51.Most people say that businesses fail because they lack sufficient funds. True or false?
True, most businesses do fail because they lack enough money to keep the business up and running until the profits start rolling in. You should have enough money to sustain the business for at least 6 months.

52. What can I do to ensure that I have sufficient funding?
Prepare a detailed budget, develop a great relationship with a bank, develop superlative customer service techniques so that your clients keep coming back for more, and remember to always pay your bills on time so that you won't start a money feud with your suppliers.

53. Where should I set up my home office?
The best case scenario would be to maintain a distinct line between your living space and your home office. For many, home-based entrepreneurs, however, this is just not possible. Consider the mail order maven who has inventory all over the house, or the computer pro who starts a word processing business that suddenly flourishes. There are bound to be stacks of documents, labels and envelopes for clients all over the house. You should consider an attic, basement, a spare room or a corner of the garage. If you are having construction done consider adding on a small spare room to serve as your home office. It would make a great home office--no matter how small.

54. Do I need to invest in furniture?
This is up to you. Maybe you have the makings of an office right in your home. A spare chair from the den, a desk from one of the kid's old rooms, a table from the basement that will hold up the computer and the printer. You don't need to invest a fortune.

55. What about stationery?
We recommend that all home-based entrepreneurs spend a little money on creating a stationery system that will consist of the following: letterhead which states name, address, and phone/fax number; envelopes with name, address; business cards. Creating a nice looking stationery system is even more important for home-based biz owners who will likely never have their clients in their home. They sell their business with their image. Good looking goods can give a sophisticated image even if you work from your crowded kitchen table.

56. Do I need a separate telephone line?
We think it would be better for you to have a separate line. There's nothing as unprofessional as having a small child answer the phone and say, "I'll get Dada or Mama." If you are trying to give the illusion that you have a rock solid, professional venture going, then get a separate phone line that only you or an answering machine or voice mail will answer.

57. Do I need to buy a photo copier machine and fax and all of that stuff to start?
Not to start, but you could find it handy after you make many trips to your local copy center to handle your tasks. You might consider looking into a combo machine. One that faxes, copies and acts as a printer. There are many on the market starting at about $700.

58. How do I learn to stay focused in my office and not get distracted by the TV or the backyard garden work that needs to be done?
Remember, we said it before--focus. Learn to set goals. Start. Don't keep putting projects off because they seem too overwhelming. Start small and stick with it. If you enjoy a cup of coffee, use it as a reward. Make all 20 phone calls first, or write those 5 letters, or type up that budget or proposal first and then go make that pot of coffee.

59. Should I join the Chamber of Commerce?
You should most definitely tie-in with every organization in your area. You'll build word-of-mouth about your business, and might pick up a few clients. Attend town meetings, join civic groups, get involved in your community and always mention what you do.

60. Should I advertise?
If you can afford a budget for advertising, then do so. Place ads in your local newspaper. Then consider regional magazines. Go to where your customers are. If they buy a certain publication, call the advertising department and ask them to send you a media kit. Study the ad rates and see what you can pull off. One ad might cost $1000, but it could generate thousands of dollars in business.

Consider special advertising sections in your local newspapers as well. Call them for a list of these special sections. If you run a bridal consulting service, for example, you should consider placing an ad in they special bridal section (that probably goes on sale in April or May).

61. Can't I get some promotion without paying for it?
Yes, if you become a master of public relations and publicity. There are dozens of ways to generate interest in your business. Write a press release on your business and send it to the media, stage an event, alert local TV, put up a sign, offer a discount, get yourself interviewed on a local talk show as an expert in your field. Yes, it's free!

62. Is customer service really important?
By all means, one customer that keeps coming back is worth a lot! They, in turn, tell their friends about you and so on and so on down the line. Before you know it, you have all the work you can handle just from good hype. The customer is always right.

