So You Want to be a Virtual Assistant

Judging by my inbox, you seek out a virtual assistant and ask her, "How did you get started?" That question could take hours to answer, so I'll give the condensed version here.

When I think back to my early days in March 1999, I recall them as being some of the most exciting for me. Setting up the business was so much fun! Creating my business cards and brochures and "trolling for clients" was the best part of being in business. I still enjoy creating marketing materials and marketing the business.

Creating a "Real" Business

The very first thing I did was to purchase two books: How to Start a Home Based Secretarial Service by Jan Melnik and Start Your Own Secretarial Service Business published by Prentice Hall. Only a handful of virtual assistants were in business at that time (03/99) and I hadn't yet heard of that segment of the business support service industry. My actual roots were in the traditional business support service (secretarial service).

The first thing I did after deciding to start a "Home Based Secretarial Service" was to find out if it was permitted in my city. Believe it or not, local zoning ordinances may prevent you from pursuing your dream of home-based self-employment. If you are of the opinion that the federal government is intrusive, wait until you deal with your locality.

Not knowing each of your situations, I can only tell you how things work in my city. A visit to the municipal building was the first step. This visit revealed that certain home-based businesses were permitted, but details were not disclosed. I left with an application for a home-based business occupancy, which was to be completed and returned along with a survey of my property and a check for $15. The application would then go to the Zoning Board of Adjustment.

I received a call about a week later informing me that I would need to reconsider some of my proposed business practices: namely, I could not have even one client visit my home. No additional vehicles were to be generated as a result of my business, with the exception of delivery trucks. Figure that one out – I can't have a client park a Volkswagen, but I can have a tractor-trailer make deliveries. Outdoor signs – no matter how small – were also not permitted.

My next step was to visit a site to find out about applying for a Federal Employer Identification Number (FEIN). I decided that although I would set the business up in the beginning as a sole proprietor, I did not want my social security number used as my employer number (which is the case when you are a sole proprietor). I was not comfortable giving this number to any clients or vendors who needed it. FEINs are required when you have employees. Although you may not have employees, you can still get an FEIN. I went to http://www.irs.gov/prod/forms_pubs/ and downloaded the application for an FEIN, completed it and sent it in. Within a few short weeks, I had my FEIN. Before setting up your business, you need to research and decide whether you will operate as a sole proprietor, partnership, corporation, etc. The purpose of this article is not to advise anyone of how to set up a business; the purpose is to tell you how I went about setting up a business.

The next step was to contact my State Division of Taxation web site. I reviewed the information on Sales & Use Tax, and whether or not the services I provided were subject to sales tax. After reviewing the site, I had no clue whether or not the State of New Jersey required me to collect sales tax. I called them and we discussed my services. I had my answers and proceeded to download the Sales & Use Tax collection application from my state's web site. I sent the form in and within a few short weeks had my employer identification number (EIN).

Do you think that's enough work? Too bad if you do, because you still have your county to deal with. I do not operate under my name (Jacqueline Eastwick), but rather a fictitious name (Allison Lane Business Solutions). A fictitious name statement had to be filed with my county. This makes sure you are not using the trade name of someone else in the county. This required a visit to the County Clerk's office where I received another application. Of course there was another fee to pay ($35). I looked through a book of all the fictitious names on file in my county and found that no one else used Allison Lane Business Solutions. I received my certificate within a week or so. One other note on this point: just because no one in your county is using your trade name doesn't mean someone in the country isn't using it, or for that matter doesn't have it copyrighted or trademarked. Be careful when choosing a name and do your research. Sites are available on the Internet where you may find whether or not your name belongs to someone else. You can also pay an attorney to conduct this search.

The next step was to take all the above documentation to a bank so I could have an account in my business name. Without the fictitious name certificate, you cannot get an account in your business name. Having had an FEIN already assigned, I was able to have my checks printed with that number at the top of the check under my business name.

It just so happened I had the time to research the steps needed to set up a bona-fide business and not treat it as a "side job" for some "extra pocket change." If you are working full-time elsewhere, you may want to research sites dedicated to this subject such as SCORE and the SBA. Being able to download the federal and most state forms is a time-saver.

Something I would like to stress is that it is important that you set up a legitimate business. The last thing any new profession needs is people behaving unprofessionally. In order to be credible and really make the public believe in us (virtual assistants), we need to have professional, honest, skilled people working in it: have a commercial bank account; have a dedicated business line with voice mail. Do everything that real businesses do and don't treat your business as a "side job."

While running around setting up the business, I had already ordered my business line from the phone company. This is something you need to do in advance because in my area, they are backlogged and it takes several weeks to get the line installed. Not only did they not show up the first appointment, they didn't show up the second appointment. After you order your business line, you should ask to be assigned a Yellow Pages representative so you can begin deciding whether you will be placing an ad. The good news is your first time in the book, they offer special incentives; the bad news is after the first year, you’re an average Joe and charged a bundle. I definitely recommend a small in-column ad. Don't turn down work just because it's local. Money that lives in your town is worth the same as money living outside your town! You can turn local clients into virtual clients down the road.

One of the biggest bonuses I've received from taking all the above steps is getting a credit card in my business name. Of course it's all tied in to your personal credit (because I am a sole proprietor), the credit card has my business name printed on it and the bill comes in with my business name on it. It is important that you keep your business expenses separate from your personal and having a business credit card makes it easy. Also, if you follow the above steps, you should receive a call from Dun & Bradstreet. Answer their questions about your business because you'll then get a D&B number. This is necessary to obtaining business credit and makes your business even more legitimate.

The Most Important Consideration

I skipped over a very important part of being a virtual assistant in this article. I'll touch upon it here, but will go into further detail next month. You need to know what services you are going to offer. Think about what it is that you do every day at your job, and think about which of those tasks you really like. In my case, I like to type...I really do...it's almost cathartic for me. I went out and purchased a transcription machine and offered this service. It took a while to get the hang of it (having never had to actually transcribe before), but administrative types are smart, creative, and quick thinkers. You actually can do far more than you know.

Maybe you create presentations for your employer. You'll want to include this in your services. Event planning? That's a great service for a virtual assistant. The list is endless. You must take inventory of your skills and what you like doing. In the beginning, you may have to offer services that aren't at the top of your "most fun" list, but you want to have money to pay that phone bill and Yellow Pages ad. You'll find yourself offering services at first that you will phase out as you become more successful.

Of all the articles I have planned, this is the least "fun" and least "exciting" one. I want you to know that becoming a virtual assistant isn't something to do on a whim. There are steps to take to ensure your credibility and the credibility of the profession. Just because you have a computer and skills, doesn't mean you will make a great virtual assistant. You must be dedicated, motivated, honest, customer service oriented, etc. You have to be willing to take the steps necessary to make yourself professional. You have to be willing to go through the grunt-work before you get to the fun work. The industry is a reflection of you.