Small Business

Operating a small business from home can free entrepreneurs from the costs of leasing space and commuting. But too many of them may short-change themselves when it comes to buying insurance. A recent survey commissioned by the Independent Insurance Agents and Brokers of America found that nearly 60 percent of the nation's 11 million home-based businesses do not have insurance coverage. Madelyn Flannagan, IIABA's vice president of education and research, explains that home-based business owners are at risk for financial losses associated with theft, accidental damage, natural disasters, vehicle accidents and liability if an employee suffers an injury while on the job or a business guest is hurt while visiting their business.

Word of mouth is the most effective form of marketing. People can't spread the word about you and your small business if they don't know you. That's where networking comes in. Whether it's through a professional industry association, a local business group or a conference, networking offers a forum for prospective customers and colleagues to learn about you and your services or products. It involves more than exchanging introductions and business cards. Professional marketing coach Charlie Cook at www.charliecook.

Many manufacturers hide behind fancy advertising and glitzy packages, but two small companies with a combined history of 169 years face their customers every day by putting a family member's portrait on the label.readers. Please write to her at the Los Angeles Times, Times = Mirror Square, Los Angeles, Calif. 90053.*Tips for family businessesDennis Jaffe, author of "Working With the Ones You Love," (Conari Press, $19.95), has these tips for successfully bringing new family members into your business.

If you are in a small business that is also a family business, you probably heard warnings about the pitfalls of working with relatives. When bringing family members into a business for the first time, especially as investors or in a startup situation, consider putting the business relationship in writing. Many small companies would never have survived without dedicated family members. But avoid favoritism. Pay scales, promotions, work schedules, criticism and praise should be evenhanded between family and non-family employees.

The Howard County Economic Development Authority's Neotech incubator is making ripples that are reaching around the world. It has been only two years since the technology business incubator opened, and already it is attracting the attention of international governments, universities and business groups that want to open similar training grounds for their fledgling companies. Last month, a delegation from Russia toured the incubator facilities and met with the program directors. It's not the first time the facility has played host to international visitors.

Looking for ways to make your small business more environmentally conscious this year? Now is a good time to "green" your business. The movement is expanding and there is more information available on the practical, profit-producing aspects of making a business more environmentally friendly. Most of what your business does, from buying office supplies to disposing of old electronic products, can be accomplished with "green" products and services. For information, tools and advice on making a business more environmentally conscious, check out www.GreenBiz.

There are many reasons why you might want to place a value on your business. You will certainly need a valuation if you want to sell the business. Other reasons you might need such an appraisal include divorce, spinoffs, business disputes and liquidation. Too often, business owners brush aside valuations, believing them necessary only if they decide to sell. As a result, about one in 20 small businesses have done a formal valuation, according to the National Association of Certified Valuation Analysts.

The competitive nature of today's world may be intimidating to the small business owner. If a competitor cuts prices or offers other incentives, you may feel tempted to do the same in order to keep your customers, even if it puts the stability of your business at risk. Though cost is important, it is but one component of a larger attribute. If your business provides value through service, responsiveness and going the "extra mile," your customers will respond with loyalty, regardless of what your competition does.

If you plan to start a small business, chances are you have many questions. If you haven't already, sooner or later you may be wondering: * How do I get a business loan? * Where are the good places to advertise? * What workplace safety laws govern my business? * Should I be sole proprietor or form a corporation? * What should my pricing formula be? * Can my community support another business like mine? * How do I interpret an advertising rate card? * Should I run the business from home or rent a space?

Small-business owners know one thing for sure - conditions on the business playing field can change rapidly. The technology that seemed cutting edge last year is now outdated or obsolete. Buyer moods can swing sharply and marketing strategies are in constant flux. How can you tell the difference between a fleeting fad and a true trend? Louis Patler, a market research guru for companies such as American Express and Dell, has spent decades tracking emerging trends. He says embracing new ways of thinking is the key to successfully piloting a business in the years ahead.