6. If possible set up your office in a separate room of your home. This will allow you to close door at end of business day and allow better separation of your personal and business life.

7. To project a professional appearance be sure your home is always neat and clean-nothing lying about. In addition be sure your yard is well kept. Remember, first impressions count.

8. Be sure your business name is descriptive of what you do. Business names that don't relate to your services can hurt a business. Avoid using just initials, that's fine when you get to be size of AT&T, but remember, in beginning no one knows you.

9. Make up a business plan. This will help you research, define and outline your market. It also avoids starting a business in a field that may be overcrowded.

10. If possible, be sure to have at least six months worth of living expenses in reserve. This will allow you to concentrate on getting your business up and running without worrying about paying bills.

11. If possible, buy a copy machine. This avoids having to go out every time you need to make a copy. Also, it allows you to give a client a copy on spot. This can go a long way towards enhancing your image as a real business.

Copyright DeFiore Enterprises 2002

Allowing 5% for bad debts may seem high, however, keep in mind present state of economy and remember this figure can be adjusted as economic conditions change. Today, it is not unusual for businesses to take longer to pay invoices then they did a couple of years ago. Most businesses expect to pay late fees for overdue invoices, however determining how much to charge and whether or not you are meeting various legalities involved can be time consuming. It may be easier to add a percentage to your overall fees to offset bad debt. In a sense, you are spreading economic risk over all your clients. For a small business this may be safest and less time consuming course of action.

If your client base is large enough, a certain percentage of your customers will go out of business, leaving you with unpaid and uncollectable invoices. There is little chance you will collect any money in a bankruptcy hearing. To protect yourself, you can charge partial fees as your work progresses. This way you are assured of having received at least some of your money. Not all businesses are set up to take advantage of this option.

Remember, you are not in business to give away your services. Your goal is to provide yourself and/or your family with a reasonable income. Uncollected invoices are part of doing business, you owe it to yourself to consider this before you get stuck.

Copyright 2000, DeFiore Enterprises.