Marketing is a major part of any business. If you don’t market, you don’t make sales. But calling it marketing may keep you in the wrong frame of mind.

The word “marketing” puts you in the frame of mind of bringing customers to your business. More of a sales-y feeling. That’s not a bad thing, but a little switch might help you to think of what you’re doing in a way that’s more helpful to your customers and your business.

You aren’t marketing. You’re finding solutions.

You’re finding solutions your customers need. This encourages you to think of what your customers need, rather than just what you want to offer them. You need to think more from their perspective. Don’t market them. Find a solution they want and offer it to them.

There are many ways to think of the problems potential customers are facing. It can be a problem of image. It can be a problem around the house. It can be a problem with their career.

Whatever the problem is, don’t think strictly of what will make the sale for you. Think of what will make the purchase right for the customer.

You’re also finding solutions for your business. What brings in the most money? What works? What doesn’t? What has the best return for your efforts?

When you’re solving problem, you test. That’s something you should always be doing in your marketing, testing. Test sales copy. Test landing pages. Test prices. Test traffic sources. Keep testing.

There are a few things that will tell you if you’ve solved a particular marketing problem, but money is a favorite way for most to know. We’re pretty much in business for the money, with loving what we do as a wonderful benefit that’s almost as important. But few of us can run any sort of business purely for the love of it. A decent income is needed to keep the passion alive.

Not every solution you create will work out. Sometimes you’ll lose money.

But you’ll always learn something, even if it’s “Wow. That really, really didn’t work like I thought it would!”

Most failures have something more to teach, however. There may have been some money earned, and if you can separate that part out, you can find out what part of the failure worked. That’s valuable information you may be able to use on its own or combine with a new solution. Or maybe it brought in traffic but poor to no sales. It’s up to you to figure out if it was purely low quality traffic or another problem.

Don’t fool yourself and think that any business can get away without marketing. Instead, treat your marketing as a chance to find solutions to the problems you and your potential customers face.

There’s nothing like having a home business earning just enough for you to get by… except one that’s doing better than that. Reaching that level feels great, but most of us quickly want more. We want to do more than just make it. How do you get there?

Most home businesses reach a plateau where you just can’t seem to do any better. Everything you try is just more treading water. You don’t do any worse, you can do it just about forever, but you aren’t reaching the greater goals you’ve set for yourself.

There is something you can do about that. It’s not always comfortable. Simple little thing called making a change.

Making a change isn’t always comfortable. It means taking a chance that things won’t work out. Sometimes changes make things worse. But if you think it out and have a plan, and can keep doing the basics that hold your business in place, that change can help your business to grow.

What to Change?

What you change in your business depends on what you do. If you’re blogging, try something new such as making videos or guest blogging. Do something that gets your name out there more.

Your change must be a positive thing. Don’t make it something you dread doing, although it can be uncomfortable at first. I’m doing some very basic videos for one of my sites. It’s not a comfortable process for me yet, as I always feel that I’m talking too fast no matter how I try to slow down. But video is another potential source of traffic. It’s getting to be a bit more fun.

The changes you make should be a part of your overall business strategy. Don’t change just to make a change; know why you’re doing it and what you want to get from it. Doing things randomly rarely benefits a business.

Improve and Add to Your Skills

Whatever you do with your business, you must keep improving your skills. Read everything you have time for in your industry. Try new things. Buy carefully chosen tools that will make your work easier.

You don’t want to keep your skills at the same level all the time. In too many industries you’ll be overtaken by those who are keeping their skills up to date and adding new skills. Your old skills will keep you going for a time, but eventually you’re better off with keeping them updated.

Just look at the changes the availability of social media has made to all kinds of online businesses, and even to brick and mortar businesses. All kinds of businesses are using sites such as Twitter and Facebook to keep in contact with current customers, find new ones and offer deals. They’re also great mediums for finding out when someone has a problem with your business or product. Just as more and more people are now disappointed when a business doesn’t have a website, they’re becoming disappointed when they can’t find them on social media.

