinets, which act as pedestals to hold up the expanses of desktop.

As you can see, I still haven't found a good solution for the tangle of cables under my desk. And if you think that my home office is normally as neat as it appears in the photo above, well all I can say is HA!

Although I''ve learned the futility of making New Year's Resolutions, at this time of year I can't help but reflect on the passage of time.

I took this photo a year ago this evening. I remember sitting on the bank overlooking the ocean thinking about what the coming year might bring. Well, now 2006 is just about over and 2007 is on the way.

Since I don't do resolutions, let's call these New Year's Intentions instead.

New Year's Intention #1: Higher standards regarding work-life balance.

You know, if I was single this would not be an issue for me. I see nothing wrong with working on business till all hours of the night. I find it fun and as long as it's not harming anyone, who cares?

As long as it's not harming anyone...that's the catch. I'm married and my husband is semi-retired, and he'd like to spend time with his wife once in a while. Not too much to ask.

And yet, I know myself. I get distracted up in my office and hours can go by. This will be a hard one for me to change. Really hard.

So here's my first baby-step towards this goal: I will tell my husband how long I'll be up in the office, and I will honor that time. So if I say, "I'll be right back" then I'll do that. If he says "dinner's ready in 10 minutes" I'll make sure to be there with time to spare.

Your home office should be designed to accommodate your business while having as little impact as possible on your home life, and vice versa. As someone who has worked from home for over 20 years, I can attest that keeping work and home separate is easier said than done.

Setting up a home office can be as simple as having a computer and telephone in a tiny cubby under a stairway. However, it's preferable that your home office provide a place where you can conduct business transactions in a professional manner – away from the noise and distractions of the household.

After all, your home office is a direct reflection of your business professionalism, and needs to be considered carefully when planning your business.

The photo above shows my home office from the exterior. You can see that my space is above the garage, which is a separate building from the main house. This is an ideal situation for me because business visitors don't enter my house.

But not everybody has the opportunity to have their home office in a separate building. To make the most of the space you have, ask yourself these six key questions:

1. Will clients be visiting your establishment?

Making sure your office is situated away from the personal flow of your home and family goes a long way in presenting a professional image. Ideally, your office should be located in an area separate from the rest of your house. But if this is not possible, try to find a quiet area of your house such as the basement or spare bedroom as far away from the busy part of the house as possible.

Above all, don't set your computer up on the dining room table with a television blaring in the background. I can't stress this enough: to be taken seriously as a business owner you must present a professional image at all times.

2. Will you be manufacturing your product on site?

If your business requires noisy tools or smelly chemicals for production, you will definitely want to locate this area away from living quarters. A detached garage or outbuilding would be perfect for keeping the manufacturing aspects of your business separate from the public access areas. You may want to have a small desk with a telephone and maybe a computer available close by, but most of your paperwork should be in a safe, off-site location.