The Home Biz Blog

I just became a Silver Team Leader in SFI!

I was just checking my SFI stats and noticed that one of my personally sponsored affiliates recently became a Bronze Team Leader (BTL). That was exciting news because I already had another affiliate that had been BTL for some time and to qualify for a Silver Team Leader status you need 2 personally sponsored BTLs and 15 SVP (Sales Volume Points). I rushed to get me an extra 5 SVP and now I'm finally a Silver Team Leader. This will mean increased levels of commissions for me as well as other benefits.

This is actually the simple path to success in SFI: Find two enthusiastic people and help them become Gold Team Leaders (Then you'll reach the highest level, Platinum Team Leader). Sounds pretty simple, right?

One thing that I find pretty interesting (and not really surprising) is that both of my BTLs have a Plug-In Profit Site (just like most of the top SFI affiliates): Adam Wright and Timothy Spaulding (Tim has actually made some drastic changes to his original PIPSite - that's one of the benefits of the PIPS system).

Well, I'm really excited about being a Silver Team Leader now and I hope I'll be able to help my team as much as I can in the future (just like I have always done).

If you want to join my ever growing team of successful online business owners please join SFI through this Plug-In Profit Site signup page:
http://www.workathomemadeeasy.net/pips.html

More about SFI... I haven't heard anything from SFI yet but I guess they'll introduce something new in the new year - They've always had some big news at the beginning of each year for the last few years. But it might not be as huge as before since they recently launched the NiceOffers site: https://www.niceoffers.com/2717364

Working and Living: Don't Blur the Lines.

When you're at home all the time, people have a way of giving you everything to do, with no regard for your job. It can be very hard indeed to keep your family life separate from your business when you work at home -- in fact, this is one of the most common reasons home businesses fail, and their owners come away all too glad to get back to the corporate grindstone. If you don't want to be driven away from home business, here's what you need to do to keep your family at bay.

Work Time, Home Time.

Make a schedule for when you're going to work and when you're not, and stick to it. This doesn't have to be inflexible -- it's very silly to only work nine to five every day, for example -- but it still really needs to be there. Without a plan, you're inevitably going to go too far one way or the other, and either work far too much or nowhere near enough. You might find it best to a new plan at the start of each month or week, so that you can still respond to changes in circumstances.

Yes, I know it can be difficult to draw clear lines between family time and work time, especially if your family is around for some of the hours that you want to be working. The only thing I can say to you is that it's important to keep on trying, because the moment you give up everything's going to come crashing down. Whatever you do, don't let your family anywhere near your office space.

Fit Errands Around Work.

People will obviously be upset if you absolutely refuse to run their errands -- is it really so much trouble to run down to the bank when you're at home all day? -- but you can't let them take away hours from work. You should make your response automatic. When someone asks you to take an hour out of work to do something during the day, tell them that you'll have to make that hour up at the end of the day, so they shouldn't expect you out of the office until an hour later than usual.

Don't Do Chores.

It can be tempting to do the laundry or the dishes when there's a load of them to do and work seems slow, but don't give in to it during your working day. Chores eat up an amazing amount of time. One thing you can do to help resist the temptation is to wear better clothes than you usually would when you're working -- not a suit, but something business-casual that you wouldn't really be willing to wash dishes in.

Have a Business Phone Line.

You need a phone line that's just for business to let clients leave messages for you when you're not in the office. Say exactly that in the message: 'I'm not in the office right now, but please leave your name and number and I'll get back to you'. Whatever you do, don't be tempted to take business calls after-hours, or give out your personal number to business contacts -- this is a sure-fire way to never stop working. Turn off the ringer on your business phone when you leave the office for the day.

With Children, All Bets are Off.

If you have children at home during the day (if they haven't started school yet, or it's a school holiday), it can be very difficult to maintain a sensible work pattern. They will come and bother you at every opportunity, because they miss you and want to see you. They'll even cause trouble just to get you to sort it out. They wanted to come and bothered you at your office job too, you know, but they had no way of getting there.

So what can you do when there are children in the house? After all, it's harsh to just ignore them, isn't it? The best answer I've found is to hire a babysitter, who can keep the kids entertained while you work. It could get expensive, but it shouldn't be for long, right?

*** Resource Box ***

Hannes Johnson is currently using the Plug-In Profit Site (PIPS) system to build his online home business. Hannes highly recommends the PIPS system to anyone interested in starting a successful home business - click for more information: http://www.workathomemadeeasy.net/pips.html?blog

Putting a Work Area in Your Home

When you work from home, one of the hardest things to get right is knowing where to do your work. In your bedroom? In a special home office? Well, here are a few pointers.

