Lay the Right Foundation Before You Open Your Home Office

Lay the Right Foundation Before You Open Your Home Office

Ah, the luxury of having a home-based business. No office leasing costs, no frustrating daily commute, and no disturbances from noisy co-workers. Although these and other advantages have enticed many people to start their own businesses, your home office should reflect the same level of commitment, professionalism, and dependability customers would expect if you set up shop on main street. These seven tips will get your home office started on the right track:

1. Legalize it. Check with your local zoning office about zoning regulations in your area. Some communities, neighborhoods and apartment complexes may have covenants that restrict certain types of businesses. Requirements for licensing also vary among jurisdictions. Some require a fee or tax, based on income, while others simply want to know that your business exists.

2. Establish a business address. Not all customers look favorably on a business with an obviously residential address. Many home-based business owners rent a post office box and use that address on their business cards and stationery.

3. Get the right equipment. The cost of electronic equipment continues to decline, and such devices as an all-in-one fax machine, printer, scanner and copier increase efficiency while conserving space. You may need more than one phone line as appropriate to accommodate your personal and business needs. Cable modems can provide continuous Internet access without the need to add or tie up a phone line. Make sure your phone has voicemail that enables a client to leave a message while you are on the phone.

4. Organize for productivity. Carefully design your workspace around your business tasks but in accordance with your work style and habits.

5. Establish contacts. Working from home can limit your ability to network. Make an extra effort to connect with potential clients and colleagues by joining a professional association. You may want to consider meeting with clients at their office or in a rented conference room for a more professional environment.

6. Keep careful records. The Internal Revenue Service tends to audit home-based businesses more frequently, especially when they claim business expenses such as writing off a portion of the mortgage payments for the home office. You can choose from many different systems to document all your business expenses. Your accountant can advise you on claiming deductions.

7. Discipline yourself. With so many distractions in your home (children, pets, delivery people, telemarketers), you must be strictly disciplined in order to get any work done. It may be tempting to take advantage of quiet time for personal chores and errands, but time away from your office during business hours is time and money lost.

If you would like to discuss setting up a home-based business, contact SCORE “Counselors to America’s Small Business.” SCORE is a nonprofit organization of more than 10,500 volunteer counselors who provide free, confidential business advice to veteran entrepreneurs and those just starting out. For the SCORE chapter nearest you, call 1-800/634-0245, or find a counselor online at www.score.org.

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