Making the right kind of change isn’t just good for your business, it’s vital. Don’t just sit at a comfortable plateau and wonder why your business isn’t growing. Make a change and push it to grow.

One of the biggest disadvantages to working at home has to be coping with the kids. It’s one of the biggest advantages too, but that’s beside the point just now. I’m talking about the times that you just don’t want the kids underfoot.

Especially if toddlers are involved. Home offices and computers in particular need to be protected from toddlers! They may not be able to accidentally download a virus yet, but the damage they can do just by randomly pounding keys is nothing short of amazing.

A childproofed office makes it easier to be productive. You don’t have to worry as much if the kids come in while you’re working, and you may be able to keep them out entirely. The challenge is making it childproof in the first place.

Close the Door

If your home office has a door, closing it is one of the simplest steps you can take to childproofing your work area. Younger kids can’t open it and older kids can be taught not to go into your home office without permission or need.

If you don’t have a door, you’ll need to do a lot more childproofing. Realistically, even with a door you’ll probably want to take more childproofing steps for those times one of the kids gets in there.

Establish Rules About Your Working Hours

If you’re working when the kids are awake, you’re going to need some rules about when they can interrupt you. Younger kids will need simpler rules, and if you’re the only adult in the house when you’re working you need to expect some interruptions.

As kids get older they get better at entertaining themselves and can deal with stricter rules. Tell them they can only interrupt you for emergencies.

Protect Your Computer

The computer is a major asset to most home businesses. It’s not just the value of the machine. It’s all the information on it. You really don’t want the kids messing with it.

If you have toddlers around, make sure they can’t play with the buttons on the front of the computer itself. I’ve gone so far as to cover them with cardboard when I’ve had a computer in reach of a child. The power button in particular often has pretty lights on or near it that draw a toddler’s attention and makes the button irresistible.

You’ll also need to protect your mouse and keyboard. It’s amazing what a toddler can do by pounding on a keyboard, and sometimes it’s hard to undo what they’ve done.

You can also protect your computer from toddlers by setting a password so that you have to login when you’ve been away for a period of time. Choose the time wisely so it doesn’t drive you nuts when you’re using the computer.

If your kids are allowed to use your business computer, set up rules that will protect your computer. Require approval on downloads. Be in the room whenever possible when your kids are using the computer. Talk to them at age appropriate levels about the hazards of the internet.

Not just for kids, but to protect your computer from the hazards of being a computer you will need antivirus and antispyware software installed on it.

Keep Cords and Outlets Safe

Kids find cords fascinating. Outlets are pretty neat too. You don’t want them messing around with either.

Most times they won’t get hurt. I’ve had kids unplug things on me, and it’s just a distraction, not a danger. But you don’t want your kids messing with cords, wrapping them around their necks, chewing on them as they teethe, you get the idea.

Find a cord organizer that works for you. It doesn’t need to be anything fancy, just something to keep the bulk of the cords out of the reach of children.

As for outlets, simple outlet covers do a pretty good job. You can buy covers that protect outlets while still allowing items to remain plugged in.

Know Your Noise Limits

Sometimes the amount of noise your kids make while you’re working doesn’t matter. Other times it’s a big deal.

Buy a noise cancelling headset for your phone for those times that you can’t have background noise on a call. They’re affordable and a big help when you don’t want background noises to make it on the call. They may not get everything if the kids are being particularly loud, but they’re a big help.

Noise can also be a distraction that makes it harder to be productive. Talk to your family about how much noise you’re comfortable with when you’re working in your office.

There’s some discussion going on about Philadelphia requiring a blogger to get a business license, despite that she has earned only $50 over the past few years. It’s triggered a lot of discussion about when a blog is a business and when it’s not.

My opinion isn’t all that popular with some people. If you’re trying to earn money with your blog, you’re trying to run a business. Whether or not you’re making a profit has nothing to do with it. Brick and mortar businesses have to pay for a license no matter their profit, and they have larger expenses than most online businesses; there’s no reason to exempt online businesses that aren’t earning a profit.