A Dedicated Space is Best.

I really believe that you won't get far unless you set aside a space and use it for work only. Why? Well, if you use your work space for things other than work, then you'll get distracted by anything you leave there. Other people in the family might become frustrated by not being able to use the space, or you might find that you simply don't have anywhere to put all the important pieces of paper you acquire, meaning that they get lost.

The Art of the Home Office.

A home office is really what you want -- this really needs to be a dedicated room of a reasonable size. You shouldn't have too much trouble if you convert a small bedroom, as most bedrooms are actually surprisingly large once you take away the bed.

Your essentials for a home office are a desk, chair, computer, filing cabinet and phone/fax. If you don't have spare ones of these lying around then you should buy them used, or from some kind of discount store -- don't spend a cent more than you need to on your office furniture and equipment, at least to begin with. Still, though, do try to find things that don't look too bad, and that match.

Do make sure that you have everything in the room that you'll need for your business, and that your equipment is good enough that you'll be able to use it for long periods of time without it becoming painful. If you plan to do a lot of phoning, for example, buy a headset so that you can do it hands-free. It's also worth spending just a little extra on that chair, if you're going to be sitting on it a lot.

You should also make sure that the room is well-lit and decorated in a style you like: one that says 'serious', but not 'dull, terrible work'. Keep it at a comfortable temperature, with good ventilation. Many people like to make their home office visibly different to the rest of their house, by having a differently-coloured carpet or wooden floor, or painting the walls an entirely different colour. Whatever you do, though, I have no doubt that it'll be better than 99% of the corporate offices out there. The most important thing is that you don't spend too much, but that you make sure to solve any problems you have with your space as soon as they come up.

A Whole Other Building.

One thing that some people like to do when they set up home offices is to make it completely separate from their house: a business annex. This could be expensive -- for goodness' sake don't build a whole other building if you don't have something like a shed or garage to convert -- but it is also one of the most effective ways to work from home. It's not so much a 'home office' as an office that you've built right next to your home -- and it gives you a much clearer sense of when you're working and when you're not.

This option is especially worth considering if you do a manual trade, especially if you already have some kind of workshop space. I knew a carpenter who saved himself all sorts of headaches when he moved his home office away from his bedroom and into his existing workshop in his garage.

A Question of Tax.

When you're organising your home office, don't forget about tax. The area of your house that you do business in should be tax-deductible, and so should any equipment you buy or other work you have done. Don't use it as an excuse to get carried away, but do remember that you're not spending quite as much as you think. As long as you don't go overboard, your home office will be one of the most important investments you will make -- as anyone who's ever tried to work from home without one can tell you.

*** Resource Box ***

Hannes Johnson publishes the Home Business Tips Newsletter which you can join for free by clicking here.
( http://www.workathomemadeeasy.net/homebusinesstips.html )

The Top 5 Setting-Up Mistakes

When you're starting a home business, it's all too easy to make mistakes -- after all, you've never done this before. Fortunately for you, though, you can learn from others' errors, by making sure you don't do any of these things.

Thinking Skills You Don't Have Aren't Important.

So you have no idea how to keep records and accounts, or you don't know how to maintain a mailing list. You need to learn these things! Too many home business owners just do the things that they know how to do, and assume that they can probably get by without everything else.

You need to realise that when you're running a home business, you're going to need to do as much as you can for yourself, especially when you're starting out. This means that you can't get by if your business skills are lacking. I always say that everyone who is thinking of starting a business should take an inexpensive and quick local business course, and I stand by it -- even if you think you'll be fine, it can't hurt, can it?

Not Managing Your Time.

When you're used to working nine to five, an easy trap to fall into is not managing your time effectively. Your home is full of distractions, and there won't be anyone there to tell you to get on with it. If you're prone to daydreaming or procrastinating then this can be disastrous -- whole days can go by with only tiny amounts of work getting done.

You need to be sure that you have a schedule, and you stick to it. Draw a clear line between work and non-work time, and don't cross the line in either direction. Apart from that, the word to remember is 'prioritise': appreciate that you won't always be able to do everything, but make sure you get at least the important things done.

Making Clients Think You're a Joke.

There are many home businesses where clients might need to visit your home -- but make sure it's fit for visiting! You can't lead them into a messy office, or be holding your dog back from barking at them when you first meet. Remember that professionalism is important, and it's too easy to end up looking silly if you don't plan how you're going to make a good impression when you invite people to your home.

