from business.gov
When Are You Considered “Self-Employed”?
You’re generally classified as self-employed if you are in business for yourself, carry on a trade or business as a sole proprietor or independent contractor, or own a part-time business in addition to your regular job. Self-Employed individuals are also called consultants, freelancers, or independent contractors.
How Do I Become Self-Employed?
You can learn the steps you must take to legally operate a small business as a self-employed individual on Business.gov. These steps are similar to starting any business – obtain licenses and permits, establish a business name, finance your business- but with a few specific tax and benefit implications that apply to the self-employed.
Generally, you and your clients will decide your work arrangement when you are hired to do a job. If you are brought on as an employee, you will likely undergo on-the-job training and receive employment benefits. If you are brought on as an independent contractor, you will not receive employee benefits or the same legal protections as employees, and often responsible for your own expenses.
Because of the tax and employee rights implications in declaring self-employment status, it’s common for the IRS and various state agencies to occasionally review your work status to ensure that you are indeed self-employed and not an employee of your client’s business. The IRS offers guidance on how to determine if you are considered an employee or self-employed.
A few states pay a weekly allowance to help unemployed workers start their own small businesses. For more information about Self-Employment Assistance Programs, read on at the Department of Labor.
Stay Abreast of Tax Requirements for the Self-Employed
If you are self-employed you must pay a self-employment tax (SE tax). Similar to the social security and Medicare taxes withheld from an employee paycheck, the SE tax is primarily for those who work for themselves.
You will also pay estimated taxes. Estimated tax is the method used to pay tax on income that is not subject to withholding. Even if you also have a full-time or part-time job and your employer withholds taxes from your wages, you still need to pay estimated taxes. If you don’t make quarterly payments you can be penalized for underpayment at the end of the tax year.
Read more about general tax requirements on Business.gov.
Already Self-Employed? Preserve Your Self-Employed Status
It’s important to ensure that state or federal agencies don’t interpret you as an employee in an audit – that determination could cost you client work, in addition to time and money you’ll spend trying to petition the assessment. There are simple, but important, actions you can take to preserve your self-employed status:
- Create a client contract that proves you and your client intended for you to work as an independent contractor, not as an employee.
- Juggle multiple clients at the same time, or over the course of the year, which will show you do not have permanent employment with one firm.
- Show risk of loss by incurring regular business expenses. This shows auditors that you could stand to lose money if you don’t have enough regular work.
- Control the means and methods of accomplishing the work. If your client dictates how you do your work, you may be viewed as an employee. The general rule from the IRS is that in an independent contractor arrangement, a client has the right to control or direct only the result of the work, not how that work is accomplished.
- Secure your own employment benefits. As tempting as it may sound, accepting employment benefits like health insurance or paid vacations from your clients can negatively impact your self-employed status.
Other Issues for the Self-Employed
- Retirement Planning: The advantages of a retirement plan are numerous – economic, business and tax advantages for your business, for your employees and for you. A retirement plan may give you an important competitive edge in attracting and keeping the best employees – and help you plan for your own retirement years. The retirement plans videos from the IRS are also a great resource for choosing, operating and maintaining your retirement plan.
- Intellectual Property: Self-Employed individuals should be aware of the ownership rights of the copyrights, patents, and trade secrets you create for clients. Read more about intellectual property rights on Business.gov.
Bev Kreider
When the couple purchased the Marietta, PA business in 2003, it had its share of challenges. With old machines, a storefront that was rented out to another business, and a hard-to-find entrance, Bev says the laundry was in need of “TLC.”
In 2007, the owners realized Express Laundry needed a major overhaul. The Kreiders invested in new equipment and reclaimed the storefront, which gave the business a much-needed street presence. But the couple also recognized that if they wanted to increase revenue, they needed to do more.
By reading trade magazines, they identified the industry trend toward offering a full line of laundry services. After evaluating which services might fit their business best, they added onsite attendants and hired a seamstress for mending and alterations. The Kreiders also implemented a wash-and-pick-up program, in which clients drop off dirty laundry to be washed, dried and folded.
