26. What if I store stuff in a storage space. Can I deduct that expense?
You must use the storage space exclusively for storing goods related to your small business. The storage space must be used regularly.

27. How much can I deduct?
If you live in a 1500-square foot home and your home office takes up 150 square feet of space then the home-based business enterprise space comprises 10% of all expenses which are generated by the entire home. For example, you can deduct 10% of water costs, garbage collection, phone, heat/utilities, etc.

28. What about sales tax?
In the old days 9prior to the Tax Reform Act of 1986) a small business owner could deduct sales tax as an itemized deduction. This is no longer possible. The sales tax can be included as part of the original cost of an asset which may be depreciated for business use. It's a good idea to round-up an accountant when starting any type of new business. You won't have to keep them on some heavy-duty retainer, but can pay them on an hourly basis. With the hassle of changing laws and taxes, it's a very good idea to work with a pro who understands all of the tax laws changes on an up-to-the-minute basis.

29. How do I go about setting up a bookkeeping system?
It's a good idea to investigate local classes at adult education or even a seminar with the SBA on bookkeeping or in setting up a very basic accounting system. Even if you have the money to hire an accountant, you should get a grip on your business' financail affairs. You should be able to explain to yourself how much money you owe out to others, how much others owe you and how much cash you have on hand.

30. What types of records do I need to keep?
You'll need a check register (to record all of the checks you write); a cash receipt system (to list the amount of cash you received, on what date, and from whom); a record of bills (to know what bills you owe, to whom and the amount owed); journal (to keep a daily agenda of everything you do, everything that relates to the business, everything you sell)--a journal is a great system to start and maintain no matter how big your business gets.

31. How can I make it easier to handle?
You could investigate the wide variety of software systems that are on the market. Many deal strictly with setting up and handling an accounting system.

32. Why do I need to do this if I hire an accountant?
You will need tools to turn over to the accountant. You can't walk in with a bag full of receipts. The more organized you are, the more organized you will be when presenting this material to an accountant. That translates to reduced bills from the accountant. You'll save time and money and be more confident about your venture.

33. Do I need any special insurance?
There are many different types of insurance available to home-based business people. You should sit down with the agent who works for your insurance company that insures your home and figure out what types of additional coverage you'll need.

34. What is the minimum coverage that I'll need?
You should make sure you have fire, liability insurance, automoblile insurance and theft insurance.

35. What if I have one or two employees?
If you hire some employees, you'll need to get Workman's Compensation insurance. This type of insurance varies from state to state. Your insurance agent can help you research the requirements in your particular state.

36. What other types of insurance should I explore, such as business interruption insurance?
Business interruption insurance will cover any of your expenses while your business is shut down due to a power failure, a fire or any other predicament. This insurance will pay your taxes, your utility bills, taxes, and salary to any employees.

37. What is crime insurance?
This will cover you in the event of a robbery or a burglary. It also covers thefts by employees.

38. Can I get liability insurance for the product I manufacture or for the service I offer?
yes, you can. If you are in the business of manufacturing products, you'll want to investigate insurance that will limit or free you from liability of defective goods. If you are offering a service, you'll want to look into "errors and omissions" insurance, which will protect you should something go wrong with the service you offered.

39. What should I know when I go to pick out and buy a computer--I'm a novice?
Bring this checklist along: Is the salesperson and the store trustworthy and reputable? Will they train you? Can you understand the basics of the unit they are showing you? Does it come with software that teaches you at home how to use the computer? Can you phone in questions to the shop or to the manufacturer? Does it have enough memory for all you need to store? Do you like the way the type appears on the monitor? Is the keyboard easy to work? If you don't needa laser printer, don't buy one. Get a less expensive inkjet printer from Hewlett Packard.

40. Where can I find out about inexpensive software programs?
Go to your local software store and peruse the shelves. Also, talk to other small business owners and pick up a few magazines on software options.

41. What type of checking account should I open?
You should open a separate business account. This will be required if your business operates under a nmae other than your own. When you visit the bank, ask them the following: Is a minimum required to open an account? Are there hefty stop-payment fees on checks? How much do they charge for checks that bounce? Does the bank offer overdraft protection? Are service fees charged? Is there a fee on different transactions? Is overdraft protection offered?

42. What is a fax machine?
a fax or facsimile machine enables you to electronically transmit a document over a phone line to another fax machine. The document is printed in exactly the same form on the receiving fax machine, as though it had been photocopied in the transmission process. it takes about 15 seconds to fax one page and costs about 15 cents. It is cheaper to use than a stamp or to place a long-distance call.

43. I plan to recycle my old newspapers. How do I do this?
Check the Yellow Pages under "Recycling" to learn more about what types of paper different companies accept and how much they pay for it.

44. What types of things can I buy that are made from recycled paper?
Here's a partial list: computer paper, copy and typing paper, toilet tissue, paper towels, storage boxes, pads, file folders and stationery.

45. How should I choose a name for my business?
Make sure you choose a name that will work tomorrow as well as work today. If you are making pot holders don't choose Tom and Sally's Pot Holder Shop because in a year or two you could expand to Aprons. Try Tom & Sally's Kitchen Shop or Tom and Sally's Household Goods. Keep it open and flexible.

46. I've found a name but need a logo for my business card. I can't afford a designer. What should I do?
There must be dozens of artists in your community or students at a local arts or graphics design school that would love to design your logo. We know of one entrepreneur who paid $35 for a design from a local student. The student benefited, too. He got to put the piece of work in his portfolio.

47. I'm interested in exporting my product to other countries. How can I find out about how to do this?
There are numerous books out on the topic so check your library and local bookstores. Also contact the U.S. Department of Commerce at 202-637-3077 or write to their Export Now office at Room 5835, Department of Commerce, Washington, DC 20230.

48. How do I investigate getting an 800-number?
A lot of people don't realize that it can cost under $100 a month to get an 800-number. Call AT&T, Sprint and MCI and ask about their 800-number programs. Also ask about other programs they have for small business owners.

49. Can I hang a sign on my house?
In some towns you will be permitted to hand a sign no larger than 9 by 12 inches and it must go in your window. Other communities will permit a yard sign. In some areas, signs are prohibited. Check with the local zoning office.

50. How should I choose a supplier?
Suppose you are making a list of folks you'll need to purchase office supplies from or even balloons for your gift baskey business. Spend some time on the phone with these people and see if you get along both professionally (if you like their attitude) and personally (if you like their manner on the phone). This will help you to feel good an positive about doing business with them. Call or stop in and visit a few suppliers before making any decisions. You might also want to try a few out and see who you like best, so don't sign any contracts with time constraints.

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