If you can't afford a 'business annex' to your house, then consider hiring someone to look after your dog or children for a few hours while you have a business meeting there. It might also be worth paying a cleaner to give the place a quick once-over, if you haven't had time to clean up for a while.

Not Specialising.

Too many home businesses, when asked who their target market is, say 'well everyone, silly'. Your target market is never everyone -- if it is, you will fail. You can't just choose an industry and advertise your new-found profession to everyone, in the hope that someone will work out that the fact you're an electrician means maybe they should ask you about re-wiring their house.

The key to success is this: think about what you can do, and then market that to people who will want it. Advertise in places where these people are. If your business has no target market, then you have no business, period.

Making Start-Up Costs Too High.

Finally, too many people overestimate how much money it's going to take to start a home business. Do you really all brand-new equipment? If you're spending thousands of dollars before you've made any sales at all, you're setting yourself up for a disappointment.

Start your business on a shoestring, work hard, and expand gradually -- otherwise you're setting yourself up for a big fall. However much you might think you ought to do things 'properly', you need to make sure that you're minimising costs and maximising profit every step of the way, otherwise you're failing yourself as a home business owner. It's when you start to get some bigger clients and better cashflow that you can start paying a little extra to make your business life more comfortable.

*** Resource Box ***

Hannes Johnson is currently using the Plug-In Profit Site (PIPS) system to build his online home business. Hannes highly recommends the PIPS system to anyone interested in starting a successful home business - click for more information: http://www.workathomemadeeasy.net/pips.html?blog

A Company Law Jargon Buster

Company law is full of confusing terms, and if you don't know what they mean then setting up a company can start to look far more scary than it really should be. Read through this jargon buster and you should find it much easier to understand what starting up is all about.

Capital. This is money that is going to be invested in a business. Example: 'I am starting my business with $5,000 capital, $2,000 of which is my own'.

Contract. When you sign a legal document, you are entering into a contract. Starting a business lets you sign and enter into contracts on behalf of the business -- the contract will be between the other person and your company, not you.

Director. The people ultimately in charge of a company are its directors. For a large company, there will be a boards of directors, appointed by the shareholders. For a home business, though, you can appoint yourself as the sole director since you are also the sole shareholder (see 'shareholder').

Incorporation. This is the formal name for the process of starting a company. Example: 'My business was incorporated in March 2000'.

Insolvency. When a company cannot afford to pay its debts. The type of company you have set up will affect what happens in this situation -- you may be liable for all of the debt yourself, or for none.

Limited liability. A limited liability company is one where you agree beforehand how much responsibility you will take if anything goes wrong. This protects you from being destroyed financially if something bad happens to your business.

Office. Your company's 'office' isn't just a place with computers -- it's also a legal concept, meaning where your company is based. Your company must have a registered office, which means that you can't start a company unless you have an address which would be legal to use for this purpose.

Private. A home business will be private, which means that members of the public cannot invest by buying shares. This does not stop individuals from buying percentages of your company if you are willing to sell, though. Starting your company as a private one also doesn't stop you from converting it to a public one later on.

Proxy. Someone who acts as a proxy for you acts on your behalf -- you have given them the legal right to speak for you. For example, if you get a lawyer to handle the incorporation of your company, they will be incorporating it for you by proxy.

Shareholders. The shareholders are the people who own the company. In your company, you will be the only shareholder (and so own 100% of your business), unless you've made a deal with someone else for them to own a share.

Latin.

When you're dealing with law, the amount of Latin involved can be confusing. Here are some Latin terms you might come across when you're setting up your company.

Bona fide: 'in good faith'. This is used to mean that someone says they are telling the truth.

De facto: 'in fact'. Used when something has happened that makes the 'real' situation take precedence from the legal one.

De jure: 'in law'. The opposite of de facto.

Ex gratia, 'out of grace'. When something will be done for no fee.

Prima facie, 'at first sight'. Something that seems true but is wrong.

Quid pro quo, 'something for something'. When a fee will be charged for a service (or services will be exchanged).

Be Careful with Jargon.

However much jargon you might begin to encounter as you start your business, don't start to use it yourself. It will make it so that only 'insiders' will understand what you mean, and everyone else will feel either a little silly or a little annoyed. By the same token, if you're speaking to someone (your accountant, for example) and they use some jargon you don't understand, there's nothing wrong with asking them to explain what they mean -- it's their fault for using an overly technical word, not yours for not knowing it.