To further accommodate on-the-go customers, the company launched the Laundry-at-Work program, which picks up soiled laundry at a customer’s workplace and delivers the laundry—washed, dried and folded—in two days. While programs like Laundry-at-Work are common in other areas of the country, it was a new concept for some of their clients. And although Bev occasionally still finds herself explaining the service, she says customers are increasingly receptive to it.
Express Laundry didn’t stop at pick-up service for individuals either. The Kreiders also implemented pick-up service for local businesses, such as caterers, massage therapists, and bed and breakfasts. According to Bev, this convenience gives businesses the option of investing in their own items, such as linens or uniforms, rather than renting them.
In 2009, Express Laundry expanded pick-up service to nearby Millersville University. For a set price, the business picks up dirty laundry from residence halls and then delivers the washed and folded items, saving the student time for study, work, or relaxation.
The overhaul has not been without challenges. For example, when newly-installed dyers did not work properly, the Kreiders took a methodical approach to resolving the issue. Bev asked, “What’s the next step?” By working with both the machine manufacturer and the local gas company, the Kreiders were able to get the dryers in operation.
“The really big thing I’ve discovered over the last years is that I don’t personally know all the answers,” Bev says. That’s one reason the couple enlisted the help of SCORE Lancaster, a non-profit group that mentors emerging and existing small businesses.
The entrepreneurs’ relationship with SCORE began when they enrolled in business education workshops the group offers regularly. “Other participants [in the class] spoke so highly of the counselors,” Bev says. Their recommendations lead the Kreiders to request individual counseling.
Bev credits SCORE counselors Jerry Glenn and John Wylie with helping to craft a business strategy, trouble-shoot challenges, and develop a marketing plan. “SCORE helps me in each particular thing. Together we brainstorm…SCORE counselors have been part of helping get those answers.”
With an awareness of their industry and a willingness to use mentors, Bev and Bruce continue to serve clients, from overscheduled college students to upscale spas, as the one-stop place for their laundry needs.
To learn more about SCORE mentors, workshops and roundtables, call us at 717-397-3092 or find us online at www.scorelancaster.org
Lou Davenport
Lou Davenport, long-time member of SCORE Lancaster, was named 2009 “Member of the Year.”
Davenport was recognized by Chapter Chairman Jerry Glenn for his leadership of the chapter’s certification and implementation of the Kauffman FastTrac® business education program. FastTrac is a 12-week program that leads emerging entrepreneurs through a process of assessment and feasibility in order to reach go-no go decisions about their business concepts.
Davenport organized the chapter FastTrac effort, including certification of facilitators, selection and training of coaches, and collaboration with other community groups to generate awareness of and participation in the program. In addition, he forged a working relationship with ASSETS Lancaster to mount a coordinated effort to reach and qualify participants, and to help manage the program.
In the initial FastTrac implementation, 19 participants completed the program – 15 indicated that they will pursue their businesses, and all recommended the program to other emerging entrepreneurs.
Davenport has volunteered to manage the FastTrac program again in March 2010.
What happens when an Amish craftsman and entrepreneur adds “Extreme Makeover: Home Edition”-like touches to ordinary sheds and playhouses? The result is Steve Stoltzfus’ Homestead Structures, an enterprise that has successfully carved out a niche in a crowded market.
Workman at Homestead Structures
The company, based in New Holland, PA, designs and handcrafts structures, such as storage sheds, potting sheds, pool houses and garages. Clients can customize their order by adding everything from potting benches and ceiling fans to cupolas and weathervanes.
They also offer a variety of playhouses, including one model designed to look like a general store. The Homestead craftsmen can also create playhouses that replicate a client’s home or office building. For those seeking a top-of-the-line reproduction, the playhouses can be wired for electricity and Internet access.
Homestead Structures was launched in 2003 when Steve began to look for a venture that would supplement his family’s dairy farm income. He decided shed construction would be a good match—even though he had no prior experience—because it was an activity in which his children could become involved as they grew older.
