So You re Thinking of. Starting a. Home Business. Lake Macquarie City Council

Transcription

1 So You re Thinking of Starting a Home Business Lake Macquarie City Council

2 So You re Thinking of Starting a Home Business Lake Macquarie City Council Main Road, Speers Point NSW 2284 Box 1906, Hunter Region Mail Centre NSW 2310 Tel: (02) Fax: (02) council@lakemac.nsw.gov.au Website: Copyright May 2007 Produced by Jane Milne, Economic Development, Lake Macquarie City Council. Acknowledgements: Designed by Karlee Cain, Lakemac Print. Disclaimer: Information contained in this publication is supplied by Lake Macquarie City Council as at May Whilst every endeavour has been made to ensure absolute accuracy of this information, Lake Macquarie City Council and the publisher cannot be held liable for any consequences resulting from any misrepresentation, misdescription, or inadvertent errors contained herein. 2

3 Foreword by the General Manager Lake Macquarie s home business sector has shown considerable growth over recent years, with no indication of slowing down. There are approximately 7,000 home businesses in Lake Macquarie, employing 13% of the city s workforce. Lake Macquarie City Council recognises the significant contribution home business makes to the local economy generating in excess of $1.5 billion per annum for the city. As a result, Lake Macquarie City Council has implemented planning initiatives to balance the needs of home business with the need for a pleasant quality of life for surrounding properties. To support the need for timely and accurate information in making business decisions, Council offers Lake Macquarie residents the flexibility of an online development planning service to assist in determining the suitability of setting up a home business from residential premises in Lake Macquarie. Lake Macquarie City Council is committed to sustaining growth in the home business sector. Council initiated this booklet as a resource to support home business in Lake Macquarie. Brian Bell General Manager Lake Macquarie City Council 1

4 Table of Contents Home Business Initiatives 3 Why am I Starting a Home Business 4 Things to Consider when Starting a Home Business 5 What is a Home Business 6 Home Business in Lake Macquarie 7 Planning to set up a Home Business in Lake Macquarie 10 Do I Need a Business Plan 12 Components of Your Business Plan 13 Starting Your Business Plan 14 Starting a Home Business - Frequently Asked Questions 15 Tax Matters you Need to Consider 17 General Tax Information 18 Tax Obligations as a Home Business Operator 19 Workplace Health and Safety 20 Safety Checklist 21 Plan to Work Safely 22 Being a Resource Efficient Business 23 Being Professional from Home 25 Business Tips 26 Branding and Marketing your Home Business 28 Developing a Marketing Plan 30 Effective Marketing 32 Quality Customer Service 33 Do I Need a Website 34 Lake Macquarie City Council and Your Home Business - Frequently Asked Questions 37 Helpful Organisations and Websites 43 2

5 Home Business Initiatives In conjunction with Lake Macquarie City Council, the Small Business Field Officer Program has provided a number of support programs tailored specifically to meet the needs of the home business sector. Information seminars, networking evenings, and directory listings have supported the establishment and development of home businesses in Lake Macquarie. The Small Business Field Officer Program can also help small and home based businesses to become successful by ensuring that resources are made available to them. The Small Business Field Officer Program is proud to support Lake Macquarie City Council in yet another great initiative this booklet to assist Lake Macquarie residents who are considering setting up a home business in the city. Jo Whipp Small Business Field Officer Small Business Field Officer Program 3

6 Why am I Starting a Home Business? Operating a home business may be appealing for the following reasons: opportunity to be your own boss lower overheads flexibility and a sense of freedom family job satisfaction cost efficient health lifestyle increase income redundancy or retirement convenience It is important when making the decision to start a home business that you consider the following challenges: isolation sole responsibility balancing family and work separating work from home time management professionalism reaching your target market Producing a list of the pros and cons of setting up a home business may be a way to decide if a home business is the right decision for you. 4

7 Things to Consider when Starting a Home Business Over one million people in Australia operate a business at, or from home (Australian Bureau of Statistics, ABS, Characteristics of Small Business, Australia, 2004). There are a wide range of government requirements that may apply, and some things to consider when starting a home business include: council approval taxation employment licensing regulations workplace health and safety Other considerations when running a business from home that may impact on the success and sustainability of your home business include: developing a business plan insurance branding and marketing internet and web design running a resource efficient business professional business techniques quality customer service networking 5

8 what is a home business A home business is a business which is run from residential premises or a building in which the owner of the business resides. It is important to distinguish between people who may be working from home, and those who are running a business from home. People working from home may be those employed by a business located elsewhere but who work at home for a portion of the week. These people could even telecommute for the majority of their working hours, and visit the office only for meetings. These people are not operating a home business. The home business operator is distinguished by the fact that it is the business, and not just the work, which is based at the home. 6

