The Home Based Business

By Christopher L. Gage, Parents' Source, July 20, 1998.

Owning or operating a small business ­ no matter where it is ­ can be a challenge, but it really takes a special kind of person to operate a home based business. Most people who run a home based business probably have asked themselves in the past, "What do I want from life?". By answering this question they were able to make the courageous leap from being employed by someone else to starting their own business.

Although there are many answers to the question above, the clear-cut choice is the need to spend more time at home with family. Don't fool yourself, you will still be working 8 hours a day and possibly more, but the advantages of a home based business far outweigh the disadvantages.

When it comes to family, you can schedule your work around them, rather than scheduling your spouse and children around your work. By working at home you have much more flexibility to make and keep appointments if, for example, your child needs to see his or her doctor. One of the most positive advantages of running a home based business in today's work environment, is your ability to not only see your children off to school in the morning, but to be there for them when they return home at the end of their day. Unfortunately, many children are left to care for themselves after school before their parents arrive home from their jobs. Over time your family relationships will probably be strengthened, as your lives become more interwoven with each other.

One might think that a home based business is the ideal situation, but working at home can be challenging. You may find yourself working longer hours due to the fact that the survival of the business is totally your responsibility. Also, because your office is within your home, you and your family may feel an intrusion of the business upon your personal life, especially if you have clients come to your house.

Before getting started in a home based business, you must honestly answer at least the following three questions:

1. Can you make a transition from home to business during work hours, and from business to home during off hours?

2. Are you self-disciplined enough to set and meet work schedules?

3. Can you deal with the isolation of working from home?

Discipline plays a large part in answering the first two questions. At times there will be distractions at home. You will be more aware of dishes that need to be cleaned, laundry that needs to be washed, the lawn that should be cut, and even the weeds that have to be pulled. This is where you must set your work schedule each day, and stick firmly to it. On the other hand, you should keep your focus on your home life once you call it quits at the end of the day. It's very hard not to run to the office to pick up a phone call, play a message on the answering machine, or read a fax that just came over.

Thirdly, you no longer work for a company where co-workers and staff are available for support. Nor do you have an endless stream of company supplies and materials at your disposal. This is where organizations such as your local Chamber of Commerce and manufacturers and suppliers of small business technologies and products can help.

Once you have decided to start a home based business, it should be treated as a separate entity from the rest of your house. Whether your using a garage, a basement or a spare bedroom as your office space, you should maintain a professional environment in your work area. Rooms such as the bedroom, kitchen or dinning area are not suitable for a professional office because they do not afford your business privacy and separate space from the rest of the house. In addition, your business should have its own phone line, mailing address and bank account.

Many home based business owners are honestly unaware of Federal, State and Local regulations. A good place to start is by consulting with your CPA or local tax authorities for specific recommendations appropriate to your individual situation. Finding out this information is important when considering what type of business you will run from your home. Zoning regulations may not allow you to run certain types of businesses from a residential home, for example, the manufacturing of certain goods. You should also respect your neighbors and the type of neighborhood you live in. By having a home based business, there will more than likely be an increase of traffic in your immediate neighborhood from your clients, suppliers and any mail services you use. Keep in mind that you must register your business with the proper authorities.

Owning and operating a home based business is a lot of hard work, but it can also be very gratifying especially when one realizes that the things they are looking for in life are being made possible by their dedication to this idea. If you would like to find out more about home based businesses, take a look at "Family Net" and "Kids' Source" in this issue of Parents' Source for additional resources. Also, other good sources of information are: State Economic Development Agencies, Chambers of Commerce, Local Colleges and Universities, and The Library.

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