Disaster Plans for Your Business

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It is difficult to think about disaster when you feel so good about starting your own business. But in life, bad things can and do happen. Mother Nature has been known to make more than her fair share of disasters. Her wrath can take many forms, such as floods, tornadoes, hurricanes, earthquakes, ice storms, blizzards, and flash fires. Of course, there are also the man-made kind of disasters, such as house fires and theft.

Keep a copy of your licenses, permits , tax information, incorporation documents, and contracts someplace outside your business, perhaps in storage at a warehouse or in a safe deposit box.

Get into the habit of backing up your files and keeping those discs in a safe place such as in a safe deposit box. Don't forget to routinely back up your website because hosting companies can crash. If your mailing list is in your website and there's a crash, a valuable business resource will be lost.

When it comes to insurance, make sure you have enough. Sure, there are the obvious losses such as office equipment and inventory, but what about the less obvious ”your salary, equipment leases, and loan repayments? Contact your homeowner's insurance company to find out exactly what they will and won't cover. A home office is not automatically covered just because it's in your home. Does your homeowner 's insurance cover business equipment? You can purchase additional insurance to cover the things not insured by your present policy.

Keep a file of emergency contacts off-site in the event your home office is destroyed . This file should contain names , business addresses, e-mail addresses, account numbers, and policy numbers for the following:

Accountant

Banking

Clients or customers

Credit cards

Distributors

Federal emergency numbers

Insurance

Lawyer

Office equipment ”make and model, receipts, serial numbers

Purveyors

Suppliers

Checklist for Success

While starting your own business is exciting, it seems like there are a million details to take care of before you can get started. As you scan down this checklist, you may see items that don't pertain to you. Businesses can differ in structure, size , and complexity. Use the following checklist as a guide to keep you on track for success.

graphics/box.gif Write your business plan and include details for marketing, financing, and management

graphics/box.gif Budget your start-up and operating costs

graphics/box.gif Decide what legal business structure best fits your home-based business (sole proprietorship, partnership, corporation, limited liability company)

graphics/box.gif File the required forms for your business structure

graphics/box.gif Decide on your business name

graphics/box.gif Conduct a search for your business name to make sure no one else is already using it

graphics/box.gif Register your business name

graphics/box.gif Obtain the appropriate business licenses and permits

graphics/box.gif Check what zoning restrictions, if any, exist in your town or community

graphics/box.gif Register or reserve state or federal trademark

graphics/box.gif Register copyright

graphics/box.gif Apply for a patent if you are selling something you invented

graphics/box.gif Order a business line for your telephone number and fax or arrange for a second line on our home phone

graphics/box.gif Conduct a search on the Internet to see if your business name is available for a website

graphics/box.gif Once you have a website name, register it so that no one else may use that name

graphics/box.gif Create your website

graphics/box.gif Investigate what insurance you may need to obtain, such as property and liability, business, umbrella liability, business interruption, disability, health, life, and key man insurance for partners

graphics/box.gif If you plan to have employees in your company you will need to file for an EIN

graphics/box.gif If you are going to hire employees, contact the Department of Labor to see what laws relate to you

graphics/box.gif Find out about workers' compensation if you are going to have employees

graphics/box.gif Open a business account at your bank for checking and savings

graphics/box.gif Once you have registered a business name and set up your legal structure, order your stationery and business cards

graphics/box.gif Apply for a sales tax number if you will be selling a product from your home business

graphics/box.gif Have your accountant or lawyer give you the necessary information about tax filing and record keeping

graphics/box.gif Make a list of supplies and equipment you will need to start your business

graphics/box.gif Other

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graphics/box.gif Other

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graphics/box.gif Other

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graphics/box.gif Opening Party!

For the latest information on trends in home-based businesses and home franchises, we suggest you visit Entrepreneur magazine's website at www.entrepreneurmag.com.

Start-Up Costs Worksheet

Item Cost

How You Will Pay

(Cash, credit card, installment plan)

I. Equipment  
1. Computer  
2. Printer  
3. Copier  
4. Fax  
5. Telephone  
6. Answering machine  
    Subtotal: ____________
II. Furniture  
1. Desk  
2. Chair  
3. Filing cabinets  
4. Bookshelves  
5. Lighting  
6. Desk accessories  
    Subtotal: ____________
III. Telephone  
1. Business/fax line  
2. Installation charges  
3. Listings in phone book  
    Subtotal: ____________
IV. Website  
1. Website design  
2. Securing and registering a website  
3. Monitoring the website  
    Subtotal: ____________
V. Office Supplies  
1. Stationery and business cards  
2. Hanging and file folders  
3. Binders  
4. Mailing envelopes  
    Subtotal: ____________
VI. Licensing and Permits  
1. Business license  
2. Seller's permit  
3. Fire certificate  
4. Zoning permits  
5. State occupational license  
    Subtotal: ____________
VII. Advertising  
1. Promotional materials  
2. Ad space  
3. Media  
    Subtotal: ____________
Other Important Costs  
1. Postage and shipping  
2. Insurance  
3. Benefits  
4. Loan payments  
5. Dues and memberships  
6. Legal fees  
7. Accounting fees  
8. Storage  
9. Start-up inventory  
10. Replacement inventory  
11. Entertainment and travel  
12. Your salary  
13. Other salaries  
14. Fees from credit card processing  
15. Fees from other sources such as e-commerce  
    Subtotal: _______________
    Total: _______________
What you estimate your first year of income to be from this business:
      _______________
What you estimate your first year of expenses will be: _______________
Other monies you have available, if necessary: _______________
(Other paychecks , savings accounts, stocks, life insurance, properties, gifts)
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The 60-Second Commute. A Guide to Your 24.7 Home Office Life
The 60-Second Commute: A Guide to Your 24/7 Home Office Life
ISBN: 013130321X
EAN: 2147483647
Year: 2003
Pages: 155

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