9 Home Business in Lake Macquarie For a variety of reasons many people are exploring the possibility of working from their homes as an alternative to more traditional commercial and industrial business locations. In Lake Macquarie, Council encourages home businesses to establish in residential areas where they can meet the required land use definitions and there is limited impact on surrounding property owners. Businesses typically need to be 'low key' and not cause any problems by attracting excessive vehicle movements, creating unreasonable noise, and generally being involved in activities that disrupt the amenity of adjoining and nearby neighbours. In some instances, a development application is required; this will depend on the nature of the business in question, including things like the type of business and its associated impacts inclusive of the number of staff involved, and the activities being carried out. The most appropriate businesses to run from home are those that: do not create offensive noise to their neighbours do not generate excessive parking demands do not create any rubbish, emissions, or any other form of pollution do not require a large amount of on-site storage do not require multiple employees on-site contrary to the landuse definition/s do not cause any other disturbance to neighbours or the surrounding neighbourhood Working from home falls into three categories in Lake Macquarie: Home Occupation means an occupation carried on in a dwelling house or in a dwelling in a residential flat building by the permanent residents of the dwelling house or dwelling and which does not involve: the employment of persons other than those residents, or interference with the amenity of the neighbourhood by the emission of noise, vibration, smell, fumes, smoke, vapour, steam, soot, ash, dust, waste water, waste products or grit or oil, or otherwise, or the display of goods, whether in a window or otherwise, or the exhibition of any notice, advertisement or sign (other than a notice, advertisement, or sign exhibited on that dwelling house or dwelling to indicate the name and occupation of the resident), or the sale of items (whether goods or materials) or the exposure or offer for sale of items, by retail. 7

10 Home Business means the use of part of a dwelling house or dwelling as an office or for business, where: the use is ancillary to the residential use of, and is contained within, the main dwelling, and the use is undertaken by the permanent residents of the dwelling, and the use does not involve the employment of more than two persons on site in addition to those residents, and the use does not cause any unacceptable impact on the environment or interference with the amenity of the surrounding area, and the use does not involve the exhibition of any notice, advertisement or sign (other than a nonilluminated notice or sign to indicate the name or occupation of the resident), and the use does not involve the retailing of any items from the premises, and the use is not as a brothel. Home Industry means an industry carried on in a building (other than a dwelling house or a dwelling) where: the building does not occupy a gross floor area exceeding 50 square metres and is erected within the curtilage of the dwelling house or dwelling occupied by the person carrying on the industry, or on adjoining land owned by that person, and the industry does not involve the employment of more than one person on site in addition to those residents, and the industry does not: interfere with the amenity of the locality by reason of the emission of noise, vibration, smell, fumes, smoke, vapour, steam, soot, ash, dust, waste water, waste products or grit, or oil, or otherwise, or involve exposure to view from any adjacent premises or from any public place of any unsightly matter, or require the provision of any essential service main of a greater capacity than that available in the locality, or involve the sale of goods from the premises. 8

11 You will note from the previous definitions there is a strong objective to ensure that any home business does not detract from the amenity of neighbours. Both Home Business and Home Industry require development consent from Council prior to commencement of operations. Home Occupation is classified as Exempt Development as per Schedule 1, Exempt Development, Lake Macquarie Local Environmental Plan (LMLEP) Provided your Home Occupation complies with what is specified in Schedule 1, Council will not require a development application to be submitted to obtain development consent. Should your home business require development consent, it is advisable to obtain this as failure to do so may result in Council ordering your business to close. For further information or advice regarding home business in Lake Macquarie refer to Council s online development planning service at or contact Council s Customer Service Centre on (02) and ask for the Duty Planner. 9

12 Planning to set up a Home Business in Lake Macquarie Things to Think About.. Section 1 1. Do you know what zones in Lake Macquarie permit home business operations? 2. Do you know your property zoning? 3. Do you know what Council definition your home business falls into? 4. Do you know if you need to lodge a development application? 5. If you answered no to any of these questions, do you know where you might locate the answers to them? 10

