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1. The business and your home

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Ideally, you have a separate room where, at the end of the day, you can shut the door (and lock it from inquisitive children). There needs to be enough space for supplies, inventory, and record keeping. Walk through your home with new eyes and visualize where you could set up a place of business. Many residential floor plans make no allowances for workspace.

See if there is enough privacy. You need to work uninterrupted. Figure out where your business telephone will be. You must be able to have uninterrupted telephone conversations — they are essential to your business. A door ensures that you can separate your business from housework.

Think about noise. Will your business create intolerable noise or will other people’s noise be intolerable for your business? Most inside doors are hollow and easily allow sound to pass through. If there is potential friction over noise, it may be worthwhile to install a solid core door.

Your business should be compatible with the area you live in and cause no annoyance to your neighbors. Some area residents have closed down home-based businesses they view as a nuisance.

Remember to consider your family situation. How will you deal with child care, chores, time with your spouse, friends, etc.?

Whether or not you decide to base your business in your home also depends on the local zoning restrictions in your community (discussed further in chapter 11 on legal requirements) and the rental agreement you have with your landlord if you do not own your place of residence.

Consider your company image. There has been a growth in the number of home-based businesses in the last ten years, and the idea has become much more widely accepted. However, some people will not take seriously a business operating out of the home and it is important to follow a few guidelines that will make your home-based business look more professional.

For instance, install a separate telephone line and do not let children or other family members answer that line. If you are unable to take a call, use the answering machine or a voice messaging service. Use a post office box number as your business address if your home address is obviously a residential area or an apartment building.

If you anticipate having clients visit your home office, make sure you have a designated space, close to the entrance, that is only for business and decorated accordingly. If you do not have that type of space available, it would be wise not to invite clients to your home. Meet them outside of your home office.

The primary advantage to running a business out of your home is the small capital outlay necessary to get started. Having a lower overhead should free up money that you can use to invest in inventory and to promote and market your business.

Converting a spare bedroom or den on the ground floor of your home would be the ideal situation. A basement or attic is not as preferable because of accessibility problems and stairs. You will need an area to physically make the baskets, an office area, and a storage area. In order to have all three of these components in the same space, you would need approximately 400 square feet of space. If you do not have that much space to designate to your business, consider having your inventory and supplies storage in the garage or basement and your office in another area of the house.

The business of making gift packages and baskets can create a lot of mess, and you should have a work area that can be kept out of sight. Generally your customers will never see your work space, so it is unnecessary to invest in expensive furniture and decor. Use your capital to market your business.

There are numerous tax advantages to having your business in the home. To take full advantage of these tax breaks, your home-based operation must take up an entire room, which is devoted solely for the purpose of your business. These tax advantages are discussed in further detail in chapter 12 on accounting and taxes.

Start & Run a Gift Basket Business

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