How to run business out of my home...

[weaselboogie]

I'm in your same shoes. I love every bit of it except going over 'policies' or half down or even signing off on a proof. Kinda hard to do when you're dealing mainly with emails.

But you're on the right track... and spin those negatives....
I have a cell phone which incidentally is also my work phone. Customers can call me when I'm running out to get some hardware and they think I'm at work.
Your hours may be appointment only that way you CAN leave whenever you need to run an errand, meet with clients... etc.

 

[Kottwitz-Graphics]

Great, important info. Thanks. I also need to get my pricing down... what's everyone use for pricing?

Signcraft Pricing guide, and a copy of Estimate is about all I use. Often I'm tempted to just shoot a price, but It does make the customer feel a bit better when I start the program, and enter all the info, and it spits out a price.

As far as working out of the house, you will need some seperation (for tax reasons). I used a back room of my house a couple of years ago, and the distractions were unbelivable. The kids would come home, and crank up the tv full blast (if I was on the phone or not), go into the kitchen, fix a snack, and then leave and go upstairs... And the wife (if she was home) didn't think twice about asking me dumb questions, and would get pissed off if I didn't answer her becasue I was concentrating on artwork.

I was lucky enough to have a 2 car / 2 story garage where I used the upstairs to store junk. I worked for about 8 months and put up insulation, drywall, had a contractor come in and cut doors in to the wall (for storage behind it...gambrel style roof, so I have about 3' of space behind the wall), take out the inside steps, and build a deck and stairs on the outside, add some windows, and paint. Now I use the upstairs for my office / vinyl work area and the downstairs for material prep (plus the router is down there).

The advantage to having an outbuilding is it is easier to claim a tax write off for the space than a back room of your house. IRS claims they want a separate area to be used as a work only space, and a back room (that can be used as a tv room, storage room, or what ever) mayby won't work. With the outbuilding, it is easier to say that only work goes on there.

When that is all set up, you can claim a certain percentage of house hold expenses (electricity, water, sewer, etc) as business expenses. It all falls as how much business / living space you use. ( I personally have a 1600 sq ft living area and 1100 sq ft business area, so I can write off most of my expenses).

Another thing did do, was add a meter to my outbuilding. My shop/offices are fed by the main panel of the house, so I had the meter added in front of the breaker box that tells me of my exact power usage. Its for my own use, and the power company doesn't read it and charge me commercial rates for my business.

 

[thesignexpert]

You have received alot of useful and pertinent advice regarding your question that would be good to use. In order to help, here is another useful link that specifically addresses starting up a new sign shop...

Here is another link that talks about your sign shop location and the Pros and Cons of working from home vs a dedicated shop environment...

Hopefully this will help as you continue starting and growing your new shop.

Good Luck!

Tim Evans

The Sign Expert .com
"Practical Help for Sign Professionals"

Pro Sign and Graphics
"A Pro Sign made Easy"

Monavie Juice Network
"Drink It - Feel it - Share It"

 

[TheSnowman]

What about paypal?

I'm sure you could do that, but to me, I'd never do business w/ a company that only took paypal. At least not one that operated outside of eBay. To me, that seems like a fly by night business (mainly because I've heard of this happening) and really would entise me to look elsewhere. Once again, just my opinion though, I'm sure there's people that do it all day long, but...prob. 2% of my customers would even know what paypal is, and about 1/2% understand how it works.

 

[OldPaint]

Correct me if I'm wrong, but are you hinting around about tax evasion?

you said that i didnt.....iam sayin LESS GOVT(all you right wingers like that dont cha?)in YOURE BUSINESS when you 1st start out ...THE BETTER OFF YOU ARE.
CASH MONEY...is how you BUILD CAPITAL! when you got what you need and are making money..PAY YOURE TAXES....

 

[511graphix]

Yeah, in my life I have let people walk all over me. I need to build up some guts so I can just say how it is when I need to. Thanks for the input!

How long you been in the business?

going on 5 years now. first 4 years out of my living room lol. you walk in and thats what you saw. first was the rack of vinyl. then if you didnt turn left when you came in the fron door. you would have ran into the 3'x10' x45" table. it hurts LOL. now my setup is much better. but the business went down because I've moved about 80 miles from where I was. but for the better... now I am in a one car garage. I am kinda cramped for room at the moment. but the concrete floor is a plus.

 

[coyote]

Our living room holds the computer and plotter, the basement has the wood shop, layout tables, back sun porch for gilding, yard for painting-we have an 8' x 20' storage "Cover It" shed for toys and materials-no permit needed to put up a "temp" structure-it went through hurricane Isabel and a couple of blizzards. (house is tiny cape cod)

We had a shop for almost 15 years, but it kept flooding and the landlord kept raising the rent. We had a bay for trucks, boats and whatever, full wood shop, nice high ceilings, etc. Great, but we were unable to compete with all the vinyl shops that flooded the area, so we shut down the shop & kept the business phone #.

