Small Office-Home Office Tips #4


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*1.    TWO WAYS TO SET PRICES

Pricing your goods or services can be a surprisingly complex 
issue in some industries, but at the most basic level, there are 
two ways to do it. One is to add up the costs that go into the 
product or service--raw materials, obviously, plus overhead 
(including things such as rent and phone service) and labor 
(including your own!). After you figure out the costs, add a 
markup that is customary in your area of business. The other 
way is to experiment by offering the product or service at 
various prices and then calculate the price that provides the 
best profit for your business. In that process, you'll figure 
out the highest price that is supported by an optimal number 
of customers. 


*2.   TELECOMMUTING FORECAST

Jack Nilles, a consultant focusing on telecommuting trends, 
estimates that there will be 24.7 million workers telecommuting 
in the United States by the year 2000. That's about 18 percent 
of the workforce! By 2010, Nilles believes that telecommuting 
will have become a core feature of the global economy. Nilles' 
company is JALA International, and you can check out his Web 
site at 

http://www.jala.com 

By the way, Nilles is credited with coming up with the concept 
of telecommuting in 1974 while stuck in a Los Angeles 
traffic jam.


*3.   SCANNING TIPS

Here are some general guidelines for choosing scanning 
resolutions based on the way you want to use the image. 
According to printer- and scanner-maker Hewlett-Packard, line 
art generally should be scanned to match the resolution of the 
output device that you want to use. For example, choose 300 
dots per inch (dpi) if you're going to send the image to a 
300-dpi ink-jet printer. If you're scanning an image for use 
on the Web, choose 72 dpi to match the resolution of a computer 
screen. If you're scanning photographs, it's usually best to 
choose a maximum resolution of 150 to 200 dpi; higher 
resolutions make the files bigger but usually don't add very 
much to the clarity of the image.


*4.   FAR-FLUNG COLLEAGUES

With e-mail, fax, and other technologies, it's easy to hook up 
with other independent workers whose skills complement yours. 
Technical writers, for example, can find illustrators who 
specialize in drawings that work well with their subject areas 
through the Internet, then subcontract with them on projects. 
So keep your eyes open for work you like and try contacting 
its creator for future partnering.


*5.   ADD-ON FOR EXCEL USERS

If you use Microsoft Excel, version 5 or later, you might want 
to check out a shareware program recommended by the editors of 
PC World. Exl-Plan can help you prepare business plans from one 
to five years ahead. The software can also help you develop 
strategic plans, restructure your business, and prepare 
financial appraisals. You can download the software at

http://www.pcworld.com/r/tw/1%2C2061%2Ctw-soho0319%2C00.html

If you decide to use it, the shareware costs $49.


*6.   IRA PHASEOUTS

If you contribute to an IRA, be aware that phaseouts for 
deductibility in 1999 begin at $31,000 and end at $41,000 for 
single filers. Married people filing jointly begin the phaseout 
at $51,000 and end at $61,000. That's a $1,000 increase in both 
categories. For more information on IRA deductibility, check 
out the IRS Web site at

http://www.pcworld.com/r/tw/1%2C2061%2Ctw-soho0322%2C00.html


*7.   IS A CUSTOMER COSTING YOU MONEY?

As your home business grows, you may find yourself spending time 
on some customer relationships that aren't as profitable as 
others. Perhaps the work you do for that client offers a low 
profit margin, or perhaps the client simply demands more of your 
time for every dollar he or she spends. At this point, consider 
raising the price for the goods or services you provide to the 
client. If the client won't pay the increase and you have more 
profitable accounts, it's probably best to part ways.


*8.   PROGRAM FOR SMALL "DISADVANTAGED" BUSINESS

The United States government is sponsoring a special program 
designed to help what it calls Small Disadvantaged Businesses. 
At the program's heart is a process of certifying businesses 
owned by someone who is "socially and economically" 
disadvantaged. Businesses that qualify for the certificate will 
be eligible for preferences under federal procurement 
procedures. For more information, check out the Small Business 
Administration's site at

http://www.sba.gov/sdb/


*9.   DON'T UNDERESTIMATE IMPORTANCE OF RESUMES

Even if you've developed your home business as an entity in its 
own right, it's still important to have an up-to-date resume 
available. Some clients may simply request to see it. Having a 
current resume on hand can also be important if you seek 
financing, since many lenders and investors expect to see the 
proprietor's resume in the business plan.


*10.   ASSOCIATIONS MAY OFFER HEALTH INSURANCE

If you're self-employed, finding health insurance can be tough. 
One option, of course, is to use COBRA to continue buying health 
insurance through your previous employer. Another option is to 
check with trade organizations in your field. Many--ranging from 
the National Association of Science Writers to the American Craft
Association--offer health insurance plans to members. Of course, 
you'll still need to check out the insurance company to make sure
it's sound and take a careful look at the benefits it offers.