Despite the advantages, one challenge for the entrepreneur has been the number of competitors. With dozens of shed builders in the company’s home base of Lancaster County, Steve says the biggest challenge is staying ahead of the competition. “They’re always right behind us, especially in this economy. Other companies are becoming more willing to customize product.”
Brainstorming is one way the entrepreneur produces the ideas that help differentiate Homestead Structures from the competition. During one session, a unique idea was proposed: invite clients who ordered a structure to stay overnight in a guest room on the family farm.
Known as the Homestead Guesthouse, it’s is an authentic Amish bed and breakfast, where clients can milk cows alongside family members, take a buggy ride, or watch as craftsmen build their shed. Steve says the bed and breakfast offer turns the act of ordering a shed into a memorable experience.
Steve’s success has also been fueled by support from his family. He credits his wife, Martha, with managing the dairy farm while he operates the shed business. “Because of her involvement and interest, it helped me stay focused on moving ahead and expanding,” he says.
He has also found support in SCORE Lancaster, a mentoring group that provides business workshops and counseling for emerging and existing small businesses. Several word-of-mouth referrals prompted Steve to contact SCORE. Working with counselor Dave Templeton, Steve was able to analyze core business information, such as profit and loss reports, cost tracking and profit margins. They also worked together to create a strategic plan that would guide Homestead Structures through its growth. Dave was particularly helpful because he owns and operates two businesses of his own.
“It’s helped me a lot of ways, having a more experienced person come in from outside the business who is able to see the things you might miss because you’re in the thick of it day in and day out,” Steve says. “He really helped me become a better business owner.”
The proof is in the numbers. Homestead Structures has experienced double-digit growth and has maintained good profit margins despite the downturn in the economy. This entrepreneur’s blend of old-world craftsmanship and new-world business savvy has created a business that’s as successful as it is unique.
If you would like to talk with a SCORE mentor, call SCORE Lancaster at 717-397-3092 or visit www.scorelancaster.org.
SCORE CEO Ken Yancy and District Director Jerry Glenn with Chapter 16 Chapter of the Year
The Lancaster Chapter of SCORE was named 2009 regional “Chapter of the Year” as top performer among the sixteen chapters in Pennsylvania and Delaware.
Lancaster SCORE was recognized for engaging 531 clients for a total of 1,532 sessions; for conducting 57 business education workshops for 680 attendees; and for helping to create an estimated 35 new businesses and 50 new jobs in Lancaster County.
The “Chapter of the Year” effectiveness award was presented to District Director and Chapter President Jerry Glenn by SCORE national CEO Ken Yancey.
Even in an age of high-tech communication, the most powerful and effective means of generating new business is also the oldest: word-of mouth. People naturally turn to trusted friends or colleagues for recommendations regarding product or service providers. You’ve probably used it yourself when searching for a mechanic, making major purchases, or weighing an outlet to promote your small business.
And because word-of-mouth referrals are free, you can’t be the return on investment that a positive referral can generate. While a successful word-of-mouth marketing chain can sometimes start on its own, don’t assume that the phone will start ringing off the hook. Any successful marketing tool—word-of-mouth included—requires a proactive, patient approach to ensure that the right message gets to the right people.
A good way to get started is to create a simple marketing message that is easy for people to pass along. If it’s not simple, it won’t pass the test. But make it specific to a real benefit or need, not something vague or general. If you can, include success stories or testimonials from real customers. These can have a tremendous pass-along impact.
To stimulate word of mouth, you might also consider asking customers for referrals and recommendations. And put your networking efforts into high gear. If you network and get to know people in your community or industry, they will think of you when they need your product or service. Join networking groups and local business organizations, and attend conferences. Donating your products or services to local charities can generate goodwill and get your name around. Consider introductory discounts or free samples. People are more willing to try a new product or service if they can do so economically. Many small companies have jump-started sales through carefully controlled giveaways.
