Home Based Business

Overview

Pros and Cons

Managing A Home Based Business

Using Technology

Opportunities

Moving Out

Summary

Discussion Questions

Worksheet - Is a home-based business right for you?

Worksheet - Is your idea right for a home-based business?

Worksheet - Building an advisory/support system

Worksheet - Technology and equipment checklist

Small Business Bookshelf

 

 

 


"Phone/Fax/Modem Home"
The Efficient Use of Technology

Telecommunications and technology advances are making entrepreneurs more powerful and capable than ever before.

New developments in personal communications devices, or picocomputers, will soon allow you to write a note on the screen, such as "lunch with Ray," and the computer will translate the handwriting into computer text, store it, put it on your calendar, and remind you of the appointment in the future.

Scanners allow you to scan an article, store it on your computer, make copies, and fax copies to customers, all with a couple of keystrokes. This type of assistance - along with countless other improvements in data generation and management which appear almost daily - increases productivity without the need to hire office staff. When you incorporate a fax machine, copier, electronic calculator, and calendar all into a personal computer you have less equipment to purchase and maintain.

Make careful decisions when purchasing equipment. Be honest with yourself as you research new computer hardware and software. These are business tools and not toys so make sure you really need the purchase and can demonstrate to yourself that it will affect the bottom line. While price is always an factor with start-up businesses, don't forget to consider service. Equipment failures or problems can stop you from conducting business. Ask about support services for your questions and repair services for problems.

Here are some ideas to consider when investing in technology to assist in your business.

Tips and Techniques

1. Do your homework. Check with other entrepreneurs about the software and equipment they use.

2. Check out the support and service available for any software or equipment you plan to purchase. The best price could cost you more in the long run if you do not have the support and service available when you need it.

3. Read articles and reviews on the use of new technology for small businesses. See Resource section for additional information.

Telephone

In the face of amazing technological advances, one piece of equipment remains the cornerstone for any business: the telephone. The telephone offers immediate and instantaneous connection to the outside world for the home-based entrepreneur. That's why it is a smart idea to invest in a separate business phone line into your house. A separate phone line helps you to distinguish between business and family calls. That holds true whether your phone line is connected to the modem in your computer or the more conventional telephone. Don't miss important customer calls because one of the kids answered and confused the message. Cellular phones can be a good, though often costly, investment which allows you to be on the move while still in touch.

Tips and Techniques

1. If you are leaving your home office, don't leave your phone unattended. Here are some options:

a. Forward your phone calls to an answering service which will answer the phone using your business's name.

b. Forward your phone to a cellular phone you take with you.

c. Connect your phone to an answering machine to record calls. Make sure the message on the answering machine is professional and identifies your business. An answering machine which allows you to access your message from an outside phone is a smart investment. You can return your important calls within hours instead of days.

2. Remember that you are the receptionist at your business. Practice good phone techniques. Always answer your phone in a professional and friendly manner. Identify your business name to the caller immediately.

3. Use the phone to gather information. Costs and availability of products, research information, and appointments are handled more efficiently with a phone call.

4. Shop around for good telephone rates. A lot of companies claim that they can lower your rates for long distance services, but the only way to know if that's true is to first establish a baseline for comparison. Here's a few pointers:

a. Look over past phone bills and see when and where most of your money is going in telephone costs. For example, daytime rates within North Dakota.

b. Calculate what it costs per minute for that baseline and use that when you shop around.

c. Consider all your various phone needs (e.g., 800 number services, in-state versus out-of-state long distance, overseas calls, late night on-line services calls) and shop for each individually, or gang them together with one service in exchange for a better overall rate.

The purchase and use of technology and telecommunications can be a tremendous boost for the home-based entrepreneur. Indeed, it makes it possible to run certain businesses out of the home that before would be impossible. With the help of these technical advances, you can do business anywhere from anywhere.

 

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Production funding For Let's Talk Business was provided by a grant from USDA Rural Development and the members of Prairie Public Television