13 Section 2 The following questions provide a basic guide only as to whether a development application is required. 6. Do you intend to employ any person other than permanent residents of the dwelling in your business? 7. Will your business involve the operation of any machinery likely to be heard outside the building? 8. Will machinery be operated outside general business hours? 9. Will any other aspect of the business generate significant noise i.e. delivery vehicles, client vehicles? 10. Will your business generate any smell, smoke, other air pollutants or liquid pollutants into the sewer or stormwater system? 11. Will your business generate excess waste above Council s regular garbage and recycling service? 12. Will your business operations be clearly visible from the street? 13. Will your business involve the storage of goods, materials, or equipment on the property outside the dwelling or out buildings? 14. Will your business generate a need for parking that is greater than that typically associated with a residence? If you answered yes to questions 6-14 your proposed use may require development consent from Council, or may not meet Council requirements as set out in the Lake Macquarie Local Environmental Plan (LMLEP) Lake Macquarie City Council's online development planning service and/or Council's Duty Planner can provide assistance with determining the suitability of your proposed use at your current residential address. If you establish that a development application is required for your proposed use to proceed, you can complete a development application yourself, or alternatively engage the services of a Town Planning Consultant by referring to the listing for Town and Regional Planning in the Yellow Pages. For further information on these questions, refer to the Lake Macquarie Local Environmental Plan (LMLEP) 2004 or use Council's online development planing service at Alternatively, contact Council's Customer Service Centre on (02) and ask for the Duty Planner. 11

14 Do I Need a Business Plan? What is a Business Plan? Your business plan is a management tool designed to help you reach your objectives and to help your business survive and grow. It should allow you to: measure your progress towards your goals and objectives control your business adjust to changes in the marketplace assist you to manage your business What is a Business Plan Used For? A good business plan assists in the management of the future direction of your home business. It can also be used to: seek loan funds from a bank or financial institution sell your business to prospective partners or others interested in investing in your business convince suppliers that you are a potential outlet act as a support for tenders, submissions, or applications Information for Your Business Plan The information you need to write your business plan is available. Most of it will come from your own background experience, records, and also from data you can collect by: visiting competitors talking to relevant people attending workshops, seminars, and courses asking other home or small business operators joining home or small business networks, groups, and associations talking to previous owner(s) if you are buying a business 12

15 Components of Your Business Plan 1) Executive Summary This should include: the business and its potential for growth short and long term goals description of products and/or services target markets, distribution channels, and a summary of the marketing approach financial estimate summary capital requirements and potential sources of funding 2) Introduction States the objectives of your home business. 3) Market Analysis Defines how your home business is situated in the marketplace. 4) Marketing Plan Outlines your marketing strategy to capitalise on business opportunities. 5) Financial Plan Assesses the financial viability of your home business including budgets and forecasts, cash flow, and capital requirements. 6) Management Plan Determines if your home business has the management capacity to survive and grow by identifying if your management skills match those which will be required in your home business. 7) Working/Operational Plan A functional plan to enable all parts of your home business to work cohesively to achieve your objectives. 13

16 Starting Your Business Plan Start with an objective: a mental picture. Once the picture is formed, the rest is a series of logical steps whereby you set down on paper strategic plans and your operational plans. Quick Tips for Writing Your Business Plan Step 1 Step 2 Write your objectives Write your strategic plans 1. Your market define your business define your target market define your competition define your opportunity define your market approach 2. Your finance estimate your capital requirements assess the financial viability of your proposed business estimate your break-even point prepare your budgets and forecasts project your cash flow 3. Your management Step 3 Write your working plans work flow plan staff plan information plan control plan Step 4 Step 5 Complete your executive summary after your business plan is finalised Put your business plan into practice 14

17 Starting a Home Business Frequently Asked Questions Q Is it necessary to register a business name? It is legal in NSW to trade under the business owner s given name or the company s registered name without registering the name with the Office of Fair Trading. Anything other than this must be registered. If words are added to a name, it must be registered, e.g. Bill Brown & Brothers. Q Does registering a business name protect the name from being used by others for business purposes? No. IP Australia ( is the contact for further information regarding trademarks and patents. Q What is an ABN? An Australian Business Number (ABN) is the identifying number issued by the Australian Tax Office (ATO), at no cost and is used along with a Tax File Number to report income. Q Do you need an ABN? It is not compulsory to have an ABN, but your business will need an ABN to: register for Goods and Services Tax and other business tax registrations deal with other businesses avoid having tax withheld from payments Q How do you apply for an ABN? Online, at or by application form available from the ATO or your closest Business Advisory Centre. The ATO also has computers in their foyer that are available for your use. Q Do all businesses have to register for Goods and Services Tax (GST)? No. Those businesses whose turnover is less than $ in a twelve month period are not required to register but may choose to register voluntarily. Those businesses with a turnover of more than $ in a twelve month period must register for GST. (For more information on the issues of tax see page 17). 15