Above all, perhaps recognize that people will happily spread the word about your business if you treat them well. Tales of negative experiences or poor performance can be difficult to correct once they are passed on. That’s another important reason why it’s important to continually provide superior service, address problems quickly, and anticipate your customers’ needs. Those are the things they’ll rmember—and talk about.
To learn more about marketing your small business, contact Lancaster SCORE, “Mentors to America’s Small Business.” SCORE has more than 50 volunteer business executives who provide free, confidential business counseling, and training workshops, to small business owners. Call us at 717-397-3092 or find us online at www.scorelancaster.org.
W. Kenneth Yancey Jr.
SCORE CEO
www.score.org
SCORE CEO Ken Yancey
Day by day, optimism is overtaking the gloom of the recession. Now is the time to seize opportunity and prepare for sales growth and profitability in the coming year.
The Conference Board reported that its index of leading economic indicators rose for a sixth-straight month in September to a two-year high. The mood among entrepreneurs is decidedly upbeat. In a survey by Constant Contact, Inc., an e-mail marketing provider for small businesses, 70% of small businesses expect to finish 2009 with moderate or significant growth.
In the recovery economy, strengthening the value proposition between a company and its customers will be more important than ever. “People will continue to buy things; they’re just being more careful about who they buy from,” observes John Jantsch, author of Duct Tape Marketing and a noted small business expert.
Create Growth Through Customer Focus
Staying close to your customers and continually asking what matters to them is especially important. An increasingly powerful means for building and strengthening customer connections is through social media tools such as blogs, e-mail campaigns, Facebook, and LinkedIn.
Blogs have proven their potency as a marketing tool, boosting Web site visits by 55%, according to a customer survey by small business software developer Hubspot. In addition, 45% of respondents to a BlogHer/iVillage social media survey said that they decided to purchase an item after reading about it on a blog.
Expand Your Reach Without Expanding Your Budget
Constant Contact President and CEO Gail Goodman says that small businesses should find e-mail marketing well suited for an environment in which marketing resources are limited. And don’t forget Twitter. “A small business that is consumer-facing should think of Twitter as advertising in your local free newspaper,” says Guy Kawasaki, managing director of Garage Technology Ventures, an early-stage venture capital firm, and a columnist for Entrepreneur Magazine.
While other, more “conventional” marketing strategies will still have a role in the recovery economy, small businesses should look out for ways to put a new spin on their offerings. Retailers should host special events such as demonstrations and trunk shows and offer rebate programs that will repeatedly bring customers back to their stores, according to retail and luxury marketing behavior expert Pam Danziger. She also advises retailers to make merchandise appear fresh. “Simply rearranging your merchandise can make a difference because it changes the customer experience.”
Finally, make the most of peer networks, professional groups, and advisors, including SCORE mentors. Surround yourself with people and perspectives that energize you.
More than 12,400 volunteer SCORE counselors in 364 offices nationwide provide free and confidential small business mentoring and training.
Editor’s Note: This is part of a monthly series of articles and information from the Center for Dairy Excellence, a non-profit organization focused on strengthening Pennsylvania’s dairy industry. For more information, visit the center’s Web site at www.centerfordairyexcellence.org.
LANCASTER, Pa. — Ten years ago, John Fleckenstein was a senior vice president of operations at Armstrong World Industries, a global leader in flooring, ceiling and cabinets. Before that, he had been president of a division of Emerson Electric, one of the world’s largest manufacturing companies.
So what’s someone like that doing on 100-cow dairy operations in Lancaster County? “I’m volunteering to serve as the facilitator of two dairyprofit teams,” he says. “I’m learning the language of dairy farming while helping them develop a disciplined approach to business management.”
Business is Business
Fleckenstein is a member of SCORE (formerly known as Service Corps of Retired Executives), a volunteer group associated with the U.S. government’s Small Business Adminstration. “SCORE has chapters all over the country, and mostly we are retired corporate executives and business owners,” he says. “Our goal is to help small businesses either get started or improve profitability. We do that in two main ways — by providing consulting services and by offering low-cost business seminars.”
