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Consumer protection for retirees wanting to start a business in retirement

Hi there,

 

I'm a former reporter and I know about a story that any of you wanting home businesses may be very interested in it. Future home business owners are getting ripped off because they trying to sell products on internet. Story seems like a national and international interest.

 

People were hurt by well over at least 60 major cities in the U.S. only.

 

You can also see the cities and rip-offs in a book just published. Author also tries to protect people and helps people set up companies. Decent guy.

 

You can go to  https://chrismalta.com/media

 

Best and I hope you stay safe!
Marian

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Honored Social Butterfly

Yea, the very 1st rule in starting a business especially of the internet type is to KNOW WHAT YOU ARE DOING !  If you don't do the research & learning (or hiring a professional to help in the endeavor) into the development of a market-site - the business is probably doomed from the get-go.

 

There is so much that you have to know from the beginning - from the (most) feasible business structure and how to register it to paying taxes - all taxes from income tax to payroll taxes to even licenses and fees at a more local level.  

 

The only difference in a home-based business and any other type is where the base of the business is located.  All other rules, laws and knowledge to make it successful are the same.

 

It's Always Something . . . . Roseanna Roseannadanna

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Bronze Conversationalist

Great advice @GailL1 and I would add -- as a person who had several home based businesses -- make sure the location of the home is zoned for business run from a residence. There can be limits or total restrictions on clients or customers coming to the house, including how many a day are allowed, and even if they can park on the street or in a common lot (such as if you are in a condo or apartment complex). And if your business office is in your home but you transact business as a vendor outside of the home -- I'm thinking of crafts people and artists who sell at fairs and farmer's markets, in neighboring towns, etc -- you can be liable for having business licenses not just for the location of your home office but also for every town in which you are physically present for selling. On top of that, you will likely also need a state issued business license. Speaking from experience here.

And even in states that don't have personal state income tax, there is likely state business income tax. Be sure to check all this out because the penalties for not being properly licensed and current on taxes can be severe.

Finally, make sure you have the right professionals to consult with. It's well worth paying an accountant or bookkeeper to set up the list of income and expenses you need to track. Check on the need for malpractice insurance if you give advice of any kind, or on other types of insurance typical for your business type. You might also need to increase homeowner insurance to cover slip and fall type of accidents in bad weather if clients come to you.

 

Finally, even when doing business primarily over the internet and never seeing customers in person, expect to spend three quarters of your time marketing the business at first. Learn how to attract clients, how to close a sale, how to create sales funnels, referrals and repeat clients. 

Having a home based business doesn't escape all these needs.  Good luck!

 

Oh and I forgot to say -- if you are using testimonials on a website to help establish social proof for your business, be sure to be aware of FTC regulations on what a testimonial can claim, and the legal disclaimer that must accompany those. The fine for not following their rules is outrageous.

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Contributor

It seems like my original post was shortened for some reason.  I put in a place you can go to no cost book that will list some of the cities where people have been ripped off and learn how to protect yourself.  You can get a no cost for the book if you scroll down of the page of the author also tries to protect people and helps people set up companies. Decent guy.  The website is https://chrismalta.com/media   

 

Hope you have good luck and good business!

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Contributor

It seems like my original post was shortened for some reason.  I put in a place you can go to no cost book that will list some of the cities where people have been ripped off and learn how to protect yourself.  You can get a no cost for the book if you scroll down of the page of the author also tries to protect people and helps people set up companies. Decent guy.  The website is https://chrismalta.com/media   

 

Hope you have good luck and good business!

View solution in original post

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Honored Social Butterfly

Yea, the very 1st rule in starting a business especially of the internet type is to KNOW WHAT YOU ARE DOING !  If you don't do the research & learning (or hiring a professional to help in the endeavor) into the development of a market-site - the business is probably doomed from the get-go.

 

There is so much that you have to know from the beginning - from the (most) feasible business structure and how to register it to paying taxes - all taxes from income tax to payroll taxes to even licenses and fees at a more local level.  

 

The only difference in a home-based business and any other type is where the base of the business is located.  All other rules, laws and knowledge to make it successful are the same.

 

It's Always Something . . . . Roseanna Roseannadanna

View solution in original post

Bronze Conversationalist

Great advice @GailL1 and I would add -- as a person who had several home based businesses -- make sure the location of the home is zoned for business run from a residence. There can be limits or total restrictions on clients or customers coming to the house, including how many a day are allowed, and even if they can park on the street or in a common lot (such as if you are in a condo or apartment complex). And if your business office is in your home but you transact business as a vendor outside of the home -- I'm thinking of crafts people and artists who sell at fairs and farmer's markets, in neighboring towns, etc -- you can be liable for having business licenses not just for the location of your home office but also for every town in which you are physically present for selling. On top of that, you will likely also need a state issued business license. Speaking from experience here.

And even in states that don't have personal state income tax, there is likely state business income tax. Be sure to check all this out because the penalties for not being properly licensed and current on taxes can be severe.

Finally, make sure you have the right professionals to consult with. It's well worth paying an accountant or bookkeeper to set up the list of income and expenses you need to track. Check on the need for malpractice insurance if you give advice of any kind, or on other types of insurance typical for your business type. You might also need to increase homeowner insurance to cover slip and fall type of accidents in bad weather if clients come to you.

 

Finally, even when doing business primarily over the internet and never seeing customers in person, expect to spend three quarters of your time marketing the business at first. Learn how to attract clients, how to close a sale, how to create sales funnels, referrals and repeat clients. 

Having a home based business doesn't escape all these needs.  Good luck!

 

Oh and I forgot to say -- if you are using testimonials on a website to help establish social proof for your business, be sure to be aware of FTC regulations on what a testimonial can claim, and the legal disclaimer that must accompany those. The fine for not following their rules is outrageous.

View solution in original post

Honored Social Butterfly

My journalism teacher always said to include the who, what, where, when, how, and why of every story prior to my stint as a reporter. I always remembered her words.

 

Your post above lacks in all those descriptors.

 

I have no idea how they are getting ripped off, what cities it is happening in, what manner the scammers are using, when these supposed rip off are supposed to have occurred. Your post also has not explained why you are posting the information. Are you trying to prevent future home business owners from making a mistake?

 

You need lots more information.

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