Everything via email, cell phone or fax- or I go to customer. We deliver. I pick up all materials, except from Harbor-they deliver early in the AM and leave our stuff by the side of the house. We only order what we have sold & have no inventory, no piles of sign blanks-keeps us liquid and uncluttered. Everything we do is custom, all orders from word of mouth-no walk-ins, no ads, no Yellow Page.

We keep a very low profile-as I'm unsure of the rules for our county as far as home business is concerned. We have a tax license and do everything on the books. 50% down, 50% on delivery-with old, trusted customers, 50%/30 days. No business license needed in MD for our type of shop.

Our accountant makes sure our taxes are paid properly and that our deductions for home expenses are correct. Since my partner/mate became disabled and unable to drive, this has worked out well-he can work on signs at home and generate much-needed income while having the satisfaction of working on something that is absorbing and creative.

So, with gas at $4.00/gallon, why commute?
BTW: this is your home-make sure what you use isn't poisoning your family.
Carol

 

[TheSnowman]

you said that i didnt.....iam sayin LESS GOVT(all you right wingers like that dont cha?)in YOURE BUSINESS when you 1st start out ...THE BETTER OFF YOU ARE.
CASH MONEY...is how you BUILD CAPITAL! when you got what you need and are making money..PAY YOURE TAXES....

All I know is...no one ever got busted for tellin' the truth, so we don't cut corners here. Yea, it sucks, but what sucks more is when I hear people doing that, when I'm doing what's right. I know it's done all the time, it's just what I was taught by my parents I guess. Each guy is gonna do what he's gonna do.

 

[Arlo Kalon 2.0]

One main reason for me doing this though, is so that my son can stay home and not go to daycare while I go work somewhere else.

This is exactly the reason I always worked out of my home. Wife is a teacher, so never was an option for her obviously. Of my 3 kids, one of them spent 3 weeks in a daycare (child warehouse) and that was all I could take. I applaud your intentions. Make a go of it and you'll never regret it. Nothing beats having your kids grow up with you at home.

 

[Checkers]

One of the biggest concerns for a home based business is insurance. Talk to your insurance agent to see what additional coverage you may need. Without the right insurance, you can run into many problems and loose everything real quick.

Checkers

 

[R08]

when you got what you need and are making money

The question is: Have you got what you need yet? and are you makin money?

 

[Jillbeans]

I started working from home part-time in 1985. In 1989, I sold that house and bought a new one on commercial property. In those early years, I usually dealt with clients at my kitchen table. I did everything by hand, sketches, painting, etc. I used my 2-car garage as a shop and still do.

In 1998 I remodeled, enclosing half the back porch and making it into a small office/showroom. Initially I had all my new sign computer stuff set up out there and would actually design in front of clients. I think that cheapened me in their eyes. But I didn't realize that until I moved all the sign equipment into the house (due to not wanting to freeze out in the office in winter)

Once I moved things inside, out of sight, and just met people at a clean counter, things really improved for me. I try to keep the yard neat, I have hours posted out front, etc. I have business insurance on my equipment and the garage (liability in case a client's vehicle is damaged or something) I registered my business name with the state.

I use the SignWriter's pricing guide, SignCraft's guide, and my own gut instincts. Having a website reallllly increased my business. It was probably the best move I've ever made, other than buying a plotter. I now do a fair bit of work via email/website but my business is about 90% repeat and word of mouth. I don't have a lot of walk-in traffic.

I get 50% down before doing any sketches, never email a sketch without a deposit, and watermark everything. I save all emails too.

Depending on your zoning, you may or may not be allowed to have a sign out front. I do. Every two years or so I completely re-do it. I also have my vehicle lettered.
Love....Jill

 

[OldPaint]

The question is: Have you got what you need yet? and are you makin money?

YEA... ))))))))))now iam on SOCIAL SECURITY... makin signs is better then bein a greeter at wal-mart))))))))

 

[FrankenSigns.biz]

I envy you guys. If I could work out of my house and make the living my family is used to, I do it in a New York minute.

Most lay people are stricken when they learn the nut I have to crack every month just to BREAK EVEN.

 

[OldPaint]

i understand that clif, and feel fortunate to be where i am.
i did a store front from 98-2000. spent 20 months in a building @ $500.00 a month. not countin the ELECTRIC, GARBAGE, WATER... that was $10,000.00 i made for some other guy!!! in essence i was workin for him.
i came back to house when i couldnt make rent payment.
so then i decided for $10,000.00 i could and did build a shop on the same property as the house.
so now when i cant make a $500.00 a month payment, i do what i can......BUT STILL HAVE THE SHOP!!!
and i knew i was comin into my 60's and would rather work at my own pace rather then be somewhere i didnt want to be all day long....like i was when i had JOBS.