SCORE Counselor John Fleckenstein
Fleckenstein is a SCORE Lancaster counselor and works with entrepreneurs from all different types of business. “I am working with one man who wants to start an ice cream business and another who wants to grow his shed making business. We know our way around business, and our approach is that the fundamental of any business is just people trying to make money.
“One thing that intrigues SCORE volunteers about dairy farms is the sheer size and scale of them,” he says. “They are larger businesses than others that we generally work with so we find that interesting.”
A Good Fit for SCORE
SCORE volunteers like Fleckenstein have made themselves available to serve as facilitators on farms enrolled in the Center for Dairy Excellence’s On-Farm Resource Team Program.
“At some point, the center’s executive director, John Frey, and one of our leaders realized that what we call a counselor is very similar to what the center calls a facilitator,” Fleckenstein says. “It was a great fit for us to get involved in the program.”
Another SCORE counselor, Dan Evans, is working with Fleckenstein on three different farms. “Our approach is that we always have back up,” Fleckenstein says. “Dan serves as the facilitator on one farm while I serve as facilitator on two other farms. If one of us is not there when the farm needs us, the other can back him up.”
They have been serving as facilitators for the last month and hope to offer what they know about business to the dairy farm.
“There is no doubt that the dairy image terminology takes some translation. Sometimes it is difficult for us to understand what our clients are trying to tell us about their business because they use different terminology,” he says. “However, when it comes down to it, it is all about setting priorities. I have never been in a factory or on a dairy farm where they weren’t trying to do too many things. The key is identifying your priorities and having people take accountability for those priorities.
“Any given dairy farm is faced with a vast number of investment alternatives for its scarce capital; it is all about capital management and we can help with that.”
More SCORE volunteers eager to help
Fleckenstein is one of several SCORE counselors who are happy to work with dairy farms. Other farms interested in having a SCORE representative serve as the facilitator for their dairy profit, target profit or succession planning team can contact the Center for Dairy Excellence for more information.
Any dairy farm interested in establishing a dairy profit, target profit or succession planning team can receive funding of up to $1,500 in 2010 to cover the cost of paid team members and discovery-related expenses.
SCORE representatives have generously volunteered their services for profit teams, so there is no cost for their involvement.
The center offers other support for farms interested in taking a team approach to bringing better decision making, enhanced performance and improved profitability to their dairy businesses. For more information, visit the center’s Web site at www.centerfordairyexcellence.org. Click on “Producer,” then on “Learn More About Profit Teams.” Or call the center at 717-346-0849.
Julie Good-Kruger had a problem. While renovating her family’s home, an 18th-century mill, she was unable to find brick veneer with an authentic look and feel.
The solution? Using artistic skills honed during two decades in the collectibles industry, Julie, along with daughter Emily Kruger, began to handcraft—right in their own foyer—lightweight tiles that looked like antique bricks but would not crumble or crack like the real thing.
Recognizing that other homeowners might have the same need for high-quality brick replicas, Julie and Emily launched Inglenook Tile Design in 2003. The Lancaster County-based company offers durable, ceramic tiles that weigh far less than actual bricks and come in a variety of designs, from antique-inspired brick to fine art tiles. Julie also uses her sculpting ability to create custom-designed pieces.
Inglenook was not Julie’s first venture into entrepreneurship. Following college she and husband Tim Kruger started a doll business. The company’s products were retailed in 800 stores, sold through QVC and boasted a popular collector’s club. In 2000 the couple sold the company to The Boyd’s Collection, where Julie worked in product development for the next four years.
By many standards, she notes, the doll company was successful. Yet, in hindsight, the award-winning artist recognizes the company may have suffered from success-fueled complacency. “We grew up ourselves in that business. It was like the tail wagging the dog.” Then, she continues, “The market changed. With the internet coming in, stores couldn’t stay in business anymore. We thought we had a niche. We should have diversified.”