18 Q Which business structure is most suitable for home business? The choice of a business structure is one area where you should seek professional advice from your accountant and also your solicitor. You should make sure you understand the advantages and disadvantages of each type of structure before you make a decision. All aspects of each structure should be explored, and a choice made which best suits the way you intend to run the business. Q Do I need a licence/s, and if so, which one/s? Before you can legally trade, you and/or your business may require one or more licences. There are many licences; some are industry based and some are not. Licence requirements can be sourced from the Office of Fair Trading s free service called Business Licence Information Service (BLIS). Visit Q Is it necessary to open a separate business bank account? If your business is a partnership or company structure, it is mandatory to open a separate business bank account and advisable if trading as a sole trader. Q Is it necessary to have business insurance? There are many general business insurance policies and some specialised policies. Though few businesses need all policy types, insurance should be a serious consideration for all businesses. Insurance providers and insurance brokers, along with industry associations, can provide further information regarding insurance deemed necessary for a particular industry. Workers compensation insurance is compulsory for all employers in Australia, even if you employ one person. Q Is a business plan essential? The main benefits of planning are: planning sets out a clear path to help you ensure that the opportunity you have identified matches your goals and ambitions planning allows you to better anticipate future events and to identify remedies in advance planning allows you to develop and examine your ideas carefully planning will help you to decide whether your investment of time, effort, and expense to make the business successful will be worthwhile planning should include an analysis of your business idea against that of your potential/existing competitors, to understand the strengths and weaknesses of your idea, and to anticipate what you will need to do to achieve your goals a comprehensive plan will help you in your dealings with banks and other lenders, and with suppliers from whom you are seeking credit. It will show that you are a business professional, with a clear idea of where you are going and how you re going to get there 16

19 Tax Matters you Need to Consider As a home business operator you have several duties and responsibilities in the area of taxation. These include both the payment of a range of taxes on behalf of your home business, and the collection and despatch of other taxes to the Australian Taxation Office. Details of your specific taxation requirements can be best determined through discussions with a competent, reputable, and experienced taxation advisor. Tax obligations As with any business, you will have a number of tax obligations for a home business. Find out which ones apply to your business. Hobby or business Make sure that you are indeed carrying on a business and that your activities are more than just a hobby. This has important income tax implications. Business structure Make sure that the business structure you choose (or already use) is the best one for your home business, and that you are aware of the tax obligations related to the structure. The main business structures are sole trader, partnership, company or trust. Registering your business Find out whether your business needs to be registered for any of the following tax obligations: a tax file number, Australian Business Number (ABN), Goods and Services Tax (GST), Pay As You Go (PAYG) withholding and fringe benefits tax. There may also be state and local government regulations you need to consider. Capital gains tax Find out about the possible capital gains tax implications of carrying on a business at or from your home. You may need to keep special records to calculate the capital gain. Deductions You can generally claim a deduction for expenses associated with running your business. Make sure you know what expenses you can claim. 17

20 General Tax Information What is a home business? For taxation purposes a home business is one where: the business is operated at home that is, most of the work of the business is carried out at the home of the operator, or the business is operated from home that is, the business does not own or rent any premises other than the home of the operator Are you actually carrying on a business? If you are setting up a home business or already operating one, make sure that you are indeed carrying on a business and that your activities are more than just a hobby. This is important because if your activities constitute a hobby rather than a business: you do not include income earned from these activities in your assessable income you can not claim a deduction for any expenses associated with the activities What if you stop carrying on your business? There are a number of tax matters you may need to attend to if you registered a business and your circumstances change, for example: the business did not actually start the business has ceased to operate the business has been sold These may include: cancelling your ABN and other registrations making certain GST adjustments on your final activity statement calculating a capital gain or capital loss lodging a final tax return 18

21 Your Tax Obligations as a Home Business Operator Income tax If you have taxable income, you have to pay income tax. Your taxable income is your assessable income less any allowable deductions. Capital gains tax You may have to pay capital gains tax if you dispose of any capital assets and make a capital gain. Capital gains are included in your annual income tax return. Make sure you are aware of the capital gains tax consequences of using part of your home to carry on a business. GST If you are registered for GST (or required to be registered) and make taxable sales of goods and services, you are liable to pay to the Australian Tax Office 1/11th of the price of the goods and services you sell. You can claim a credit for the GST included in the price of goods and services you purchase for your business. Fringe benefits tax If you provide fringe benefits to employees, including working directors, you may have to pay fringe benefits tax. PAYG withholding You have to withhold amounts from payments you make to employees and company directors, and payments to suppliers who do not quote their ABN. Superannuation You have to pay superannuation on behalf of most employees, including working directors. Record keeping You are required to keep records that explain all your business transactions. Reporting and paying Generally, as a home business, you report and pay your PAYG income tax instalments and amounts withheld from employees, GST and fringe benefits tax on a monthly or quarterly activity statement. From July , businesses voluntarily registered for GST can choose to calculate and report annually. You also have to lodge an annual income tax return and may have to lodge a fringe benefits tax return. Depending on the structure you choose for your business, you may have to lodge an annual trust, partnership, or company return. Visit to download publications, rulings, and other general tax information. Taxation information supplied from, Carrying on a business at or from your home. Tax information specific to carrying on a business at or from your home. Australian Taxation Office, Canberra, June

