Sometimes I get caught in this trap: I spend time doing “stuff”, but after a while I realize that I haven’t actually accomplished much of anything. Sparkplugging’s WAHM 2.0 made this point of confusing being busy with being productive:

Too many people are mistaking busyness for productivity and as a result, they aren’t seeing results even though they feel like they are working hard. While some busy activities are important (IE filing), they shouldn’t pre-empt more important activities that actually make money.

I think a good point is made here. Sometimes we get caught up in doing things that take up time, but don’t really accomplish anything in terms of growing income from a home business. So, how do we figure out what will be productive and what just makes us busy? WAHM 2.0 offers this helpful guide to prioritizing your home business activities:

1. Figure out what is making money, and do those things first. Do your marketing techniques work? Focus more on the marketing techniques that translate into income. If you make a product, fulfill your orders before you doing anything else for the day.

2. Stay connected. After you get the money-making home business activities out of the way for the day, you can then focus on the connections that bring you contacts. Save the social media and email for after your direct money-making activities are accomplished. Then focus on the indirect money-makers associated with networking.

3. Clean up your home office. Organization is important. But it’s more important to make sure you are bringing in some money. WAHM 2.0 suggests that you hire someone to do the filing, forms, etc. if you have the means for it.

Time really is money. Look at how you spend your time, and determine whether you are really accomplishing anything, or if you are just keeping busy.

In these economic times, your home business may be short on the cash you need to get products or services that are important to you. Many businesses — not just home business ventures — are turning to bartering in order to get what they need. Whether it is a service or goods, bartering can help you get what you need when you provide something that someone else needs. No money needs to change hands.

It is important, however, to keep a few things in mind when you are bartering with fellow business owners for goods and services:

1. Be professional. Remember that this is a business arrangement. You need to remain professional throughout.

2. Be specific. Be clear about what you are offering, and what you need. Only by sharing specifics will you and your bartering partner be able to come to an arrangement that benefits both.

3. Use a contract. Make sure you put your agreement in writing. Specify how many hours of service you are exchange for certain goods. Realize that this is a binding business agreement.

4. Remember to pay your taxes. Many business owners do not realize that barter income (and expenses) are still subject to tax. You report what you gave in the exchange as an expense and what you received as income. The IRS offers some insight into how to report barter income.

In times when it can be hard to get your hands on cash to keep your home business running, it is no surprise that many people are turning to bartering to get what they need. Whether you want marketing help, delivery, goods or something else, it is usually possible to get it without using money — as long as you have something of value to offer in exchange.

Yesterday, I mentioned that bounced checks are sometimes a hazard of a home business. You do the work, and then a check bounces. While I have a few clients that pay by check, the bulk of my income is handled through PayPal. I actually really like this arrangement, since it provides a quicker way to get money I am owed. Additionally, payment clears quickly, and I do less work for free if something goes awry.

Other features that I like about PayPal include:

* Ability to generate monthly statements.

* I can invoice my home business clients easily (and with a saved template).

* Transferring money to my business bank account is simple.

* Fees are low (and tax deductible).

* Accept e-Check payments.

Do you use some sort of third-party payment for your home business? What do you like about it?

I was checking my bank account over the weekend and saw that one of my clients had bounced a check. Nothing like seeing a chargeback on your bank account to make you feel…concerned. Luckily, this client is a trusted client that I have worked with for about two years. She apologized and explained that a check had been mistakenly written out of the payroll account, and that I should be fine to resubmit now. This is an understandable mistake — even I mix up my accounts on occasion! — and it got me thinking about how having a home business can make you more vulnerable to these types of mistakes.

Problems of client bounced checks

Obviously, the first problem is that money you expected to be there, isn’t. But if you are counting on that money, and it is suddenly no longer there, you might overdraw your account, incurring fees. Additionally, in many cases, you have already done the work for the client, so you’re out your time. Not to mention if you’ve been doing work since that you don’t get paid for. I’m glad that none of these things ended up being a problem for me.