Julie wanted something more for Inglenook. “Instead of letting the business grow me, we went in with the idea of planned growth,” she says. That’s when she contacted the Lancaster chapter of SCORE, a non-profit business mentoring group.
Paired with SCORE counselor Fred Phillips, Julie developed a business plan. She learned how to make projections and analyze her company’s strengths and weaknesses, exercises she found “fabulously helpful.”
SCORE mentor Fred Phillips and Julie Good-Kruger review hand crafted tiles
Julie Good-Kruger had a problem. While renovating her family’s home, an 18th-century mill, she was unable to find brick veneer with an authentic look and feel.
The solution? Using artistic skills honed during two decades in the collectibles industry, Julie, along with daughter Emily Kruger, began to handcraft—right in their own foyer—lightweight tiles that looked like antique bricks but would not crumble or crack like the real thing.
Recognizing that other homeowners might have the same need for high-quality brick replicas, Julie and Emily launched Inglenook Tile Design in 2003. The Lancaster County-based company offers durable, ceramic tiles that weigh far less than actual bricks and come in a variety of designs, from antique-inspired brick to fine art tiles. Julie also uses her sculpting ability to create custom-designed pieces.
Inglenook was not Julie’s first venture into entrepreneurship. Following college she and husband Tim Kruger started a doll business. The company’s products were retailed in 800 stores, sold through QVC and boasted a popular collector’s club. In 2000 the couple sold the company to The Boyd’s Collection, where Julie worked in product development for the next four years.
By many standards, she notes, the doll company was successful. Yet, in hindsight, the award-winning artist recognizes the company may have suffered from success-fueled complacency. “We grew up ourselves in that business. It was like the tail wagging the dog.” Then, she continues, “The market changed. With the internet coming in, stores couldn’t stay in business anymore. We thought we had a niche. We should have diversified.”
Julie wanted something more for Inglenook. “Instead of letting the business grow me, we went in with the idea of planned growth,” she says. That’s when she contacted the Lancaster chapter of SCORE, a non-profit business mentoring group.
Paired with SCORE counselor Fred Phillips, Julie developed a business plan. She learned how to make projections and analyze her company’s strengths and weaknesses, exercises she found “fabulously helpful.”
For Julie, SCORE counseling was much more than a path toward developing a business strategy; it was also a path toward building a valuable support system. “They look after you. You get the sense of somebody watching over you, somebody helping you. You get the sense of not being alone,” she says.
The entrepreneur’s success is also fueled by her ability to deal with challenges. For example, several years ago Julie began importing tiles from Asia. However, production challenges, rising fuel costs and an unwieldy inventory prompted her to look for an alternative way to produce product that met her high standards.
She found the answer through collaboration with the Veterans Administration Work Restoration Program. Veterans being rehabilitated to re-enter the workforce now produce the tiles locally, giving the company more control over quality and costs.
In 2008 Inglenook was challenged again. Financing for a much-needed new kiln fell through and the company was left scrambling to find a way to pay for the equipment. “You think you’re making the right decision, then, something you have no control over can completely change the picture for you.”
Julie admits there was a time when that type of adversity would have had her “in fear and dread, waiting for the other shoe to drop.” But rather than allowing herself to become mired in the “what if’s,” Julie says she put “one foot in front of the other.” As a result, she was able to find the necessary funds and install the kiln, expanding Inglenook’s production capacity.
The tile maker’s problem-solving ability is paying off. Despite economic conditions, Inglenook’s business is up, fueled by word-of-mouth referrals and business from trade shows. The company’s growing client list includes residences as well as commercial buildings, such as hotels and restaurants. In August 2009 custom tiles the company produced for a replica of Thomas Jefferson’s Monticello were mentioned in the magazine Traditional Building.
Julie acknowledges that business ownership will continue to present challenges. Yet this entrepreneur seems to have found the formula for tackling difficulties head on. “Success is a moving target…To have a business, you need to keep your chin up and keep walking.”