 

[Service Sign Co]

I scaled back also,my rent was $2,000 a month not to mention UL fees fireproof containers for thinners spray booth workmans comp employees that would waste material,and not show up , basically all the profit. that was 95 -96 Now I enjoy less stress in my little shop. I just pay more homeowners insurance to cover it

 

[FrankenSigns.biz]

my rent was $2,000 a month

Mine is three times that.

 

[Art Attack n Florida]

That is what I was looking for and wanted to hear!

Our living room holds the computer and plotter, the basement has the wood shop, layout tables, back sun porch for gilding, yard for painting-we have an 8' x 20' storage "Cover It" shed for toys and materials-no permit needed to put up a "temp" structure-it went through hurricane Isabel and a couple of blizzards. (house is tiny cape cod)

We had a shop for almost 15 years, but it kept flooding and the landlord kept raising the rent. We had a bay for trucks, boats and whatever, full wood shop, nice high ceilings, etc. Great, but we were unable to compete with all the vinyl shops that flooded the area, so we shut down the shop & kept the business phone #.

Everything via email, cell phone or fax- or I go to customer. We deliver. I pick up all materials, except from Harbor-they deliver early in the AM and leave our stuff by the side of the house. We only order what we have sold & have no inventory, no piles of sign blanks-keeps us liquid and uncluttered. Everything we do is custom, all orders from word of mouth-no walk-ins, no ads, no Yellow Page.

We keep a very low profile-as I'm unsure of the rules for our county as far as home business is concerned. We have a tax license and do everything on the books. 50% down, 50% on delivery-with old, trusted customers, 50%/30 days. No business license needed in MD for our type of shop.

Our accountant makes sure our taxes are paid properly and that our deductions for home expenses are correct. Since my partner/mate became disabled and unable to drive, this has worked out well-he can work on signs at home and generate much-needed income while having the satisfaction of working on something that is absorbing and creative.

So, with gas at $4.00/gallon, why commute?
BTW: this is your home-make sure what you use isn't poisoning your family.
Carol

 

[OneUpTenn]

I run my shop from my home and love it!! I stay busy if not swamped and my kids are a stones throw away (abt 200 ft) when they need me. I do have a seperate garage for now....my husbands trade (construction) is not doing so well and we may have to move to a place where the garage is attached as opposed to detached.

My issues with this are:
1-Would I ever actually be able to seperate work from home?
2-Parking is an issue for customers and of course for us since our garage would be full of sign stuff
3-I really dont want people that close to my house much less in it.

Be really careful. I have had a semi-stalker (weirdo). I have had people drop by unexpectedly and I HATE that. I am not a storefront so do not treat me as such. If I wanted drop-ins, I would get a storefront. I have had to call my husband before to come home and just stay with me when meeting people for the first time because I felt uneasy. He HATES that!!

I got a dog and although I love him he is not much protection. So much for that pit bull theory.

I am just ranting here about things you may or may not have thought about.

 

[G-Artist]

Due to the change in the FL Constitution a while back I moved my corporate office (not the shop) to my garage.

Being where I am sited, there are no requirements for a business lic. from the the local political subdivision as they did away with those about 8-10 years ago. But most cities and towns will want you to get one.

Having a business in your home is perfectly legal in every state. What can be restricted is generally 2 things. Your sign. Most places limit a sign on a home to 2 sq. ft.
Customer traffic. That also includes delivery vans (or so they say). If you have lots of coming and going you will be visited by code enforcement when a neighbor complains.
Despite what the CE agents tell you, a UPS or FedEx truck coming by daily isn't something they
can legally restrict.

Everything, as far as restrictions go, depends on the precise zoning you have. Look at your
zoning map or call your property appraiser's office and ask. Then check you political subdivision
codes for what is and isn't allowed. Most of that stuff you can get on-line nowadays.

What most places look at is noise, noxious fumes, the number and frequency of non-family members
coming and going. Having one, two or three customers a week stop by isn't usually a problem.
If you have a solvent printer exhausting fumes where your neighbors can smell it would be problem. Ditto for spraying paint.

Running a circle saw / table saw or other loud machinery all day or many days a week where
the noise irritates neighbors can be a problem.

Get to know your neighbors and be a good neighbor. If you are helpful and informative and
always wave to folks and have a smile when you do so, they'll be reluctant to call the law
and more prone to talk to you directly if they perceive a problem with your home business.

Good luck with the business.