22 Workplace Health and Safety As an employer, you have a legal responsibility called a duty of care to protect the health and safety of people in your workplace. This includes people who work for you casually, part-time, full-time, permanently, as volunteers or as outworkers, plus members of the public while they are in your workplace. Under the Occupational Health and Safety Act 2000 and the Occupational Health and Safety Regulation 2001, anyone who can affect health and safety in the workplace has a legal responsibility to protect it. This includes manufacturers, suppliers, designers, and controllers of work places (including owners) and employees. As an employer you must provide: a safe workplace and safe ways of working equipment, tools, and machinery in a safe condition safe and hygienic facilities, including toilets, eating areas, and first aid information, training, and supervision to all workers a process for consultation with workers and to keep workers informed and involved in decisions that may affect their health and safety processes for identifying hazards, assessing, and controlling risks Occupational health and safety legislation The legal obligations for all parties in the workplace are set out in the Occupational Health and Safety Act 2000 and in the Occupational Health and Safety Regulation The risk management provisions in the Regulation require employers and others to carry out: hazard identification risk assessment elimination or control of risks 20

23 Safety Checklist An important part of managing your business is to ensure the health and safety of your employees and other people, such as customers, visitors, or tradespeople who visit your workplace. To ensure you fulfil your obligation of a safe workplace, you need to become aware of what can cause harm and then take action to ensure no one is at risk while they are in your workplace. The following questions will help you evaluate how well you are currently managing safety in your workplace: do you talk to your employees about safety issues? do you encourage your employees to report safety problems? do your regularly inspect your workplace to identify safety problems? do you fix identified problems? do you ensure that all work is carried out safely? Six Simple Steps to Safety 1. Assign responsibilities for workplace safety The first place to start is to find out the occupational health and safety requirements that apply to your business. Be aware of who has a specific responsibility. This can form the basis of your safety policy. 2. Plan to work safely Safety at work involves thinking about what activities happen in your workplace. You can then identify the tasks and procedures which will control the risks arising from those activities. 3. Involve your employees Talk to your employees and set up ways for them to be involved and contribute to decisions that may affect health and safety in the workplace. 4. Develop procedures Developing procedures is designed to assist you in starting the process of identifying the hazards in your workplace and assessing any risks to health and safety associated with them. 5. Inform and train your employees Using the procedures developed, inform employees about hazards in their job and workplace. Provide employees, particularly those who are new to the workplace or job, with information, training, and supervision. 6. Review your safety system Review the steps you have taken to manage health and safety in your workplace. Adjust your program to address any workplace or legislative changes. 21

24 Plan to Work Safely It is better to deal with safety issues before they arise rather than after an incident. To do this you need to have a planned approach to safety. In order to plan to work safely you should: identify all the activities that your workplace undertakes that may involve safety issues adopt a risk management approach to address these issues Identify activities If you think about your workplace there are a number of activities which can involve safety issues. These may include: purchasing the chemicals or equipments you buy to run your business may introduce safety issues work tasks specific work tasks may expose employees to chemicals or equipment that may place them at risk contractors other workers who come into your workplace as contractors can be at risk, or place your employees at risk There are other activities you need to consider as part of your safety planning. They are: reporting OHS problems investigating incidents emergency procedures Adopting a risk management approach In addressing occupational health and safety issues you should adopt a risk management approach. This involves: hazard identification risk assessment risk control For more information on OHS, law and policy, and WorkCover publications visit the WorkCover website at 22

25 BEING A RESOURCE EFFICIENT BUSINESS To become a resource efficient home business, you need to identify areas where you can make energy and water savings and reduce waste. Simple actions will assist in: saving your business money reducing consumption promoting green marketing Energy Savings reduce consumption by switching off lights, computers, and photocopiers when not in use make use of natural lighting manage heating and cooling by insulating, sealing drafts, and shading. Every extra degree adds 10% to energy bills and greenhouse emissions reduce air-conditioning demands by locating thermostats away from heat sources such as urns, photocopiers, sunlight, or space heaters switch energy supplier to an accredited energy scheme, using renewable resources such as wind and solar power. Visit GreenPower at use energy efficient compact fluorescent light bulbs (CFLs). CFLs use 80% less energy than standard incandescent light bulbs. Tip: CFLs lose a small amount of output as they age so purchase a higher wattage than usual, e.g. 15W CFL instead of 11W CFL. Water Savings dual flush toilets use 3 litres on half flush (6 litres for the full option), which is up to 67% less water than older single flush toilets install a flush regulator, which allows you to flush only for as long as you press the button (an inexpensive device available from hardware stores that is inserted in the cistern) install tap aerators Waste Reduction reduce, reuse and recycle. Lake Macquarie City Council provides commercial recycling for paper, cardboard, aluminium and steel cans, plastics 1-7, and glass recycle toner and printer cartridges, and mobile phones reduce paper consumption - change printers to duplex (double sided) or use the blank side of unwanted printouts for note taking 23