For Julie, SCORE counseling was much more than a path toward developing a business strategy; it was also a path toward building a valuable support system. “They look after you. You get the sense of somebody watching over you, somebody helping you. You get the sense of not being alone,” she says.
The entrepreneur’s success is also fueled by her ability to deal with challenges. For example, several years ago Julie began importing tiles from Asia. However, production challenges, rising fuel costs and an unwieldy inventory prompted her to look for an alternative way to produce product that met her high standards.
She found the answer through collaboration with the Veterans Administration Work Restoration Program. Veterans being rehabilitated to re-enter the workforce now produce the tiles locally, giving the company more control over quality and costs.
In 2008 Inglenook was challenged again. Financing for a much-needed new kiln fell through and the company was left scrambling to find a way to pay for the equipment. “You think you’re making the right decision, then, something you have no control over can completely change the picture for you.”
Julie admits there was a time when that type of adversity would have had her “in fear and dread, waiting for the other shoe to drop.” But rather than allowing herself to become mired in the “what if’s,” Julie says she put “one foot in front of the other.” As a result, she was able to find the necessary funds and install the kiln, expanding Inglenook’s production capacity.
The tile maker’s problem-solving ability is paying off. Despite economic conditions, Inglenook’s business is up, fueled by word-of-mouth referrals and business from trade shows. The company’s growing client list includes residences as well as commercial buildings, such as hotels and restaurants. In August 2009 custom tiles the company produced for a replica of Thomas Jefferson’s Monticello were mentioned in the magazine Traditional Building.
Julie acknowledges that business ownership will continue to present challenges. Yet this entrepreneur seems to have found the formula for tackling difficulties head on. “Success is a moving target…To have a business, you need to keep your chin up and keep walking.”
Not long ago, the idea of running a small business with colleagues and clients dispersed around the country—indeed, around the world—seemed impossible. But thanks to the evolution of Internet-based “virtual businesses,” some of the nation’s fastest growing enterprises exist entirely in cyberspace.
The virtual business movement has transformed how millions of small, successful firms operate in America. Under the virtual model, business owners outsource nearly everything—including people and partners who may be anywhere—to create their company. The technologies and Web-based services to tie it all together are becoming more sophisticated, but less expensive all the time, helping fuel the move to virtual existence.
But while the absence of a traditional office might change how you manage your business and the people who work for you, it doesn’t eliminate the need for doing so effectively. Staying connected and working in unison is vital to virtual success. Cell phones, email, follow-me-anywhere messaging and shared workspaces on the Web can keep it all running smoothly.
With people interacting only electronically from remote locations and little if any face-to-face contact, you will need to make an extra effort to foster trust and bonding between individuals involved. Talk by phone, use Web conferencing and try to meet in person on occasion.
Leverage the strengths that a virtual business affords, including flexibility, such as offer short turnaround, low overhead to keep costs lower than the competition; and competence by touting the credentials of your virtual partners. The Microsoft Small Business Center at www.microsoft.com/smallbusiness is a portal site that offers nearly everything you’ll need to get up and running. This site, previously known as bCentral, has been reinvented as a suite of small business tools and services such as Web marketing, payment processing, online catalog creation, shopping cart, list building, banner ads and search engine submission.
Yahoo Small Business at http://smallbusiness-host.com/yahoo and Hostway at www.hostway.com can assist virtual small businesses with securing domain names, Web hosting, marketing and site design, and other needs. To keep your internal collaboration processes up to speed, WebOffice at www.weboffice.com and HotOffice.com both specialize in services for sharing calendars, document exchange and tracking, and multi-location online conferencing.
Whether you operate a conventional or virtual business, the small business experts at Lancaster SCORE, “Mentors to America’s Small Business” can help. Lancaster SCORE has more than 50 volunteer business executives who provide free, confidential business counseling, and training workshops, to small business owners. Call us at 717-397-3092 or find us online at www.scorelancaster.org.
