Avoid The Pitfalls Of Home Office Failures

"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. Be aware of zoning. There are local ordinances and zoning laws on how buildings can be used. Some are mixed live/work areas while others are for residential purposes only. If your home-based business generates a lot of "foot traffic", your customers may be congesting nearby streets with their parking. If you rent space, check to see that your lease does not prevent running your type of business from your home. Further, investigate your homeowner's insurance policy to see if you get coverage for your business inventory, equipment or activities. Otherwise, consider a separate business owner's insurance policy to avoid exposing yourself to liability.

3. Maximize efficiency in your surroundings. It is much easier if you set up your home office in a separate room (it is also easier to support a tax deduction for the home office.) A mixed-use room, such as part bedroom, and part home office, creates challenges ' both for tax purposes and work efficiency. My home office is in my living room, and I rearranged the computer tables and my furniture to create a distinct space. I keep separate phone and fax/modem lines for the office, and allocate a separate place for personal papers. I frown on my husband's draped his clothes on the office chair, or leaving food on the desk. For entrepreneurs with young kids, parents have to establish firm boundaries so that peanut butter and jelly sandwiches don't stain important client papers. A well-organized workspace greatly promotes clear thinking.

4. Keep track of time. Working from home poses its own challenges, especially time management. No supervisor is looking in on you, and your time is yours. To make sure that your days are not wasted with distractions such as a friend calling for a chat, running errands or planning tonight's dinner, make sure you plan out your work days and stick to the schedule. Establish daily achievable goals and make sure you accomplish them. To be more efficient, plan your meetings such that you can attend them in the same outing; do the same for your errands. That way, you are fully focused on work when you are at home.

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.


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