Key Secrets to Home Office Success



Posted: Sunday, February 14, 2010

by Nina Kaufman
Ask The Business Lawyer

"There's no place like home," said Dorothy in The Wizard of Oz. She was absolutely right. You find love, warmth and security at home. Can you ask for a better environment to set up space to incubate bright ideas for wealth and prosperity? There are also the perks of having rent-free office space and (where relevant) being near to the kids. SOHO (solo office/home office) is now the model for millions of people, and if you count telecommuters, home-office workers and "day extenders" or those who bring work home from their regular jobs, the numbers are as high as 25-40 million. Many people have failed when they worked out of home. What steps can you take to ensure that yours is a success?

1. Have a plan. Especially if you are starting a business out of your home, it pays to have a business plan. Just because your business may lack the formal structure of a visible "corporate office" doesn't mean you should be equally informal with your planning for success. In fact, this lack of planning is a significant factor that endangers the survival of home-based businesses. It's not enough to be doing work while you happen to be at home; in running a business, an ongoing enterprise, you need understand exactly how much money you need to earn in order to meet expenses and turn a profit. If you're telecommuting, remember that "out of sight is out of mind" for many people . . . so discuss with your supervisor ways that you can remain visible to the organization - whether through participation in conference calls, regular reporting, or being physically present for certain meetings. Accountability is key. Be sure you and your supervisor have a clear understanding of how your work performance will be evaluated.

2. Get in "the zone". Zoning laws and local ordinances govern how buildings may be used. Certain areas may be for residential use only; others for commercial use only; some are a mixed live-work situation. You can run into problems if your home-based business requires a lot of "foot traffic" - for example, in running a tattoo parlor out of your basement, where parking customers may congest nearby streets. Or having an in-person coaching practice in your apartment. If you rent, make sure that your lease does not prohibit you from running your type of business from your home. Check your homeowner's insurance policy as well; many will not cover your business activities or business equipment. Look into a separate business owner's insurance policy to make sure that you don't leave yourself unduly exposed to liability.

3. Ensure an efficient workflow in your work area. An ideal solution is to have a separate room in your home for your office. Having a distinct workspace makes it easier to claim a home office tax deduction. However, if you have a mixed-used room, such as working out of your bedroom, you come across various challenges. My home office is in my living room, and I have set apart a work area by rearranging the furniture. My personal papers are kept separately, and nothing related to my home life creeps into my workspace. I maintain separate telephone/fax numbers for my business. Parents of young kids have to be firm with their boundaries and make the kids understand that important business papers must to be used for their crayon drawings. When you have a well defined and organized workspace, you think more clearly.

4. Maintain awareness of time and time wasters. It is easy to get off schedule when you work from home. After all, your time is your own and no one is checking in on you. To not fritter time away with distractions that crop up during the day, plan out your workday and make sure you stick to it. During the day, friends calling or worrying about errands that need to be run can distract you. Set realistic, achievable goals for each day. In the interest of time, plan to schedule meetings when you are out, or run all your errands in the same outing, so you do not have to pop in and out of your house. Therefore when you are at home, you can fully focus on your work.

5. What do you need? Is the company and feedback from other people essential to fuelling your creativity? If that is so, you need to allocate time to meet with people on a regular basis, or at the very least, have telephone chats with them. If you naturally prefer to stay at home, remember the adage that "people do business with people they like," and they may need to meet you in person to get to like you. Carve out time to network and meet up with your colleagues occasionally. Conducting business online? Make sure your online presence is appealing and interesting.

Copyright (c) 2010 Ask The Business Lawyer

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Fed up with convoluted legal issues in your small business? Check out Nina Kaufman, Esq's resources at GreatBusinessLawResources.com. An award-winning business attorney and online columnist/blogger for Entrepreneur Magazine, she demystifies legal mumbo-jumbo to save time, money and aggravation. Get your free copy of her Entrepreneurs Business Law Primer today!
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