That said, I think it would be more reasonable for cities to only require a license once you’re earning a certain amount per year. A business earning as little as Bess is earning off her blog could easily be called a hobby by the IRS.

It’s hard to earn money by running a blog. The people who earn big money off their blogs are the exception.

If you’re running ads on your blog, of course you’re trying to make it into a business. You’re trying to earn money after all. But just as most businesses fail in the first few years in the brick and mortar world, most blogs won’t earn significant money in their first years, quite likely ever.

Doesn’t mean you aren’t running a business, just that you aren’t succeeding at earning much money at it.

I don’t necessarily agree that a business license should be required when earnings are so low, but most places would call it one. I’d like to see some limitations on that, but it isn’t the case in every city. Some do limit when they tax businesses, but you may still need the license.

If you’re concerned about your personal blog being considered a business, don’t monetize it until you think it will make money. That means build your readership up first. Leave off the ads and other sources of income from a blog and no one will regard it as a business. Yet you can easily turn it into one when you believe your traffic justifies adding in ads.

Many communities have hefty fines for those who do not properly license their business. Home businesses of all sorts easily fall through the cracks, but strictly speaking home businesses in most areas are required to get a license. These rules are neither unreasonable nor new. It’s just that cities are noticing online businesses more.

Where Is Your Business Located?

Some people argue that their business isn’t really located at their home. They feel it’s more where their server is. They try to use that as a reason why they shouldn’t have to get a business license in their location.

I very much doubt that is the case. I also don’t think you would want it to be the case. You’d have to deal with licensing your business where your server is, which is not always possible to do online.

Your physical presence has much more to do with where your business is located.  You do the work of creating your blog where you are. Even if you blog a lot at the local coffee shop, you’ll want to call your home the location of your business.

When Is It a Hobby?

The IRS gives these criteria for considering whether you have a business or a hobby:

• Does the time and effort put into the activity indicate an intention to make a profit?
• Do you depend on income from the activity?
• If there are losses, are they due to circumstances beyond your control or did they occur in the start-up phase of the business?
• Have you changed methods of operation to improve profitability?
• Do you have the knowledge needed to carry on the activity as a successful business?
• Have you made a profit in similar activities in the past?
• Does the activity make a profit in some years?
• Do you expect to make a profit in the future from the appreciation of assets used in the activity?

My own, unprofessional assessment would call Bess’ blog a hobby, if only because there’s no way she depends on the income from it. If she’s expecting to make a better profit in some years, my assessment could be wrong. I’m not her and I’m not a tax professional, so I can only take my best guess.

If she can convince the right folks in Philadelphia that it’s a hobby by IRS criteria, Bess has a good chance of not having to pay the license fee. Only trouble is that the ads show the blog is trying to earn money. All too easy to say that makes it a business.

On the plus side of calling it a business is that you can deduct expenses, which you generally can’t do for a hobby. Just be sure that you’re doing it well enough that the IRS doesn’t check things over in a few years and decide that it’s a hobby because it has never been profitable.

Where Would I Draw the Line?

If it were up to me, I would love to see business licenses required once a business is bringing in a certain amount per month. That would encourage people to start a business. They could even say it’s before deductions or expenses so that businesses can’t just claim they don’t have any income. Beneath that level, let the city consider it a hobby that earns money.

If the business involves health or safety, other licensing right from the start makes sense.

Requiring a business license right from the start is discouraging to new businesses. It’s an expense, and if you want to have a business you’re going to have expenses, but anything that makes it easier for businesses to start will encourage people to try starting one.

But even if you do have to pay for a business license and hosting in the early days of your blog or other online business, remember you have it easy. Brick and mortar businesses have to deal with far higher expenses to get started, and yet people start them all the time. Much as we might like special treatment, there’s nothing special about any sort of online business that deserves different treatment from the brick and mortar variety.