If you're not sure, there's a simple rule: jargon is for communicating very specific, technical meanings. It shouldn't be used to replace everyday language, as it does nothing but cause confusion.

*** Resource Box ***

Hannes Johnson publishes the Home Business Tips Newsletter which you can join for free by clicking here.
( http://www.workathomemadeeasy.net/homebusinesstips.html )

Setting Up a Company

So you've written all your plans, you've got any financing you need, and you're all ready to set up your company. Uh, wait a minute... how do you do that?

The Basics.

A company is an entity, separate from you, that you need to create before you can do business. You decide what type of company it will be, you give it a name, and then you send off all the relevant papers to your government and pay any fees that need to be paid. Even for a one-person home business, it's good to form a company -- it keeps the finances apart, and means that you can sell your company to someone else if you want to. Besides, it might be a legal requirement where you live anyway.

Before you do anything else, you should send off for the forms you need to start a company -- in the US, for example, you would talk to the SBA (Small Business Administration), while in the UK you would need to get in touch with Companies House. If you're not sure, your local Chamber of Commerce or your lawyer should be able to advise you.

Types of Company.

The chances are that you will want your company to be 'limited', which means that your own liability when it comes to debts and other legal issues is limited to a certain amount, usually the amount that you invested originally. While it is possible to start an 'unlimited' company, it offers no real benefit -- it just means that you take far more legal risk.

The choice between 'private' and 'public' companies should be equally easy. A private company can be of any size, and is owned only by the people who started it. A public company, by contrast, is one that can be traded publicly, and may be listed on the stock market -- there will be a high minimum share issue requirement for this type of company that will put it well out of your reach, and formal qualifications may also be required.

So the kind of company you need is very probably a limited liability company, usually abbreviated as 'LLC'.

Legal Requirements.

Before you can start a company, there are a few legal requirements you need to fulfill. You generally need to be over 18 and otherwise permitted to enter into contracts. You must not have been disqualified from being the director of a company, and you also can't be bankrupt.

So far so simple, right? One last sticking point is that you will usually require two people to act as the directors of your company, not just one -- you might have to ask your partner or a lawyer to be another director, or to act as a 'secretary'.

Fee Time.

You're likely to be hit for lots of different fees as you go through the process of setting up your company, but none of them should be too large. There will be a company registration fee, as well as a witnessing fee and perhaps some charges for stationery. You may be able to pay extra to have your company registered more quickly.

An Alternative.

If setting up a company sounds like hard work, you'll be relieved to learn that almost all sorts of people offer comprehensive company registration services that don't even cost all that much. Expect to pay about twice as much as the standard do-it-yourself fees, but it's hardly going to break the bank anyway, and it can save you a lot of trouble both now and later on to get things done properly. If this is what you want to do, speak to a lawyer, an accountant, or even a specialised 'company formation agent'.

Your Obligations.

Finally, be aware that from the moment you set up a company, you may have some obligations placed on you. The largest of these is tax reporting, where you will be required to send in a tax report every tax year. Forgetting to deal with tax issues could land you with a fine, so make sure you understand exactly what you've signed up for. You might also be required to do things like putting a small sign with your business' name on the front of your business premises (your house), or to start writing your company registration number on business-related letters you send.

*** Resource Box ***

Hannes Johnson publishes the Home Business Tips Newsletter which you can join for free by clicking here.
( http://www.workathomemadeeasy.net/homebusinesstips.html )

Choosing a Name for Your Company

One of the most important things your company needs is a name. Your name will be the very first thing that almost all of your customers see from you -- long before they meet you, they'll have responded to something (or someone) that told them the name of your business.

So What?

So, if you're planning on running a professional operation, don't call it 'A1 Supplies' just because you want to be listed first in the phone book. You have to pick a name that says something about you and your business, and that people in your target market will be able to say without feeling stupid.

The Professional Name.

If you're running a serious business targeted at other businesspeople, you'll probably want to keep the name sober, but memorable. A good formula is your surname, followed by what you do: 'Smithfield Tailoring', or 'Watson Engineering'. You might also want to add the name of the town where you live: 'Watson Engineering Anytown'. Little things can make a big difference: 'Watson & Associates Engineering' or 'Watson Engineering Co.' both sound quite good, for example. Don't use your first name, though -- it sounds terribly amateurish. Would you rather deal with Ted's Office Supplies or the Johansson Office Supplies Co.?

Another approach is to leave out your name altogether, and simply become 'Anytown Engineers' or 'The Anytown Engineering Co.'. This makes you sound like the first choice locally, especially if your main competitor has the name of another town nearby in their name.

