Insurance is Essential for Home-Based Businesses
Operating a small business from home can free entrepreneurs from the costs of leasing space and commuting. But too many of them may short-change themselves when it comes to buying insurance.
A recent survey commissioned by the Independent Insurance Agents & Brokers of America (IIABA) found that nearly 60 percent of the nation’s 11 million home-based businesses do not have insurance coverage. Of those entrepreneurs, nearly 40 percent thought they are already protected by some other type of coverage, while almost 30 percent said their businesses are too small to insure.
Madelyn Flannagan, IIABA’s vice president of education and research, explains that home-based business owners are at risk for significant financial losses associated with theft, accidental damage, natural disasters, vehicle accidents, and liability if an employee suffers an injury while on the job or a business guest is hurt while visiting the home-based business.
“Homeowners’ insurance normally does not provide protection in these situations,” she says. “Investing in protection can provide security and peace of mind as a business grows and produces more income.”
To protect home-based businesses, IIABA offers the following tips:
Check your homeowners’ policy. Homeowners’ insurance was never meant to cover business exposures. Coverage for certain business items is limited, and homeowners’ coverage provides no liability insurance for home-based businesses. Additionally, a homeowner’s policy affords no business interruption coverage in the event that a loss causes a home-based business to cease operations. However, a home-based business owner may be able to obtain an endorsement to add these coverages to an existing homeowners’ policy.
Check business insurance policy options. There are several options for home-based businesses including incidental business endorsement, a business owner’s package policy, or an in-home business owner’s policy. Flannagan says that while levels of coverage and premiums depend on the risk associated with each business, “a comprehensive commercial policy can cost a home-based business as little as $250 a year.”
Protect yourself. If a home-based business is a full-time occupation, business owners must consider protections such as life, health, and disability insurance, and workers’ compensation.
“An independent insurance agent can help identify risk areas and provide guidance for finding the appropriate coverage to protect you, your family, and your business,” Flannagan says. More information on insurance for home-based businesses is available at www.independentagent.com or www.TrustedChoice.com.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties in NJ
Tuesday, December 21, 2010
Tuesday, December 14, 2010
How can I build up my small business skills?
Opportunities Abound for Sharpening Your Small Business Skills
Very few people begin the process of building a small business with a full knowledge of all the skills required for success. Even those who have extensive experience or education in business management still need to bring themselves up to speed on the added responsibilities of entrepreneurship—tax issues, employee management, business development, accounting, etc.
Fortunately, the range of small business-oriented learning opportunities and training programs has never been broader for veteran and novice entrepreneurs alike. Seeking help is simply smart. No business owner can be adept at every aspect of operating successfully. Plus, conditions change, so keeping yourself informed is vital to long-term success.
The single most popular program in America is probably the SBA Small Business Training Network/E-Business Institute, which registers nearly a million users at its Web site each year. The Small Business Training Network is a Web-based conglomerate that can link you to online courses, workshops, publications, learning tools, information resources and access to electronic counseling and other types of technical help. For details on the Small Business Training Network, go to www.sba.gov and click “On-line Training” under the site’s Services section.
Free online courses are offered on about 75 topics in areas such as business startup, growing your business, home-based business and re-engineering your skills. Sample titles include: Starting a Business; Business Planning; Business Management; and, Government Contracting, to name a few.
The Tools section of www.sba.gov gives you access to an extensive library of articles, podcasts, and Web chats on various small business issues.
Local SBA-sponsored training events are offered nationwide. These range from breakfast talks on local economic conditions, to brown-bag networking lunches, loan seminars, startup workshops and free business assessments. Simply go the Local Resources section of www.sba.gov and click your state on the Web site map for a calendar listing dates and event details in your area. You can also sign up for free newsletters issued by your state SBA office.
Contact your local SCORE chapter for its calendar of free business seminars and its new, fee based, Quick Start workshop series. Mycentraljersey.com is another wonderful resource for listings of upcoming seminars, workshops, and articles that will help your business succeed.
In addition, dozens of top colleges and universities offer business training courses you can take online or in more traditional classroom environments. Most require a fee, and some may have educational prerequisites. Advisors at the individual schools will help you identify one or more courses that are best suited to your needs.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties in NJ
Very few people begin the process of building a small business with a full knowledge of all the skills required for success. Even those who have extensive experience or education in business management still need to bring themselves up to speed on the added responsibilities of entrepreneurship—tax issues, employee management, business development, accounting, etc.
Fortunately, the range of small business-oriented learning opportunities and training programs has never been broader for veteran and novice entrepreneurs alike. Seeking help is simply smart. No business owner can be adept at every aspect of operating successfully. Plus, conditions change, so keeping yourself informed is vital to long-term success.
The single most popular program in America is probably the SBA Small Business Training Network/E-Business Institute, which registers nearly a million users at its Web site each year. The Small Business Training Network is a Web-based conglomerate that can link you to online courses, workshops, publications, learning tools, information resources and access to electronic counseling and other types of technical help. For details on the Small Business Training Network, go to www.sba.gov and click “On-line Training” under the site’s Services section.
Free online courses are offered on about 75 topics in areas such as business startup, growing your business, home-based business and re-engineering your skills. Sample titles include: Starting a Business; Business Planning; Business Management; and, Government Contracting, to name a few.