If you don’t have a business license or home occupation permit for your online business, check with your city to see if you need one. Most places they’re pretty reasonable. Rules vary from place to place, so I can’t give you any more specific help than that to see if you need one.

If you’re in doubt, ask for help from a professional. SCORE is a good general resource for business, and you can contact your city hall if you have questions about licensing requirements. You should be able to check their website and figure out if you’re likely to need anything for your online business.

When you start working at home for others, it’s important that you know if you are considered to be an independent contractor or an employee of that company. It has implications for how you pay your taxes as well as how you perform your work.

Employers don’t always get it right, either. Some will label you as an independent contractor while treating you as an employee.

What’s the Difference Between an Independent Contractor and an Employee?

The best place to figure out if you’re an independent contractor or an employee is the IRS website. They’re the ones enforcing the rules when it comes to taxes. You don’t want to get it wrong.

They generally follow these three common law rules to determine if a particular person is an independent contractor or an employee (quoted from the IRS website):

1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
2. Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3. Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Sometimes you’ll deal with a business that stretches these rules to call people independent contractors, when they should be considered employees. They do this to avoid paying benefits, unemployment insurance, and taxes on your income. When you’re really an independent contractor, these things are your problem.

Simply put, an employer has much more control over how an employee does his or her job than they do over an independent contractor. They also have more obligations to an employee.

What Does This Mean for Work at Home Jobs?

A work at home job can be either a job where you’re an employee or an independent contractor. A lot of them want to call employees independent contractors, but many companies have learned the hard way to be more careful about that. It’s expensive for companies to get it wrong if they are caught by the IRS misclassifying employees as independent contractors. Suddenly they’ve missed paying a lot of taxes.

When an opportunity says you’ll be an independent contractor, take a look at what they’re requiring of you. Sometimes they’ll have it right, but other times they won’t.

Getting it wrong has implications for you as well. If you’ve been taking advantage of being a business on your taxes (as you are when you work as an independent contractor), you may find out that you’ve taken some deductions that won’t work out if you’re an employee.

What Should You Do as an Independent Contractor?

Being an independent contractor is not as simple as landing a freelance position in most areas, at least not legally speaking. You can often get away without all the business registration stuff, but if you get caught most areas have pretty heavy fines you’ll be facing. Better to make your business legal.

That means naming your business and getting a Fictitious Business Name (FBN) or Doing Business As (DBA) as required in your area. Check with your county clerk website or Chamber of Commerce for details. You may also need a business license or tax registration certificate.

Having a business name is also necessary if you want to open a bank account in the name of your business. If you’re going to be receiving checks in that name, you’ll need that account. Most banks will want proof that you have registered your business name before opening an account for you in that name.

Having a business name also enhances how professional you appear to clients. You aren’t just some person taking in work. You’re a professional who has taken the time to formally start a business.

If you really are an independent contractor, then the companies or people you work for will not be taking out taxes from your income. That’s your responsibility, and you should be doing that quarterly. These are called estimated taxes, and you’re responsible for them on any income that is not subject to withholding.

You may also want to get an Employer ID Number (EIN), even if you aren’t employing anyone yourself. This gives you a number other than your Social Security Number by which to identify your business for tax purposes.

What If an Employer Calls You an Independent Contractor When You’re Really an Employee?

This is a tough one. You can talk to your employer politely and find out why they consider you to be an independent contractor rather than the employee you think they’re treating you like. It’s something to be done with caution, as it may impact your employment with them.

If they’re calling you an independent contractor, you can also insist on being treated like one. Set your own hours. Take on other clients. Remember the good parts about being an independent contractor.

You can just ignore the situation if you like, while keeping in mind the potential tax issues on your side. Fortunately, if you’re acting as an independent contractor and paying your estimated taxes, you’re not likely to be underpaid when it comes time to file. But it can be worth the work experience to just cope with a misclassification.

You can get a lawyer, but think carefully first. This will very likely impact your employment, and you might not want to do that.