26 only print s and other documents if a hard copy is required investigate options to use e-business systems to avoid paper consumption have a compost bin/worm farm for food scraps Sustainable Purchasing purchase paper products with a high recycled content when replacing electrical equipment, look for products with high energy efficiency star rating when renovating, building, or selecting new premises, investigate green building options Greener Motoring ensure the office car is fuel efficient and of appropriate size for the tasks required. e.g. 4WD is not necessary in a city keep your car well tuned and tyres correctly inflated to save up to 5% on fuel costs remove unnecessary weight and roof racks from the car to save up to 10% of fuel costs when buying a new car check to compare greenhouse and air pollution emissions for different models encourage carpooling between staff minimise flights for work and investigate video conferencing options. Plan ahead to complete multiple tasks in one trip For more information or assistance in making your home business sustainable, contact Council s Customer Service Centre on (02) and ask for Council s Environmental Officer. 24

27 BEING PROFESSIONAL FROM HOME In addition to understanding the legislative and operational requirements of running a home business, you will also need to consider the following when operating a business from home: Time Management and Distractions In a non residential office environment it is far easier to concentrate on work as the entire environment has been designed for work related activities. A home business however resides within an environment that has primarily been designed for living rather than working. Therefore, there exists a greater potential for distraction. Isolation Working from home can be lonely. If your business requires minimal contact with clients and other businesses, it is advisable that you take steps to deal with the isolation you may face operating a business from home. Networking is one way to minimise this isolation and provides an opportunity to expand your contact base. Separating Home from Work and Work from Home The lines between work and home can often become blurred when operating a home business. It is advisable to have strategies in place that allow you to move more easily between the work and home environments. Managing Family and Friends Whether or not you involve family and friends directly in your business, it is likely to impact upon their lives. Your business needs your family s support, so talk with them regularly and educate your friends. Professionalism and Business Image Your professional image will affect how your clients, family, and friends see you. Presenting a professsional image and approach to your home business at all times will help people, as well as yourself, to recognise your home business as a well run, professional operation. 25

28 Business Tips Time Management use a time log learn to prioritise have set business hours of operation operate a short to do list block out time in your calendar to get things done diarise everything as soon as you are aware of the details, including appointments and meetings allocate time to return calls in a group give yourself thinking time Isolation attend networking functions these can be informal and formal attend business luncheons and breakfasts join professional organisations attend business programs and seminars subscribe to professional magazines and newsletters set up a chat site with other home businesses join your local Chamber of Commerce Separating Home from Work and Work from Home go for a walk or drive around the block at the beginning and end of each working day have designated work clothes wind down with a book, listening to music, or visiting your local gym 26

29 Managing Family and Friends if starting a home business will cause a change in lifestyle for your family, talk it through with them and come up with a workable system for everyone agree on a timeframe and process for discussing how the working arrangement is working for everyone, including children agree upon designated work time and family time remind family that their support is an important asset in helping you achieve success, which should mean benefits for everyone it is also a good idea to educate your friends, relatives, and neighbours about your business and your schedules. Let them know that you are running a business, trying to make money, and not just sitting in your renovated spare bedroom waiting for someone to drop in small children will not understand your demands so you may need to accommodate some interruptions in your planning schedule Professionalism and Business Image It is important that your image to your clients, in all ways, is professional. Issues you need to consider include: business dress communication methods office equipment office layout business stationery business cards hours of business signage 27

30 BRANDING and MARKETING YOUR HOME BUSINESS What is a Brand? A brand is a collection of perceptions in the mind of the consumer. Consumers perceive a brand as an intrinsic part of your product or service, and branding can add value to your product or service. A Brand is a Promise of an Experience The most important ingredients of creating a brand are: trust reliability availability Important Tools for Marketing and Branding your Home Business Business Cards Professionally designed and printed. Always have a ready supply at hand. Stationery and Brochures Professional recognition of logos, colours, and style. Networking Attend seminars and functions where possible - your next contract could be in the crowd. Working Tools Branded working aids e.g. car mats, drop sheets etc. Brands are built on five principles: 1. Presence: visibility in the marketplace 2. Relevance: to your target market 3. Differentiation: unique value proposition 4. Credibility: product experience 5. Image: the perceived product 28