The Tools section of www.sba.gov gives you access to an extensive library of articles, podcasts, and Web chats on various small business issues.
Local SBA-sponsored training events are offered nationwide. These range from breakfast talks on local economic conditions, to brown-bag networking lunches, loan seminars, startup workshops and free business assessments. Simply go the Local Resources section of www.sba.gov and click your state on the Web site map for a calendar listing dates and event details in your area. You can also sign up for free newsletters issued by your state SBA office.
Contact your local SCORE chapter for its calendar of free business seminars and its new, fee based, Quick Start workshop series. Mycentraljersey.com is another wonderful resource for listings of upcoming seminars, workshops, and articles that will help your business succeed.
In addition, dozens of top colleges and universities offer business training courses you can take online or in more traditional classroom environments. Most require a fee, and some may have educational prerequisites. Advisors at the individual schools will help you identify one or more courses that are best suited to your needs.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties in NJ
Tuesday, December 7, 2010
Do I need an outside accountant for my business?
Outside Financial Experts Are a Sound Investment
Computer software packages have made it easier for small business owners to monitor cash flow, prepare tax returns, and handle other financial reporting tasks. Still, keeping up with these chores as your business grows also consumes an increasingly large chunk of precious time, and risks potentially costly mistakes. That’s why many entrepreneurs look to outside financial specialists for help.
Choosing the right type of tax, accounting, bookkeeping or other financial help is an important decision. An outside accountant can be one of your most trusted business advisors and a key to your success. Although some business owners work with large national firms, most prefer to work with small independent firms or solo accounting professionals.
Accounting services differ from bookkeeping services, however. An accounting firm prepares financial statements and tax returns based on the numbers that you give them via your own in-house books. Bookkeeping services, if offered, will be extra. If you plan to hire your own bookkeeper, make sure the person you choose is qualified. One way is to use the “Bookkeepers Hiring Test” available free from the American Institute of Professional Bookkeepers at their Web site, www.aipb.org.
Before selecting a certified public accountant (CPA) or other financial pro, list the services you think you need, such as tax preparation, financial reports, balance sheets, invoicing, payroll services, general bookkeeping or someone to set up your books. Some firms may handle it all, or you may need to split the tasks. CPA Directory is a huge online listing of CPAs nationwide and can help you find an accountant in your area as well as your local newspaper’s classified section and Web site.
And don’t forget about Enrolled Agents (EAs), who are licensed by the Federal government to prepare tax returns. They have either worked for the IRS or have passed a rigorous IRS exam. EAs are savvy tax experts, but generally don’t have the degrees of CPAs and tend to charge less. Visit the National Association of Enrolled Agents Web site at www.naea.org.
Accountants’ fees vary depending on location and the types of services you require. Some firms will offer to handle a specific range of services for a flat rate, and charge less for bookkeeping and other tasks that don’t require CPA-level training. If you feel your business requires the assistance of a larger accounting firm, find out which staff members you will be working with to make sure their experience and personalities match your needs.
Richard Strug
Greater Princeton Area SCORE
Serving Mercer and Middlesex Counties in NJ
Computer software packages have made it easier for small business owners to monitor cash flow, prepare tax returns, and handle other financial reporting tasks. Still, keeping up with these chores as your business grows also consumes an increasingly large chunk of precious time, and risks potentially costly mistakes. That’s why many entrepreneurs look to outside financial specialists for help.
Choosing the right type of tax, accounting, bookkeeping or other financial help is an important decision. An outside accountant can be one of your most trusted business advisors and a key to your success. Although some business owners work with large national firms, most prefer to work with small independent firms or solo accounting professionals.
Accounting services differ from bookkeeping services, however. An accounting firm prepares financial statements and tax returns based on the numbers that you give them via your own in-house books. Bookkeeping services, if offered, will be extra. If you plan to hire your own bookkeeper, make sure the person you choose is qualified. One way is to use the “Bookkeepers Hiring Test” available free from the American Institute of Professional Bookkeepers at their Web site, www.aipb.org.
Before selecting a certified public accountant (CPA) or other financial pro, list the services you think you need, such as tax preparation, financial reports, balance sheets, invoicing, payroll services, general bookkeeping or someone to set up your books. Some firms may handle it all, or you may need to split the tasks. CPA Directory is a huge online listing of CPAs nationwide and can help you find an accountant in your area as well as your local newspaper’s classified section and Web site.
And don’t forget about Enrolled Agents (EAs), who are licensed by the Federal government to prepare tax returns. They have either worked for the IRS or have passed a rigorous IRS exam. EAs are savvy tax experts, but generally don’t have the degrees of CPAs and tend to charge less. Visit the National Association of Enrolled Agents Web site at www.naea.org.
Accountants’ fees vary depending on location and the types of services you require. Some firms will offer to handle a specific range of services for a flat rate, and charge less for bookkeeping and other tasks that don’t require CPA-level training. If you feel your business requires the assistance of a larger accounting firm, find out which staff members you will be working with to make sure their experience and personalities match your needs.
Richard Strug
Greater Princeton Area SCORE
Serving Mercer and Middlesex Counties in NJ
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