The Corporate Name.

They sound quite bad, I reckon, but there's a still a place for them -- mainly if you want to deal with the big companies that this kind of name appeals to. Simply think of a word to describe your business and translate it into Latin. Then add the word "Consulting", if you want.

The Trendy Name.

If you're going for a more young or technology-savvy market, you might want a less formal name. Names of this form should be kept to one word, and preferably written in lowercase, URL-style. Another common trick is to make '.com' part of the name. Notice the difference between 'Fun House' and 'funhouse.com' -- the Fun House doesn't sound all that much fun, does it?

The Playful Name.

You'll be surprised how many people will love your name if you just decide to name it after an animal, and use that animal in your logo too. If you don't have much of a marketing budget, this is a good way to get a quick brand identity -- if you choose the panda, for example, then people start associating you with pandas, and you can have panda-pattern designs on your stationery and decorate your office with bamboo. Don't underestimate the power of this, seriously.

The Shortened Name.

One naming method that seems to be especially well-used by the big hitters is to take two words that describe your business, shorten them both, and make it one word. So you end up with Fedex (Federal Express), or Microsoft (Microcomputer Software). This is good for suggesting what you do without having an overly lengthy name.

The Random Name.

If all else fails, a great way to make up a name is to just string together sounds that you like until you come up with a made-up word. This can be a surprisingly good way to come up with a name -- and it will be completely unique.

Make It Easy.

Whatever you do, though, make sure your business' name is easy to pronounce and spell. If your surname is hard to say, don't use it. If people seem to have trouble spelling a made-up word, come up with something easier. You'll lose out on an enormous amount of word-of-mouth business if people have to write your name down just to communicate it to each other.

Check for Others.

Once you've got some ideas, make sure you check that no-one else is already using them. It will be expensive to get halfway through starting up a company only to find that the name you wanted is already taken. Also, you'll have trouble establishing any kind of Internet prescence with an over-used name, if that was part of your plan -- if your name is too common, you won't stand a chance of getting yourname.com.

*** Resource Box ***

Hannes Johnson is currently using the Plug-In Profit Site (PIPS) system to build his online home business. Hannes highly recommends the PIPS system to anyone interested in starting a successful home business - click for more information: http://www.workathomemadeeasy.net/pips.html?blog

If you need help finding a good domain name for your PIPSite just let me know (leave a comment) and we'll brainstorm until we find a suitable name.

The Grant Game

Depending on what kind of business you’re planning to start, you might be able to get a home business grant. These grants are usually government-issued. They are, effectively, ‘free money’ – as long as you use the money for what you say you’re going to use it for, you don’t ever have to pay it back. Even if you don’t think you would qualify for anything, you might be able to modify your business plan subtly so that you do.

Why Would They Do That?

The money is designed to encourage specific kinds of businesses – it will always be given to you for a very specific purpose. Also, grants almost never cover the full amount of whatever it is you want to do, leaving you to make up the rest yourself. Note that not all grants come from the government -- some are given out by charities trying to further a cause, or by local community organisations.

Areas commonly covered by grants include businesses that are exporting (every government wants exports to be more than imports), businesses that will provide training to their employees, businesses that are doing useful research and businesses that are providing services and jobs in places that are candidates for 'regeneration'. You may also be able to find extra support for environmentally-friendly businesses, and if you're a woman or a member of an ethnic minority then that could qualify you for a grant too.

Training Grants.

Grants for training are some of the best ones out there -- if you're planning to have any staff, you should really look into them. Basically, you get a grant towards the cost of sending some of your employees on a training course. This is good for you, as you can train your employees more cheaply, and they'll do a better job afterwards. It's good for them, as they learn new skills or improve the ones they have and improve their career prospects for the future. Finally, at least in theory, it's good for the economy, as there will be a greater diversity of skills available in the job market.

Research Grants.

If your business is trying to solve a problem or develop an invention, you might be eligible for a research grant. This can be especially helpful for covering the costs of things like patent applications. Watch out, though -- application for research grants is some of the fiercest out there.

Location, Location, Location.

Whatever kind of grant you're going for, the biggest factor in whether you get it will probably be where you're based. Grants tend to be locally-focused, and especially targeted in areas that are deemed to have a lacking economy. Since you're a home business, you might even find it worth researching what is available in each area, and moving home strategically.

It's Hard to Get a Grant.