31 How to get a Brand Name generate a list from staff, friends, strangers, or even have a competition to get a large number of different names use people with a good sense of image to cull this list down to a minimum number vote on a final list with staff or friends and check with your legal advisor to make sure there are no infringements or restrictions on choices once a decision is made make sure you trade mark the name The Brand Identity The heart of the brand is: a good name for unique mind share a registered trademark without which you have little protection a professional logo for immediate visual identity Developing your Logo The process: hire the services of a professional graphic artist draft several styles and formats do mock ups using products compare it to competitors Make sure: the logo works in monochrome (black and white) the logo works in very small format for the web the logo works for embroidery are there too many colours? Does it have too many fiddly bits? Is it going to reproduce well in fabric print and in embroidery? the logo also works on banners, billboard or office buildings (this requires detailed zooming in and smoothing of all curves, for example). Also add the TM symbol so it is part of the logo from the outset later this will change to a when you register this. 29

32 Developing a Marketing Plan What is a Marketing Plan? A marketing plan identifies the most promising business opportunities for your home business. It outlines how to successfully penetrate, capture, and maintain desired positions in identified markets. Basic Requirements of a Marketing Plan A. Executive Summary brief comments sales forecast sales budget B. Marketing Planning marketing objectives and strategies situation analysis including a market analysis, product analysis, customer analysis, competitor analysis, and identify threats and opportunities C. Marketing Programs product planning and development new product ideas distribution channels pricing objectives/strategies personal selling advertising trade shows direct mail sales promotion enquiry handling public relations customer service complaints handling 30

33 D. Sales Budget periodic sales budgets monthly sales budgets previous year and projected profit and loss statement E. Marketing Research buying approaches review of industry data An Action Document Treat your marketing plan as an action document do not let it become a historical exercise. Review the plan regularly and rewrite as required. A good marketing plan represents a very modest cost relative to the magnitude of the results of successful marketing operations. Quick Tips for Writing Your Marketing Plan Keep it simple easy to understand Write clearly precise and detailed to avoid confusion Be practical realistic in application and goals attainment Be flexible adaptable to change Complete to cover all significant market factors Make it workable identify responsibilities 31

34 Effective Marketing Marketing Your Home Business on a Shoe String target marketing run special and seasonal promotions engage in strategic partnerships consider cooperative advertising use value-adding rather than discounting use personal letters Packaging and Your Business Image packaging as a marketing ploy packaging design maintaining a professional image creating brand awareness Promotional Strategies flyers and brochures direct marketing business cards and testimonials telemarketing trade shows and networking sponsorships word of mouth promotional teasers web presence 32

35 Quality Customer Service Giving Your Customers Something to Talk About Personalised customer service adds value to your product or service. This includes: smiling at your customers making a good impression with unexpected levels of service having a good opening line qualifying your customers needs taking the time to listen to your customers selling in terms of benefits using add-ons or an up-sell reminding customers to tell their friends about your home business focusing attention on the positive when something goes wrong not being afraid of objections/feedback from customers 33

36 Do I Need a Website To determine if you need a website for your home business consider the following: generate information to help identify and understand your target market: target group demographics including age, sex, income, profession, industry, and geographic location the size of each target group and their growth potential the readiness of each target group to engage in using the web assess the importance of a website for your home business: reach a broader demographic including Generation X, Generation Y and other businesses easy to update online information ability to sell online to compete in the marketplace What s Involved in Creating a Website determine your target audience what words do people relate to your business how do people describe your business what do you want your website to achieve: online brochure style website detailed product information online shopping client feedback downloadable information sheets galleries of simple images do you have: a modern, colourful, identifiable logo a style guide to determine colours, styles, and fonts professional photography audio files or jingles 34

37 presentation video e.g. advertisements documentation about your products/services Designing and Implementing Your Website determine what you want your website to achieve determine what information you need to assist you to build your website use an existing presentation or brochure in Powerpoint or Acrobat be sure to maintain continuity in all representative documentation determine if your website requires professional construction and maintenance, or if you can learn the skills required to meet your goals find a professional website builder and get quotes to build your website to your specified requirements, using the style and format you want set a budget for your website including website costs in your overall marketing budget Web Content Checklist have you organised: your logo in electronic format images to appear on your website navigation overview content for each of your pages website domain and hosting: do you need a new web address have you thought of a domain name have you approached a company to host your website 35