63. Where can I get free or low-cost information on running a home-based business?
The SBA publishes a directory of more than 100 publications on a variety of topics of interest to entrepreneurs. Contact your local SBA office to receive a list of the publications.

64. How can I buy goods for my business at wholesale prices?
You will need a re-sell number or a Sales Tax Number. Call the state's department of revenue for a sales tax or tax exemption number (also known by other names depending on what state you live in). You'll be issued a number that permits you to enter trade associations and conventions in which wholesalers show their wares. You will also be able to go into wholesale shops and pay no tax. Most bnusinesses will keep your sales tax number on file, but keep it handy just in case they ask to see your documentation again. The reason you are tax exempt is due to the fact that you will be collecting tax when you sell these items to your clients.

65. How can I sell my mail order goods to catalogs?
Contact the catalog houses you are interested in selling to and send them a one page fact sheet along with a photo or a sample of what you have to offer. Follow-up with a phone call in about 10 days.

66. What if I accept a check and it bounces?
Wait a few days and try submitting it to the bank for a second time. If it still bounces, you can either contact the individual and aks that the bill be paid in cash, or you can go to the local district attorney's office. You can also get help from the bank. For a small fee, the bank that issued the check will hold it and cash it as soon as any money is deposited into the account. The check will be returned to you if nothing is deposited in one month.

67. What about a collection agency?
A collection agency's goal is to collect unpaid bills for a fee. That fee is based on a percentage of the unpaid bill and how much work it takes to retrieve the money. You can find a collection agency by thumbing through the Yellow Pages.

68. Could I go to court?
Small claims court handles cases up to $2000--and amounts do vary from state to state. Call your county clerk's office to find out if they system might work in your case. It is often satisfying to know that you persued every opportunity available to you.

69. What is the "break even point" and how do I calculate it?
The break even point is reached when your expenses balances with your earnings. You are still, however, not making a profit. When you reach the break even point you are ready to "make it or break it"--make a profit or rack up a loss.

70. I have a great idea for a new business but I'm afraid to talk to anyone about it because they might steal the idea. Who can I turn to at this juncture?
Call your local SBA office and ask to be put in touch with a SCORE office (Senior Corps of Retired Executives) nearest you. There are 750 offices in which experts in a wide range of fields consult with newcomers on how to set up and run a business. Even Ben & Jerry, the ice cream kings, turned to a SCORE office for assistance when they started their first ice cream shop. To reach SCORE call your local SBA office or dial 800-ASK-SBA.

71. I'm retired and want to start a business, but not from scratch. What options do I have?
You can look into a franchise operation in which you are purchasing the rights to a proven system of doing business, or you can scan the Business Opportunity section of your local newspaper and think about purchasing an existing business.

72. What is venture capital?
Venture capital is a privately owned investment group that looks for on the go business ideas in which to invest. In exchange, they want up to 30% of the profits and a lot of say in how things will work and are conceptualized within the small business.

73. My nephew wants me to start a business with him. How do I know if we can make it work?
If you're referring to personality conflicts that could arise you should sit down and discuss all aspects of the planned venture, from the name of the business to your responsibilities, as well as goals of the venture. What are your work habits? Are they similar? Are you detail oriented while he is not? Will you be expected to bail out the business financially if something goes wrong? A partnership is just like a marriage, and can be even harder to dissolve so approach any business relationship with caution. You might be better off on your own.

74. How do I generate business for my new enterprise?
f you can't afford to place a classified ad in your local paper, go the poster and flyer route. Hang them up on local bulletin boards and put them on cars, give them out in congested areas such as parking lots. Make sure you include your phone number, address and some information about the service you offer or the product you sell.

75. What about direct mail?
Direct mail is where you create a brochure or a flyer and send it out to prospective customers that are already predisposed to buying your product/service. For example, if you are starting a lawn care service, don't mail the flyer to folks who live in an apartment building or to those who live in a co-op/condo complex who have this service included in their maintenance.

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