Home Improvement: savvy strategies for building your homebased business - includes related articles - Cover Story

Entrepreneur, Sept, 1996 by Cynthia E. Griffin, Heather Page

Other equipment musts? If you're still using a thermal-paper fax machine, move up to plain paper for easy document storage and greater professionalism. Also consider a copier to handle smaller tasks, ergonomic furniture to prevent injuries, and a scanner to reduce paper-based files. --H.P.

Speak Easy

Check out the latest phone options.

Have you recently found yourself frequently under your desk switching between your phone and fax lines? Feeling nervous about making a call because you're expecting one? Hearing from customers that you're hard to reach? It may be time to upgrade your telephone system.

According to June Langhoff, author of Telecom Made Easy: Money-Saving, Profit Building Solutions for Home Businesses, Telecommuters and Small Organizations (Aegis Publishing Group), having a separate line for your business is just the beginning. Entrepreneurs can benefit from myriad telecommunications services.

For instance, phone, paging or long-distance companies can provide a voice-mail service that lets you create multiple mailboxes for various business functions. Also, inquire about call waiting, caller ID or distinctive ringing plans to help prioritize your incoming calls.

Other worthwhile options? Consider fax-on-demand software to automatically fax customers pricing information, answers to frequently asked questions and more. A software program that gives you the ability to manage phone lists, log calls, and make or take calls through your PC can be useful as well.

If you're frequently on the road, ask your phone company about their call-forwarding service, which routes calls to a cellular phone or pager.

Having the appropriate equipment decreases stress--and increases sales. Says Langhoff, "It makes you accessible to customers, makes you sound more professional, and lets you compete with large corporations." --H.P.

Take Cover

Insurance: Don t stay home without it.

Business is booming, sales are up and everything is just right . . . except for one little detail. Have you examined your business insurance policy lately?

According to Jeanne Salvatore at the Insurance Information Institute, a nonprofit communications organization in New York City, you should consider updating your policy whenever you make a change in your business.

"If you buy new equipment, even something as simple as a laptop computer, you should immediately contact your agent to make sure you are covered," says Salvatore.

The type and amount of coverage you need depends on your business, Salvatore adds. If you have a simple, parttime business, you might want to get minimal coverage by adding endorsements for specific equipment onto your current homeowners' policy. To get additional coverage, you should buy a separate business owner's policy.

The option that gives you the most coverage for the least cost is a "homework" policy. This combines the homeowner and standard business-owner policies into one entity, eliminating some of the coverage duplication you might have if you buy two separate policies. For example, in some states, both homeowner and business-owner policies include structure insurance; if you buy both, you are paying for the same coverage twice. Unfortunately, the homework insurance option is not offered in all states nor for all businesses. To see if this is an option for you, call your state insurance office or the National Insurance Consumer Helpline at (800) 942-4242.