38 Tips for Creating Your Website Images supply images in electronic format (on CD, DVD, or via ) printed images can be scanned but these may be subject to additional cost illustrations and logos are best supplied in vector format (i.e. the original EPS file) Types of Images to Display on Your Website your product or service clients, staff, or customer services your location (street map or GPS coordinates) company premises industry photos Text supply all text documents in electronic format (on CD, DVD, or via ) suitable formats include Word and Excel files, TXT and PDF files (discuss with your web developer) Copywriting for the Web people scan on the web and rarely read detail until they reach their destination page keep your information simple and concise generally write no more than 3 4 sentences per paragraph introduce one key point or idea per paragraph try to list your information where appropriate with bullet points 36

39 Lake Macquarie City Council and your home business Frequently Asked Questions Q What zonings permit home businesses in Lake Macquarie? Council encourages Home Occupations, Home Businesses, and Home Industries in the following zones: 2(1) Residential Zone 2(2) Residential (Urban Living) Zone along sub-arterial and collector roads 3(2) Urban Centre (Support) Zone Rural and Environment Zones (excluding 7(4)), especially for craft related activity 10 Investigation Zone Home Businesses and Home Occupations are also encouraged in 3(1) Urban Centre (Core) Zone Q How do I find out my property zoning? You can locate a zoning map of your area on the city website or by contacting Council s Customer Service Centre on If possible, have your lot and deposited plan (DP) number ready, which you will find on your rates notice. Q Where can I view Council s Local Environmental Plan (LMLEP) 2004? The LMLEP (2004) is available at and Council s Administration Centre, Main Road, Speers Point. 37

40 Q Do I need to lodge a development application to operate a business from home? Working from home falls into three categories in Lake Macquarie: home occupation home business home industry All operations that fall under the definition of Home Business and Home Industry require development consent from Council. Home Occupation is classified as Exempt Development as per Schedule 1 Exempt Development, LMLEP (2004). Provided your Home Occupation complies with the specifications contained in Schedule 1, no development consent is required. For a full understanding of each of these categories refer to the LMLEP (2004) or contact Council s Customer Service Centre on (02) and ask for the Duty Planner. Please note that whilst Home Occupation does not require development consent from Council, it may be subject to licensing and other regulations. For example, a home business involved with food preparation will require a Food Premises Licence. Lake Macquarie City Council aims to assist residents in Lake Macquarie considering operating a home business in the city. An online development planning service is available to assist in determining the suitability of setting up a home business from residential premises in Lake Macquarie. Please visit Q What information do I need to include in my development application? You should provide details outlining how the proposed home business or industry complies with the relative definition. The application also needs to address the provisions in Development Control Plan No 1 Section In particular, you must satisfy the following matters: The Home Industry or Business must be ancillary to the primary use of the dwelling as a residence must be low key in terms of nature, size, and employment must not adversely affect residential amenity or service must not generate traffic greater than reasonably expected in the surrounding area must operate during hours suited to the location and area must not adversely affect the area through the provision or location of vehicle parking must ensure that motor vehicles associated with the activity do not adversely affect the amenity of the surrounding area In the first instance, you are encouraged to undertake a site analysis to establish the relationship of your land use activity to your neighbours, and how you intend to manage your land use activities relative to the enjoyment of your neighbours property. 38

41 Q What information should accompany my application? You must submit your application for a Home Business and Home Industry on the standard development application form, signed by all owners of the subject site. Your development application will also include six copies of the following information: a Statement of Environmental Effects (SEE) providing details on the type of business you propose to conduct from the dwelling, employee numbers, hours of operation, parking provision, proposed signage, and compliance with the definition of a Home Business and Home Industry site plan showing proposed car parking and location of signage existing and proposed floor layout plans, elevations (if changes are proposed) signage details you should also include any necessary technical reports relevant to your development. The technical aspects can be discussed with Council s Duty Planner or other town planning staff by contacting Council s Customer Service Centre on (02) Q Is it necessary to discuss my application with a Council officer? Council recommends that you consult the Duty Planner prior to formally submitting your application and accompanying documentation to Council. A pre-lodgement meeting with the Duty Planner or another town planner will give them the opportunity to check your application prior to lodgement and ensure you are providing all relevant information to enable Council to determine your development application. Q How much does it cost to lodge a development application? Council s Pricing Policy details the fees and charges related to development applications. View the Pricing Policy at or contact Council s Customer Service Centre on (02) for fee information. Q Is it necessary to discuss my development application with my neighbours? Before lodging your development application, Council recommends that you discuss your proposal with your neighbours. It may also provide an opportunity for you to consider any suggestions from your neighbours and potentially avoid delay in the processing of the application. Q Will Council notify my neighbours of my development application? Upon receipt of your development application, Council will notify adjoining property owners (and any other property/person deemed to be affected by the proposal) and allow a minimum fourteen day period to receive submissions. 39