Protecting yourself against client bounced checks

It is important to realize that this could happen to you. Here are some things you can do to protect yourself from situations in which client bounced checks might be very harmful:

* Make sure you have a cushion in your bank account to avoid charges in the event that you overdraw.

* Check your bank account regularly online in order to keep up to date. Often it’s way too late when the statement comes.

* For large projects, ask for some of the money up front. Divide payments into thirds: First bit due at the beginning, second bit due halfway through and third bit due upon completion. Chances are that the first check will clear. And you can stop work if the second check bounces.

Have you ever had issues with client bounced checks?

Stock market = mass delusion. Invest in tangible goods like “things you can eat”. And fire.

Happy Friday!

http://www.comedycentral.com/videos/index.jhtml?videoId=187614

Natural disasters can strike almost anywhere and at almost anytime. While we often think of hurricanes and tornadoes as serious problems, there are also threats of wildfire, earthquake, flooding and even ice storms, depending on where you live. All of these problems can interfere with your home business operation. Chief Home Officer offers this advice for preparing for disaster:

When considering how to prepare your corporate or home office for a mean season, or any time of year, ask yourself these questions…

• How does home office protection differ from that of the corporate office?
• What lessons have been learned in recent disasters that can influence or improve home office disaster protection?
• What technology that’s widely available can help home officers smooth the transition from outage to productivity?
• How can I get my home office – or telework team – back up and running with minimal disruption?

It is very important that you consider these questions and make a plan. Use data backup services when warranted, and think of such items as generators, supplies and other necessary items. If you need to be able to get online, think of a place you can go to get Internet access. It is important that you think of contingency plans so that when disaster strikes, your home business doesn’t come to a complete standstill for too long.

Today is Earth Day, and I thought that maybe we could look at making a greener home office. There are a number of gadgets that can help you create a home office that is a little bit greener. Here are some suggestions from Beststuff.com:

1. Seven day timer: Customize your home’s lighting, having it turned off during times of the day that you are using more natural lighting to work from home by.

2. Power strips: Plug in to a surge protecting power switch — then power down at the end of the day. Turning off the power strip can limit “phantom” leaks that waste energy and cost you money.

3. Power meters: You can gauge the efficiency of your electricity use with a power meter. Then look for ways to improve your efficiency.

Other things you can do to make your home business workspace more environmentally friendly include not printing emails out unless absolutely necessary, moving to online statements and billing to save the use of paper (and stamps!), and trying to find more energy efficient office equipment.

Can you think of other ways to save energy in your home office?

With recession on, many people are looking for ways to make money from home, selling skills they already have. Freelancing is one way to do that. If you are look for resources for your freelancing skills, you might consider reading a blog post from oDesk about the Top 100 Freelance Blogs.

oDesk has done the work of putting together a list that includes:

* Top freelance blogs.

* Freelance graphic design.

* Freelance illustration and animation.

* Freelance software development.

* Freelance Web design.

* Freelance blogging.

* Freelance writing.

* Freelance marketing and copywriting.

* Freelance lifestyle.

* Freelance social media.

* Specialize freelance blogs.

With these resources, you can learn more about freelancing with your own skills, helping you better reach clients and learn the ins and outs of freelancing.

Last week, I felt stressed and overwhelmed with all of my freelance writing assignments. I’m feeling much better this week, and it was in this frame of mind that I read a post on Sparkplugging today about favorite things about working from home. And I thought that maybe it would be a good time to revisit why I love working from home:

1. The schedule. For the most part, I set my own hours. And when I need a break, I take one. Sometimes things get crowded and desperate, but, for the most part, I can decide when I want to work.

2. Being at home with my son. When my son wants to play a game with me, it’s no problem. When he has an issue, I’m always here for him. He’ll need me less next year, when he starts first grade, but it’s good to know that I’ll be here and available for my son.

3. My work is mobile. I can work from anywhere. If I want to work from the couch, I work on the couch. If I want to go outside, I do that. If I want a change of scene, I can pack up and go to the cafe.

What do you like about working from home?

Tax Day has passed, and another tax season is over. One last fun video from this year’s tax commercials.

Happy Friday!