Starting a Home-based Business

Working from home can sound like a great deal - more flexibility, less time spent commuting and the potential to have more control over your time. That is why so many people want to start a home-based business.

In fact, many small business owners have succeeded with a start-up based in their spare bedroom, garage or attic. Here are some things to consider before you begin:

Where to work?

Your house. The most basic element to consider before starting a home-based business is where you plan to work. Does your home have a room that is spacious enough to accommodate the accessories and equipment you require? Would you be happy working in this room? And what happens if you need to expand?

Experts suggest that - as much as possible - it is best to keep your home working space separate from other areas of the house. It can be difficult to think about balancing the books using your small business management software if you have a pile of laundry or children's toys next to your desk. Going into a separate room to make the transition into the working day can help you focus your mind and stay organized.

A separate space can also help create a professional appearance for clients and business-related visitors. If your home office does not seem appropriate for meetings, consider using a local coffee shop instead.

Your neighborhood. Before you get started, it is important to investigate zoning laws in your neighborhood to see if it is permissible to operate a business from your home. If your firm will be run from an area that is not zoned for business, you will need to investigate how to obtain an occupancy permit.

There are other considerations regarding your home's location. Is your neighborhood centrally located or is it on the outskirts of town - and how would this affect your business? Think about driving costs, client visits and related factors. Also consider whether the daily operations of your company are likely to upset your neighbors or cause a disruption in the area.

What do you need?

Equipment. When using your small business management software to create a budget for your new home-based business, make sure you take into account furniture, telecommunications, any additional wiring, office supplies and computer equipment. Consider whether you will have a dedicated work computer and/or phone line.

Marketing materials. Businesses that operate from a personal residence should take special care to ensure that their promotional materials appear professional. Have a business card, stationery and brochures that portray your firm as trustworthy and serious. Use quality materials and consider paying a professional to design your logo.

Are you covered?

It is important to let your insurer know you will be running a business from your house. A home-based firm will need additional coverage - but the exact types and amounts of insurance required may vary based on your needs. You can use your small business management software to take these costs into account.

Contents insurance. Look into your homeowners' insurance to see if you can add a rider to cover any office equipment you will be using. Printers, fax machines and other items used for business purposes are not covered under your standard property insurance. Meanwhile, if you have a laptop or other item you use outside your home business, you may need to insure it separately.

Liability insurance. Do you plan to have business-related visitors? If clients and customers will be visiting you in your home office, you should make sure you are covered in the event that someone is injured on your property. Again, homeowners' insurance does not cover these situations.

Vehicle insurance. If you use your personal vehicle for business purposes as well, you should get it insured for this reason.

There are various other types of insurance that may be useful for your small business. Conduct further research or talk to an expert for more information.

How does your family fit in?

Having your home office separate from the rest of the house is one way to create a barrier between your work and the distractions of family life, but make sure your daily schedule also reflects this divide.

Some business owners have family members working for them - or completing tasks on an as-needed basis. If you plan to start a business at home, make sure you are aware of your family's desires regarding helping out - and make sure they know how you stand on the issue as well to avoid hard feelings.

Also make it clear to friends and acquaintances that you are serious about using your business hours exclusively for work, to help remove the temptation for them to stop by simply because you are at home.