Beware of anyone who makes grants look easy. There are all sorts of ‘grant agencies’ who want to take a fee, and ‘guarantee’ that they’ll get you a grant. They won’t – as with almost all things like this, never pay up front. However tempting their offer might seem, you should be applying for the grants yourself. This will generally involve submitting your business plan plus a letter of about 1,000 words saying why you should get the grant in question -- you can't really use the same letter for each grant. Pick what you apply for carefully, as it's a waste of time to apply when you don't meet the criteria properly.

If you want to make sure you're applying correctly, the best thing to do is to phone up the organisation offering the grant -- they'll usually be eager to offer help and advice. Still, don't be upset if you don't get chosen, as it might just be that there were more qualifying candidates than there was money.

Other Benefits.

Any grant you get is likely to bring you to the attention of some kind of agency or organisation who want to help you in other ways too. They might help you get onto courses if you're lacking any business skills, or even provide a mentor to guide you. You might think it all sounds a little silly, but believe me, when you run a home business you need all the help you can get.

*** Resource Box ***

Hannes Johnson is currently using the Plug-In Profit Site (PIPS) system to build his online home business. Hannes highly recommends the PIPS system to anyone interested in starting a successful home business - click for more information: http://www.workathomemadeeasy.net/pips.html?blog

Venture Capitalists and Business Angels

Venture capital and ‘angel’ investment seems like an attractive alternative to personal loans – you’re asking people to invest their money in your business in exchange for a share of the profits. While it can cost you more in the long run, it means that you won’t be borrowing money as a loan that needs to be paid back whether your business makes a profit or not.

Venture Capital.

Venture capital is the ‘big’ option – you should only really be looking at it if your home business concept is technology-focused and would be able to make a bigger profit if you had access to better hardware. Venture capitalists mainly look for businesses that have the potential to grow really big really quickly, but will also want everyone involved to be experienced and confident.

Approaching a venture capitalist is a lot like approaching a bank to ask for a loan, except you need to be a lot more convincing. The person you meet will be a specialist in whatever industry you’re planning to enter, and they’ll run a mile if you don’t seem one hundred percent sure of everything. Make sure you research any venture capital company before you meet with them, to see what they look for and who their existing clients are.

Remember that you’re being scammed if they ever ask you to pay anything, and be wary of anyone who insists that they won’t sign an NDA (privacy agreement) before they see your idea – they might be planning to hand it to one of the companies they’ve already invested in.

Be prepared for competition for venture capital funding to be fierce. Really, the best way to get it is to build a good version of your business on a small scale and then wait for them to come to you. Also, you should be aware that accepting venture capital funding will give the venture capitalists a significant say in how your company is run. They will try to force you to grow the company as large as possible, before cashing out somehow, whether it’s a sale or selling shares. They will, effectively, take over your company and maybe help you get rich – not too much fun if you’re out to start your own business and get away from the typical corporate way of working.

Angel Investors.

Angel investors are like venture capitalists on a much smaller scale. They are ‘real people’ – individuals who will invest in smaller companies. For home businesses, angel investors are a much better idea than venture capitalists.

Angels tend to behave more like a business partner. They’ll invest, say, half the start-up funds, and then take a personal role in the day-to-day running of the business. This contrasts with venture capital companies, which have a tendency to be faceless and issue you written demands to be get more profitable. A business angel brings with them experience and knowledge as well as money, and they can be a great asset to your business.

Still, you need to remember that they’re in this to make a big profit – when you build your business with the help of an angel investor, you need to be able to show to them how they’re going to be able to get twice as much out of the business they put in, and how soon. This doesn’t necessarily mean that your business needs to grow rapidly, but it does mean that whatever you plan to spend their money on needs to be some kind of tool for making back far more than the original investment over a relatively short timeframe.

Staying Independent.

Of course, the best way to stay completely independent is to avoid accepting any outside investment. If you really need the funding, though, there are still some ways to take it and stay as independent as you can.

Make sure you keep at least 51% of your business. However many investors you have, you need to keep hold of 51%, otherwise it’s not your business any more. Don’t feel like you’re entering some kind of big system where you’re lucky to be and you have to play by these people’s rules – if you have a genuinely good business plan, then they’re the ones who should be begging you for the opportunity to invest for such a good return. If all else fails, you might be able to persuade your friends and family to invest just as much on far better terms.

*** Resource Box ***

Hannes Johnson is currently using the Plug-In Profit Site (PIPS) system to build his online home business. Hannes highly recommends the PIPS system to anyone interested in starting a successful home business - click for more information: http://www.workathomemadeeasy.net/pips.html?blog