An Introduction to Locating Your Business Model At Home

The home based business model is a popular option for many people who are starting out in business. Your home is a great place to start and may be a viable option for you, until you become more established, especially if you provide a service.

But there are some important things you should realize before beginning a business at home. Firstly there is a difference between operating a business “from” home and “at” home.

A business that operates “from” home means the owner does most of their work away from the home office and at a clients premises. Think of plumbers, electricians, consultants as examples.

A business that operates “at” home means the owner does most of their work in the home office. Think of computer programmers, freelancer writers, internet marketers as examples.

When locating your business at home, regardless of whether you work “at” or “from” home you’ll need to consider the following advantages and disadvantages.

Advantages of a home based business model include: saving money on commuting, more control of the hours you work and the environment you work in, low start-up cost and risk, freedom to grow your business slowly (so you can still work even part-time to have income coming through), rent and expenses are tax deductions.

The downsides to working from home include: distraction during the day from family and friends, your business activity may conflict with home life (in other words you might not switch off from work and this causes problems at home).

You may also need to find out whether you need a licence or permit to conduct a business from your home. In addition you will need to look into the types of insurance needed such as contents insurance, public liability etc.

Finally there is the equipment and space. You need to assess whether you home is right for running a business. A spare room allows you to switch easily from work to home simply by closing the door or leaving the shed. Your separate room should be big enough to have equipment, furniture and stationary.

Your business may need a phone line and will definitely need internet connection. So a second line may need to be installed. Plus like any workplace you need to assess your business for hazards and make sure you provide a safe working environment, even if it is just for yourself.

If you follow the above then you will have your home based business off and running in no time.